China's Construction Machinery Enterprises in Strategic Adjustment in 2012

Editor's note: In 2012, China's construction machinery sales started weakly. According to statistics from China Construction Machinery Industry Association, sales of excavators, loaders, bulldozers, and road rollers decreased by 53.1%, 49.8%, 66.6%, and 53.3% year-on-year in January, respectively, and month-on-month declines were 38.5%, 64.3%, 18.7%, and 35.0%, respectively. . The export of construction machinery products in January 2012 was also mixed.

Corresponding to the weak market, it is the rapid expansion of China's construction machinery. The rapid development of China's domestic infrastructure construction in the past decade and the scale expansion of China's construction machinery have yielded huge returns in today’s European and American economies. China Construction Machinery not only supported by the domestic market and continuously expanded its overseas markets, but also initiated the “sweeping goods” action for giants of global engineering machinery at the time of the economic crisis in Europe, the United States and Europe in particular.

This kind of sweeping is different from the market-for-tech strategy pursued by China before. Facts have proved that it is not China that has given foreign markets, so it can obtain its technology. On the contrary, China can only provide its own enterprises with proper market support. When foreign competitors are in crisis, they can acquire foreign technology through various means such as mergers. This is genuine. Just as the collapse of the former Soviet Union forced the Soviet Union’s technology to spread to the entire world. Although China's construction machinery faces market fluctuations in 2012, the overall strength of China's construction machinery will be unprecedentedly strong. This strength not only refers to scale strength, but also includes technical strength. It is in the process of capital merger that the technology of Chinese construction machinery has achieved a leapfrog development. "Suddenly, like the spring breeze of the night, thousands of trees bloom."

The development of China's construction machinery has opened up a way for the internationalization of Chinese companies. That is, capital expansion is superior to product import and technology introduction. In the past five years, the pace of Chinese companies going abroad has been accelerating. Accumulative direct foreign investment has reached US$220 billion, and the global ranking has jumped from No. 18 to No. 5. At the beginning of the new year 2012, overseas mergers and acquisitions of the Chinese construction machinery industry will have two cities. It can be expected that China's construction machinery will rapidly increase in both scale and technology within the next few years.

However, as pointed out earlier in this report, China's foreign investment risks are also enormous. As the saying goes, people do not have to worry about, there must be some concern. China's construction machinery companies must pay close attention to the development of domestic macroeconomics and correctly estimate changes in China's economic growth, or rely closely on the support of large banks, or ensure that there is relatively abundant cash flow, and steadily absorb the technology of digesting mergers and acquisitions to ensure that they do not Indigestion may be caused by the rapid expansion.

This year will publish the 2012 plan of a domestic representative construction machinery company written exclusively by our reporter. We are delighted to see that in the unfavorable situation in 2012, China’s construction machinery companies still have full confidence and strive to achieve high-intensity development. This is not only the accumulating of China’s construction machinery in the past decade, but also the digestion and absorption of existing achievements. It lays a solid foundation for the further development of the "Twelfth Five-Year Plan" of the industry. In 2012, it should be a crucial year for the adjustment, consolidation, enrichment, and improvement of China's construction machinery.

In 2011, China’s construction machinery industry experienced an unprecedented “following of bulging backslides”. In general, it bids farewell to the ultra-fast growth phase that lasted for 10 years, even the “star products” of the past, such as excavators and cranes. Others have not been spared.

Through the interpretation of relevant national policies and industrial planning, industry experts generally believe that in the medium to long term, China’s construction machinery industry will continue to be “the driving force for positive development”, but the industry’s advancement has changed from a “sudden leap forward” to a “steady rise”. ".

The Chinese construction machinery companies that used to use for many years the "Great Fragrant Taro" are still under the inertia formed during the high growth period in terms of strategy, layout, structure, management and operation. As the market situation changes, companies must make positive adjustments in all aspects, so that they can quickly adapt to the needs of steady growth, while taking advantage of strategic re-planning and positioning, with the help of management, operating model changes, from the "robust market "In the search for new breakthrough points and force points.

XCMG: Strive to Break Through the Billion Billion Passion At the just-concluded economic work conference of the XCMG Group, Wang Min, Chairman of the Group and Party Secretary, delivered a speech and comprehensively summarized Xugong's 2011 and conducted an overall plan for 2012.

According to report, in 2011, Xugong Group achieved an operating income of RMB 87 billion, which was a year-on-year increase of over 32%. It ranked first in China's construction machinery industry for 23 consecutive years, ranked 7th in the global industry, and was awarded the industry's only industry award award by the country. Various indicators such as profits, profits and taxes have increased by a large margin, and in particular, the export of foreign exchange has entered the door of one billion US dollars in a breakthrough manner, which has doubled over the same period of the previous year and achieved a good start in the “12th Five-Year Plan”.

At the meeting, Wang Min re-emphasized Xugong's two bright spots - the strengthening of independent innovation and the acceleration of globalization. Xugong’s achievements in independent innovation are impressive. In 2011, the company received a total of 396 authorized patents, which was 1.5 times that of 2010, and won two national science and technology progress awards. It became the only one of the first batch of Chinese technology innovation model enterprises awarded by the Ministry of Industry and Information Technology; 1200 tons of all-terrain cranes and 12 tons of loaders. After the "three highs and one big" product were identified and sold in batches, a 3,000-ton crawler crane was put into production and was incorporated into the 863 program by the Ministry of Science and Technology to break the monopoly of foreign enterprises.

With the speeding up of globalization, 19 major international projects with a total investment of over 20 billion yuan are being implemented. The cross-border mergers and acquisitions of two core component R&D and manufacturing companies in Germany and the Netherlands have been successfully completed, and a larger-scale overseas merger and acquisition is currently being pursued.

For 2012, Wang Min believes that XCMG will face more complex domestic and international market conditions. However, "No matter how severe the environmental situation, regardless of how fierce competition in the industry, XCMG will achieve 'three firm'" Firstly, the company will unswervingly achieve its strategic target of operating revenue of 100 billion yuan and maintaining its top position in the industry. Second, it will unswervingly impact its 2015 operating income of 300 billion yuan and become the industry's top 3 industrial ambitions. We will unswervingly advance reforms, promote layout adjustments, and implement internationalization strategies to achieve world-class companies that are highly competitive internationally.

Wang Min believes that the most critical factor in achieving the goal is in the final analysis four words: technological innovation.

On the one hand, on the one hand, the company will continue to increase R&D investment and concentrate on major domestic and internationally advanced R&D projects, investing in key and core technologies such as intelligence, lightweight, energy saving and environmental protection, and investing in core component batch matching technologies. Innovation possesses.

On the other hand, the company will intensify its global R&D layout and platform upgrades, and focus on advancing the construction and operation of the XCMG European R&D center and Shanghai R&D center, attracting high-end talents with independent intellectual property rights and core technologies, and establishing more overseas R&D institutions to achieve Global high-end technology, high-end intellectual resources fully grafted.

Liu Gong: In the five major measures to achieve the “25” word large-scale goal interview, Zeng Guang’an, the president of Liugong Group’s stock company, summed up the past 2011 as “a very memorable year”.

In 2011, Liugong Group's operating income reached 22 billion yuan, up 16% year-on-year; through mergers and acquisitions, it quickly entered the mining machinery heavy mining truck industry; its own independently developed China's first Euro IV exhaust loader and leading industry technology level. The E Series excavator was successfully released.

Last year, Liugong’s international business grew by leaps and bounds, with total sales exceeding 8,600 units, achieving a 51% growth in international market sales and a 67% increase in export value. Three overseas subsidiaries in the Asia-Pacific, Middle East, and South Africa have successively opened their businesses, successfully establishing an overseas marketing service system with 10 overseas subsidiaries and covering 94 countries around the world.

Through the cooperation with Cummins, the two parties started the joint venture production of the engine prelude, and the core parts system was further improved; the acquisition of Polish HSW Company made substantial progress and opened up new fields for Liugong's international manufacturing.

Zeng Guangan had publicly stated that it is crucial for Liugong in 2012. It is not only a crucial year for the Liugong Group to make every effort to create a one-hundred-and-twenty-billion yuan enterprise group in Guangxi, but also a year for Liugong to implement the “Twelfth Five-Year Plan” strategic plan.

Yang Yichuan, president of Liugong Group, clearly put forward the “25-character target policy” of the company in 2012, namely: “The revenue is over RMB 10 billion, the profits are up, the layout is framed, the new platform is built, and the management level is raised”, and further pointed out LiuGong Group must always adhere to the core development ideas of “manufacture and guidance, service promotion, Germany-to-China, and long-term development, and surpass potential” as the driving force and fully exert its impact on the strategic goals of 30 billion yuan in 2012 and 100 billion yuan in 2015.

In order to achieve the "25-word target policy," LiuGong Group put forward five major measures in 2012: 1. Set up a group resource service platform and focus on completing the establishment of marketing innovation service platform, financing platform, procurement platform, and technology platform. 2. We will improve the industrial layout, focus on the strategy of “manufacturing and leading, and service promotion” and complete the implementation of key projects that use the host product as the core, the production service business and the core component manufacturing business as two wings. 3. With the focus on “improvement of product technology and quality, control of costs and expenses, improvement of operating cash flow, and improvement of basic management level”, we will promote the improvement of management of subsidiaries. 4. Optimize the Group's management and control system. Focusing on the "reasonable, efficient, and relaxing" management and control strategy, it provides institutional guarantees for the coordinated development and effective control of the Group companies. 5. Accelerate the pace of overseas expansion, create a second local market, and improve the layout of overseas markets. Efforts will be made to promote the excellent experience of domestic manufacturing systems to overseas manufacturing bases.

Shantui: Brand Service Year According to the reporter's understanding, in 2011, Shantui ranked 22nd among the world's top 50 construction machinery companies, becoming one of the fastest-growing domestic construction machinery manufacturers, and implementing the “Three Platforms” in human resources. The key breakthroughs in ERP informatization promotion, supply chain lean management and other aspects have consolidated the management foundation.

Technological innovation has progressed significantly. In 2011, Shantui completed 28 new product developments and 10 new types of host computers, and applied for 237 patents. The project undertaken by the National Science and Technology Support Program “Development of a New Generation of High-Performance Hydraulic Bulldozers” passed the acceptance test.

Overseas revenue increased doubling, product export destination countries increased to more than 130 countries and regions, and sales of concrete machinery, road machinery, loaders, etc. increased, changing the bullish exporter's single-largest situation.

At present, Shantui has formed several market segments in Central Asia and the Commonwealth of Independent States, Africa, West Asia, Southeast Asia, Latin America and Oceania.

Shantui chairman Zhang Xiuwen defined 2012 as the "brand service year." In 2012, with the implementation of the call center on-line, “one-year-unlimited working hours” warranty commitments, road machinery “on the road” and other plans, Shantui will implement differentiated service strategies and strengthen “skills upgrading” through market segments. Focused agent service training to improve customer satisfaction.

In terms of overseas markets, Shantui will continue to deepen the adjustment of its business structure, use the “10+1” model to push its business development to the front line of the market, establish four product centers to increase the international competitiveness of the entire series of products, strengthen information management, and establish overseas operations. The inventory management platform provides unified information system support and management for overseas branches (sub-organizations). Through the VI visual identification system construction, Shantui brand, standards and specifications will be landed overseas, and the Shantui International brand will be built.

Zoomlion: Management model innovation On January 30, 2012, the construction machinery fleet headed by the world's Guinness Records 80m pump truck left the gate of Zoomlion headquarters. The Zoomlion full range of construction machinery with a total value of more than RMB 800 million will be sent to domestic and overseas customers in batches and delivered to global users.

According to the latest performance forecast notice, Zoomlion’s 2011 profit was approximately RMB 4.7 billion, an increase of 55% to 75%. Technical innovation highlights: The successful development of the world's longest carbon fiber boom truck has demonstrated the perfect combination of construction machinery and cutting-edge materials science; 3,200 tons of crawler cranes, the world's largest tonnage single drum vibratory roller, and the recycling of kitchen waste. Processing leading equipment such as complete sets of equipment shows Zoomlion's R&D and manufacturing strengths and technical discourse power in various fields.

At the same time, Zoomlion's resource integration and overseas sales also made important progress. It has achieved technical cooperation with CIFA in the integration of China and the European Union. It has achieved a global integration in procurement, achieved an organic overlay of the network in the market, and promoted the Zoomlion internationalization index in all directions.

In 2012, Zoomlion will focus on the management model of “taking customer as a center and talent and technology as two fundamentals and implementing three-dimensional matrix management”. The company will change the organizational structure to realize the advancement of management; change the marketing model to achieve seamless coverage; change the R&D system to achieve the full penetration of the market concept; change the incentive mechanism to achieve market-linked, performance-oriented.

Regarding the increasingly important internationalization road, Zoomlion internal sources told reporters that Zoomlion will use capital as a link, continue to increase investment in overseas markets, improve the global network system, and replicate and promote the success of CIFA collaboration and integration. Experience, using capital advantages, actively strive for greater breakthroughs in the integration of overseas resources, broaden the breadth of going abroad, and increase the depth of multinational operations.

Anhui Forklift: The “Top Twelfth Five-Year Plan” squeezed into the top 5 of world industrial vehicles as the only listed company in the domestic forklift industry. Since 1991, Anhui Forklift Group Corporation has been steadily leading the industry for 21 consecutive years.

In 2011, the major economic and technical indicators of the Anhui Forklift Group hit another record in history. The total sales volume of forklift trucks exceeded 70,000 units, an increase of 33% year-on-year; and profits and taxes reached 799 million yuan. Among them, export forklifts and foreign exchange earned through exports increased by 49.29% and 66.78% respectively year-on-year.

Zhang Dejin, the company’s chairman and party secretary, told the China Industry News reporter in an interview that the tremendous progress made by HeLi in 2011 was due to the rapid rise of the industry itself, and on the other hand, the company’s own efforts to accelerate the operation of the extended capital have been strengthened. Intensional technological transformation and strengthening of independent innovation are closely related.

In 2011, the company’s technological innovation and innovation projects received a total of about 45 million yuan in government funding. The research and application of 12 to 46 tons of reloading technology won the first prize of Anhui Science and Technology Progress Award. The G series CPD10-50 AC balance heavy-duty battery forklift was identified as a national key new product, and the annual new product output value rate reached 56.1%. There are 66 patents.

For the company’s goals for the new year, Zhang Dejin is full of confidence: “We will accelerate the transformation of economic development as the main line, adjust the structure, and increase efficiency. This year’s market sales will grow from 70,000 units to 90,000 units, an increase of nearly 30%. Strive to enter the top 5 of world industrial vehicles by the end of the "Twelfth Five-year Plan."

The above goal is not "empty but no evidence", but there are specific measures as its strong support.

The most important thing is that the company will adhere to the transformation and upgrading, and improve the capability of overall machine capacity improvement and layout planning to further enhance the company's ability to fully coordinate sustainable development; focus on the implementation of quality new product projects, further improve the ability of technological innovation, rely on continuous innovation and results Conversion continues to lead the industry in technological advancement.

In addition, in 2012, the company will also focus on the domestic and international markets, further increase the market share of enterprises and user satisfaction, focus on lean production to promote and deepen, improve the management level, and strengthen the enterprise's internal quality.