Shandong Heavy Industry: Strives to Advance into the Top 500 in the World for Three Years
On December 2, 2010, the reporter learned from the second product demonstration meeting of Shandong Heavy Industry Group Co., Ltd. (hereinafter referred to as Shandong Heavy Industry) that the revenue of Shandong Heavy Industry will surpass 100 billion yuan in 2010.
In June 2009, when Shandong Heavy Industries was just established, its strategic plan was to achieve a revenue of over one hundred billion in three years. Now, Shandong Heavy Industry has achieved this phased development goal two years in advance. This proves once again that the restructuring of Shandong Provincial Party Committee and Provincial Government to establish the strategic decision of Shandong Heavy Industry Group is extremely correct.
It is a hundred billion and never stops. Tan Xuguang, party committee secretary and chairman of the Shandong Heavy Industry Group, said that the 100 billion yuan is just a starting point. During the 12th Five-Year Plan period, Shandong Heavy Industry’s strategic goal is to earn 200 billion yuan. However, judging from the current situation, through hard work, it is entirely possible for the company to achieve this goal ahead of schedule within three years and to advance into the top 500 in the world.
The strategy is correct, and Shandong Heavy Industry has a strong rise
A year and a half ago, while the impact of the international financial crisis on the real economy was spreading, Shandong Province made a series of heavy blows to revitalize the equipment manufacturing industry: Weichai Holding Group Co., Ltd. and Shandong Engineering Machinery Group. Shandong Heavy Industry Group Co., Ltd., a company formed by three state-owned enterprises and Shandong Automobile Industry Group Co., Ltd., was established on June 18 in Jinan.
How to quickly integrate the three groups to achieve a smooth transition and rapid development, there is no ready-made management model can learn from. After a series of rounds of research and discussion, the Group's group of people quickly positioned itself and established a very distinctive “strategic management and control†type of group operation model, management strategy, management team, management budget (investment and other major issues), and management assessment. The principle of authorization in place, responsibility in place, and assessment in place is entirely at the discretion of each subsidiary. This brand-new management and control model not only adapts to the requirements of state-owned assets supervision, but also quickly connects with the market. The grasp of the grasp, the release of the release.
The development of one and a half years shows that this characteristic management and control model is successful. In strengthening the Group's management and control capabilities, through the comprehensive review of the Group's management functions, the company has built an optimization process for group management. The headquarters of Shandong Heavy Industry Group has become the center of strategic planning, investment decision-making, capital operation, human resources management and technological innovation of each company. . It not only meets the regulatory requirements of state-owned assets, but also realizes the rapid connection between the enterprise and the market.
In terms of development strategy, Shandong Heavy Industry has clearly stated that it shoulders the historical mission of strengthening and expanding the Shandong equipment manufacturing industry, participates in international competition at a higher level, and builds a new brand of Shandong equipment manufacturing; in 2012 it exceeded 100 billion yuan in sales. Revenue exceeded RMB 200 billion in 2015 and eventually entered the world's top 500, creating a world-leading equipment manufacturing group with core competitiveness and sustainable development.
Talent is not the cost but the first resource for enterprise development. To this end, Shandong Heavy Industry has stepped up the construction of a talent team and proposed the "talent first" project. In the past year, the management team of the Group has gone to the United States, France, Japan, Germany and other places to hold special overseas recruitment and corporate promotion meetings five times. It has introduced more than 50 international leaders with academic experience and management experts with overseas experience. . Today, Vice President of Weichai, Director of Electronic Control Research Office, Weichai Human Resources Director, Shantui HR Director, Shantui Technical Director, and General Manager of Power Generation Equipment Company are all imported from overseas.
At the same time, Shandong Heavy Industry also cooperates with well-known universities in China to accelerate the introduction, storage and training of young talents. The group’s recruitment plan for university students is: In the future, no less than 1,000 outstanding graduates of 211 universities will be required to maintain at least five years. This year, nearly 700 fresh graduates have been introduced. In addition, the retraining of existing talent within the group is also stepping up.
The company has now established new training models with well-known universities such as Tsinghua University and Peking University to train middle-level cadres. At present, there are more than 3,300 employees with bachelor degree or above in the Shandong Group of the Group Company, and the group’s talent structure has been further optimized.
Over the past year or so, the cultures of various subsidiaries have collided, merged, and promoted. Under the guidance of the new culture concept of “Inclusivity, Communication, and Responsibility†of the Group, the passionate culture of the director’s business was quickly injected into the company. Strong work enthusiasm, the output value doubled this year.
By November 2010, Shandong Heavy Industry Group had exceeded 100 billion yuan in revenue, an increase of 100% year-on-year; profits and taxes were 13.4 billion yuan, up 96% year-on-year; profits were 10 billion yuan, up 99% year-on-year; industrial added value was 22.6 billion yuan. The year-on-year increase of 78%.
Among its subsidiaries, Weichai Holding Group performed well and sales revenue increased by 73.4% year-on-year; Shantui's sales revenue increased by 90% year-on-year; Mountain Rebuilder's sales revenue increased by 441% year-on-year.
Looking at the development performance table of Shandong Heavy Industry’s assets over the past five years, the effect of the restructuring is encouraging: its operating income, profit compound growth rate was 28% and 32% in the first four years, and this year it has increased dramatically to 72. % and 91%.
At present, Shandong Heavy Industry is a leading player in both the powertrain and construction machinery industries. Weichai Engines, Shantui Bulldozers, Fast Transmissions, Hande Axle and other intra-group products have become the industry's leading brand names in China. The assets operated by Shandong Heavy Industry are centered in Shandong and span eight provinces and cities such as Shaanxi, Chongqing, Hunan, Jiangsu, Heilongjiang, Shanghai and Hubei, and have set up branch offices in the United States, France, and Singapore.
Industrial coordination and breakthroughs in structural adjustment
Different from the restructuring of ordinary state-owned enterprises, Shandong Heavy Industry, formed by several major companies, is not a simple physical superposition on scale, but is based on an optimized combination of industrial chains and pursues a chemical reaction of “1+1>2â€. . It is the industrial synergy among the subsidiaries in terms of products, technology, market, talents, etc. that bring about the ultra-fast development of the group.
Judging from the development trend of the heavy industry, system matching, electro-hydraulic control and new energy technologies are the core elements for sustainable development of enterprises. The advantages of synergy are reflected in the unified sharing of technologies, shortened research and development time, mass production of key components, and enhanced market competitiveness. From the point of view of asset composition, Shandong Heavy Industry has a complete industrial structure. Even if compared with similar global equipment manufacturing groups, its business structure is relatively comprehensive. Therefore, from the perspective of industrial coordination, it is particularly important to adjust the structure of products, markets, and talents.
Weichai's high-speed engine is the core product of the group, and Shantui's hydraulic torque converter is also a leading product in the field of construction machinery. There was no connection between the two products. After the establishment of Shandong Heavy Industries, the group organized technical personnel to tackle the problem and successfully matched them into a new powertrain. After being applied to the loader, the engine speed was reduced and the power was enhanced, while the fuel consumption was decreased by 18%, and the market share rapidly increased. It is praised by users as "the king of fuel economy". As such, the coordinated development between upstream and downstream products in the industrial chain has many in Shandong Heavy Industry.
In order to break the situation in which the Weichai high-speed engine of the Group’s products is “only one industry,†Shandong Heavy Industries has consolidated its resources within the Group and has focused on the development of construction machinery, commercial vehicles and auto parts to achieve balanced growth. Take the excavator as an example, the group brought together the excavator industry advantages of the original Shandong Zhongyou and Shantui shares, and set up a mountain reconstruction machine company to produce a full range of excavators as the main industry, in Linyi headquarters and Jiningzi. The company has built two new production bases with a total investment of 5 billion yuan. The first phase of the project has started in April this year. In the first ten months of this year, the company’s sales revenue increased by 450% year-on-year, profits and taxes increased by 15 times, and the growth rate of various economic indicators ranked first in the industry.
In May 2010, Shantui Wuhan Wantai Concrete Machinery Co., Ltd. broke ground and marked the adjustment of the Group's engineering machinery business into the fast lane.
In the market, Shandong Heavy Industry’s domestic market accounted for more than 80%, and overseas only accounted for less than 20%. To enter the top 500 in the world, this market structure is obviously unreasonable. In March 2010, Shandong Heavy Industry Weichai-Baudouan Singapore Co., Ltd. was established, marking an important step in the development of the Group's international market; the integration of various subsidiaries' channel resources in India, the establishment of an Indian branch, and strive to achieve real estate sales. , And hired local people as general manager to achieve the internationalization of talent. In addition, Shantui’s new plant in South Africa is also under intense preparation.
After more than a year of adjustment, the structure of all aspects of Shandong Heavy Industry has undergone a fundamental change. At present, the proportion of the four business segments of the Heavy Industry Group is: powertrain accounts for 62%; commercial vehicles account for 21.4%; construction machinery accounts for 15.1%; and parts and components account for 1.9%. In order to maximize the use of resources within the group and better promote industrial synergy, Shandong Heavy Industry is building two financial platforms, and financial leasing companies have been established in Beijing.
Innovative development, emerging industries support the next one hundred billion
If we say that the first 100 billion yuan of Shandong Heavy Industries is mainly based on the scale expansion of existing industries and products, then the next 100 billion yuan will need to put new industries into a prominent position through innovation and development.
In 2009, with the approval of the Ministry of Science and Technology, Shandong Heavy Industry Weichai Group co-organized 18 commercial vehicle and construction machinery main engine plants, as well as research institutes and universities to establish a new energy and power technology innovation alliance for commercial vehicles and construction machinery. The important task of R&D of new energy and power vehicles for construction vehicles and construction machinery is currently in operation.
New energy vehicles are also the focus of the next step in the development of Shandong Heavy Industry. At the product booth of the business conference, people saw four LNG-equipped tractors, cement mixers and dump trucks, marking that Shaanxi Automobile has fully entered the stage of promotion of LNG heavy trucks. It is understood that the mileage of its natural gas tractors equipped with LNG has exceeded 1,300 kilometers, which is also the sector that will achieve rapid growth during the “12th Five-Year Plan†period of Shaanxi Auto.
New materials also accelerate the application of various types of products. A light weight heavy truck introduced by Shaanxi Auto Group, the original heavy steel car suspension was replaced by a lightweight rubber suspension, and the vehicle's weight was reduced, which reduced fuel consumption. All of Fast's transmissions use aluminum alloy housings as a new material, which can reduce the weight of the transmission by 110 kilograms. The resulting fuel economy is very obvious.
In addition, with the transformation of China's economic development mode, sanitation machinery and mining machinery will enter a period of rapid development. This is an emerging business that Shandong Heavy Industry plans to develop. Currently, it has formed a related business team and research and development work is ongoing.
The key to developing new industries is to rely on advances in science and technology, enhance product competitiveness and value content, and achieve connotative growth. At present, Shandong Heavy Industry has established several R&D centers at home and abroad, opening up the internationalization process of R&D and scientific and technological talents. At the same time, the newly established Electronic Control Research Center and the New Energy Technology Center will inject powerful technological momentum into the development of emerging industries.
In order to realize the target of 100 billion yuan in revenue in advance, the company once again stood on the new starting line. In the next five to ten years, Shandong Heavy Industry will rely on the advantages already formed in the industry to fully create the image of well-known brands in China's equipment manufacturing industry, and will unswervingly be in the power system, construction machinery, commercial vehicles, auto parts and yachts, etc. The five business segments continue to implement the rapid development strategy and strive to realize the goal of achieving 200 billion yuan in 2015 and 300 billion yuan in operating income by 2020, advance into the world’s top 500, and build a world-leading industrial equipment group with core technologies and sustainable development. Become an important pole in the world of equipment manufacturing.
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