China's two major self-owned brand enterprises in the equipment manufacturing industry, Weichai Power under the banner of Shandong Heavy Industry, and XCMG Group , have announced that they will work together to build world-class products.
Shandong Heavy Industry Weichai Power Cooperates with Xugong Group
On September 22, 2014, in the headquarters of Xugong Group, Tan Xuguang, Chairman of Shandong Heavy Industry and Weichai Power, and Wang Min, Chairman of Xuzhou Construction Machinery Group Co., Ltd. signed a strategic cooperation framework agreement. The two sides decided on the capital sector, supporting markets, and technologies. R & D, overseas market development and other aspects of comprehensive cooperation, with the help of industry resources, and jointly promote the revitalization of national equipment manufacturing industry.
Shandong Weichai’s Weichai Power is one of the most comprehensive automotive and equipment manufacturing groups in China and has significant influence in the world. It has the highest quality commercial vehicle industry chain in China and its business covers entire vehicles and power systems (engines, Transmission, Bridge) has become an international industrial equipment enterprise group with leading scale, advanced technology and national strategic status.
XCMG Group is a leading enterprise in the field of construction machinery in China. Since its establishment, it has always maintained the first position in the Chinese construction machinery industry. Currently, it ranks the 5th in the world's construction machinery industry, and the market share of 9 types of main engines and parts and components is the first in China. The sales volume of truck cranes and large-tonnage rollers is the largest in the world. It exports 10,000 hosts to 169 countries and regions. It has become China's construction machinery industry with the largest scale, the highest technical level, the most complete product series, the largest export volume, and extremely competitive capacity. Large corporate groups with influence and national strategic position.
Weichai Power and Xugong Group are both dominant companies in their respective industries, and their main businesses are highly complementary. In the early period, the top officials from both sides conducted mutual visits and exchanges. After in-depth discussions and friendly consultations, both parties agreed to decide to establish a comprehensive strategic partnership.
Prior to this, Weichai Power and XCMG had established a good supporting relationship. The two sides have had more than 20 years of cooperation history. At present, Weichai Power's engines occupy a relatively high share in Xugong's scraper machinery and have formed supporting facilities in the fields of cranes and road machinery. At the same time, Xugong Group and Weichai Power's Hande Axle, Fast, and Shaanxi Heavy Gas have a matching relationship.
XCMG has established industry-leading industrial advantages in the field of hydraulic engineering components. In the first two years, it has acquired two technologically advanced hydraulic system component companies in Europe, and established a European technology R&D center in 2013. Weichai Power acquired the Linde Hydraulics business under the German KION Group and mastered the core technology of hydraulic components for construction machinery. This is a rare technical resource for construction machinery companies. At present, Weichai Power is actively planning to build a factory in China. Both parties have broad space for cooperation in expanding product scale, reducing product costs, and realizing localization.
Signing site
According to the contents of the agreement, the two parties will conduct comprehensive cooperation in capital operations, product development, and market support in various fields, including hydraulic products, engines, gearboxes, axles, and other Weichai Power products. XCMG will acquire the new technology support advantages and market support advantages of Weichai Power in the power transmission system to comprehensively enhance its competitiveness. The share of Weichai Power in Xugong Group's products will further increase. The two sides will also strengthen high-level mutual visits and have established a mechanism for exchange of visits by the chairman of the board of directors.
For the signing of this strategic cooperation agreement, both senior management teams attach great importance to this and are optimistic about it. Tan Xuguang, chairman of Weichai Power, said that the combination of Weichai Power and the two heavyweight companies of the XCMG Group will have an important impact on the field of construction machinery, and will help the national equipment manufacturing industry take off.
Currently, XCMG is in the process of transforming from a manufacturing-type manufacturing manufacturing enterprise to a service-oriented manufacturing enterprise. It is expanding its business in upstream and downstream information, finance, modern logistics, and remanufacturing, and has established an “international and world-classâ€. The development orientation of the company. While consolidating its traditional advantages of lifting machinery, road machinery, shovel machinery, piling machinery and basic components, concrete machinery, mining machinery, sanitation machinery and heavy trucks are also rapidly growing. This strategic cooperation with Weichai will add new impetus to the development of XCMG's support of mainframe parts, especially the energy-saving emission, technology upgrading of drive technology, and the internal vitality of the company.
For Weichai Power, the cooperation with Xugong will boost the transformation and upgrading of the company. With the adjustment of product strategy, the next step, Weichai Power will devote more attention to strategic markets such as construction machinery, passenger cars and agricultural equipment, so as to maintain the long-term and stable development of the engine business. XCMG will provide a good platform for the development of Weichai Power Non-road Engines. At present, Weichai Power has built a full range of 2L-13L full-range engine platforms, and its products fully meet the needs of Xugong's various product lines. Thanks to its dominant position in the heavy truck industry, engine technology has reached Weichai Power, which is the fourth national and the fifth national emission standard. It is confident that emissions will be upgraded in the field of construction machinery.
Wang Min, chairman of XCMG Group, stated that it has maintained a good relationship of cooperation with Weichai Power for many years. Whether it is in the product or the market has a high degree of fit, this time the signing of a strategic cooperation agreement for the future development of both markets and products The R&D has a wide range of space. With the close integration of the two major national brands, we believe that in China's equipment manufacturing industry, it will certainly spark a different spark.
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