Weichai Group persists in innovation and drives layout "One Belt and One Road"

In 2017, the National Committee of the Chinese People's Political Consultative Conference and the National People's Congress were officially opened on March 3 and 5, 2017 respectively. As the first “two sessions” after the “Thirteenth Five-Year Plan” was announced, economic development is naturally one of the focuses. "One-way" and "supply-side reform" remain hot topics. Although China is still the driving force behind world economic growth, it still faces many challenges. Chinese companies need to understand how to grasp opportunities and stand out.

Weichai Group, an equipment manufacturing company, can be said to be the best. In the past 18 years, Weichai Group’s sales revenue has increased nearly 200 times, ranking 171st among the 2016 Top 500 Chinese Enterprises. In recent years, Weichai Group has achieved a good performance in spite of the severe test of economic downturn. Tan Xuguang, deputy chairman of the National People's Congress and chairman of Shandong Heavy Industry Weichai Group, said that the group can achieve “V-shaped rebound” because it is rainy, and it continuously increases investment in R&D. It finally relies on a series of new products with high technological content to win back the market.

Innovation drives leading industry technology upgrades

Weichai patent wall Weichai patent wall

Innovation and R&D is the purpose of Weichai Group. It is also the secret of the growing group. “We want to provide our customers with the most cost-competitive, most technologically competitive and most competitively-priced engines, build the world's best products, and advance to the high end.” behind Tan Xuguang’s commitment to making a sound, Weichai insists. Innovation drives the development strategy and creates unremitting efforts for the company's core competitiveness.

Power equipment is the core technology of many industries, including transportation, construction machinery, and defense equipment. However, China has long lacked key core technologies. Weichai Group always adheres to the development model led and supported by innovation, and continuously seeks to break through foreign monopolies and blockades, thus realizing the independent development of China's power industry. In March 2005, China's first high-power engine with complete independent intellectual property rights and the emission of State III emissions—“Lan Qing” power was born in Weichai, achieving the leap from China to China.

Weichai has the only national key laboratory for internal combustion engine reliability Weichai has the only national key laboratory for internal combustion engine reliability

Weichai Group continued to invest its resources in research and development. In the past decade, it has invested more than 15 billion yuan (renminbi, the same below), and its annual research and development accounted for more than 5%, which has reached the level of leading international companies. Accumulatively, more than 3,000 patents have been granted. The Group has also set up specialized research and development bases, and recruits talents at home and abroad. It has set up R&D centers in the United States, France, Germany, Italy, and also cooperated with MIT, Tsinghua University, AVL, BOSCH and other educational and technical organizations to establish technologies. Innovative strategic alliances continue to lead the industry in technological innovation.

Layout "Belt and Road" has achieved fruitful results in overseas business

Weichai Shows Its Style at International Exhibitions

Weichai Shows Its Style at International Exhibitions

In addition to innovation, “Going Global” is also the purpose of the Weichai Group. The Group has been conducting mergers and acquisitions, restructuring, joint ventures and cooperation in countries along the “One Belt and One Road”. The Group successfully reorganized Germany's KION and Linde Hydraulics to master the highest performance hydraulic technology and merged "engine + hydraulics" to create the world's only hydraulic powertrain system.

Bo Duan revives with the help of Weichai Bo Duan revives with the help of Weichai

Other acquisitions also achieved good results. Weichai Group acquired French Baudouin Corporation. Since last year, Baudouin has not only achieved its first profit for more than 20 years, but the newly designed high-speed marine engine has entered the US market for the first time. This year, all of Weichai Group's overseas projects, including Ferretti in Italy and Linde Hydraulics in Germany, all recorded profitability.

The Group has always valued the brand's impression in overseas customers. Not only pay attention to product quality, but also established a responsive and complete system. The product's standards must meet local needs. It is not just a matter of “translating the Chinese manual into English”. We can see the success of the Weichai Group and the determination and hard work behind it.

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