Xinhuanet.com, Nanjing Jiangsu, 6th Nov. 2012 ( Reporter of Xinhua News Agency, Hua Weilie) Founded in 1989, XCMG has been a market leader in the engineering machinery industry of China for 23 years. At present, ranking No. 5 in the world’s engineering machinery industry, it is a large scale enterprise group in the engineering machinery industry of China with the largest scale, the most diversified products, the strongest competitiveness and the greatest influence. The turnover of XCMG increased from RMB 386 million yuan when it was just founded, to more than RMB 87 billion yuan in 2011, ranking No.1 among its counterparts. Mr Wang Min, representative of the 18th CPC National Congress, president of XCMG received the interview by Xinhua News Agency.
Reporter: In 2012, XCMG put itself in the ranks of the Top 5 in the world’s engineering machinery industry, which has enhanced the market share and the brand image of high-end equipment manufacturing of China. What do you think constantly drives XCMG forward and what makes it a world-class enterprise?
Wang Min: At present, the international economy is on the downward trend, and growth of both external and internal demand is slowing; however, thanks to three magic weapons, XCMG has made growth against the trend.
First, it’s technological innovation. Technological innovation is the primary magic weapon that enables XCMG to be No. 1 in China’s engineering machinery industry in the consecutive 23 years. In recent years, XCMG has transferred from low-end assembling to high-end manufacturing by mastering a series of core technologies through technological reform and innovation. XCMG has spent more than RMB 1 billion yuan on R & D annually in latest years, and in 2011, its expenditure on R & D accounted for 5.7% of its turnover.
Second, it’s internationalization strategy. Internationalization is the core of the development of XCMG. At present, XCMG is building overseas manufacturing bases in Poland, Brazil and other countries. It has 10 overseas components centers in countries such as Sri Lanka, Venezuela, etc, more than 100 international distributors and more than 500 contracted service providers, which makes a better and better overseas service network and remarkably enhances its service performance. XCMG’s products have been sold to 147 countries and regions, ranking No. 1 in the engineering machinery industry in terms of earning foreign exchange through export.
Third, it’s talented personnel. XCMG has more than 4000 personnel who specialize in R & D and process research, and it boasts more than 80 technical elites in the high-end engineering machinery industry. XCMG’s National-Class Technology Center is always ranking No. 1 in the assessment by National Development and Reform Commission. Meanwhile, with its R&D centers located throughout the world, XCMG is trying to provide strong intelligence support for its development by making full use of global talents resources so as to become a world-class enterprise.
Reporter: In June this year, XCMG’s four bases including All Terrain Crane Base, Loader Intelligence Base, Concrete Pump Base and Concrete Mixer Base were officially put into use. The four bases are the largest in the world, with the state-of-the-art process and technology and the strongest capability of lean production. What do you think these four bases mean to XCMG? What are the highlights?
Wang Min: When the four bases reach the designed capability, the total capacity will be increased by RMB 40 billion yuan, equaling to creating a new XCMG. It symbolizes a vital industrial upgrading and strategic transformation of XCMG in the 12th Five-Year Plan. By establishing these four bases, XCMG has upgraded the traditional industry by pushing forward the deep integration of informatization and industrialization as well as promoted the industrial transformation and upgrading and the change of its development mode.
With years’ experience in the engineering machinery industry, XCMG’s four bases have displayed new shining points in the new stage. First, with highly integrated, flexible, intelligent and full digital management, XCMG has obtained the capability of lean production and quality manufacturing that can be compared to world-class enterprises. It is committed to constructing a high-end national industry by adhering to following the path of new type industrialization with the characteristics of high efficiency, energy reservation and environmental protection; second, XCMG has made a breakthrough in the brand-new manufacturing model of manufacturing 6 – ton plus large tonnage loaders, 120 - ton plus super large tonnage cranes in bulk; third, with the technology of Germany Schwing, XCMG has launched a brand-new plate of complete set of concrete machinery, which has great potential for growth and strong capability.
Reporter: After XCMG ranks No. 1 among the Top 10 of the global movable cranes by surpassing LIEBHERR, it is aimed at building No. 1 Brand of the global cranes. How does XCMG defeat its strong competitors and become No. 1 in the global crane market?
Wang Min: For many years, XCMG has been committed to studying the core technology of cranes, deeply combining the engineering application with clients’ demand and constantly building core competitiveness. It sets its goal of becoming No. 1 brand among the global cranes by emphasizing on the Six Highlights.
　　First, XCMG is a market leader in terms of market scale and brand influence. Since 2000, XCMG not only ranks No. 1 in terms of the output in the world, it has achieved the advanced level in the international crane industry in terms of intensive lean production that is calculated according to the output of the unit area. The crane of XCMG has more than 50% of the market share for 10 consecutive years in China where XCMG sells its most cranes; its market share is 30% in the overseas market.
Second, industrial portfolio makes different industries complement each other’s advantages. Since 2012, XCMG has fully integrated relevant industries by allocating resources for cranes which have the largest production scale and the superb quality, such as vehicle cranes, all terrain cranes, clawer cranes, tower cranes and special fire trucks. In addition, XCMG has realized resource-sharing in terms of R&D platform, informatization platform, purchasing platform and market platform.
Third, XCMG is a market leader in terms of the capability of scientific and technological innovation. XCMG first manufactured all terrain cranes and crawler cranes in China and made them commercialized. These cranes stand for the highest technology in the crane industry of China. So far, XCMG has surpassed its international counterparts in terms of spectral width and density of its all terrain cranes and crawler cranes.
XCMG has formed the most intensive spectrum group for its vehicle cranes, and it will make a breakthrough in movable arms of the tower crane plate that is newly introduced to XCMG. The number of crane patents has reached 1078 in total.
Four, XCMG maintains the competitive edge in terms of the quality of its products. XCMG’s All Terrain Crane Base has launched the manufacturing technology of super large tonnage circular arc shaped hoisting arms, which solves the difficulty in the increased thickness of the splice plate for the hoisting arm of products at 500-ton level. XCMG now boasts the first visualization large tonnage assembling line, testing line for large tonnage complete set of machine and linear coating system for complete set of machine in the engineering machinery industry of China.
Fifth, XCMG is always a leader in enhancing its service capability. In 2011, under Crane Value Enhancement Project and with the theme of creating values for customers, XCMG implemented four programs including Five Standards for Investment in Cranes, Hunting for User Value, Honest Service Commitment and Training Base for Crane Operators.
Sixth, XCMG has strong advantages in the global support capability. In 2012, XCMG accelerated its pace of going abroad and further pushed forward the construction of markets for international marketing service agencies. So far, XCMG has 110 Class 1 agencies and 268 core business outlets throughout the world. XCMG has developed 1100 senior service engineers, and by the end of the 12th Five-Year Plan, the number of Class 1 outlets will have exceeded 500, and that of the senior service engineers will have reached 3000.
Reporter: As the most important innovation entity of the engineering machinery industry of China, XCMG plays a vital role in the technological innovation in the industry. What do you think of the construction of R&D platform for the development of XCMG?
Wang Min: The important strategies of XCMG in the 12th Five-Year Plan include strengthening self-dependent innovation, accelerating the construction of R&D platforms in China and abroad, and establishing R&D centers throughout the world.
Jiangsu Xuzhou Engineering Machinery Research Institute will be officially launched soon, in which RMB 1 billion yuan was invested. The construction of XCMG Europe Research Institute and XCMG US Research Institute has been accelerating. XCMG Brazil Plants and Engineering Technology Center are under construction with a total investment of $ 200 million.
When XCMG Nanjing Institute is established, the construction of Shanghai Adjacent Harbor Export Manufacturing Base and XCMG Shanghai Institute has commenced. These platforms will enable XCMG to accelerate its pace of gathering global technological resources and domestic and international high-end talented personnel, master more core technologies, firmly grasp the commanding point of technology in the domestic industry and drive XCMG to achieve the top of the global engineering machinery industry.
Reporter: In recent years, when European countries and US are stuck in the economic crisis and their economy is on the downward trend, XCMG has targeted at its international counterparts and implemented its overseas acquisition strategies. What makes XCMG carry out its global acquisitions?
Wang Min: In 2011, XCMG acquired Holland AMCA and Germany FT, two European enterprises specializing in R&D and manufacturing of basic components, which means XCMG has extended its business in the aspect of high-end components. These two European enterprises have core technologies in the filed of high-end hydraulic components manufacturing, so XCMG hopes that through acquisitions, it can improve its own industrial chain, and make up for its weakness in the core technology of high-end components and key matching products.
In April this year, XCMG got the holding shares from Germany Schwing, a global leading concrete machinery company with a history of 78 years. As a “Leader” of global complete set of concrete machinery, Schwing is a provider of world-class concrete machinery manufacturing and transportation solutions. The acquisition of Schwing will dramatically improve one of the core plates of XCMG – concrete machinery, further consolidate the leading position of XCMG in the Chinese industry and speed up its internationalization process.
Reporter: During the 12th Five-Year Plan, what is the long-term plan of XCMG?
Wang Min: XCMG will firmly grasp the historical opportunity with the rise of China, globalization and new industry revolution so as to extend its products and capital market globally, expand the fields of engineering machinery, main engine products for heavy trucks and core components, and enter the field of high-end equipment manufacturing in the future.
XCMG will further accelerate its upgrading and transformation by turning itself into “ Modern and Service-Oriented Manufacturing Industry”. It will speed up the construction of technological system with Jiangsu Xuzhou Engineering Machinery Research Institute and National-Level Technology Center as the main entity, take the initiative to make a breakthrough in self-development of intelligent, light-weighted, energy-saving and environmental-protection core technologies and manufacturing technologies as well as high-end products, focus on improving R&D capability of core components and endeavor to enhance the application of intelligent auto-control technology.
XCMG will spare no efforts in becoming the top in terms of engineering machinery technology of the world. By 2015, with the turnover of RMB 300 billion yuan, XCMG will have become Top 3 among the global engineering machinery manufacturers, Top 500 among the world enterprises. With a wide range of breakthroughs in scale, strength, products, market and brand-new plates, XCMG will ultimately become a world-class leading enterprise with international competitiveness.