New energy, new firewood, new leap. On October 21, 2017, at the time when the 19th National Party Congress was held, Weichai Group held a mobilization meeting for the “Courtesy Nineteenth Congress, sprinting 200 billion yuanâ€. In implementing the spirit of the Nineteenth Congress, Weichai speaks with tangible results. At the press conference, Party Secretary and Chairman of Shandong Heavy Industry Group and Tan Xuguang, Chairman of Weichai Group, proudly announced that as of December 18th, Weichai Group’s revenue has exceeded 200 billion yuan, and its annual revenue is expected to reach 220 billion yuan. The total profit exceeds 10 billion yuan. This signifies that Weichai officially entered the ranks of international enterprise groups.
Weichai Group Chairman Tan Xuguang
Behind the results is that the Weichai people never forget the initial and down-to-earth focus. They are persistent, changeable, and daring to pursue their dreams. They are the courage to “be the first to do†and support the Weichai people. After all the ups and downs, all the way Overwhelmingly, the annual sales income is only 580 million yuan, and the engine enterprises that are in shortfall of interest, taxes, and arrears of 300 million yuan, and who have not paid wages for 6 months, are on the verge of bankruptcy. They have achieved rapid growth for nearly 20 years. The compound growth rate reached 36%; the business covers six major segments of powertrain, automotive business, construction machinery, smart logistics, luxury yachts, and financial services; market-oriented, high-end, international, and diversified enterprise groups.
"Put the engine to earn more than real estate"
“The goal of Weichai is to sell the engine to make more money than real estate.†At the press conference, he mentioned the miracle of Weichai's development. Tan Xuguang said that Weichai’s development in these years is “focusing on manufacturingâ€.
Weichai Group's revenue exceeded 200 billion yuan and 2020-2030 strategic press conference
General Secretary Xi Jinping proposed in the report of the 19th National Congress that to build a modern economic system, we must put the focus of economic development on the real economy. Weichai has been focusing on the revitalization of equipment manufacturing industry for more than 70 years. In order to obtain greater profits, many companies have turned to real estate, but Weichai has remained unmoved and insists on selling the engine to make more money than real estate. When Liu Jiayi’s secretary visited Weichai, he pointed out that the development of Weichai truly reflected “professionalism.†The more irrelevant areas a company involves, the less one will fall from which plate.
For more than ten years, Weichai has always focused on the extension of the main business and continued to strengthen and expand its main business. In 2005, Weichai strategically reorganized the Hunan Torch and shocked the global commercial vehicle industry. Weichai has taken the lead in presenting technical solutions for powertrain systems worldwide. From 2005 to now, Weichai has provided 5.87 million engines for the heavy-duty auto industry, provided 6.7 million heavy-duty transmissions, and provided 3.54 million heavy-duty axles; Shaanxi Auto heavy trucks sold only 14,000 in 2005, and has accumulated sales so far. With 879,000 units, sales this year have reached more than ten times of 2005 sales.
Weichai has always focused on technological innovation. In 2010, Weichai took the lead in bringing forward high-end and challenging global first. In the past decade, the R&D investment in the engine segment alone has exceeded 15 billion yuan, creating a domestic leading and world-class R&D testing capability, and it has the only national key laboratory for internal combustion engine reliability. Through the most stringent EPA certification in the United States, it has the only test bench in the country that has passed the US EPA certification. In the past ten years, more than 300 overseas high-end talents have been recruited, and 8 people have been selected as national "thousand-person plans." 12 people have been selected as leading talents in the Taishan industry. The group has 4365 R&D personnel in China, of whom 86 are doctors and 2860 are masters.
Weichai has always been focused on meeting the needs of customers. Weichai engines have transformed from a single supporting heavy truck to a variety of supporting markets and become the best leading supporting power in the fields of construction machinery, passenger cars and agricultural equipment, changing the passive situation of China's diesel engines. Fast Transmission has a market share of more than 70% in heavy-duty vehicles; it has successfully entered the field of large and medium-sized passenger cars and has become the product of choice; new products such as AT, AMT, S transmissions and hydraulic retarders are sought after by customers. Shaanxi Auto heavy trucks were exclusively used by dump trucks in the past, achieving a successful transition to a full range of services such as dump trucks, tractors and trucks.
"I use the global resources around the short board"
On November 21, Central European Time, in front of the desk of the Bosch Group founder, Robert Bosch, Chairman Tan Xuguang and Dr. Volckermar Dunner, Chairman of the Bosch Group Global Board, signed a comprehensive strategic cooperation framework agreement. With regard to the future mutual recognition of the development direction of new energy for commercial vehicles and the demand for smart manufacturing, both parties will conduct in-depth cooperation in hydrogen fuel cell technology and intelligent manufacturing automation plant projects.
In three days in Germany, Tan Xuguang also completed two other major events. The first was the opening of Weichai Power (Germany) Technology Innovation Center. This is another technological innovation center established by Weichai after Tokyo and Chicago; It was Weichai Group and German FEV CEO Steve Pisinger who signed a joint cooperation agreement to develop and manufacture 10,000-kilowatt offshore power at the Bavarian government office.
“Take advantage of the global resources of the short board for my own use.†Tan Xuguang introduced that, on the one hand, Weichai has integrated world-class technology platforms and resources, and has achieved innovations in the chain, which has enabled Weifang C&C to achieve a higher level of research and development. On the other hand, Focusing on the strategic objectives of “complementing short boards and adjusting structureâ€, Weichai focused on global core technologies and high-end industries and vigorously promoted cross-border mergers and acquisitions. Since 2009, Weichai has seized the opportunity of the global financial crisis to speed up the process of going global and implemented Europe. Mergers & Acquisitions “Trilogyâ€: test water France Boduuan high-speed offshore power company, acquisition of Italy Ferretti global top luxury yacht group, strategic restructuring of the world's second largest forklift group KION Germany and the global high-end technology brand Linde hydraulic; North America Mergers & Acquisitions “Duetâ€: Mergers and Acquisitions of the world’s most advanced intelligent logistics solution provider, Dematic, USA, and Strategic Holdings, the world’s leading alternative fuel supplier to the US PSI Corporation. All these overseas M&A companies have achieved high profit growth after their integration. Weichai has become a successful model for overseas acquisitions by Chinese companies. Nowadays, Weichai acquires a new batch of marine engines jointly developed by Baudouin in France and has entered the US market with the most stringent technology and environmental protection standards. The urban ferry that assembles this engine runs on the busiest East River in downtown New York; The engine is supported by Kane's Baoyu forklifts to make it more adaptable to the Chinese market. Weichai and Linde Hydraulics have jointly established a factory in China and this year has achieved the first small target "Sales revenue exceeds 100 million yuan." Through the United States PSI, the world's leading supplier of alternative fuel power systems, Weichai products will enter the North American market on a large scale and will be used to the home of international competitors.
Weichai Group Strategic Press Conference on-site guests
The European and American markets have turned over and the rain has fallen, and the “One Belt and One Road†has been intensively cultivated. Along the “Belt and Road†route, Weichai focused its efforts on the “home marketâ€. Completed the network layout in the four main battlefields in Southeast Asia, South Asia, the Commonwealth of Independent States, and the Middle East. In order to promote international capacity cooperation, Indian companies adopted a light asset model. They invested the following year's earnings and doubled their growth, which became a demonstration of overseas capacity cooperation. Technical export projects in Myanmar and Ethiopia have been fully implemented. In 2016, witnessed by Chairman Xi Jinping, Weichai and Belarus’ Maz Group signed an agreement to establish a joint venture company. On September 13 this year, the Weichai Marz joint venture company laid the foundation for the Belarusian Zhongbai Industrial Park and is expected to be completed and put into operation by the end of 2018. It will become another important base for the localization of Weichai's overseas engines. At present, Weichai's overseas revenue accounts for more than 40% of the total, achieving a balanced domestic and international development and smoothing the impact of cyclical economic fluctuations.
"To do it is best"
“My life tenet is to be the first to do, and not to be the first to be confused.†Tan Xuguang brought up his persistence in these years when he shared with reporters at the press conference, “We dared to think that others did not dare to think. Things that others did not do."
He said so, and did so. In these years, Weichai has always been the best in the world and the best product.
As early as in 2002, Weichai proposed to build Weichai's engine into the “Intel Core†of China. In 2004, Weichai Power was listed in Hong Kong. When the operating income exceeded 10 billion yuan for the first time, Weichai also proposed that “all starts with 10 billion yuan.†In 2007, after absorbing the merger of the Hunan Torch, Weichai proposed to enter the top 500 in the world; in 2011 Weichai successfully crossed the 100 billion revenue threshold; now after achieving 200 billion in revenue, the world's top 500 targets are close at hand. For more than ten years, it was precisely because of the persistence of the idea of ​​“doing the best†concept. Weichai’s dreams have become a reality. Now, the core engines, gearboxes, and axles of Weichai are all The best in the country, foreign KION, Ferretti, Linde, Dematic, etc. are the top global brands. From December 18 to December 28, Weichai held a new product exhibition in Shandong Tower, focusing on the “new technologies, new formats, new industries, and new models†proposed by the Shandong provincial government, and focusing on the corporate powertrain and automotive business. The new products and technologies in the six sectors of construction machinery, intelligent logistics, luxury yachts and financial services include Dematic Smart Logistics Display Plant, Shaanxi Heavy Duty Truck X6000 Series, Shantui Unmanned Intelligent Bulldozer, and Yaxing Hydrogen Fuel Cell Vehicle. Weichai has a full range of national six engines. These are the global high-end products that Weichai Integrated Global Resources Platform launched in recent years.
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Standing at the new starting point of 200 billion yuan and facing the new global industrial revolution, Weichai released the 2020-2030 strategy under the guidance of the Party's 19th National Congress and the spirit of the 11th Party Congress in Shandong Province. The new strategy includes "one goal" and "two phases."
One goal: that is, income reaches 100 billion US dollars.
"Two stages": "From overstepping to leading", that is, Weichai's traditional business will surpass world-class standards by 2020, and Weichai's new energy business will lead the global industry development by 2030. To build a respectable and internationalized enterprise and become a Fortune 500 company with continuous improvement in competitiveness. In the transition of old and new kinetic energy in Shandong Province, it has played a role as a leader.
In order to achieve the 2020-2030 strategy, Weichai launched nine initiatives. Including: Weichai must establish itself as a global leader in intelligent logistics solutions; integrate "Linde Hydraulics + Weichai Engines" to create a hydraulic powertrain system; integrate global resources to accelerate the breakthrough of hydrogen fuel cells and solid oxide fuel cells The core technology of solid-state lithium batteries will enable engineering landing; By 2020, the thermal efficiency of diesel engines will increase from the current 46% to more than 50%, and will approach zero emission standards. The thermal efficiency of natural gas engines has increased from the current 39% to 42.5%, and strives to reach 45%. We will overcome the 10,000 kilowatts of offshore power core technology and lead the world advanced level; the smart driving technology of heavy vehicles should lead the industry. Shaanxi Auto Heavy Trucks must enter the world's forefront; AT gearboxes, AMT gearboxes, and electric drive axles must become the industry's leading complementary products; and in order to transform and upgrade high-end consumption, it will vigorously promote the consumption of Ferretti Yachts in coastal cities across the country; Weifang took the lead in building digital factories, and smart manufacturing took the lead in the nation's equipment manufacturing industry; created an outstanding innovation ecosystem and built a gathering place for high-end talents.
Every plan in the future, every goal, and Weichai are “thinking what others don’t dare to think about, doing things that others have not done; marking the world first-class and making the best productsâ€.
On May 8, next year, General Secretary Xi Jinping visited Weichai for the 10th anniversary. When the General Secretary visited Weichai, he instructed: “You have created a national brand and made contributions to building an innovative country. I hope you will continue to make further achievements. "Today, standing at the starting point of 200 billion yuan, Weichai can proudly report to the general secretary. We have to rely on the relay stick for the new era, new mission, and building a strong country.
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