The innovation of the National Treasure Generates Strong Wind

CFHI Corporation s Development Process

During the Three-Decade Opening-up and Reform

In China, there is an enterprise known for manufacturing the key and important technical equipment: her production value was merely more than 100 million RMB in 1978 but in 2007, the production rate reached 8.48 billion RMB, the state-owned assets hedge and appreciation rate was 161.8% and the total assets was 14.

9 billion. The enterprise was awarded Special Prize for Performance Progress by the SASAC (National Assets Supervise and Administration Commission of the State Council). Form February to October 2008, the production value reached 10.13 billion which has made the enterprise up to the new stage of 10 billion.

This enterprise is China First Heavy Industries (CFHI) Corporation, once given the fame National Treasure by Mr. Zhou Enlai.

The naissance of the New Steel Giant caved the letters Independent Innovation on the development history of China s heavy equipment manufacturing industry.

There is an equipment makes CFHI proud: this equipment helps the bottleneck difficulties in electric power, metallurgy, petrifaction, shipbuilding and other industries readily solved. It is a giant of 25-meter high and more than 4000 tons weight. Because the machined parts accuracy can be controlled within 3mm, its machining accuracy and controlling system are more advanced than the international level.

This equipment is the domestic first, the world largest and the most advanced New Steel Giant manufactured by CFHI 150MN Free Die Hydraulic Forging Press.

Innovation enables CFHI more confident and stronger. Besides this free forging hydraulic press, CFHI has more than 200 (sets) key technical equipments and has developed over 300 new products which have filled the nearly 400 blanks of domestic industry.

CFHI began the trial production of high Chromium Iron hot mill rolls from 2004. During the four years trial production, altogether 13 rolls have been broken continuously and CFHI has not succeeded until the 14^th roll. The scientific and research team spent 8 years in tackling in the casting steel backup rolls before they made breakthrough. From 1998 to 1999, the employees monthly salary was only 200 yuan and CFHI was called Erbai two hundred Company at that time. On such difficult situation, in order to keep and attract technical talents, CFHI decided firmly to perform overall move of the Design and Research Institute located in Fularji

In the interest of making good use of valuable innovation resources, CFHI learned from other international enterprises advanced measures. The production mode of Large and all-inclusive , small and all-inclusive has been transferred into less but more focused , fewer but stronger . Mainly work for the important parts and key parts .

By way of developing the production of independent intellectual property, CFHI has increased the technical content and added value. The technical advantage in the industry has been strengthened and CFHI s brand edge and international competition ability have been greatly enhanced.

In 2007, CFHI started the project of establishing the international up-ranking casting and forging steel base and the technical upgrading of large casings and forgings nationalization; CFHI plans to spend three years in building the up-ranking casting and forging steel base in the world. After perform the project, CFHI s molten steel annual output has been increased from 250,000 tons to 500,000 tons. The annual output of forgings increased form 120,000 tons to 240,000 tons and castings from 300,000 tons to 600,000 tons.

Supported by the good brand and powerful capability of researching and developing the large technical equipment, CFHI will finally develop into a large-scale internationalized manufacturer with the ability of systemic whole set, of engineering general contract and of manufacturing multifold products and supplying technical service . Mr. Wu Shengfu is quite confident with CFHI s development in the future.