A 30-year story: Walter cutting tools in China

Chinese companies have developed into a major global technological driving force for industries including new energy infrastructure, automotive and general machinery. With a strong and extensive manufacturing base, China has also become one of the most significant and dynamic markets for metal cutting tools in the world.

German-based Walter, one of the leading specialists for machining solutions for metalworking industries, realized the potential of the Chinese market more than 30 years ago. Today, the Walter Chinese subsidiary has more than 270 employees in 50 cities and sees itself well prepared for the future.

Founded more than 100 years ago as a one-man-engineering shop for researching sintered carbide alloys and new metallurgical processes, Walter, from the south of Germany, quickly developed into a full-scale company for brazed carbide milling tools.

The company now serves customers from various industries in more than 80 countries with 3,800 employees worldwide.

In China, the company has been part of the thriving industrial sector since 1993 when it opened its first Chinese site in Wuxi, Jiangsu province: Walter Wuxi Co. The Walter China facility now manufactures solid carbide drills and end mills for the global market, boasting a wide spectrum of high precision computer-controlled machines.

Among its workforce in China, Walter has around 110 sales engineers to constantly provide direct and quick contact with customers across the country.

Besides management and administration, the headquarters in Wuxi also hosts a production unit with 70 employees. Standard indexable inserts and tool bodies are manufactured there.

For Walter, China is a strategically important market, not only in sales but also in keeping on top of manufacturing and technology developments that will shape the future of major industries worldwide.

New energy vehicles and lightweight materials manufacturing, especially aluminum alloys, are two examples. Being particularly fast-paced, the Chinese market for machining tools and solutions requires an agile organization and mindset to actively respond to customer demand.

With its proven "Engineering Kompetenz", which means its capacity to provide technical machining solutions, Walter is uniquely positioned to grow.

The NEV industry is one of the fastest developing industries in China. In 2023, China's NEV production reached a record 9.58 million units. Along with the advancement of technology and infrastructure, experts believe the new energy market will continue to grow. With this, the demand for aluminum alloy components will also rise — a beneficial trend for Walter as a leading tools specialist in nonferrous materials.

The development has led Walter to further invest considerable sales and technical resources into existing partnerships with high-profile clients.

Zhang Zhijun, president of Walter China and board chairman of Walter Wuxi, said: "The Chinese government is rolling out some stimulus policies, and I remain cautiously optimistic about the market in the coming years."

As an expert in the automotive component industry, Zhang joined Walter in 2022 to prepare the company's Chinese subsidiary for the future.

He said: "We are currently working hard to meet our customers' needs while consolidating and amplifying our 'Engineering Kompetenz'. Additionally, we are actively developing new business opportunities to be well prepared for future developments in the market."