(Yicai) Nov. 5 -- PAMA's Speedmat horizontal boring and milling machine, produced by the Italian machine tool manufacturer at its plant in Lingang Special Area, a key testing ground for economic and trade policies within the Shanghai Free Trade Zone, has drawn many visitors at the China International Import Expo's technical equipment exhibition area.

"This is our fifth time participating in the CIIE," Lu Guoguang, chief financial officer of PAMA Shanghai Machine Tool, told Yicai yesterday. "Famous manufacturers from all over the world come here, and we have gained a lot.

"On one hand, we meet more customers, and on the other hand, we also showcase our localization capabilities," Lu said. "Among foreign machine tool brands in China, our degree of localization is the highest. Eighty-five percent of our suppliers are already in China, accounting for 85 percent of our goods value."

Established in 1926, PAMA sold its first machine in China in 1989 before setting up a wholly-owned subsidiary in Lingang to realize its strategy of "producing in China for China" in 2011. During the decade of development in the area, the unit's revenue surged tenfold, General Manager Silvio Smiderle previously revealed.

"Being in Shanghai, close to Jiangsu and Zhejiang, offers plenty of solutions for suppliers that have anyway the same level as we are accustomed to with our needs," Andrea Corradini, operations director of PAMA Shanghai, said to Yicai.

PAMA's Lingang factory possesses advanced production equipment and has a technical department with complete development capabilities, composed of highly skilled professionals who can communicate independently with customers and conduct research, development, and production according to their needs.

"Our R&D is conducted at the Lingang plant, which has the conditions in all aspects, such as the supply chain and talent," Lu pointed out.

According to Corradini, "what makes a difference between us and our competitors is the solutions that we provide. Our company has 99 years of history, so in this time, we gained experience and know-how, and that is what gives us a leading position."

Finding New Opportunities Amid Market Adjustment

China's manufacturing industry is experiencing a profound transformation from high-speed growth to high-quality development, but PAMA has a clear understanding of the market changes.

"It is a bit cool down compared to the past," Corradini said regarding the Chinese market. "But maybe it's because it changed the focus, so the attention now of the industry is on automation, efficiency improvement, and cost savings."

This change is a positive signal, Corradini pointed out. "It's a warm-up and makes it ready for the next step, it's a change in the way to invest and to consider the production way," and this is precisely where PAMA's advantage lies, he added.

"That is our strongest point to provide, based on the experience, the solutions to help our customers to improve their productivity, their efficiency, and to be more profitable," Corradini said. "As far as our customers become successful, we are successful as well."

PAMA counts engineering equipment maker Caterpillar, chemical manufacturer FMC, and luxury car giant Rolls-Royce among its clients. Its revenue topped EUR150 million (USD172.4 million) last year, with the Lingang factory having particularly good performance.

"Especially in recent years, our output has doubled," Lu said regarding the plant. PAMA Shanghai added about 2,000 square meters to the factory last year, nearly doubling its production area.

Regarding PAMA's future plans, Corradini noted that "short-term, we have no investment plan to set up a new factory, but we know in China things can change very quickly, so we are ready to respond at any time."

Editor: Martin Kadiev