On July 21 this year, Zhejiang Rifa Precision Machinery Co., Ltd. (hereinafter referred to as "RIFA Precision Machinery") issued an announcement that dropped a blockbuster in the industry. The announcement stated that it intends to purchase 80% of MCM's equity by cash payment. After the purchase is completed, MCM will become the company's holding subsidiary. Although the news drew many speculations in the industry and the stock price was twists and turns, Rifa Seiki's strategic layout has become increasingly clear, and mergers and acquisitions are imperative.
Contrarian growth
As far as the machine tool industry is concerned, from the current point of view, 2014 is not a "good year". Problems such as continuous decline in machine tool consumption and overcapacity in the machine tool industry have not been alleviated. However, the traditional business of Rifa Precision Machinery has increased by more than 70% year-on-year. Li Yan, secretary to the chairman of Rifa Precision Machinery, revealed that the sales target of 200 million yuan was basically achieved in the first half of the year.
In fact, the performance of Rifa Precision Machinery in 2013 was not as good as expected, mainly due to the sluggish market demand for machine tools and the increasing competition in the market. However, Rifa Precision Machinery has long realized the necessity of transformation. The production of precision machine tools has always been the pursuit goal of Rifa Precision Machinery. After years of R&D investment and market practice, Rifa Precision Machinery has become one of the most important mid-to-high-end CNC machine tool manufacturers in China. Its products are used in aerospace and automotive parts. , Construction machinery, agricultural machinery and other fields are widely used.
This is far from enough. my country's low-end and medium-end industries have entered the stage of brand-style fighting, which makes every cutting-edge company must move toward the high-end. Rifa Precision Machinery has a long-term vision, and has focused its strategy on market segments from the very beginning. "The automotive wheel and bearing industries are our two relatively successful market segments. Focus allows us to more accurately grasp customer needs, and at the same time, a large enough market space allows the company to continue to innovate technology under the premise of ensuring normal operation. And stability is better.” Li Yan said. With the improvement of technological level, Rifa Precision Machinery is now incorporating aviation into the third sub-field, and it is inevitable to increase aviation.
International perspective
"In the field of CNC machine tools, European and American countries have strong strengths in product design, quality, precision, and performance. After Rifa Precision Machinery went public, we have always expected to have a company with first-class professional technology overseas." Li Yan Tell reporters. In recent years, the pace of overseas mergers and acquisitions by Chinese companies has never stopped. Many companies are actively seeking to acquire well-known brands that are already prestigious in Europe. Rifa Precision Machinery is also looking for overseas investment targets. It is against this background that MCM, an Italian company engaged in high-end CNC machine tools, has entered Rifa Precision Machinery's vision. Subsequently, Rifa Precision Machinery conducted a comprehensive inspection of MCM's headquarters, factories and customers.
MCM focuses on the research and development, design and production of large-scale machining centers, heavy-duty machine tools and key components, and pays special attention to customer experience. At present, MCM maintains a long-term good cooperative relationship with many world-class manufacturers, has outstanding sales performance, and has a good market demonstration effect and influence. More importantly, MCM's aerospace customers account for more than 50% of its entire business, which matches the layout of Rifa Precision Machinery in the aerospace field.
Rifa Precision Machinery has made sufficient preparations to enter the aviation field. At the end of 2012, Rifa Precision Machinery started cooperation with Zhejiang University and obtained the right to use the core patented technology of aircraft honeycomb material processing, breaking the foreign ownership of my country’s high-end paper-based honeycomb material processing equipment. Monopoly. In October 2013, the honeycomb material processing equipment was successfully accepted, and the current market response is good. In March of this year, Rifa Precision Machinery also established a subsidiary "Zhejiang Rifa Aviation Digital Equipment Co., Ltd." to formally deploy in the aviation field. "MCM and our strategic layout are relatively consistent. The two companies' pursuit of future development and technology as well as their understanding of the machine tool industry are also very consistent. We believe that the acquisition of MCM is more suitable for the company's strategic goals, so MCM is included Under the name of a subsidiary company of Rifa."
The acquisition of MCM will rapidly improve the core competitiveness of Rifa Precision Machinery in terms of technology, brand and channels. Its technology and experience in the aviation industry will also help Rifa Precision Machinery develop its aerospace strategy.
overall enhancement
"Aviation is the third market segment, and we will carry out overall centralized layout and key deployment. After the successful acquisition of MCM, we will initially complete the entire industrial chain layout of centralized aviation." Li Yan emphasized. The advantage of MCM is the processing of metal materials. Rifa Aviation Equipment mainly produces composite material processing equipment and digital equipment lines, while Rifa Precision Machinery has a large gantry machining center. If the acquisition is successful, the combination of the three can complete the processing of large aircraft structures, Aviation parts processing and automated assembly lines, etc., open up the entire industry chain of aviation upstream. "We can provide airlines with solutions to all corresponding needs. Rifa Precision Machinery can provide all the high-precision equipment involved in the entire industry chain." Li Yan added.
MCM has rich experience in aerospace and its superb technology will further know the R&D and production of Rifa Precision Machinery. Users are very demanding on the machining accuracy of machine tools, while the machining accuracy and positioning accuracy of MCM can reach 3 microns, which is currently difficult to achieve in China. At the same time, MCM's machine tool can also realize the functions of one machine tool to complete the three tasks of turning, milling and grinding, helping users to improve the overall efficiency. After the acquisition, Rifa Precision Machinery will arrange MCM engineers to work at Rifa Precision Machinery, and will also send technical and assembly personnel to MCM for exchanges and learning.
MCM has many well-known customers all over the world, which undoubtedly lays a good foundation for Rifa Precision Machinery to open up the European and American markets. But Li Yan said that Rifa Precision Machinery is not so urgent to open up overseas markets. "All-round development of the market will inevitably disperse energy. Rifa Precision Machinery is now mainly based on the domestic market, and it is recognized by the country. It is logical to open the overseas market. The overseas market is to extend the advantages of MCM to other countries in Europe and the United States. ."
With the development of the social environment, European and American aviation manufacturing companies are constantly transferring to developing countries, and the countries that undertake this transfer will have the needs of aviation processing equipment. my country's AVIC subsidiary companies are also gradually opening up to machine tool manufacturers, which is just the right time for Rifa Precision Machinery. Through the acquisition of MCM, it has not only achieved scale expansion and technological improvement, but also achieved brand integration, enhanced its international image, and moved towards a new leap-forward development.
Today, when going global has become a major trend, Rifa Precision Machinery has dreams and is pragmatic. As an industrial foundation, machine tools have a wide range of applications, and the machine tool market will remain stable. In the vast space for development, we have a long and long journey towards the international path. Li Yan said, "We must be aware of the gap between our country and Europe, America, Japan, South Korea and other places. Rifa Precision Machinery is constantly introducing technology to make up for the shortcomings. Relying on our more than ten years of accumulation and continuous introduction and learning, I believe that after a period of time, Over time, we will be on the same level as abroad."
