NPC deputy Tan Xuguang: Promoting innovation and accelerating the transformation and upgrading of traditional industries

The Fifth Session of the Twelfth National People's Congress was held on March 5, 2017. The industry is still a hot topic of discussion among delegates.

In the "Government Work Report" made by Premier Li Keqiang at the "Two Conferences" in 2015, the concept of "Made in China 2025" was proposed to the public for the first time, stating that "we must implement and accelerate the transition from a manufacturing power to a manufacturing powerhouse." He also pointed out in a meeting that China is still in the process of industrialization and must not lose manufacturing, but it must drive the innovation and upgrading of traditional manufacturing through the new economy.

After the issuance of “Made in China 2025” by the State Council for more than a year, how is the implementation of industrial enterprises? For this, on the eve of the “two sessions,” as the leader of China’s equipment industry leader, the representative of the 12th National People’s Congress and the director of Weichai Group In an interview with reporters, Chang Xuguang pointed out that Weichai takes “Made in China 2025” as the guide and seizes the technological innovation that affects the overall development of the industry and creates the most cost-competitive, core technological competitiveness and quality competitiveness. High-value products, through continuous increase in R&D investment, adopting the latest Internet information technology, realize the transformation and upgrade of the equipment manufacturing industry.

Twelfth National People's Congress and Weichai Group Chairman Tan Xuguang Twelfth National People's Congress and Weichai Group Chairman Tan Xuguang

Against the pressure of economic downswing to achieve "V" reversal

During the 12th National People's Congress, it was precisely at the crucial stage of the national economic construction period that the transition from the "12th Five-Year" period to the "13th Five-Year Plan" period and the transformation of the Chinese economy into new and old kinetic energy.

In the environment of overcapacity and economic downturn that have emerged in recent years, the manufacturing industry, especially the equipment manufacturing industry, has been hit hard. As a traditional equipment manufacturing enterprise, Weichai was not lost in the wave of the new economy characterized by the Internet, but also implemented "Made in China 2025" one by one, centering on the construction of national manufacturing innovation center, industrial strength base, and intelligent manufacturing. The five major projects such as green manufacturing, high-end equipment manufacturing innovation, etc. have enhanced the transformation and upgrading capabilities of traditional manufacturing industries.

As a result of innovation, since the second half of last year, Weichai's sales volume has started to increase substantially, achieving a “V” type reversal:

The latest monthly report shows that after achieving a 25% year-on-year growth in operating revenue in 2016, Weichai Group's consolidated operating revenue increased by 107% year-on-year in January, and its profit increased by 365%. Engine sales increased by 140%. After the production and sales of engines exceeded 40,000 units in January 2017, Weichai continued to lead the industry in February with more than 50,000 units of production and sales, a year-on-year increase of 100%.

What is particularly gratifying is that on January 16, 2017, Weichai Group held a mobilization meeting of “100,000 production and sales of 100 million days of lifting sleeves” to address the situation that Weichai engines have been in short supply since the fourth quarter of last year.

Equipment manufacturing industry is the hardest-hit area with overcapacity. The reason why Weichai has adapted, led, and led the market demand, Tan Xuguang explained the secret: “In the new normal economy, we must do a shift and not change. To accelerate the pace of restructuring of new products, new industries, and new models, and continuously seek new growth drivers."

Enhance the ability of innovation based on smart manufacturing

Many research shows that the sluggish equipment manufacturing industry in recent years has not only caused insufficient market demand due to the reduction in infrastructure investment, but also covered the full coverage of IT industry and Internet technology in the industrial field, as well as the R&D, production and service methods of the equipment manufacturing industry. Huge impact.

How to make the traditional manufacturing industry revitalize? Authoritative experts in the interpretation of "Made in China 2025" put forward a consensus: the company must adhere to the smart manufacturing as the main direction of China's manufacturing transformation and upgrading. Weichai is in the process of transforming from traditional equipment manufacturing companies to technology innovation and manufacturing service companies. We have vigorously developed smart manufacturing, and our enterprise's ability to innovate has undergone a qualitative leap forward.

In January 2015, Weichai took the lead in launching “Smart Power Platform Technology” in the industry; in March, Weichai’s “Smart Power Platform” was established, benefiting from the application of information technology tools and PDM (Product Data Management) as the core Supporting product research and development, Weichai has developed intelligent service products such as aftermarket service systems, global call center systems, and car networking systems.

Weichai Products Exhibition Area Weichai Products Exhibition Area

On July 21, 2015, the Ministry of Industry and Information Technology announced the first batch of pilot projects of smart manufacturing pilot projects. Of the 46 projects, Weichai Power reported its comprehensive pilot demonstration project for diesel engine intelligent manufacturing and became the first one in the internal combustion engine industry. Finalists. Weichai has comprehensively sorted out the relevant processes in the eight business areas (R&D, procurement, supply chain planning, production, logistics, marketing, management, and service) in the advancement of smart manufacturing projects, and fully focused on the manufacturing process, focusing on the manufacturing process. Intelligent to cultivate new production methods.

In the development of Weichai for more than 70 years, product innovation has always been the motivation for companies to advance. When the global industrial community is facing a new technological revolution dominated by smart manufacturing, when the “Made in China 2025” plan is released, Weichai has launched a smart manufacturing environment-friendly energy-saving high-end power; Information technology "7 x 24 hours" global collaborative development platform.

In the past ten years, Weichai has invested more than 15 billion yuan in product development, and the speed of product upgrades has been accelerating with changes in regulations and user needs. In 2016, when many companies were still experiencing the pain of supply-side reforms, Weichai steadily promoted the new upgraded version of the “Blue Engine” high-power engine to seize market opportunities. According to reports, the high-power engine WP13, which was developed in the first two years of Weichai's research and development, was launched on the market in 2016. It contributed 1.8 billion yuan in sales in the first 10 months. The WP12/WP13 engine sold 106,000 units in the whole year, and it occupies the sales of heavy truck engines. the first. In June 2016, Weichai launched a full-scale high-end engine R&D project to develop high-end engine supporting areas such as yachts and mine cars.

One of the goals of the "Made in China 2025" implementation is to promote the development of China's manufacturing industry to the high end and create a manufacturing powerhouse. The sales of Weichai products during the period of economic growth slowdown precisely indicate that the upgrading of equipment industry technology will trigger and cultivate market demand upgrades. Tan Xuguang said: "The pattern of science and technology determines the competitive landscape. Since the development of the world to this day, only technological innovation can solve the problem of corporate survival and development."

Leading the industry in transformation and upgrading

As the representative of the 11th and 12th National People's Congress, Tan Xuguang also serves as Chairman of the China Internal Combustion Engine Industry Association. Therefore, how to lead the industry to implement the "Made in China 2025" implementation, promote the transformation and upgrading of the equipment industry, let the Chinese manufacturing go to the world, and call the whole society to pay attention to the real economy, pay attention to enterprise innovation, and become a topic of concern for all previous delegates. .

Judging from the development of Weichai itself, after 70 years of hardships and rains, the geographical coverage of Weichai's business has not only been limited to Weifang City and Shandong Province, but has grown into a national, global industrial giant and built a car business. Strategic business structure for construction machinery, powertrains, luxury yachts, finance and services. Weichai's exploration and experience in technology upgrades, management methods, and investment models have evolved into industry norms and standards.

Among them, in terms of products, Weichai introduced the first domestic 13-liter engine in 2015 and continues to lead the Chinese heavy-duty truck industry to upgrade to high-powered models. In 2016, the first product of the Weichai H platform was launched, setting an industry benchmark for high-speed, heavy-duty engine life. In 2015, Weichai introduced high-end, small-displacement diesel engines to the market, prompting the transformation and upgrading of light trucks and agricultural machinery markets, and leaping industry emission standards to the highest of the country's five countries and four countries.

As the main force of corporate innovation, Weichai has also demonstrated the management of intellectual property for the entire industry. At the beginning of this year, Weichai Power successfully passed the national intellectual property management system certification, marking that the intellectual property process acquired by Weichai in R&D, procurement, production, sales, human resources, finance, and information resource management and other related fields meets the requirements of national standards. It will become a new starting point for scientific management of intellectual property across the industry.

In terms of collaborative innovation in the industry, Weichai also made substantial moves. In February 2016, the State Key Laboratory of Internal Combustion Engine Reliability declared by Weichai was approved by the Ministry of Science and Technology and officially listed. In order to promote the application foundation and forward-looking research on the reliability field of China's internal combustion engine, the laboratory has specially set up research on related topics for open-end fund funding in 2017. Applicants for the entire industry will be asked for the research topics to be funded.

In addition, Weichai's experience in the strategic layout and investment model of enterprises has also received attention from both inside and outside the industry. On February 6, 2017, in the "Government Work Report" released at the sixth meeting of the twelfth People's Congress of Shandong Province, overseas acquisitions of Weichai and other companies were highlighted and they were required to be promoted throughout the province.

Tan Xuguang stated that during the “13th Five-Year Plan” period, the internal combustion engine industry will face new challenges, and energy-saving, emission-reduction and improving quality and efficiency will become new targets for the development of the internal combustion engine industry. He pointed out that "Made in China 2025" puts quality first, and as an important objective to measure the quality of internal combustion engines, reliability is not only the biggest gap between China's internal combustion engine and the world's advanced level, but also the key to China's internal combustion engine products from the low to the high end. To this end, the State Key Laboratory of Reliability of Internal Combustion Engines will hold the 6th International Symposium on the Reliability of Internal Combustion Engines. Industry professionals believe that it will have a positive impact on the improvement of China's internal combustion engine technology and standards.

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