In the competitive Chinese market, foreign cutting tool companies are divided into five major groups: Shandong (Shante), IMC, American, European, and Japanese. These global players are actively competing against domestic manufacturers, striving to establish themselves as key service providers in China. The market is fragmented, with each group trying to carve out its own share.
Professor Luo Baihui emphasized that China is the most promising tool market globally, prompting many multinational tool companies to prioritize expanding their presence in China. Many have set up their Asia-Pacific headquarters, R&D centers, training facilities, and logistics hubs in the country, using it as a base to serve the broader Asian market. This strategic move allows them to offer more direct and efficient services to customers, better meeting regional needs.
Among these competitors, Sandvik Group includes well-known brands like Coromant, Walter, Seco, Wannett, Safety, and Thomas. On June 6, 2012, Sandvik Coromant opened its Beijing Efficiency Center, an innovative concept in metal processing. There are over 27 such centers across more than 20 countries worldwide.
While Shante leads the global cutting tool market, companies like IMC, Mitsubishi, and Kennametal are strong contenders in the second tier. In April 2012, IMC CEO Jacob Harpaz stated during the opening of Tequick’s second factory that his company is the world’s second-largest manufacturer of metal cutting tools, emphasizing that being second doesn't mean less importance.
Despite the dominance of foreign brands, China has also developed several strong domestic players, including Zhuzhou Diamond, Xiamen Golden Heron, and Zheng Ding. Alongside the original four major tool factories, there are approximately ten key enterprises that have successfully transitioned from traditional tools to modern cutting solutions. These companies have experienced steady growth and are entering a period of rapid expansion.
However, China still imports about one-third of its tools, mostly high-efficiency modern tools. Domestically produced modern tools account for only 10%–15%, indicating that while China is a growing market, the high-end segment is largely controlled by international firms. Domestic development still has a long way to go.
Selling a cutting tool isn’t just about selling a product—it's about delivering a service. Like machine tools, customers don’t just want the tool itself; they need optimal performance. Therefore, tool manufacturers must not only describe the technical specs of the product but also understand the materials being processed, combine this with cost considerations, and provide a comprehensive solution.
Today’s customers are demanding annual cost reductions while expecting higher levels of service. A survey by Jin Mo Tool Network found that business performance has declined by around 20% this year, and customer expectations are rising, which could further increase operational costs.
As a consumer industrial product, price plays a crucial role in competition. Companies cannot price their tools significantly higher than similar products. To remain profitable, they rely on sales volume to spread costs, making scale an essential factor.
With the rise of new manufacturing industries and increasing demand for production efficiency, international tool manufacturers are now focusing on specialized technical teams. Companies like Coromant, Iscar, Kennametal, and Sandvik have established dedicated teams for sectors such as Die & Mould, Automotive, Aerospace, MTB, New Energy, and Medical Industries.
Jiang Wende, General Manager of Seco Tools (Shanghai), pointed out that today, it's no longer enough to judge a tool brand based solely on product quality and performance. Customers want to improve efficiency, reduce costs, and maximize profits. To meet these needs, tool suppliers must offer not just good products, but also superior service.
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