TAIYUANHEAVYINDUSTRYCO.,LTD..doc

Taiyuan Heavy Industry Co., Ltd.

Introduction of Taiyuan Heavy Industry Co., Ltd.

ⅠGeneral
The qualification report of Taiyuan Heavy Industry Co., Ltd.
1 Company name: Taiyuan Heavy Industry Co., Ltd
Ownership: State-controlled stock company (listing company in shanghai stock exchange center)
Department in charge: China security supervision committee
Register date: July 6th in 1998

2 Address: No.53 Yuhe street, Wanbailin district, Taiyuan, Shanxi
Telephone: [phone]
Fax: [phone]
Post code: 030024

3 Taiyuan Heavy Industry Co., Ltd.
Chairman of the Board: Yue Puyu General Manager: Zhang Zhide

ⅡThe brief and organization layout of company
1 The brief of company
Taiyuan Heavy Industry Co., Ltd (the former Taiyuan Heavy Machinery Plant, also called TZ) is a joint-stock co., ltd, sponsored by Taiyuan Heavy Machinery Group Co., Ltd, Datong gear factory and Shanxi economic & trade assets management co., ltd, registered by the People’s government of Shanxi province, set up through floating. The company registered in the state-grade high technology industry developing zone of Taiyuan. Its business scope covers mine, metallurgy, water conservancy and power construction, energy sources, railway, space flight and automobile field, etc. Taiyuan Heavy Machinery Plant was set up by central people’s government in 1950 and later it reforms as Taiyuan Heavy Machinery Group Co., Ltd – main sponsor and stock control shareholder of the company. It is the first heavy machinery manufacturer in China. Taiyuan Heavy Industry Co., Ltd is a large machinery building enterprise in China, one of “the biggest 500 of the nation” and “the 50 of machinery industry”; also is one of trial enterprises of “one hundred modernization enterprises” approved by state council. Its land area is 2,610,000 square meters and of which 957,000 square meters is construction area. There are 1620 set main manufacture equipment. In 1996 it became an super large enterprise approved by national economic business committee. It was a credited ISO9001 quality system certificate in Dec.1997, ISO2000 quality system certificate in 2000. In 2003 it passed certificate recalibration. These all provide stable guarantee for the product quality. Through the developing of these years, it has been a leading enterprise of China’s heavy machinery manufacture.
TZ undertakes the task to provide significant complete set of equipment for the national economy key construction project. It mainly manufactures all types of excavators, coke oven equipment, cranes, rolling mill equipment, forge and press equipment, coal gasifier, large size casting and forging, spare parts for industry and mining. TZ has been set up for 55 years and in these years it provides equipments for national fundamental industry such as mine, water and power, metallurgy, chemical industry, energy sources, transportation, military project and raw material, providing 4000 types, 7000 sets heavy machinery equipments in total for national key engineering construction project, in which 200 types more fill the gap of national blank, also its products export to countries and regions in Asia, Europe, America and Africa.
Since the National Science and Technology Conference in 1978, TZ has got 107 medals of scientific research achievement and new products, in which one first – grade medal and two third – grade medal of national invention; four first – grade medal and 19 second – grade medal of national scientific progress and achievement; three products gain gold medals and two silver medal of high quality product. Excavator equipment got one second –grade medal of national technology progress, one national award, one high quality product medal, one of gold national quality medal and several city awards for technology progress and new products.

2 Organization layouts
Taiyuan Heavy Industry Co., Ltd is a super large enterprise in China, its organization layout is set up according to the requirement for modernization enterprise management, here introduce administrative organization only.
2.1 Administration system
Administration system undertakes the comprehensive administration, in this system there are planning department, market department, production safety department, technical quality department, equipment department, financial department, personal training department, audit office and administration office of general manager, etc.
2.2 Manufacture system
Manufacture system covers all departments concerning the products manufacturing, undertakes the development and design of products, process preparation, manufacture and material supply. It mainly includes three systems:
2.2.1 Technology system
1) Technical center: undertake the development, design and test research of product.
2) Process research institute: undertake the developing of heat machining product, process technical preparation of heat machining, tooling preparation and man – hour quota of material, etc; undertake the process research, process program, material and man – hour quota of welding components responsible for the process management, process research, process criterion and process discipline of company.
2.2.2 Produce system
Produce system is the main department of producing products and objectifying manual labor. The whole process of manufacturing from raw materials incoming to the products packing and delivery finished in this system. It mainly includes:
1) Excavator and coke oven equipment Sub Company: manufacture excavators, coke oven equipment, crawler crane, dredger, satellite launching tower and revolving stage.
2) Crane equipment Sub Company: manufacture lifting equipment.
3) Rolling and forging equipment Sub Company: manufacture equipments for steel mill, forging equipment and hydraulic machine, etc.
4) Reducer Sub Company: undertake to machining parts with teeth and supply the complete set of reducer.
5) Forging and casting Company: undertake the smelting of all kinds of steel materials, steel ingot and the large type casting steel, not only undertaking the casting manufacture for smelting material of all types of steel, middle and small types casting steel, but also the producing of grind – resistant casting steel, all types of cast iron and cast copper producing rough machining of cast steel with all specifications; undertake to produce wood mold for castings and the packing for all products.
6) Wheel and axle Sub Company: undertake the batch production of precise forging, train axle and wheel.
7) Precise casting Company: undertake the producing of all types of small type precise castings.
8) Heat treatment Company: undertake the heat treatment process of all types of machining components which include surface quenching and carburization treatment.
9) Oil film Sub Company: produce all kinds of oil film bearing for large rolling mill.
2.2.3 Supply system
Supply system is to serve for company to provide all kinds of materials, power, transportation and repairs.
1) Raw material supply Company: undertake the supplying of raw materials and purchasing complete set machinery spare parts.
2) Tool Company: supply all kinds of cutlery and tools (including producing special tools) for inner departments using.
3) Power supply Company: provide electric power, coal gas, compressed air, steam, oxygen and carbon dioxide for production.
4) Storage and transportation Company: undertake to transport all types of large quantity materials for company, inner transship of all middle and large types of components and deliver products by railway and road, etc.
5) Machinery Erection Company: provide machinery erection commissioning, repair and infrastructure construction service for the company.
6) Equipment repair Company: provide the repair service of machinery equipment for the company.

Ⅲ Main products
There are ten types main products in TZ, including seven types of machinery products, such as excavator, coke oven equipment, crane, reducer, rolling mill, forging and press, straightener; other three types, such as oil film bearing, cast steel and train axle.
1 Mining excavator
Mining excavator is one of the main products of TZ, it has a manufacture history for more than 40 years, occupying more than 80％ market share of national open-pit mine. TZ has formed mining excavator series products from 4 m3 to 55 m3. It manufactured H121 hydraulic excavator by cooperating with DEMAG company of Germany, 3100 m3 /h compact bucket wheel excavator with KRUPP company. During these years it has manufactured more or less 2000 sets excavators in total for mines domestic and abroad.
WK – 10B is the first large excavator in the country which is developed by our own, it is applicable to the open – pit mine with capacity of ten million ton per year and suitable for construction, hydro-power station, petrochemical industry project, its standard dipper capacity is 12 m3. In 1989 this excavator gains national special grade technical progress medal and national gold medal of super quality.
WK – 35 mining shovel is the up – dated equipment for large type open – pit developed by our company. It adopts large advanced design, process, manufacture and control technology from domestic and aboard, collecting the successful experiences of producing 4 m3, 8m3, 10 m3 mining excavator at the same time. It is applicable to the open – pit coal mine, iron mine and nonferrous metal mine of twenty million ton per year.
WK – 55 excavator adopts modernization design method: such as three – dimension simulation and finite element analysis, making a reasonable matching for the performance and working dimensions of whole machine, fully fulfill the effect of excavator, elevate the matching to all kinds of mining truck with excavator, fully meet the customers’ requirement of effective loading and lower cost. This is one of the largest electric rope shovels in the world.

2. Coke oven equipment
TZ produces all coke oven machinery equipments, such as 6m coking machine, dry – quenching, 5m coke machine, 4.3m tamping coke machinery, DQJ (DQJ – 50, DQJ – 50A), purified coke oven and RQJ purified coke oven, etc. TZ provides coke oven equipment for the customers, such as Houma coke plant of Shanxi Huanda Co., Ltd, Qingxu coal gasify company, Shanxi Jinye business trade Co., Ltd (first period, second period), Linfen tongshida Co., Ltd (first period, second period), Maanshan steel Co., Ltd, Benxi steel company coke plant, Yunnan Qujing, Gujiao Nanhai coal and coke Co., Ltd, Taiyuan Guangyuan coke Co., Ltd, Baotou steel group company coke plant, Xinjiang international company, Shandong Xizhou and Qinghai Jiangchang company, etc.
In May 1998, TZ cooperated with Huanda Co., Ltd of Shanxi, also got support from Shanxi economic and trade committee, completed test and research to new technical equipment. It started from the tamping of coal and put hot-state briquette into oven, and developed DQJ – 50 complete set equipment. In 1999, TZ completed the research of this equipment which fulfilled the new technology, running successfully in Houma coke plant of Shanxi Huanda Co., Ltd at the same year. On Sep.18th, 2000 this equipment passed the identification by Shanxi economic and trade committee, which praised this equipment fully meeting technical requirement for hot – recovery coke oven interlink. The technology is up to the top level of the world.
Up to now, our coke oven machines have been sold in India market, such as SISCO, JINDUL STEEL and JSW through MECC and SHOUGANG due to turn key engineering project required. Like pusher, Loco, Quenching car, tamping machines and coke guide car.

3 Crane
TZ is a national main enterprise which manufactures large crane, mainly including all kinds of bridge crane, portal crane, crawler crane and special crane, totally 20 varieties and 160 specifications cranes. It designed and manufactured the biggest 1200t bridge crane of the world for three – gorge water power project. The 1200t bridge crane has passed the final acceptance check and been delivered to three – gorge site. TZ’s large type water and electricity station crane which used in three – gorge, Gezhou dam, Long yang canyon, Danjiang port, etc, made a great contribution for the national water conservancy and electric power industry. Double face portal crane with 500t/ 350t/ 40t gained scientific progress special – grade medal of machinery department and first – class medal of national scientific progress. The metallurgy crane manufactured by TZ is in a leading position in the country. TZ has provided a large quantity advanced metallurgy cranes for Bao steel company, Anshan steel, Panzhihua steel, Baotou steel, Taiyuan steel and Benxi steel. Since 1979, TZ has produced lots of crane equipments with international advanced level medal, such as 140 – 200t crawler crane, the crane for Baoshan 2050 hot rolling steel plant and 1900 slab blank cast plant, cooperated with international famous enterprise: Demark company in Manisman, Newluburg company in Augsburg of Germany and Mitsubishi Heavy Industry in Japan.
4. Steel mill equipment
During the period of planned economy, TZ is the appointed manufacturer determined by the state to produce tube mill equipment, middle and small type plate rolling mill. It has been set up for about half century, producing large quantity steel mill equipment base on the condition of our country. Since 1979, TZ has produced ￠170 ㎜ three – tube mill, cooperated with Demark company, Holici company and Morgan company of America producing rolling mill equipment with international advanced level such as steel pipe length-checking, weighing, marking and oil film bearing for large rolling mill. TZ speeds up the steel mill technology development in the world, its technology reaches the international advanced level in the design and manufacture all aspects of tube mill and plate mill equipment.

5 Forging and press equipment
TZ is engaged in the research development and manufacture of heavy type forging and press equipment for 36 years, producing 100 varieties, 400 sets heavy type forging and press equipments for the country’s economic development. Its products are used all over the country except Tibet and Taiwan, also exported to Pakistan and Romania, etc. At the beginning of 1960, TZ designed and produced the first large wheel production line equipment of the country, until now it is the only enterprise producing complete train wheel and axle for the country. Also it provides all kinds of necessary special hydraulic machines for national military project and so on, 350 sets hydraulic machine in total.

6 Straightener
TZ is the first and the biggest manufacturer of the country producing straightener. All types of leveling machine, tubing machine, distributed over the country reputed for its high quality and advanced technology. Plate leveling machine gained national quality silver medal, tube straingener series gained