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    Resolute in innovating drilling tools and expanding overseas market shares
    ----Interview with Mr. Shen Guohua, president of Zhejiang Pulanka Drilling Tools Co., Ltd.
    Zhejiang Pulanka Rock Tools Co., Ltd. has fifteen-year experience in producing rock drills used in mines, tunnels, roads, railway and hydropower stations. Springing from production of tapered ball-tooth drills, the company keeps introducing advanced technology and equipment from other countries as well as expanding its production scale and technical team. Thanks to unremitting efforts over these years, the company has made significant technical breakthroughs in fields of thread, hydraulic and high air pressure DTH drills, and the market has come to accepting its products and trusting its brand. Meanwhile, its target market also gradually shifts from China to the international market, with its products exported to over thirty countries and regions around the world, including Southeast Asia, the United States, Germany, U.K., South Africa and so on.

    Asian Metal: Mr. Shen, thanks much for taking our interview. At first, would you please make a brief introduction on the main businesses and production of your company?

    Mr. Shen: Our company specializes in production, research and development of rock drills used in mines, tunnels, roads, railway and hydropower stations. We produce about 5 million small drills annually and consume around 300t of alloy annually. And our products are exported to over 30 countries and regions such as the U.S., Germany, U.K., and South Africa.

    Asian Metal: The tungsten market has been moving slowly recently and prices are dropping. Insiders are not confident about prices in the near future. So what is your opinion on the tungsten market in the latter half of 2017?

    Mr. Shen: During the latter half of 2017, as China will press on with the supply-end reform, demand in the market will be relatively stable on the whole. Demand for high-end products may increase but I am not confident about the market for meddle- and low-end products.

    Asian Metal: Environmental protection has been a hot topic in the recent years. How do you understand the concept of green mining?

    Mr. Shen: Natural environment provides the most essential elements for human kind to survive and green mining is an inevitable trend. In the recent years Chinese government has been working hard to improve natural environment and penalize environmental illegalities. We believe that green mining and environmental protection will continue to be mainstream pursuit goal for our industry.

    Asian Metal: Half of the year has passed and, based upon current transactions in the market, how you think of demand for Chinese rock drills during the year of 2017?

    Mr. Shen: After the Spring Festival, as prices for nonferrous metals remained firm and government issued supportive policies on engineering projects, the rock drill market was hectic in concluding transactions during March and April; but during May and June, with the market entering traditional slack season, market conditions were not so inspiring. As the extensive stage in China’ economic growth has already come to an end, it’s not very possible to see demand increasing quickly in the latter half of 2017. Instead, we believe that space for drills producers to increase their market shares is limited in this period and competition will be harsh. Only high-end products will flourish in the near future.

    Asian Metal: The current Chinese rock dill market faces an issue of over-capacity and most producers maintain slim profit margins. How does your company deal with this issue?

    Mr. Shen: On one hand, we should improve our products’ quality and explore potential demand of our customers; should improve our market shares of high-end products in order to seize more market space; and should optimize our management and cut production costs. On the other hand, we need to expand our market shares in overseas markets, making our products known and used by more overseas customers.

    Asian Metal: What is your expectation for Chinese rock drill market in the future?

    Mr. Shen: As a manufacturing behemoth, China’s demand for resources and its manufacturing development boosts demand for rock drills. The Chinese rock drill market will move toward the direction of structural adjustment and product upgrading in the future, with primitive mining methods gradually eliminated and replaced by intelligentized and quick-drilling products. And in addition, China should continue to optimize and upgrade its drill properties, making them closer to international standards and norms.

    Asian Metal: The current Chinese export market for rock drills is not big enough. How do you think of your overseas counterparts?

    Mr. Shen: We need to consider this question in two perspectives. One is mining programs in advanced countries and regions such as Europe, Australia and Japan. It still takes some time for Chinese drill producers to cultivate and disseminate their brand images among customers from those regions and countries, as consumers need time to observe and accept their suppliers in terms of stability and brand reputation, which are also the future directions in our work. The other perspective is mining programs in developing countries and regions such as in India, Southeast Asia, Africa and South America, where Chinese drills have competitive advantages and have won good reputations.

    Asian Metal: Compared with your counterparts both in China and overseas markets, what are the advantages of your products? And what are your development directions in the future?

    Mr. Shen: Our company has over-ten-year experience in the drill industry and has advantages in quality control and specialized production. Since 2012, based upon our previous advantages, we began to develop and produce products such as thread, hydraulic and high air pressure DTH drills. Our goal is to keep enhancing product quality and increasing product varieties to meet customers’ demand.

    Asian Metal: Thanks again for taking our interview. Wish you and your company better and better!

    Mr. Shen: Thanks.
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