Xincheng Automotive Industrial CO., Ltd
New business model increases production stability and return on investment
By investing, not only in first-class machinery, but also in first-class regular maintenance, Chinese manufacturer of automotive components Xincheng Automotive Industrial CO., Ltd has taken a step that will improve both long-term production stability and return on investment. "Together we have created a modern business model for the future, that is quite unique in China," says Kimi He, General Manager at AP&T China.
It pays to invest in high-quality technology – and it pays to take care of your machines. By working closely with AP&T, Xincheng Automotive Industrial CO., Ltd in China is ensuring that the company's press-hardening lines deliver at their peak over time. The result is high machine availability, high output, low energy consumption and a low scrap rate.
In an industry characterized by razor-sharp competition and small margins, there is no room for unplanned downtime. As a supplier of press-hardened parts to many of the leading OEMs in the Chinese market, Xincheng depends on flawless production every day of the year. In order to ensure long-term profitable production with high availability, high output and a low scrap rate, they have chosen to let AP&T, supplier of four of the company's press-hardening lines, take responsibility for ensuring that they are also properly maintained.
The collaboration between the two companies began in 2019 when Xincheng was about to invest in a new press-hardening line for its production facility in Taizhou Jingjiang.
“We presented a proposal for a technical solution together with a detailed calculation that showed the estimated total cost of ownership and return on investment over the entire expected life of the line. We particularly emphasized the importance of keeping the machines in good condition, preventing unplanned downtime. Our tender stood up well to the competition and resulted in an order. Since the line was installed in 2020, we have meticulously taken care of it in our role as One Responsible Partner®, which has also produced the expected results,” says Kimi He, General Manager at AP&T China.
Availability agreement an integral part of the deal
That same year, AP&T supplied their second press-hardening line to Xincheng, this time to the factory in Wuhan. The cooperation was further deepened and Xincheng chose to sign an availability agreement for the new line even before it was installed, which is unusual in China. This included not only service planning and maintenance, but also operator training and spare parts supply.
When AP&T eventually received orders for line number four, a group-wide framework agreement was drawn up that specifies that each line now has its own individual one-year availability agreement with remote technical support, emergency troubleshooting, safety inspection and qualified annual maintenance. Spare parts supply is also included.
“With a shared view of how important service and maintenance actually are for the line's profitability over time, we have developed our collaboration step by step, which has led to an expanded commitment for AP&T. We are very happy about the great trust that Xincheng has shown us and look forward to continuing to contribute to increasing their competitiveness with our comprehensive offering of products and services,” says Kimi He.
December 2023
Facts
Xincheng Automotive Industry Co., Ltd. manufactures high-end car-supporting metal stamping and automatic welding assemblies. The company has production sites in several Chinese cities. The factories producing press-hardened parts with production lines from AP&T are located in Wuhan and Jingjiang.
Learn more about AP&T’s availability agreements.