Guangxi Yuchai Group: The Rise of China's National Industry in the Western Region

From a small handicraft company that produces small farm implements, it has grown into a modern large-scale enterprise group, becoming the manufacturer of the internal combustion engine with the most complete product spectrum in China and the manufacturer of medium and small-sized full-hydraulic excavators with the most comprehensive domestic product spectrum, and has become a Chinese company. the 500 strongest. In the past 60 years, this Guangxi Yuchai Group, which is not in the eastern provinces where traditional industries developed, and which has come from the remote southwestern border of China, has successfully erected the backbone of China's national industry. This is the information the reporter learned from the interview of Guangxi Yuchai Group, which is about to celebrate its 60th birthday.

The large companies that come out of the manual

The Guangxi Yuchai Group, established in 1951, was originally a labor reform factory established in a muddy pond. It lacked talents, lacked technology, and lacked production equipment. Most of the time it was in a state of semi-production and semi-production. This was true at the time. Portrayal. Yuchai even became the most difficult problem for the Guangxi Machinery Industry Department. In 1970, it was decentralized to the Yulin Prefecture. At that time, in the eastern provinces where traditional domestic industries were developed, Yuchai was not known. However, it is such a hand-workshop-type enterprise that is remotely located, has no ties with diesel engine production and even mechanical production, but it has the dream of several generations of Yuchai people to build a domestic first-class diesel engine.

After the director responsibility system was implemented in 1985, Yuchai began to establish a horizontal economic alliance, taking the road of external inward reference, and strengthening the company's strength and resilience. Yuchai has spread and processed more than 40 kinds of product parts in the Guangxi region. Outside the district, it uses the vertical and horizontal linkages with several companies such as China National Agricultural Machinery Service Corporation and Dongfeng Motor Corporation to extend the cooperation network to 16 provinces. In more than 100 factories in the district, companies have slowly turned losses into profits.

By 1992, with the formal approval of the General Office of the People's Government of Guangxi Zhuang Autonomous Region, Yuchai implemented a joint-stock reform and raised 240 million yuan of stock capital. It became the largest joint-stock enterprise that was targeted by Chinese legal persons to raise internal circulation pilots at the time. Guangxi Yuchai Machinery Group Co., Ltd. , Guangxi Yuchai Machinery Co., Ltd. was established, the plant became a company, the system transformation strategy was basically completed, and achieved a major turning point in the history of enterprise development.

In 2004, Yuchai achieved sales revenue of over 10 billion yuan for the first time. After years of accumulation and precipitation, it has embarked on the road to modern enterprise management.

Transformation of industrial strategic positioning

In 2005, it was a year with a significant turning point in the history of Yuchai's development. Yuchai ushered in new opportunities. Entrepreneur Zhang Ping, who has advanced business concepts and corporate strategic awareness, took the post of chairman and became the new leader of Yuchai. .

Faced with the severe market downturn at the time, Fuping began drastic reforms. “The restructuring of the organization, the streamlining of personnel,” “reducing costs, improving efficiency” and “people-oriented, heavy gold awards” and other series of reform measures have brought Yuchai fruitful results: In 2005, Yuchai realized an operating income of RMB 12.1 billion. 12.3%; sales of 267,500 diesel engines of various types, an increase of 22.73%; export revenue reached 17 million US dollars, an increase of 96%! Yuchai became the only company in the industry to achieve positive growth in production and sales volume, and created the “Yuchai phenomenon” that is praised in the automotive industry.
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Although the reforms in 2005 have achieved certain results, Junping knows that whether an organization reorganizes or simplifies personnel or reduces costs and improves efficiency, it is necessary for an enterprise to survive in an ever-changing economic market. It is not enough to rely on these alone. In order to achieve better development, Yuchai must break the bottleneck of the past development, quickly seize the commanding heights of the market, and seize the relevant industries of the diesel engine of its superior products in the context of multiple developments, and jump out of the company to grab food and eat only in the diesel engine. situation.

Under this line of thinking, Yuchai takes “green development and harmonious and win-win” as the core concept, and has successively moved south to Guangdong and Fujian, east to Zhejiang and Jiangsu, west to Sichuan and Chongqing, and north to Shandong, Tianjin and Liaoning. In September 2007, Yuchai Engine Base was first built in Xiamen and Yuchai’s first engine company outside the Yulin headquarters was established. Subsequently, the company and Zhejiang Geely Group and Zhejiang Yinlun Machinery Co., Ltd. built diesel engine bases for passenger cars in Shandong and Zhejiang, and invested with China South Locomotive on the basis of Yuchai Ziyang Company to build a mid-speed ship machine production line and established R&D and manufacturing of power equipment in western China. Base, to jointly create a western power equipment R & D and manufacturing base.

Through a series of operations, Yuchai Group has gradually built an industrial base all over the country, expanded its own territory and territory, and successfully created the development pattern of “two product chains and multiple industry groups”. Yuchai’s concept of development based on “Guangxi, the layout of the whole country, and the planning of the whole world” is steadily advancing step by step.

Increased enterprise innovation

After the coaching change, Yuchai also greatly improved the company's innovation.

During the “Eleventh Five-Year Plan” period, Yuchai established two domestic scientific research bases in Nanning and Yulin, and possessed state-level enterprise technology centers, national accredited laboratories, and postdoctoral workstations. Through the cooperation with Germany, Austria, and other world-renowned research institutions, British Bruce Universities such as Neil University, Tsinghua University, Tianjin University, Shanghai Jiaotong University, and Harbin Engineering University cooperated to establish more than 10 domestic and overseas product technology R&D centers, forming a powerful R&D platform that focuses on independent research and development technologies and connects to the world's leading technologies. .

On February 26, 2006, Yuchai launched China's first domestic 4 diesel engine with independent intellectual property rights, 4 years ahead of the implementation of national standards, and Yuchai led the industry into the era of green power. Subsequent research and development of China's first national 5 emission YC6L-50 diesel engine the following year, further reducing NOx emissions by 50%, is a low-emission engine launched five years ahead of the implementation of the national emission standards.

On October 16, 2007, Yuchai successfully cooperated with Shanghai Jiaotong University to develop a hybrid passenger car for urban passenger cars. This is the first innovation achievement of the development of urban passenger car powertrain with the single-axis parallel connection (ISG) technology. A new generation of power technology trends.

In 2009, Yuchai cooperated with the University of Brunel in the UK to develop the "Renewable Air Hybrid Power Technology Function", which achieved the renewable energy recovery, storage, engine start and stop control has reached the international advanced technology level, marking the Yuchai in the new energy New breakthroughs have been made in the research and development and application of technology.

On June 29, 2011, China's first Euro VI vehicle diesel engine Yuchai 6L-60 Euro VI prototype was born in Yuchai, unveiling a new page in the history of China's internal combustion engine development.
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According to incomplete statistics, in the “Eleventh Five-Year Plan” period, in the engine segment, Yuchai’s products expanded from five major categories and 13 major series in 2005 to include automotive, marine, construction machinery, agricultural machinery, and power generation equipment. The 27 large series of more than 2000 varieties of micro-light, light, medium and heavy multi-cylinder diesel engines. It has been at the leading international level in combustion development technology, low-emission development technology, and machinery development technology, and has filled the gaps in China's automotive engine technology in various fields. In the construction machinery segment, Yuchai completed the development of new products such as large digging and rotary drilling. The hydraulic excavator has more than 50 series and 144 types of combinations. The earthmoving machinery and piling machinery dominate the product system covering hydraulic excavators. , Rotary drilling rigs, continuous wall grabs, aerial work platforms, skid-steer loaders, mining vehicles and other nine categories of construction machinery products.

In terms of patent filing work, during the “11th Five-Year Plan” period, Yuchai Group had applied for more than 1,000 patent applications and authorized about 700 applications. The number of patent applications ranked first among Guangxi enterprises for five consecutive years.

Yuchai Group's 100 Billion Dream

Under the leadership of the leadership group led by Fuping, Yuchai has grown at a rate of over 30% per year in recent years and has achieved amazing results in the corporate world.

Yuchai Group's sales revenue in 2008 exceeded the RMB 20 billion mark, and Yuchai achieved the target of “Rebuilding a New Yuchai in Three Years” set in early 2006. In 2010, the sales revenue was 37 billion yuan, creating a miracle that also "created two Yuchai in five years." As of today's incomplete statistics, the Group's sales revenue has exceeded 40 billion yuan.

At present, Yuchai has created two product chains of “engine and construction machinery” to form the development pattern of supporting six major sectors of engines, construction machinery, parts and components, logistics and automobile trade, energy and chemical industry, and special-purpose vehicles. Among the top 500 Chinese companies, Yuchai Group ranked 215th, ranking 12th more than 2010. Among the top 500 Chinese manufacturing companies, Yuchai ranked 108th, which was 5 places higher than 2010; The 19th among China's top 500 machinery enterprises demonstrated the king's style of Chinese power. The company's operating quality and the company's factor endowments rise to a higher level.

At the same time, the group also changed from a single-share company to a full-park spring in 2005. Now, there are 8 subsidiaries with more than 1 billion assets. The competitiveness of various industrial sectors has grown substantially and it has grown rapidly.

In the past 60 years, it has grown from small to large, weak and strong. It has grown into a modern large-scale enterprise group known throughout the world as a global company. The reputation of the Yuchai brand has been with Yuchai. Product soundings from north to south.

Luan Ping said that according to the plan, by the end of the “Twelfth Five-Year Plan”, the Group will achieve sales revenue of over 100 billion yuan and enter into the 100 billion group. The Group will strive to build world-renowned brands and revitalize the national industry!

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