CompanyGraph
Jiangsu Hengli Hydraulic Co., Ltd.
601100 · SSE · China
Performs in-house heat treatment of steel forgings at Changzhou to produce hydraulic cylinders and pumps meeting the pressure ratings required by Chinese construction machinery OEMs.
The thermal sequence at Changzhou — in which steel forgings are quenched and tempered in-house to produce a specific hardness gradient — sets the ceiling for both hydraulic pressure ratings and the machinability window that bore honing depends on, making every downstream OEM assembly a consequence of that furnace cycle. Because bore honing cannot be parallelised and requires experienced operator oversight per spindle, total cylinder output is capped by spindle count and trained headcount rather than by any step the furnace or assembly line controls. That same concentration of the thermal sequence within a single facility under Changzhou environmental permits and natural gas supply contracts means a disruption to either input suspends heat treatment, which halts bore finishing and assembly together, with no external subcontractor able to replicate the in-house hardness specification on short notice. The 6–12 month requalification cycles that Sany and XCMG face when seeking alternative suppliers reflect the depth of that thermal-then-mechanical dependency, since proprietary valve integration protocols tie OEM hydraulic circuit designs to the pressure ratings and bore geometry that only the in-house sequence delivers.
How does this company make money?
The company sells hydraulic cylinders and pumps to construction machinery OEMs on a per-unit basis, with unit prices tied to bore diameter and stroke length specifications. Aftermarket sales of seal kits and replacement cylinders generate recurring income from the installed base of construction equipment already in the field.
What makes this company hard to replace?
Custom mounting configurations engineered for specific Sany and XCMG machine models require 6–12 month requalification cycles for alternative suppliers. Integrated hydraulic control systems use proprietary valve integration protocols that construction equipment OEMs cannot easily modify without redesigning entire hydraulic circuits.
What limits this company?
Bore honing of cylinder barrels cannot be parallelised or accelerated: each barrel occupies a dedicated CNC machining center for a fixed cycle, and the surface finish required for hydraulic seal integrity demands experienced operator oversight that does not compress with throughput. Total cylinder output is therefore capped by the count of operational honing spindles and the trained operators attending them, not by any upstream or downstream step.
What does this company depend on?
The process depends on high-grade alloy steel bar stock sourced from Chinese steel mills, Parker Hannifin or equivalent hydraulic seals meeting ISO 4762 standards, Rexroth or Bosch proportional valves for integrated systems, chrome plating services for piston rod surface treatment, and Industrial and Commercial Bank of China trade finance for international shipments.
Who depends on this company?
Sany Heavy Industry excavator assembly lines would face production delays if hydraulic cylinder deliveries stop, because excavators cannot function without main boom and bucket cylinders. XCMG crane manufacturers would halt mobile crane production, since hydraulic systems control all lifting and extending functions.
How does this company scale?
Hydraulic design engineering knowledge and machining process parameters replicate across additional production lines without proportional cost increases. Heat treatment furnace capacity and skilled CNC operators for precision boring operations resist scaling, as each furnace cycle has a fixed duration and bore finishing requires experienced manual oversight.
What external forces can significantly affect this company?
RMB exchange rate fluctuations against the USD affect export competitiveness for international construction machinery OEMs. Chinese environmental regulations limiting chrome plating operations force reliance on certified third-party surface treatment providers. Belt and Road infrastructure spending cycles drive demand volatility from Chinese construction equipment manufacturers.
Where is this company structurally vulnerable?
Because the thermal sequence is performed inside a single facility under Changzhou environmental permits and natural gas supply contracts, any interruption to either permit status or gas supply suspends all heat treatment — and since no external subcontractor can replicate the in-house hardness-gradient specification on short notice, the entire bore finishing and assembly chain halts with it.