[Weichai Power] Third Vision | Weichai Chairman Tan Xuguang: Entrepreneur's Spring is coming

The Economic Observer Online News reporters "The "Opinions" of the Central Entrepreneurship, telling the entrepreneur's heart, is a high recognition of entrepreneurial value and entrepreneurial spirit, and also created a good ecology for entrepreneurs and entrepreneurs. Environment, the spring of entrepreneurs is coming!" For the first time, the central government has clearly defined the status and value of entrepreneurship with special documents. Tan Xuguang, chairman of Shandong Heavy Industry Weichai Group, said.

On September 25, 2017, the "Opinions of the Central Committee of the Communist Party of China on Building a Healthy and Growing Environment for Entrepreneurs to Promote the Entrepreneurial Spirit and Promote the Role of Entrepreneurs" (hereinafter referred to as "the Opinions") was officially announced. The "Opinions" summarizes the outstanding entrepreneurial spirit with 36 words, namely, patriotism, law-abiding, arduous struggle, innovation and development, focus on quality, pursue excellence, fulfill responsibility, dare to take responsibility, and serve the society.

Tan Xuguang believes that these 36 words are highly concise for entrepreneurial spirit and provide a guide for entrepreneurs to grow and start businesses. In his view, "innovation and change is the eternal theme of entrepreneurs. Dare to take risks is an important gene for entrepreneurs' success. Pursuing dreams is the driving force for entrepreneurs to challenge."

Innovation, change, eternal theme

In the heart of New York City, on the banks of the beautiful and busy East River, a city ferry is carrying thousands of people between Manhattan and Brooklyn. When Tan Xuguang boarded the new ferry fence equipped with the Weichai Boduian engine, he couldn’t help but feel the hustle and bustle of the world’s most concentrated skyscrapers.

To address the traffic pressures in Manhattan and Brooklyn on both sides of the East River in the city centre, the City of New York has set up a city ferry between the two districts. In the tender bidding for a new batch of 22 ferry engines, in 2010, Weichai Group defeated many old rivals such as the US old engine giant and won the order and successfully entered the US market.

The United States is the country with the strictest engine technology and environmental protection standards. Weichai marine engines have been attacked in the United States, marking the performance of Weichai products to achieve world-class performance. When talking about the results of this international bidding, Tan Xuguang said with categorism, "Continuous innovation is the key to success!"

It turned out that defeating the US and other industry giants to install the US ferry is the most advanced marine engine M26.3 independently developed by Weichai. These "water bus" equipped Weichai Boduian engines work more than 18 hours a day, and the power, performance and economic indicators exceed customer expectations. Prudential Paul, New York dealer of Baudouin, said: "Customers are very satisfied with product performance, service and ease of use."

Wang Taoyu, deputy general manager of Weichai Boduan (Weifang) Company, said that the tenderer HORNBLOWER is the largest private passenger ship operator in the United States. The reason why he chose Baudouan is Bodu. The brand name of Anbain brand, excellent reliability, and customized functions to meet the special needs of customers.

Boduan is a century-old brand in France. In February 2009, it was reorganized by Weichai Group due to poor management and bankruptcy. After years of continuous cultural integration, after continuous investment in technology research and development and product market, this century-old brand has completely out of the business crisis with the help of Weichai Group – from less than 70 sales in 2009 to more than 800 sales in 2016. Taiwan has grown 12 times in eight years, and its business has expanded to fishing boats, coastal defense vessels, passenger ships, power generation and other fields, with footprints across the Mediterranean coast, Southeast Asia, China and North America.

Over the years, after each merger, Tan Xuguang will combine the advantages of both parties and push the reorganization and reorganization to continuously integrate and innovate. This has become Weichai Group continues to support mergers and acquisitions, the growing power source 600405, shares attending spring. The marine engine M26.3, which entered the US market, is the high-end product successfully developed by Weichai.

Entrepreneurs are the driving force behind innovation. The "Opinions" issued this time requires that entrepreneurs' innovation vitality and creative potential be stimulated, and product innovation, technological innovation, business model innovation, management innovation, and system innovation should be continuously promoted, and innovation and entrepreneurship should be pursued for life.

“Continuous innovation and change is the eternal theme of entrepreneurs, and the only secret of the company's eternal vitality and sustainable competitiveness.” Tan Xuguang said when talking about the experience of innovation practice, innovation requires entrepreneurs to have a strategic vision. Investigate, explore and seize new business opportunities; at the same time, we must constantly deny ourselves, break through the traditional constraints, and constantly introduce new ideas.

In 2005, after Weichai Group entered the Xiang torch, it combined the Weichai engine with the Xiang torch gearbox and axle to develop the only “truck powertrain system” in China. In 2012, the German Linde Hydraulics was reorganized. After breaking through the monopoly of high-end hydraulic technology, Weichai has integrated the two core assets of “power + hydraulics” and innovated the “hydraulic powertrain system” to dominate the second upgrade of China's construction machinery industry...

Courage to open up and challenge the world first

The "Opinions" clearly stated that entrepreneurial officers are encouraged to take responsibility, especially mentioning that "state-owned entrepreneurs should better shoulder the important responsibility of managing and managing state-owned assets, realizing the value-added and value-added, strengthening and expanding the state-owned enterprises, and continuously improving enterprises. Core competitiveness.” Tan Xuguang pointed out that “Reviewing Weichai’s road to reform, innovation and development is a vivid portrayal of entrepreneurship in state-owned enterprises.”

In June 2017, Tan Xuguang came to the newly acquired US Power Solutions International Inc (hereinafter referred to as "PSI").

The company is the largest gas engine company in the United States with annual sales of about $400 million. On March 20, 2017, Weichai invested 40 million US dollars to hold 40.71% of shares, becoming the company's largest shareholder.

Tan Xuguang told more than 700 PSI employees who attended the meeting, "In the next five years, Weichai will help you achieve the goal of annual sales income of 2 billion US dollars." In five years, the growth from $400 million to $2 billion was realized. Upon hearing this goal, the PSI staff present at the time were stunned.

But for Tan Xuguang and Weichai people, this growth rate is not a big surprise.

In 1998, when Tan Xuguang took office, Weichai was only a small factory with annual sales income of more than 500 million yuan, serious losses and insolvency. Today, twenty years later, the annual sales revenue will exceed 200 billion yuan, the total profit will be nearly 10 billion yuan, and the compound annual growth rate will exceed 35%, creating a sustainable growth miracle.

Tan Xuguang believes that entrepreneurs must have the courage to challenge in their daily operations, constantly challenge new goals, never meet, never stop, but also make scientific decisions – not to mess with, not toss, not to be able to Big, always keep a clear mind.

When real estate was hot, several local governments offered to give land targets and mobilized Weichai to get involved in real estate. Tan Xuguang always refused every time: "I want to sell the engine more than real estate!"

In the past 20 years, Tan Xuguang has been adhering to his main business and in the continuous mergers and acquisitions, forging the core competitiveness of enterprises. Since 2004, Weichai Group has successively implemented a series of capital mergers and acquisitions, such as Xiang Torch, Yaxing Bus 600213, Diagnostics , France Baudouan, Germany KION and Linde Hydraulics, American Dematic, PSI, etc. It is not a capital expansion around the core value chain of the main business development.

For a long time, Tan Xuguang has highly praised GE in the United States, and its competitiveness in many industries is almost one of the highest in the world. Today, Weichai has continued to exert its strength in the engine industry, and has gathered many “global firsts” on the power spindle.

At present, the annual production capacity of Weichai engine has reached 1 million units, becoming the world's largest R&D and manufacturing base for high-power engines. The German Linde Hydraulics Company has the most advanced technical indicators in the global hydraulic performance test; Ferretti is the world's number one. The Grand Luxury Yacht Manufacturing Group; Faster's heavy-duty transmission has leapt to the top in the world; its Hande heavy-duty axles are also the largest in the world.

Tan Xuguang finally realized the desire to "sell the engine more than real estate."

Adventurous spirit

In the "Opinions", we must promote the spirit of entrepreneurs who dare to try, dare to be the best in the world, and dare to take risks. We support entrepreneurs to sharply capture market opportunities, continue to forge ahead, work hard, strive for first-class...Cultivate and grow stronger. Many leading companies with international influence."

Tan Xuguang has always had the title of “Tan Bold” in the corporate world. He believes that taking risks is an important gene for entrepreneurial success. If you dare to take risks, don't be afraid of failure, think that others don't dare to think about things that others can't do. At the moment, this "Tan Bold" is experiencing an unprecedented "big adventure."

In 2017, Tan Xuguang went to various countries for industrial inspections. “The biggest impact on me is our technology gap. I feel a huge sense of crisis and urgency. When China’s vehicle industry is busy with the day and night to meet the national five and six emission standards, the European and American vehicle industry The technical accumulation of Euro 6 and EPA 2017 emission control has been completed around 2010."

Nowadays, western developed countries such as Germany, the United States, France, the United Kingdom, and the Netherlands have taken the lead in listing the “banned timetable” for fuel vehicles. It is expected that around 2030, new energy vehicles will account for one-third of the world. This is undoubtedly a huge industrial crisis for diesel engine manufacturers.

“The market share of traditional powertrains will gradually decline, and new energy power is getting closer and closer to us. This is our biggest challenge. We must seize this industrial revolution and realize the leading from a diesel power leader to new energy power. The transformation of the people, the current glory is a lasting success. If we can't catch it, we are likely to become the historical sinner of Weichai!" After a period of planning, Tan Xuguang plans to invest 50 billion yuan in the future to build Shandong's largest new energy power industry. Park, re-create a hundred billion new firewood.

This will be the largest investment in Weichai Group's history, and it is also the biggest industrial transformation of the company, and it is the biggest adventure.

According to the Weichai New Energy Power Industry Plan, in the next 5-10 years, Weichai will invest 50 billion yuan to build China's largest new energy industrial park and build a new energy power industry chain.

The "Opinions" hope to mobilize the enthusiasm, initiative and creativity of entrepreneurs, give play to the role of entrepreneurs, and make greater efforts to promote sustained and healthy economic development and social harmony and stability, to achieve the goal of building a well-off society in an all-round way and the great rejuvenation of the Chinese nation. contribution.

Tan Xuguang told reporters that there is also a dream in his heart - to integrate personal ideals into the great practice of national rejuvenation, to seize the opportunity of the transformation of old and new kinetic energy, to turn Weichai Group into a leading company with international influence and to the high end. Over a hundred years.

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