Wang Min focused on the theme of "Made in China-Globalized XCMG's Road to the Top of Mount Everest under the Dual Cycle Pattern", in a course sponsored by the Su Chamber of Commerce and undertaken by the Su Business School, he deeply reviewed XCMG’s growth from childhood to large To Qiang, continue to climb the extraordinary journey of industrial Mount Everest, and have in-depth exchanges with the participants in the form of question and answer.

Wang Min encouraged the majority of entrepreneurs to work hard, be hard-working, and show off their achievements.

Only Renew

When it comes to the development of XCMG, we have to mention China's construction machinery industry; when it comes to China's construction machinery industry, we have to mention XCMG. It can be said that the two are symbiotic and co-prosperous.

Construction machinery is cranes, road rollers, excavators, loaders, etc., which are now indispensable for construction including national defense construction. In the 1950s and 1960s, digging a river had to be carried on one's shoulders. It was a backward era. In modern times, with the rapid development of construction machinery, we will build a large-scale international airport and it will be enough for a few years. Of course, this also includes the superiority of the socialist system with Chinese characteristics that concentrates on doing major tasks. This shows that construction machinery is an industry that benefits the people.

In 1999, when I first became the top leader of XCMG, XCMG ranked 29th in the world industry. In 2021, XCMG ranks third in the global construction machinery industry. In other words, in 22 years, we have greatly narrowed the gap with the world's No. 1 and No. 2 companies and quickly surpassed dozens of giants in Europe, America and Japan.

The history of the development of the world's construction machinery industry used to be an industrial history dominated by European, American and Japanese companies. Only in recent years has this competitive landscape been initially broken by Chinese companies such as XCMG. China's construction machinery industry, which originally relied on imports, is undergoing a leap from import substitution to global supply. The "stuck neck" problem we are facing today is not a problem that XCMG has to solve, but a technical problem that needs to be solved by the entire industrial chain.

XCMG is an enterprise with red genes, glorious traditions and roots. It is an enterprise that has emerged from the artillery fire of national independence and people's liberation.

The history of XCMG can be traced back to 1943. XCMG was born in Junan County, Shandong Province, and its predecessor was the Lunan Eighth Arsenal of the Eighth Route Army. From the day of its birth, XCMG has done its utmost to contribute to the country and the people. From the Anti-Japanese War arsenal to a local municipal state-owned enterprise, it has gradually grown into an enterprise of the "Construction Machinery National Team".

General Secretary Xi Jinping inspected XCMG, raised ardent expectations and made important instructions. When shaking hands with General Secretary Xi Jinping to bid farewell, I firmly said: "Please rest assured that XCMG will always be loyal to the party and win glory for the country." General Secretary Xi Jinping said: "I trust it." In my opinion, this sentence The words are not only his trust in XCMG, but also his trust in our national enterprise and the trust in manufacturing.

Since 1943, XCMG has 78 years of history. In 1989, the XCMG Group was established on the basis of the "three factories" that produce cranes, road rollers, and loaders and the "one institute" of the Engineering Machinery Research Institute. XCMG established a goal that year: to be China's CKL and to be the best in the world. Construction machinery peers to build a world-class construction machinery enterprise.

In 1999, I took over from XCMG, serving as Party Secretary and Vice Chairman, and the following year, I took over as Chairman.

I think that China's manufacturing industry still needs a group of people who can endure loneliness and hard work. In fact, perseverance, no distractions, a tendon, etc. are all combined with hard-working and lofty ideals. Anything that wants to be accomplished needs to be boiled. It is roasted on the fire and frozen in the snow, not just sitting there and sticking to it. Struggle is not a matter of one person. To form a team, through the struggle of the team, unite into an invincible force.

In 2008, XCMG Heavy Duty has broken the domestic crane industry’s "four major families" of decades of balanced and stalemate competition, and has increased its domestic market share to more than 55% in one fell swoop, becoming the most profitable subsidiary of XCMG. Strong plate. Subsequently, we injected the new development strategy sector and XCMG Heavy Duty into listed companies as high-quality assets. With the overall listing of XCMG Limited, XCMG finally broke through the strategic dilemma of passive waiting for more than four years, and by raising 5 billion yuan in the A-share market, it laid the foundation for new reforms and adjustments.

In 2011, XCMG launched the "Hanfeng Plan" reform action, the core of which is the reform of the business unit system, which is the implementation of a new development model of "big ships turning fleets". At the same time, we have also built a number of modern and intelligent manufacturing bases, completed the mergers and acquisitions of three European companies, and rapidly expanded into the One Belt One Road market. These measures constitute the key support for XCMG's entry into the 100 billion industry.

In 2012, XCMG crossed the previous year's operating income of 101.2 billion yuan, overseas revenue of 2.3 billion US dollars, and profits and taxes of 5.5 billion yuan, which became a sign of the completion of this round of reform and growth.

During the five-year period of sharp decline in the industry, XCMG adhered to its main business and worked hard to develop its internal strengths, and formed the "One Two Three Three Four Four" guiding ideology system that promotes the company's high-quality development of "Three Highs and One Possible". The technological quality strategy of “leading technology and not destroying the use of technology” has comprehensively transformed and upgraded the product strategy of “three highs and one large” with high technology content, high added value, high reliability and large tonnage.

In October 2020, XCMG successfully introduced 16 new shareholders (including an employee shareholding platform), raising a total of 21.056 billion yuan in funds, and XCMG holding 34% of the shares. 435 key employees invested 868 million yuan, holding 2.72% of the shares. The mixed reform of XCMG Co., Ltd. is the largest order for mixed reform of state-owned enterprises in 2020, and it will also be the largest order for mixed reform of the national equipment manufacturing industry in the past three years.

Global development

At present, XCMG has more than 3,000 foreign employees, has four major overseas R&D centers, 14 manufacturing bases, KD factories, more than 70 branches and offices, more than 300 distributors, and exports to 187 countries and regions. XCMG’s accumulated exports in the 13th Five-Year Plan have reached nearly 30 billion yuan, covering 97% of the countries along the Belt and Road. It has maintained China’s top export of construction machinery for more than 30 consecutive years.

I summarize the global development of XCMG into four points: First, adhere to the party’s leadership and construction, which is the basic guarantee for the everlasting foundation of XCMG; second, adhere to technological innovation and internationalization, which is the core strategy of XCMG’s development and growth; third, adhere to Localized operations and digital layout are important means for international expansion; fourth, adherence to cultural forging and spiritual guidance is an important weight for XCMG Everest's summit.

The spirit of XCMG is the spirit of climbing to the top: one stick to stick, one passion to create, one sober struggle, to be loyal to the party, to win glory for the country, and to reach the top of Mount Everest in the global construction machinery industry.

Climbing Everest

We have set a three-step strategic goal for the summit of Mount Everest, which is XCMG's path to the summit: the first step "five years ago" has been achieved. The second step is "two years before five years". It will continue to maintain the No. 1 position in China's construction machinery until 2025, and enter the top two global construction machinery in terms of quality and quantity. The third step is "Climbing the summit in 15 years". In 2035, spend 15 years to embrace and meet the world's strongest players at the summit.

To build XCMG with an ever-lasting foundation and a world-class century-old XCMG, the key is to realize the "four resolute transformations":

First, resolutely use construction machinery mainframes and key components as the transformational and powerful main business, and always insist on focusing on the main business, gathering talents, pooling resources, and concentrating efforts;

Second, resolutely take the overall internationalization strategy as the starting point for transformation, and attach great importance to internationalization;

Third, resolutely use extremely strong innovation capabilities as a strong foundation for transformation, increase R&D investment, and consolidate efforts to capture the last 10% of the key technologies for the summit of Mount Everest;

Fourth, resolutely use the new road of industrial development created by the Fourth Industrial Revolution as the main line of strong driving force. After the mixed reform, XCMG needs us to have new thinking, new ideas, and new styles, speed up the creation of excellent performance management models and systems, accelerate the improvement of the corporate governance structure after the mixed reform, and establish a performance-oriented assessment and salary distribution mechanism , Fully endow the new XCMG with brand-new market vitality, mechanism vitality, competitive vitality, youth vitality, and fully implement the technical quality strategy of "leading technology, not destroying the use, making handicrafts". Strongly invest in digital transformation, deepen the two major areas of industrial Internet and intelligent manufacturing, and promote the overall development of product quality and technology and intelligent manufacturing management.

In November 2021, 100% domestic independent XCMG C series crane new product release

In April 2021, XCMG XGC88000 "World's First Crane" successfully completed Asia's largest petrochemical tower

 And "two must stand out":

First, it is necessary to highlight the comprehensive creation of a mechanism environmental ecology that gathers talents from all over the world;

Second, we must highlight the glorious traditional corporate culture of XCMG's red gene. XCMG will never change its own red gene, and will always be a warm company. It will treat its employees internally, its customers, the market, and its partners externally, and it will always treat its motherland and the world. temperature.Editor/Ma Xue