Managing director: Tony Chau Scana`s ownership: 80 per cent
Guan’e Street. Shawan District Leshan City. Sichuan Province China 614900
Leshan Scana Machinery Co. was founded in 1998 and is a Norwegian-Chinese joint venture, where Scana Industrier ASA owns 80 %. Local authorities in China own the remaining 20 %.
Leshan manufactures rolls for the steel industry and cast special products for the steel, energy, oil and gas, construction and shipping industry. Leshan is a respected supplier in the Chinese market and is among the leading in the Chinese roll manufacturing industry. The company has an annual capacity of 20,000 tonnes rolls and cast products.
Leshan´s vision is to be a leading manufacturer of rolls. This strategy entails manufacturing niche products of a high quality. Scana collaborates closely with the customers to develop existing and new products.
Products and market
Rolls are the company’s core product and are utilised by Leshan’s customers to make profile steel, hot materials and plates. Chinas entire production of steel totals 670 million tonnes, or roughly 50 % of the world’s total production. The production is expected to increase to more than 1,000 million tonnes towards 2020. Leshan Scana is a strong brand and has world leading steel producers on our client list.
In spite of surplus capacity in the Chinese market, Leshan Scana has increased the order intake with an excess of 300 %, compared to 2009. But substantial competition, plus increased energy and raw materials prices, has lessened profitability. Towards the end of 2010, Leshan Scana carried through cost reductions and workforce downsizing to strengthen our competitive power.
Castings are mainly used in the power generation, petroleum, cement, construction and shipping industries. Leshan Scana is certified according to international class companies like DNV, ABS, LRS, BV, GL, RINA and NK. Scana is an important supplier of cast nodes and connectors to several large projects in China, like the EXPO2010 in Shanghai and Bird’s Nest Stadium in Beijing, for the Olympic Games 2008.
The sales ratio between rolls and castings is 85 % and 15 %, respectively. Sales are largely generated from the domestic market, but some of the production is exported to India, Turkey, Malaysia and Taiwan. Through cooperation with international partners, the goal is to increase export sales considerably towards 2015.
The company has adopted and implemented the “Lean Production” philosophy to optimise production and reduce cost.
Leshan Scana is completing a large investment programme for a new production line for large rings. The project will be completed in 2011 and ensure the company a leading role in this area as well. The company will introduce new technology, improve technical skills, plus strengthen product and market development.
The investment will also bring positive side effects, such as increasing the maximum weight of castings to a theoretical value of 50 tonnes, and the total melting capacity to over 100 tonnes. This will improve the flexibility.