Weichai Chairman Tan Xuguang visits PSI
In April this year, Weichai Power invested 60 million US dollars to become the largest shareholder of Power Solutions International Inc., an American engine manufacturer, and officially opened 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 cooperative research and development, especially non-mobile engines with higher power, to fully realize the technical upgrade of gas engines.
For the kinetic energy conversion of traditional industries, technological innovation is the first driving force.
As the vanguard of China’s equipment manufacturing industry, Weichai seizes the opportunity, actively promotes technological innovation, implements business synergy between diesel engine technology and gas power technology, and seeks new development opportunities for the internal combustion engine industry in the ever-changing domestic and international market environment.
With the ups and downs of international oil prices, the intensification of exhaust gas emission pollution and the continuous increase in the country’s requirements for emission upgrades, the implementation of the new energy power strategy is imminent, and finding alternative energy has become a consensus in the global power industry. As a clean energy, the advantages of natural gas in internal combustion engines are becoming increasingly prominent.
The United States has long begun to formulate incentives and incentives for traditional industries to replace natural gas power to encourage the technical development of gas engines. As a gas-rich country ranking among the top 15 in terms of natural gas reserves, China’s National Energy Administration has issued the “Opinions on Accelerating the Promotion of Natural Gas Utilization”, proposing to gradually cultivate natural gas into the main energy source of my country’s modern energy system and vigorously develop natural gas distributed energy.
Launch ceremony of China’s first direct-injection natural gas engine
Weichai started the research and development of gas internal combustion engines very early. During the 12th Five-Year Plan period, natural gas commercial vehicles began to develop rapidly. With its strong technical accumulation and production capacity reserves, Weichai quickly occupied the market. From 2011 to 2016, it sold more than 150,000 gas engines of various types, with revenue exceeding 10 billion. In the heavy truck market, the market share is stable between 60-70%. In the bus market, Weichai focuses on 6-13.7m passenger transport, 8-18m public transportation and 8-11.5m hybrid power. With the characteristics of green environmental protection, good economy, low noise and vibration, and low maintenance cost, its products are spread all over the country and fully matched with domestic mainstream bus manufacturers, with a market share of more than 25%. In addition, Weichai’s natural gas marine power matching volume is also far ahead in the industry.
The kinetic energy conversion of traditional industries should strive to achieve high-end and global brands.
Weichai Power invested in PSI not only because of its advanced technology in the field of gas engines, but also because it intended to take advantage of PSI’s customer base, sales channels and service network in the North American market to actively participate in the North American market competition and improve market penetration and brand influence.
Weichai has been applying this “borrowing trees to bloom” strategy more and more skillfully in its long-term overseas mergers and acquisitions.
In the process of long-term rapid development, Weichai realized that to become a global brand, it is far from enough to sell products one by one. International development must achieve a leap from general trade to capital operation. The internationalization of enterprises is ultimately reflected in the allocation of global resources. Controlling global resources at the right time, in the right environment and at the right opportunity, coordinating domestic and foreign advantageous resources, and building an international, diversified, innovative and open group will be the inevitable choice for Weichai to build an international enterprise and create an international brand.
In the new economic situation, Weichai actively sought international cooperation opportunities and strategically reorganized the century-old engine manufacturer Baudouin, the world’s top luxury yacht manufacturer Ferretti Group, and the world’s leading industrial forklift manufacturer and global leader in hydraulic technology KION Group from France, Italy and Germany.
With frequent overseas mergers and acquisitions, Weichai not only acquired core technologies and embarked on a diversified development path; at the same time, with the brand advantages of overseas companies, it quickly won attention in the world, greatly improved brand awareness, and became a “golden signboard” of Made in China.
Weichai Xigang New Energy Company Natural Gas Power Production Line
The key to the transformation of old and new growth drivers is “new”. As Shandong has a traditional industry proportion of more than 70%, how to extract new growth from old industries is the difficulty and focus of the transformation of old and new growth drivers. Weichai adheres to the dual-wheel drive operation strategy of “product management + capital operation”, actively promotes the globalization strategy, and gradually forms an overseas expansion strategy of “trade export + localized production + technology output + mergers and acquisitions”. Promote the transformation of industrial structure from single business to diversified business, regional structure from domestic leading to global development, product structure from low-end to high-end, and lead China’s equipment manufacturing industry to break through the siege and go global. (This article comes from Weichai)