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Weichai Group actively exerted its advantages in innovation management, worked hard to absorb foreign advanced technology concepts, and promoted technological innovation in the industry; at the same time, on the road of overseas mergers and acquisitions for many years, it played a role as a bridgehead for overseas companies and forward-lookingly explored new trends in industry development in traditional industries. The kinetic energy transforms into a new model.
From June 3 to June 6, 2017, Weichai chairman Tan Xuguang came to Chicago, USA to study the development of Weichai Power's North America business and made a special trip to inspect PSI, which is the direction for the coordinated development of PSI and Weichai in the future. Set goals.
Chairman of Weichai Tan Xuguang Visits PSI
In April this year, Weichai Power invested 60 million U.S. dollars and became the largest shareholder of U.S. engine manufacturer Power Solutions International Inc., officially opening the road to business expansion in the North American market. According to the agreement, Weichai will use PSI's technology and experience in North America to strengthen all-round cooperation in R&D, especially for more powerful non-mobile engines, to fully realize gas engine technology upgrades.
The conversion of kinetic energy in the traditional industry and technological innovation are the primary driving forces.
As the vanguard of China's equipment manufacturing industry, Weichai seizes opportunities, actively promotes technological innovation, and implements business synergy between diesel engine technology and gas-fired power technology to find new development opportunities for the internal combustion engine industry in a rapidly changing domestic and foreign market environment.
With the ups and downs in international oil prices, intensified exhaust emission pollution and the country’s increasing demand for emission upgrades, the implementation of new energy power strategies is imminent. Finding alternative energy sources has become the consensus of the global power industry. As a clean energy source, natural gas has become increasingly prominent in internal combustion engines.
The United States has long started to develop incentives and incentives for the replacement of natural gas power in traditional industries and encourage the development of gas engine technology. As the top 15 gas-rich countries with natural gas reserves, China’s National Energy Administration issued the “Opinions on Accelerating the Use of Natural Gas†and proposed that it gradually cultivate natural gas as the main energy source of China’s modern energy system, and vigorously develop natural gas distributed energy. .
March 13, 2012, China's first launch of natural gas engine with direct injection
Weichai started the R&D and production of gas internal combustion engines early on. During the 12th Five-Year Plan, natural gas commercial vehicles began to develop rapidly. Weichai quickly occupied the market with its strong technology accumulation and production capacity reserve. In 2011-2016, it accumulated sales of more than 15 million gas engines and achieved revenue of more than 10 billion. In the heavy truck market, the market share is stable at 60-70%. In the passenger car market, Weichai focuses on 6-13.7m passenger transport, 8-18m public transportation, and 8-11.5m hybrid power. With its features of green environmental protection, good economy, low noise, low vibration, and low maintenance cost, we have products all over the country. The mainstream domestic passenger car factories have achieved comprehensive support and the market share has exceeded 25%. In addition, Weichai's natural gas marine power supply is also far ahead of the industry.
In the transformation of kinetic energy in traditional industries, efforts should be made to achieve high-end brand and globalization.
Weichai Power Investment PSI Corporation is not only focused on its advanced technologies in the field of gas engines, but also intends to use PSI's customer base, sales channels and service network in the North American market to actively participate in North American market competition, improve market penetration and brand Influence.
This kind of strategy of “living on the tree†has made Weichai more and more skilled in the long-term overseas mergers and acquisitions.
In the process of rapid development over a long period of time, Weichai recognized that to become a global brand, it is not enough to rely on a single product to sell products on one site. International development must achieve leapfrogging from general trade to capital operations and internationalization of enterprises. The road is finally reflected in the global resource allocation. Controlling global resources at the right time, suitable environment, and appropriate opportunities, synergizing domestic and foreign advantageous resources, and building an international, diversified, innovative, open-ended group will be an internationalization of Weichai’s construction and internationalization. The inevitable choice of brand.
Under the new economic situation, Weichai actively sought opportunities for international cooperation. It has strategically reorganized its 100-year-old engine manufacturer, Baudouin, and the world's top luxury yacht manufacturer, Ferretti, from France, Italy, and Germany. Group, as well as the world's leading industrial forklift manufacturer and global leader in hydraulic technology - KION Group.
With frequent overseas mergers and acquisitions, Weichai has not only acquired core technology and embarked on a diversified development path; at the same time, it has quickly gained worldwide attention through the brand advantage of overseas companies, and has significantly increased its brand awareness and became a Chinese-made product. A "golden signboard."
Weichai Westport New Energy Company Natural Gas Power Production Line
The key to the conversion of old and new kinetic energy is “newâ€. As Shandong, which has a proportion of more than 70% in traditional industries, how to extract new growth from old industries is the difficulty and focus of the conversion of old and new kinetic energy. Weichai insisted on the "product management + capital operation" two-wheel drive operation strategy, actively promoted the globalization strategy, and gradually formed an overseas expansion strategy of "trade exports + localized production + technology output + mergers and acquisitions." Promote the transformation of the industrial structure from a single business to a diversified business. The regional structure has transformed from a leading domestic company to a global one. The product structure has been transformed from the low to the high end, leading the Chinese equipment manufacturing industry to focus on being a global player.
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