Interview with People on the 40th Anniversary | Wei Zetu: Focus on Core Advantages to Build Industrial "Moat"

Interview with People on the 40th Anniversary | Wei Zetu: Focus on Core Advantages to Build Industrial "Moat"

November 02, 2022

Wei Zetu——He is currently the managing director of Wirtgen International.,The original Wittgen(China)Machinery Co. LtdCEO,Since 1982, Wittgen Road Construction Machinery has entered the Chinese market.,In 1987, Mr. Weitzetu was in charge of the Wirtgen China market.,He has lived in China for 35 years.,The degree of love and familiarity with China even exceeds that of many native Chinese.。In his words.,“I am an old friend of the Chinese people.”。

This was also awarded to the foreign expert from Germany by the Hebei Provincial Government last year.“Yanzhao Friendship Award”It has been confirmed。He witnessed Wittgen's growth in China.,And personally promoted the localization and internationalization process of Wittgen China Company.,It is a legend for China's road machinery market.。2022 coincides with the 40th anniversary of Wittgen's entry into the Chinese market.,For this reason,The industry media interviewed Mr. Wei Zetu.,Feel with him the development of Wittgen China in the past 40 years.,Uncover its market in China“Built to last”The mystery。

“My entire China team and I were, and are, living this mission of being close to our customers day in and day out,Wirtgen's success in the Chinese market stems from the recognition and support of customers.……”Mention the customer,Wei Zetu's words are full of gratitude.。

1

Reporter:For 40 years,Wittgen has built an industry in China's road machinery market that is not easily crossed by competitors.“Moat”,So as to establish a sustainable industrial competitive advantage.?

Wei Zetu:I and my entire Chinese team were and are practicing day after day.“Close to customers”This purpose。As a manufacturer,In order to dominate the development of the market,,The most important market moat you have to build。First,Need to build a first class staff,Practice at all times“Close to customers”This idea,And can be trusted by customers.。The backbone team of Wittgen China is very stable.,Employee retention is very high。I think this is the development of the company.“Sustainable Industrial Advantage”。Secondly,Over the years,Through the acquisition of four famous brands, Vogler(VÖGELE)、Humvee(HAMM)、Clay(KLEEMANN)And Penninghoff(BENNINGHOVEN),Wirtgen(Wirtgen GmbH)Has evolved into what is known today as the Wirtgen Group(Wirtgen Group)。All of these brands have a long history in their road construction and maintenance machinery and mineral processing businesses.,It can be called“Invisible champion”。Customers can be formed by owning multiple brands under the Wirtgen Group.“Equipment Fleet”,So as to benefit from the intelligent synergy effect of equipment from the same group to enhance their business competitiveness.。

Again,Since 2011,Wirtgen Group has implemented the Chinese market strategy.,Develop high-quality customized models suitable for the Chinese market,To better meet the expectations of Chinese customers at affordable and reasonable prices。This strategy drives Wirtgen Group Equipment's milling machines in China.、The market share of asphalt pavers and rollers has always been in the forefront.。By setting up their own industries to compete.“Moat”And close to the customer、Meet customer needs,Put forward the product competition strategy to adapt to the Chinese market,Wirtgen Group's production capacity in China has grown steadily.,Starting from the first assembly plant in Langfang in early 2004,Build a larger new factory in Langfang by 2015,By October 2021, the first expansion of the new factory in Langfang was completed.。Today,The production capacity of Wittgen Group's factory in China has reached 4000 units./Year。

Wirtgen Langfang Plant in China after Phase II Expansion
 

2

Reporter:You are the founder and operator of Wirtgen China.,He created and promoted Wittgen's development in China.40 years。What kind of driving force will enable you in 40 years?,It has been serving Wittgen and rooted in the Chinese market.?

What elements have been injected into the company by the senior team of Wirtgen China led by you to make Wirtgen always occupy the high-end market in the field of road machinery in China??

Wei Zetu:First,“Close to customers”Concept is the absolute advantage factor for Wirtgen to succeed in the market.。The second is Wittgen's Chinese team.,I've built one of the best teams in the industry over the past few decades.,They're stable、Reliable、Trustworthy、It is well recognized by customers。The other is our Wittgen China agent network.。We began to implement the professional agency system in 2012.,Full focus on the distribution of Wirtgen Group equipment,The agent has well-trained professionals.,Highly appreciated by our Chinese customer base。Finally,Equally important is the fact that Wirtgen manufactures in China.。Wittgen、Vogler and Hummer's equipment is not only adapted to the needs of Chinese customers.,And continuous improvement based on customer feedback,Localized production in China,Maintain high quality standards,Therefore, it is very competitive in the market.。 

So far, more than15,000The Wirtgen Group equipment is active on road construction sites

3

Reporter:For 40 years,What process has Wittgen gone through in the promotion of localization in China??Next step,How to think about the promotion of localization in China??

Wei Zetu:Wirtgen(Wirgen GmbH)Acquired the Vogler brand in 1997,And acquired the Hummer brand in 2000.,The group operation of Wittgen has been realized.。The first Chinese factory is located in Langfang City, Hebei Province.,Hummer's tandem roller was the first to go into production in 2004.,Production of Wirtgen milling machines and Vogler asphalt pavers also began soon thereafter.。

The first Chinese plant opened in 2004

Since 2011, Wittgen has implemented the localization strategy in China.,Research and development、Make equipment that better meets local needs,On the premise of ensuring that product quality and standards are the same all over the world,Increasing local investment,Promote localized manufacturing of supporting system,Sales volume and market share have increased significantly.。In 2012, the company further launched a professional agent network mechanism.,Through the development of a Dealer Development Plan,Ensure that every agent who becomes a Wittgen agent must undergo rigorous professional training.,This program is highly recognized by all agents.。The result is the Wirtgen milling machine.、Fogler Asphalt Paver and Hummer Roller,In particular, the sales volume and market share of large double-steel wheels have increased steadily.。

The new plant was officially put into operation in 2015.,Capacity increased by 100%。By the end of 2021,The new factory has completed its first expansion.,It has achieved an annual production capacity of nearly 4000 units in China.。And,The factory has also achieved a comprehensive upgrade of operations and quality management through a modern digital work center.。

The new Vogler production workshop after the second phase expansion

Production line workers use digital work centers in their daily work

In the next 6 months,Wittgen、More new models for Vogler and Hummer will be ready.,By December 1, 2022, Wirtgen China's entire product line will meet the fourth national emission standard.。Wittgen Group takes the lead in responding and implementing practical actions in the industry.“Guo Si”Standard,It highlights and practices the consistent concept of social responsibility for sustainable development.。

4

Reporter:How do you view the growth of China's local road machinery enterprises??Facing the increasingly fierce market competition.,What is Wittgen's response??

Wei Zetu:In the field of road machinery,Domestic brands and manufacturers have made great progress in technology and manufacturing level.。Whether in the domestic market or the international market,With the rise of the overall level of manufacturing,The competitive pressure from the industry is gradually increasing.,But at the same time, it also gives Wittgen the motivation to keep ahead of technology and quality.。Wittgen China has always maintained a high respect for our Chinese counterparts.,Be very serious about competitors from China.“TRUE”Competition。Rapid Growth of Chinese Local Road Machinery Brands,It allows us to rethink our development strategy.,Focus more on the customer。The focus on our customers allows us to better support them,Give them more help with their business,And ultimately, they can get more value through our equipment.。

5

Reporter:Although in recent years, China's local road machinery enterprises have made rapid progress.,But in the field of high-end road machinery,,Especially in the field of large milling machines, it is still difficult to shake Wittgen's leading position.,Leading is hard.,But long-term leadership is even more difficult.,What do you think is the secret of Wittgen's ability to maintain this lead??

Wei Zetu:The most important thing is to focus on customers.,Always maintain a closer relationship with our customers.。In addition,Have a job that you love.、Love the company you work for、A strong team of enthusiastic staff;Professional dealer network。Finally,It is also a very important point.,Provide customers with the best equipment in the industry。

6

Reporter:How do you view the trend of China's road machinery market this year??How does Wittgen deploy in new product strategy and channel support??

Wei Zetu:2022 will be a difficult year for China's construction machinery market.。Firstly, the rapid growth in the past two years has gradually saturated the pavement market.。Secondly,At present, the situation of COVID-19 pandemic prevention and control in some areas is still grim.,Affected by the epidemic,Some projects in some areas have been delayed.。Again,Some customers are facing serious cash flow problems due to the decline in the market.,Longer return on investment cycle,Profit margins have declined,Thus affecting the purchase confidence of some customers.。Be that as it may,Wittgen China is still optimistic about the future growth of China's road machinery market.。We will not give up the Chinese market.,It also plans to provide more local customized models for local customers.。For the Wirtgen brand,We will introduce a new 1-meter cold milling machine.W 100 HRAndW 130 HR。A new line of medium milling machines(ModelW 125 CF、W 155 CFAndW 185 CF)It has been listed this spring.,It is believed that these newly developed machine models will bring surprises to customers.。For the Vogler brand,Meet the fourth national emission standard(MEE4)An asphalt paverSUPER The launch of the 1680,It is also welcomed by the vast number of Chinese customers.。In the fall of 2022, we will launch theMEE4 Standard,Maximum paving width up to 13 mA new model。For the Hummer brand,We will launchHDSeries of new models of small road rollerHD 18、HD 20 andHD 50,They will replace previously imported models.HD 8、HD 10 CAndHD 13/14。In the middle of this year,We will introduce emission standards that meet the fourth national standard.(MEE4)A new generation of large double steel wheel rollerHD 138iAndHD 148i,As well as their respective oscillatory compaction versions。Since the beginning of 2022,We will provide our customers withHCSeries 20-26-ton full-hydraulic single-drum road rollerHC 208 D、HC 228 D、HC 268 D,Customers who are more cost sensitive,More cost-effective single-drive configurations are also available。

Last year, Wittgen launched in China the world's advanced level.W 380 CRCold recycling machine,With its high performance and productivity,W 380 CRA new benchmark has been set in the green road rehabilitation process.。

7

Reporter:Future 3-5 years,What vision and expectations do you have for Wittgen China??

Wei Zetu:We are very optimistic about the market prospects of Wirtgen Group's equipment in China.。Despite the impact of multiple factors such as the epidemic and rising raw material prices in the second half of 2021 and the beginning of 2022.,The growth rate slowed down,But I still firmly believe in China's infrastructure construction.“Fourteen five”Planning can be achieved,The scale of the projects mentioned in the plan is huge.,Enough to meet each manufacturer's goals。In China's benign and fair market competition environment,Stronger enterprises will be able to survive better.,Wirtgen China has been for the future 3-Five years of competition is ready for everything.。

Editor's note

We have been in the same boat for 40 years。Since 1982, the first Wittgen milling machine has settled in Tianjin.,Up to now, more than 15000 of Wittgen's products are all over the construction sites in China.,Wittgen China has gone through an extraordinary course of development under the leadership of Mr. Weitetu.。Mr. Weitzetu has devoted almost all of his career and golden years to China.,His pragmatic style,To the staff、To the customer、Respect for the market has won the love and respect of Wittgen China and the agent's staff team.,It has also won the deep friendship of many Chinese customers.。After nearly 40 years in charge of Wittgen China,Mr. Weitzetu also ushered in another phase of his life.。

At present,Mr. Weitzetu has returned to Wirtgen Group headquarters.,Senior position as Managing Director of Wirtgen International。With this article, I would also like to pay tribute to Mr. Wei Zetu who has contributed to the development of China's road construction and maintenance industry.。
 

Face the future,Through a conversation with Mr. Weitsetu,We have reason to expect,In the prime of life,Under the leadership of a new generation of leaders with the same corporate culture,Wittgen China, which has always been close to customers, is ready to climb new heights.,At present, creating value for customers with the industry's top products and services has laid the foundation for its future goals.。

Wittgen China New Generation“The helmsman”:

CEO Du Ruikai(Left)

Yu Yongzhi, executive director in charge of sales, marketing and customer support(Right)

Confucius said“At the age of forty, I have no doubts”。Maybe,For Wittgen, who has gone through 40 years of development in China,,They are not confused about constantly iterating product upgrades and services to create higher value for users.;Not to be confused with a firm belief in the heart、Do what is always right and valuable.;Don't be confused to face the challenges with agents and partners、Cohesion、Always maintain a leading position in the industry!

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