Benefit from the Belt and Road to China

The real economy is indeed worrying. One side is the booming e-commerce business and the one that runs through Changhong. On the other side is the macroeconomic downturn. The survival of the transportation manufacturing industry is difficult. So, why the engine manufacturing companies in the limelight are able to achieve a contrarian growth is the topic of our discussion.

After entering the WTO, a large number of well-known European and American brands entered China; at the same time, along with the promotion of the Belt and Road Initiative, Chinese national enterprises have become a general trend. Everyone loves high-quality products, and high prices are undoubtedly the biggest obstacle. In the international market, national enterprises rely on low brand value to create high-quality products, relying on their superior cost-effective advantages in the overseas market, and developing a space for survival.

"One Belt and One Road" is the abbreviation of "Silk Road Economic Belt" and "21st Century Maritime Silk Road". After the "Belt and Road" economic zone was opened, the number of contracted projects exceeded 3,000. In 2015, Chinese enterprises made direct investments in 49 countries related to the “One Belt and One Road”, and the amount of investment increased by 18.2% year-on-year. In 2015, China’s contractual service outsourcing of “Belt and Road” related countries outsourced US$17.83 billion in contracts and US$12.15 billion in implementation, which was a year-on-year increase of 42.6% and 23.45%, respectively.

In the implementation of the Belt and Road Initiative, ethnic heavy industry companies have become pioneers, and a large number of construction machinery, railway transportation, and heavy-duty diesel engines have doubled in sales volume. In recent years, national engine enterprises, which are the core of machinery, have been at the forefront of the economy.

● Weichai Power Lab + International Strategy

Weichai invested 500 million yuan to establish the State Key Laboratory of Reliability of Internal Combustion Engines and was successfully selected as a national key laboratory. The scope of laboratory testing covers the reliability study of the entire engine, the reliability of key components, and the reliability prediction and evaluation technology. The experimental equipment has reached the international advanced and domestic leading level. It has passed the national C-NAS accreditation and EU accreditation. It is currently the most complete and most capable laboratory in the same industry in China.

Weichai has established R&D centers in the United States, France, Germany, and Italy, and has achieved effective collaboration with the five major R&D platforms in China; in conjunction with MIT, Tsinghua University, and AVL, we have led the establishment of the International Engine Innovation Alliance for Reliability of Engines and Commercial Vehicles. Industrial Machinery Innovation Strategic Alliance with New Energy Power System for Construction Machinery.

Layout internationalization strategy, from Baudouin in France to Faraday in Italy, from Kairkoin in Germany to Dematic in the United States, every cross-border trade is an attempt to practice innovation, and there are also Weichai engines, including the Weichai marine engine. Reports from the global market are also commonplace.

● Yuchai Group New Energy + Western Development

Actively respond to the national clean energy call, Yuchai independently developed Yuchai brand pure electric van, and has made 5 new energy modified car announcements, 2 independent brand new energy vehicles announcement.

Yuchai built “Yuchai Mall” to fully manage the offline sales network, optimize customer sources and orders, and bring more incremental benefits to dealers and service stations.

To support the needs of the country’s western construction and development, Yuchai set up the Tibet office in Tibet with the highest altitude in the world and provided technical support and after-sales service for local Tibetan drivers in the Western Plateau.

● Hitachi Heavy Industries starts manufacturing in Luoyang

In the first three quarters of this year, relying on self-developed high-speed and high-power diesel engines, the foreign trade volume of Henan Diesel Engine Heavy Industry Co., Ltd.'s exports to Russia increased by more than 200% year-on-year, becoming a new bright spot in implementing the national “Belt and Road” strategy. In the modified shipment workshop at the Hunchi Heavy Industry Assembly Plant, four new CHD622V20 diesel engines were ready for launch. Workers are conducting final inspections and are expected to send to Russia soon.

As a professional manufacturer of high-speed diesel engines in China's shipbuilding industry, Hechai Heavy Industry has launched its own brand high-speed high-power diesel engine development project, and successfully developed more than 3,000 kilowatts of CHD622V20 diesel engine, which can be widely used in marine transport ships, cruise ships, salvage vessels, official ships, etc. High-end ships have completely independent intellectual property rights and have reached the international advanced level.

In September of this year, Heichai Heavy Industries opened the Alibaba International Station and used the Internet to display and promote businesses and products to overseas buyers to obtain trade opportunities and orders. The CHD622V20 diesel engine developed by Hunchai Heavy Industry Co., Ltd. has the advantages of small size, light weight, low fuel consumption, environmental protection, etc., and it started the banner of “manufacturing in Luoyang” in the Russian market.

Postscript:

The development trend of heavy-duty diesel engines is very clear. The efficiency of emissions remains unchanged, and energy conservation and emission reduction are in line with international standards. However, how to maintain innovation and achieve profitability under the environment of a less optimistic economy in the new era is the top priority for core manufacturing companies.

Although China is the second largest economy in the world, and even has a huge market that exceeds the United States, economic pressure is equally severe. Embracing the Internet, perfecting the aftermarket, and actively expanding overseas markets, traditional engine companies have achieved self-salvation and realized a new globalization development strategy.

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