Chairman of Weichai Tan Xuguang: Promoting Development Motivation under New Economy

Under the new economic normal conditions, China's equipment manufacturing industry continued to slump in the first half of 2015. Overcapacity is difficult to resolve in the short term. The problem of homogenous competition is prominent. The pressure on the survival and development of enterprises is increasing. The trend of optimizing the production capacity and the survival of the fittest in the industry has increased, and some losses have continued. Companies will go bankrupt or restructure. Leading companies at home and abroad are accelerating industrial chain integration. Under the guidance of the government, the transformation effect of the equipment manufacturing industry has gradually become prominent, and new energy industries and service-oriented manufacturing have gradually developed. However, a successful process will require a longer process.

Taking the pulse industry trend, July 10, 2015, as the representative of the equipment manufacturing industry, Chairman Tan Xuguang gave advice and suggestions on the status quo and future development of the equipment manufacturing industry at the economic symposium hosted by Premier Li Keqiang.

Tan Xuguang believes that stable growth should be placed on a more important position. He hopes that the government can more effectively introduce some stable growth policies and measures in light of the challenges and difficulties facing the current equipment manufacturing industry, so that enterprises can achieve steady growth and adjust the balance of the structure. , to achieve transformation and upgrading.

China’s equipment manufacturing industry needs to seize opportunities such as “Made in China 2025”, “ Internet Plus”, “One Belt and One Road” strategy, and international capacity cooperation to strengthen its confidence in accelerating industrial restructuring and promoting transformation and upgrading. Steps, enhance the driving force for development, promote enterprises to transform from general technology to core technologies, transform investment from investment to investment and consumption, transform from domestic to global development, transform from manufacturing to service manufacturing, and dare to “go global” "To enhance competitiveness in the international market arena; to adhere to innovation-driven development, one must adhere to open innovation, combine independent innovation with open cooperation, and make full use of global technological resources. Second, we must promote integrated innovation." Based on the synergy of the industrial chain to enhance the overall competitiveness of the industry; the third is to introduce innovative talents to form a gathering ground for talents in the Chinese equipment manufacturing industry.

In fact, although the pressure is not small, Weichai has been working hard to turn pressure into momentum, and has made some breakthroughs in technological innovation, cost reduction and efficiency increase, and international operation.

In the first half of the year, Weichai introduced a technologically advanced, highly-efficient and reliable “smart power platform” that integrates the wisdom of the new WOS operating system, the global R&D community, the preferred global supply chain system, and the full lifecycle membership exclusive service system to achieve global The integration and sharing of resources and the launch of new products such as the WP13 heavy-duty engine and the country VI light engine are based on the smart power platform.

Reducing costs and increasing efficiency have always been key tasks of Weichai. By establishing a management model of project as the starting point, assessment as the means, innovation as the driving force, and culture as the guiding principle, we will focus on procurement, design, manufacturing, sales, and management. It has explored the path of reducing the cost and increasing the efficiency of the full-value chain from horizontal to vertical and vertical.

Internationalized operations have also achieved remarkable results. Overseas M&A companies generally performed well. Among them, German KION continued to maintain a strong profitability. France’s Baudouin turned a profit and Italy’s Ferretti was gradually on track. At present, the proportion of overseas business has exceeded 30%, which has become an important guarantee for the sustainable development of the company.  

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