Zhejiang Kaishan Compressor's large-scale production leads to cost leadership

Since its establishment, in less than ten years, Kaishan has achieved the largest air compressor scale in the country. In 2010, Zhejiang Kaishan Compressor achieved operating income of 1.625 billion yuan and net profit of 223 million yuan. The market share of screw air compressors was nearly 21%, ranking first in the industry.

In addition to independent research and development to achieve import substitution, it is very important that Zhejiang Kaishan compressors have expanded their cost leadership by relying on large-scale production and ultimately achieved overall high-speed growth. Zhejiang Kaishan Compressor R&D team has both academic research and development background and advanced technology research and development background, and has realized the whole process of research and development from concept research and development to laboratory research and development to large-scale industrial production. Thereby, a full-spectrum, large-scale screw mainframe production is realized.

With the expansion of market share and the increase in orders, the production capacity of the screw mainframe of Zhejiang Kaishan Compressor has been in a state of saturation. Zhejiang Kaishan Compressor has successively purchased special equipment to increase production lines in order to alleviate the tight production capacity. The advantageous production scale brings significant cost leadership to Kaishan. In recent years, Zhejiang Kaishan Compressor has continuously expanded its product production scale. In 2010, Zhejiang Kaishan Compressor screw air compressor production reached 24,000 units, and the domestic market share was nearly 21%. On the other hand, Zhejiang Kaishan Compressor also greatly reduced the production cost through the screw mainframe: Zhejiang Kaishan Compressor has the self-manufacturing capability of the screw mainframe, and the screw mainframe accounts for 20-30% of the screw air compressor. The self-made screw mainframe can save more than With 17% of production costs, Kaishan has a significant cost advantage compared to companies that do not have the self-manufacturing capabilities of screw mainframes.

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