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Weichai and Its Global Suppliers Join Hands to Seek Innovation-Driven Development
Summarize：On Dec 10 and 11, Weichai Power Supply Chain Strategic Cooperation Conference was held in Haikou, Hainan Province Over 400 suppliers from all over the world gathered in Haikou to discuss ways to strengthen their cooperation and seek innovation-driven development
On Dec. 10 and 11, Weichai Power Supply Chain Strategic Cooperation Conference was held in Haikou, Hainan Province. Over 400 suppliers from all over the world gathered in Haikou to discuss ways to strengthen their cooperation and seek innovation-driven development. By holding the conference, Weichai aims to seize the strategic opportunities of market development, cultivate the world-class procurement supply chain, further improve the global procurement circle ecosystem, and establish a new Weichai procurement platform featuring open sharing, innovation and win-win cooperation.
Tan Xuguang, Chairman & General Manager of Shandong Heavy Industry Group, Chairman of Weichai Group, Chairman of China National Heavy-Duty Truck Group, delivered a keynote speech entitled Join Hands to Promote Innovation for a Better Future. In his speech, Mr. Tan points out that by working together with its global supply chain partners, Weichai has transformed the landscape of the global power industry and successfully developed a wide spectrum of power solutions, built the world's largest power industry cluster, and earned wide recognition with a number of influential global brands. In the face of the new characteristics and new trends of global industry development, Tan Xuguang proposes four win-win cooperation principles, namely ”strategic consistency, mutual benefit & win-win, optimization & improvement, and fair & just market environment”, vowing to work closely with its global partners and create the world's best industrial cooperation ecology.
In the afternoon of Dec., 10, Tan Xuguang hosted Global Power Chain Entrepreneurs Roundtable Conference. 22 global suppliers, including Bosch Powertrain, Barnes and Mahler, attended the conference. He stressed that Weichai’s cooperation with the world's first-class supply chain is essential for fulfilling the company’s commitment to providing the highest quality products and services to its customers across the globe. Weichai cannot grow on its own, but it can be strong while working with its global suppliers. The representatives of these suppliers spoke freely, jointly discussed new ideas of cooperation in the new era, and expressed their strong desires to work with Weichai and create win-win and common development.
Another highlight of the conference is Weichai, together with all suppliers, made a solemn commitment to honest cooperation: Weichai and its suppliers resolutely oppose commercial bribery and nepotism-induced transactions. They will jointly maintain fair bidding process and ensure high quality products and maintain an orderly and transparent market. At the conference, Wang Decheng, CEO and General Manager of Weichai, signed a letter of commitment for good faith cooperation with its suppliers.
The conference also released the framework opinions on incentives to cultivate Weichai excellent suppliers. Consisting of the evaluation criteria of excellent suppliers, dynamic management and incentive policies and other aspects of the standard of excellent suppliers, the framework opinions aim to further strengthen its procurement management, encourage its suppliers to continuously improve their overall competitiveness, and jointly build a world-class global supply chain system.
Since the beginning of 2023, confronted with profound changes in both domestic and overseas markets, the whole Shandong Heavy Industry Group has continuously improved its core competitiveness and delivered astounding performances. According to some estimates, its whole-year sales revenue is expected to increase by 32% year-on-year, its industrial added value to grow by 31% year-on-year, its export revenue to jump by 57% year-on-year, its engine sales to rise by 29% year on year.
Faced with cut-throat competition and constantly changing market, Weichai and its suppliers have always put their strategies and resources on the top priority. With the concerted efforts, the engine-maker has made impressive achievements.
First, Weichai has been constantly sharpening the overall competitiveness of China’s power solution industry. Deeply engaged in the field of internal combustion engine for more than 70 years, it gives top priority to national strategies and focuses on improving the weaknesses & bottlenecks in the industry, giving full play to technological innovation. By cooperating with more than 130 upstream and downstream enterprises around the world, it has built a sound R&D community and an industrial mass innovation ecosystem. Members in the community and ecosystem have been working closely and have made a number of technological breakthroughs. In 2002, Weichai released China's first heavy-duty commercial vehicle diesel engine with fully independent intellectual property rights. In 2005, Weichai pioneered the global powertrain business model, supporting Chinese commercial vehicle brands to firmly occupy 99% of the market share. From 2020 to 2022, the thermal efficiency of Weichai diesel engine body exceeded 50%, 51% and 52%, creating three consecutive world records, and effectively enhancing the voice of China power solutions in the world internal combustion engine field.
Second, Weichai has created a full range of all-field power solutions. In the past decade, Weichai has invested more than 30 billion RMB in R&D in the engine sector alone. In 2022, its R&D expenses accounted for over 9% of its sales revenue. Weichai has built eight research institutes and one center, and has successively built a number of "national brand" platforms such as the National Key Laboratory of Internal Combustion Engine and Power System. Currently, it boasts a wide spectrum of products, including medium- and high speed engines, fossil fuel powered or new energy powered engines with displacement from 2L to 579L and power coverage from 18kW to 10000kW. As one of companies with the most complete product line in the world, Weichai is now playing a leading role in various market segments. Its market share of heavy-duty truck engines has reached 41%, ranking the first place in China; its market share of 3 tons and above loaders is 78%, ranking the first place in the domestic market; Its market share of wheat harvester stands at 62%, ranking the first place in China; its market share of medium-speed ship machinery reaches 67%, ranking the first place in China; its sales of electric power solutions has exceeded 80,000 units, ranking among the top three in the world.
Thirdly, Weichai has successfully built the world’s largest power industry cluster. It has been recognized as China’s Intelligent Manufacturing Demonstration Project and the World’s Lighthouse Factory. Statistics show that the total sales volume of Weichai engines has exceeded 11 million units. In the global multi-cylinder diesel engine market, Weichai’s market share has reached 10%. In China, its market share has exceeded 30%.
Fourthly, Weichai has helped a number of suppliers earn a solid reputation in the world market. Weichai International Industrial Park has attracted over 50 globally renowned manufacturers. Currently, Weichai boasts over 600 domestic suppliers and over 200 international suppliers.