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Newsletter "SEI NEWS" 2013

Home > Company Information > SEI WORLD > Back number > Vol.427

[Newsletter "SEI NEWS" Vol.427]

Group Company of the Month: SHMS

Sumitomo Electric Hardmetal Trading (Shanghai) Co., Ltd. (SHMS) was established in October 2004 as a cutting tool sales company wholly owned by Sumitomo Electric. The company purchases its products not only from the Hardmetal Division in Japan but also from A.L.M.T. Corp., as well as from Sumiden Carbide Manufacturing (Tianjin) Ltd. (SCT) and Sumitomo Electric Hardmetal Manufacturing (Changzhou) Co., Ltd. (SHMC), which are Sumitomo Electric’s production bases in China. Using its special agent network, the company sells the products to more than 7,000 customers in China.

【レポーター】副総経理 鍵谷 夕

A report from SHMS, which sells cutting tools to more than 7,000 customers in China-the world’s largest automobile manufacturing country-and has been continuing to make new sales records。

Yu Kagiya
Vice President


Future challenge: raising our profile among Chinese automobile manufacturers

SHMS sells cutting tools in the Chinese market. Our sales dropped in 2008, when the bankruptcy of Lehman Brothers triggered a global economic downturn. However, observing a quicker recovery in this area than in other areas, we have been continuing to make new sales records over the past few months.

As you may know, automobile production and sales in China have been growing rapidly, placing the country at the world’s No.1 rank in 2009. What’s more, both the country’s automobile production and sales figures exceeded 19 million in 2012. Our products have been well received by automobile manufacturers, especially Japanese-affiliated ones, but our profile is not so high among Chinese automobile manufacturers. In this regard, the key to SHMS’s further growth lies in raising our profile among such Chinese manufacturers. I’m the vice president and am in charge of technical affairs, and I also assume responsibility for the Project Management Group (PMG). The mission of the PMG is to boost our market share by participating in each user’s new project at its planning phase and cooperating with machinery manufacturers. Last year, by responding to the rapid expansion of investment in automobile production facilities in China, we were able to obtain large-scale orders from several major automobile manufacturers. Striving to increase the number of orders placed with us again this year, we are cooperating with divisions of the design of automobile part processing tools in Japan and the United States.

SHMS staff members   At the office
■Profiles of Local Staff Members

Li Xin

Li Xin

Hello, I’m Li Xin of the Beijing branch of SHMS. I joined this company as a sales representative in April 2007; I will enter my seventh year at this company this month. As the leader of four members at the Beijing branch and three at the Changchun office, I’m working very hard every day on the sales of cemented carbide tools in the North and Northeast areas of China. While continuing to improve my own skills, I would like to develop myself along with my staff members, expand the sales of Sumitomo Electric’s cutting tools, and increase the profile of the Sumitomo Electric brand in the huge Chinese market. Our branch is located in Beijing, China’s political center. The city is internationally renowned for its delicious Peking duck and baijiu, or white liquor (which has an average alcohol content of 52%), as well as the Great Wall of China, a World Heritage Site. Please visit Beijing in your free time.

Li Hailan

Li Hailan

Hello, everyone! I’m Li Hailan, SHMS general and personnel affairs group leader. This year, I entered my seventh year at this company. Our company started with just five or six employees, but this number has now grown to more than 70. Along with the company, I myself have also been growing up. I’m convinced that in the Chinese market with its rapid growth, SHMS will achieve further development and transform itself into a large company with more than 100 employees. Striving to ensure that SHMS will continue to offer a vibrant and comfortable environment for its staff members, I will continue to do my best and fully play the role of the general and personnel affairs group leader.

[Places of Interest] Shanghai, a City where Cutting-Edge Technologies and Traditional Customs of the Good Old Days Coexist
Shanghai, a City of Rapid Development

Shanghai World Financial Center, a 101-story building

As has been covered in news programs, Shanghai is one of the most rapidly developing cities even in China. Situated in the Pudong district are Shanghai World Financial Center, a 101-story building (with a height of 492 m, making the building the world’s third tallest), as well as linear motor cars-which are not in commercial operation anywhere else in the world-running from the city’s airport to downtown at 430 km per hour. Also, along the West Nanjing Road are fashion brands that are also gaining popularity in Japan and high-fashion stores. Thus the city brims with energy.

Fire crackers sold on a street prior to the Lunar New Year

Fireworks and Fire Crackers to Celebrate the Lunar New Year

In China, there is a custom of setting off fireworks and fire crackers at night on the last day of the year in the lunar calendar. The custom is still observed even in Shanghai. The sight of an enormous number of fireworks being set off simultaneously at midnight is spectacular. Such fireworks are set off even in the areas between high-rise buildings (although this is prohibited in some areas). Early the following morning, all the cinders of the fireworks and fire crackers are cleared away. The amount of cinders collected in Shanghai last year reached the huge amount of 1,200 tons!

Delicious Xiaolongbao

At Nanxiang Mantou Dian

Shanghai cuisine is renowned for the delicious Shanghai crabs! Another dish pleasing to the Japanese palate is xiaolongbao, or steamed buns. The photo depicts Nanxiang Mantou Dian, one of the most famous xiaolongbao shops in Shanghai. The store sells 20 xiaolongbao for 20 yuan (approx. 3.2 US dollars). So cheap! In front of a store in Yu Garden, a popular sightseeing destination in Shanghai, a long line is formed every day.


East Nanjing Road crowded with people


Linear motor car

  Pudong seen from the Bund   The Bund with an array of historical Western-style structures  

Company Profile


Company name Sumitomo Electric Hardmetal Trading (Shanghai) Co., Ltd.
Locations Shanghai (head office); Beijing, Dalian, Chongqing, Guangzhou, Changchun, and Chengdu (branches)
Established October 2004
Business Sales of cemented carbide, CBN and PCD cutting tools
Representative Kawamoto Takaaki
Employees 126 (Japanese expats: 12)
2013 Index
(C) 2015 Sumitomo Electric Industries, Ltd.
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