Creating a gold industry chain is the biggest competitive advantage

On July 6th, Weichai Holding Group announced in Shandong Weifang that its independently developed Blue Engine upgraded version of the National IV engine will be listed, and will be followed by a match test at Foton Motor. Weichai Group is currently the largest auto parts company in China. Its powertrains, commercial vehicles, and auto parts are in an absolute dominant position in their respective domestic market segments. The in-depth cooperation between Weichai and Futian will have a profound impact on the promotion of the upgrading of domestic heavy truck companies. On June 16, the Shandong State-owned Assets Supervision and Administration Commission announced that Weichai Group, together with ShanGong Machinery Group and Shandong Auto Parts Group, jointly formed Shandong Heavy Industry Group. The newly formed Shandong Heavy Industry Group changed the scale of equipment manufacturing companies in Shandong The situation has become a leader in the industry.

Reporter: Mr. Tan, how the National IV engine will be fitted to Foton Motor and match testing will affect the two companies. I read relevant reports that the National III standard was originally scheduled to be implemented in January last year, but it was formally implemented after being delayed for half a year. The preliminary determination of the National IV standard was implemented in 2010. However, due to the difficulties in supporting measures in all aspects, it is estimated that After delaying, what is the purpose of your two match tests?

Tan Xuguang: It should be seen that this cooperation between Weichai's National IV engine and Futian is first of all a social responsibility. You know, Weichai is the largest powertrain manufacturer in China, and Futian is China's largest manufacturer of commercial vehicles. The two largest companies in different fields work together to promote a concept that is green, environmentally friendly, and consistent with Hu. The concept of scientific development concept advocated by the secretary.

For Weichai and Futian, the concrete manifestation of the scientific concept of development is the adoption of higher standards of technology to reduce the emission of exhaust pollutants and provide users with products with maximum value.

The national III standard was formally implemented on July 1 last year. Although there are still different opinions on when the national IV standard was implemented, it is inevitable that this standard will be implemented. Now several major cities in China, such as Beijing and Shanghai, have started or The implementation of the National IV standard is about to begin. Weichai's products are all over the country. We have the obligation and ability to provide powertrain products that meet higher standards.

In fact, not only do we own the National IV engine, but also the Weichai WP12/WP10/WP6 engine has reached the national V emission standard. Weichai is the only large-scale diesel engine company that meets the national V emission standard and has reached the national V standard. It is not our own that this was officially released after the national certification and calibration tests.

Reporter: The obvious advantage of technology should also be Weifang’s core competitive advantage.

Tan Xuguang: We just held a conference on scientific and technological innovation at the end of May, and we rewarded a group of scientists and technicians. Our goal is to build Weichai into a world-class product R&D and manufacturing base with core technologies and independent R&D capabilities that are irreplaceable domestically. To achieve this goal, there is no spirit of innovation. No investment by scientists and technicians is impossible. I said at the meeting that Weichai should vigorously cultivate an innovation culture, promote innovation culture, advocate innovation culture, and promote new ideas from the source of culture, change the traditional concept of “a hero with success or failure”, and promote innovation that dares to take risks and dares risks. Spirit, create a cultural atmosphere of initiative innovation, courage to compete, award creation, tolerance for failure, and realize the change from passive innovation to active innovation throughout Weichai.

In terms of the use of scientific and technical personnel, I have proposed two points. One is to create a platform for doing business, and the other is to have an incentive mechanism so that they can really do things. In 1999, we separated the technical positions from the appointments, allowing talented and contributing people to come to the fore, allowing them to enjoy fame and fortune. After 2004, we also implemented a system of bidding for research and development projects, formulated and issued the "Ten Regulations on Incentives for Talents," and increased efforts to highlight outstanding talents and further create a competitive environment that encourages innovation and rewards innovation. In recent years, the company has allocated more than 3 million yuan each year for the award of scientific and technological innovations. It has allocated 1.5 million yuan each year to set up a special fund for talent training. It spends more than 10 million yuan each year to Transport scientific and technological personnel to go abroad for study and study.

In the past few years, our investment in research funding has always been about 5% of annual sales revenue. In the past 10 years, Weichai has invested a total of 2 billion yuan in technology research and development and transformation, of which the ratio of hardware and software has reached 1:1. . The European R&D center has invested more than 4 billion in total. Weichai now has an average of more than 300 new products developed each year, and has obtained hundreds of patents. Weichai now has 6 engine R&D centers in China and abroad.

Reporter: In 2007, Weichai Holding Group had worked out a goal and plans to use 3-5 years to realize sales revenue of 100 billion yuan. After the establishment of Shandong Heavy Industry Group last month, has this goal changed?

Tan Xuguang: At the unveiling ceremony, I said that the target of 100 billion yuan seems to be shortened, and the three groups together have a size of nearly 50 billion yuan. Our goal is to enter the world's top 500, this will not change, only more clear.

Reporter: Shandong Heavy Industry Group Co., Ltd. was established to become an enterprise group that spans the two industries of auto and construction machinery in Shandong. As a group that is integrated by different industries and enterprises, how does Shandong Heavy Industry Group create its own core competitiveness?

Tan Xuguang: Building a gold industrial chain is our biggest competitive advantage. The competitive advantage of Shandong Heavy Industry Group is also here.

Weichai is a leading power system enterprise group in China. After a long-term baptism of the market economy, innovation capability and competitiveness are obvious to all. ShanGong Group is a dominant enterprise in the domestic high-power bulldozer industry, with bulldozers ranked first and more than half of the country’s domestic enterprises. , Weichai and Shantui originally had a cooperative relationship and established a group. The upstream and downstream industrial chains are more connected and the competitiveness will be stronger. The auto parts and components group has a good development foundation in the auto parts field. Weichai also has some zeroes. Component companies, on the group's platform, will have more rational allocation of resources among enterprises. The key point is that these three companies have strong correlations in industries and products, and the synergies of the reorganized group companies in terms of products, technology, market sales, services, and procurement can only be more prominent, and at the same time the next step will be adopted. The optimized combination of stock assets, promote incremental investment, economic and social benefits will be greatly improved.

Reporter: It can also be seen from the site of the Secretary of the Shandong Provincial Party Committee and the Governor's visit to the unveiling ceremony that Shandong Province attaches great importance to the establishment of the Heavy Industry Group.

Tan Xuguang: At the time when the group was founded last month, there was such a statement at the on-site press conference that the three joint reorganizations will not only promote the upgrading of the equipment manufacturing industry in Shandong and even the entire country, but also affect the pattern of equipment manufacturing at home and abroad. This sentence is not just to talk about, it is the provincial government and the expectations of our government.

Looking at the situation now, we have a basic guiding principle, which is based on the policy of industrial development and promotion promulgated by the state and the province, based on the needs of users, integrating existing stock resources with the means of the market, and developing industrial growth. the amount. In terms of corporate governance structure, we will strictly use property rights as a link to establish a scientific and standardized parent-subsidiary company management system. Under these two conditions, through technological innovation and scientific management, we will achieve the goal of becoming bigger, stronger, and refined.

Only one way to enhance the competitiveness of enterprises is to focus on the development of new products and technologies that are in line with industrial upgrading under the effective allocation of resources of Shandong Heavy Industry Group. The specific approach is that Weichai Holding Group further strengthens the independent supporting position of the power system and builds a competitive power system manufacturing base; ShanGong Group continues to maintain its position as the No. 1 bulldozer in the domestic industry, and it also enters into a powerful enterprise with 10,000 sets of production capacity in the world. Ranks; automotive parts and components with Shanqi Group as the main business, will be distributed in the company's various auto parts resources for integration, with the help of the development of China's auto industry's general policy, the rapid formation of the group within the product layout is reasonable, high system integration, Low cost passenger car parts resource platform.

Reporter: After the establishment of the group, Weichai headquarters will be moved to Jinan.

Tan Xuguang: Shandong Heavy Industry Group is registered in Jinan, and the headquarters of the Heavy Industry Group will be located in Jinan. Weichai will not move past.

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