Galloping the "One Belt and One Road" Weichai painted a grand blueprint for the world

Under the “Belt and Road” initiative, a national strategy full of vitality and prospects, a number of active figures have already appeared in the spotlight, among which there is an outstanding representative of the Chinese equipment manufacturing gold character brand – Weichai . After decades of international capacity cooperation and the integration of overseas resources, Weichai has created a magnificent blueprint along the “One Belt and One Road” model in innovative ways.

From China to India, Turkey, France, Germany, and Italy; from general trade exports, to export products, capital, export technology, brands, follow the “One Belt and One Road” economic development along the way, Weichai is looking forward, steadily advancing internationally. The process of modernization has basically completed its layout in major global markets and has become an important fulcrum for China's manufacturing to shake the global market.

Galloping the "One Belt and One Road" Weichai painted a grand blueprint for the world

Output of production capacity and overseas mergers and acquisitions boost internationalization

According to John Nash, a Nobel laureate, the scale of the overall interest will only increase when the parties to the operation cooperate. In this regard, from the outset, focusing on the concept of "win-win cooperation" to lay out the global Weichai, can be regarded as the standard "game theory" practice school.

From the initial trade exports to the subsequent technology exports, Weichai has long established a global operation in the “One Belt and One Road” economic region. In Vietnam, Singapore, the Middle East, Turkey, Africa, Pakistan, Belarus and other countries and regions, We saw the active presence of Weichai marketing service personnel. With a market base of 300,000 overseas engines and over 100,000 heavy-duty trucks, Weichai has written successful examples of Chinese manufacturing to open up the international market, and this is just the beginning.

Weichai Chairman Tan Xuguang

In the vast Asia-Europe continent, Weichai test water international capacity cooperation: In 2013, Weichai has successively carried out technical exports to Ethiopia, Myanmar and other countries; in 2014, Weichai India officially put into production, marking the first of its overseas independent construction. The engine production bases were successfully operated. In 2016, Weichai also signed a memorandum of cooperation with Belarus to produce engines. It plans to invest US$50 million in the future and build a 20,000-unit engine manufacturing base in Belarus.

In addition to overseas investment in engine production bases, Weichai also opened trading companies in Singapore, Russia, UAE, Turkey, and other countries, and established global operations centers in Germany, Italy, France, and the United States, building an international production and marketing network covering the world. Service network, products are sold in more than 150 countries and regions.

If the output of production capacity has laid a solid manufacturing foundation for Weichai's international distribution, the integration of advantageous resources realized through overseas M&A will help Weichai to achieve qualitative transformation in its business structure, showing diversity and innovation. Characteristics, which smoothly entered the fast track of globalization.

In 2009, Weichai reorganized and acquired Baudouin, a century-old French engine company. In 2012, it strategically acquired the world’s largest luxury yacht manufacturer, Italy Ferretti, and the world’s leading industrial Forklift manufacturer and global leader in hydraulic technology. Aohe Group's Linde Hydraulics; in 2016, KION Germany successfully acquired the world's leading supplier of automation technology and supply chain optimization specialist Dematic for EUR 2.1 billion, becoming one of the world's leading suppliers of intelligent in-house logistics solutions; 2017 In 2006, the company invested a total of US$60 million in strategic investment and established a strategic partnership with PSI, a leading global provider of alternative fuel power systems.

Weichai Power

In recent years, Weichai Power Co., Ltd. has created a new international outlook. It has rapidly emerged from a Chinese diesel engine manufacturer to become involved in the powertrain, complete vehicle and smart logistics business sectors. It faces Asia, Africa, Europe, and the Americas. And other international high-end manufacturing companies in the global market.

Deepen the "One Belt and One Road" to strengthen the global competitiveness

Ancient Silk Road witnessed the grand occasion of the land “the messengers looked at each other and the business trips did not stop at the journey”. It also witnessed the prosperousness of the sea “in the sea and in the sea”. On May 14, Chairman Xi Jinping stated at the "One Belt and One Road" International Cooperation Summit that there are currently more than 100 countries and international organizations actively supporting and participating in the construction of the "One Belt and One Road"; the scope of cooperation of the "One Belt and One Road" will not be limited to the Eurasian, non-mainland areas. , open to the world.

Obviously, the in-depth development of this Chinese initiative provides Chinese enterprises with a great opportunity to expand their boundaries on the domestic and foreign two-way channels. Weichai brings strong technical strength and precise business positioning, takes the lead, and takes a proactive stance to win broad prospects for future development: Ferretti's yacht business is on the rise in high-end consumer goods markets in the world, especially in developing countries; Linde The integration of hydraulic resources into this strategic resource will completely change the pattern of China's high-end hydraulic core technology being monopolized by foreign countries for a long time, and promote the development of China's equipment manufacturing industry to the high end of the value chain; the forklift as a post-cycle product is closely related to the development of automated logistics; mergers and acquisitions of Dematic Together with PSI, Weichai has the ability to stay ahead in such forward-looking areas as smart and new energy.

These newly-added growth businesses have, on the one hand, promoted the adjustment and improvement of Weichai's industrial structure so that it has no fear of the global economic environment, and have always obtained stable growth and profitability; on the other hand, Weichai has been ploughing along the lines. Back-feeding, for countries made in China and for those countries and regions wishing to catch up with the “Belt and Road” through open innovation, civilization, and prosperity, has injected a powerful impetus for upgrading the industrial level and realized mutual learning between China and the world.

Opportunity often favors people who are prepared. Since 2013, with the initiative of the “Belt and Road Initiative” for the first time, Weichai’s investment policy has benefited from long-term drive, and its overseas performance has been even more stunning in a year than in the past year: from 2013, overseas revenue accounted for 14%, and by 2016, it was RMB 44.379 billion. The proportion of more than 47%, greatly enhance the "Made in China" overseas brand image.

The complete internationalized layout makes Weichai products and markets increasingly high-end. In the European market, Baudouin, KION, Linde; in the North American market, there is PSI, the world's leading supplier of alternative fuel power systems, and Dematic, an expert in automation logistics. In the Asia-Pacific market, Weichai's layout fits perfectly with the “Belt and Road Initiative”: 20% of the engines used by Iran’s largest passenger car plant are Weichai engines; Southeast Asia, Russia, the Middle East, and Africa are the traditional supporting markets for Weichai; “geo-strategy” Country "India, Weichai India's subsidiary realized sales of $27.76 million in 2016 and is expected to double this year.

In the future, Weichai will increase its channel construction in Asia and Africa and further increase its market share in the region. The data shows that in the past two years, the "Belt and Road" exports accounted for more than 90% of Weichai's total overseas sales. When the "One Belt and One Road" initiative of China gradually became an international consensus, Weichai's own global competitiveness has been enhanced through the upgrading of traditional businesses, the expansion of emerging businesses, and the vertical extension of the industry chain.

Aspirations, no farsightedness. As the "Belt and Road" national strategy changed from concept to action and vision to reality, Weichai, with the goal of "challenging the world first," was advancing in construction, improving in development, and growing in cooperation. The firm goal is to move toward excellence. At present, Weichai participates in global competition from trade exports, upgrading technology exports, capacity cooperation, and export brands. This not only satisfies the high-end needs of the international market represented by the “One Belt and One Road”, but also promotes and shares globally through multiple businesses. The development of dividends will show the world a new look of “Major Manufacturing”.

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