Recently, POWERCHINA has once again received good news: Yan Zhiyong, Secretary of the Party Committee and Chairman of China Power Construction, and Sun Yongcai, Secretary of the Party Committee, Chairman and General Manager of CRRC, discussed and exchanged views and witnessed the signing of the strategic cooperation agreement. The two parties will give full play to their respective advantages and will conduct comprehensive and in-depth strategic cooperation in the fields of infrastructure rail transit, new energy, wind power, technology research and development and innovation, international operations, comprehensive urban development business, and capital operation, and jointly serve the country’s “carbon Contribute new wisdom and strength in such aspects as the “peak and carbon neutral” strategy, and upgrade the modernization level of the industrial chain and supply chain, and create a new model of central enterprise cooperation.

Big Mac's entire industry chain solution

On December 30, 2014, CSR and CNR merged and the giant China CRRC Co., Ltd. was established, referred to as "CRRC". CRRC, the most shining business card is the high-speed rail vehicles. Of course, if you think that's all, then it's superficial. CRRC has a long industrial chain, and all kinds of cars running on tracks can be produced as long as there is demand. There are also many supporting and derivative products, such as power devices, new energy buses, and even wind turbines. Including in the field of infrastructure rail transit construction, it is also an expert.

In December 2019, CRRC's wholly-owned subsidiaries CRRC Construction Engineering Co., Ltd., Suzhou CRRC Construction Engineering Co., Ltd., subsidiary holding subsidiaries Zhuzhou CRRC Times Electric Co., Ltd. and the company's controlling shareholder CRRC Group Co., Ltd. , CRRC Rail Transit Construction Investment Co., Ltd., a wholly-owned subsidiary of CRRC Group, and CRRC (Beijing) Urban Development Equity Investment Fund Management Co., Ltd., a subsidiary of CRRC Group Rail transit engineering PPP project, the total investment of the project is about 13.99 billion yuan. The project was constructed by the CRRC Consortium. CRRC Rail Transit Construction Investment Co., Ltd. (abbreviated as CRRC Construction Investment), as the management platform of CRRC’s PPP business, represents CRRC’s overall management of the project’s work and fully relies on it CRRC's professional advantages in the field of rail transit have driven various industrial modules of CRRC and turned the project into a high-quality project and a demonstration project.

The Wuxi-Jiangyin Intercity Rail Transit Project PPP project adopts the BOT model of "investment + construction + operation". It is an important strategic deployment project for the Wuxi Municipal Party Committee and Municipal Government to accelerate the integration of Xicheng and Chengyang and actively respond to the integrated development strategy of the Yangtze River Delta region. CRRC successfully implemented the "government-enterprise cooperation" with Wuxi and Jiangyin.

Relying on the advantages of high-end equipment manufacturing, CRRC has vigorously developed urban infrastructure business. Now it has built a good industrial chain layout and has the ability to provide customers with system solutions of "products + technology + services + capital + management". It has significant advantages in many aspects such as transportation equipment manufacturing, investment and construction, operation and maintenance. As an integrated platform for CRRC's urban transportation investment, construction, and operation, CRRC will give full play to the six core capabilities of investment, financing, project management, resource integration, asset operation, and risk management, and dig deep into the entire urban transportation industry chain. Value, improve project operation efficiency, increase project comprehensive income, and achieve risk management and control over the entire life cycle of urban transportation projects. For a giant company with a long industrial chain like CRRC, the marriage with another giant, Power China, will be realized at this time. The powerful combination of the two will realize the entire industrial chain of rail transit (investment, construction, Complementary advantages of the camp) will be invincible.

Business diversification needs

Relying on the core technology and industrial advantages of high-speed rail, CRRC has continued to strengthen and optimize the core business of rail transportation equipment, while also vigorously expanding its urban infrastructure business, strategic emerging industries and modern service businesses. At the same time, CRRC is constantly deepening its reforms. For example, CRRC will focus on the development direction of the "3+X" industry after the investment in the mixed-use reform, focusing on new energy vehicles, environmental governance, hydrogen energy power, smart manufacturing, energy storage and other industries for investment, and quickly cultivate and build the CRRC Group A new pillar industry with an output value of tens of billions. For example, the new energy field, wind power equipment, urban comprehensive development field mentioned this time, as well as the future "carbon peak and carbon neutral" strategy, it and China Power Construction have a common national strategic awareness / central enterprise responsibility, and also have A solid cooperation foothold. From the perspective of CRRC's own business value, the value of CRRC's diversified industrial chain has gradually become prominent. The new industry has covered nine new industry boards. Among them, the new energy field and wind power equipment have ranked among the best in the industry. So this time with the help of China Power Construction, it is bound to go to the next level.

Anticipation of the international competitive landscape

The above mentioned is more about the competitive advantage in the domestic field, and for the Big Macs, the competitive landscape has never been only focused on the domestic market, but more on the international market. CRRC has been striving towards the "five modernizations", namely: internationalized CRRC, diversified CRRC, high-end CRRC, digitalized CRRC, and coordinated CRRC. As a golden business card for China's manufacturing industry to go overseas, CRRC has served 105 countries and regions on six continents around the world, and achieved basic coverage of the "Belt and Road" countries. CRRC will continue to deploy along the Belt and Road to provide high-quality rail transit and related services to the world. However, with the increasing uncertainty of the international economy and the steep increase in global trade barriers, CRRC's business development in some countries and regions has also encountered many new challenges. Currently, the world's advanced rail transit equipment companies include CRRC, Canada's Bombardier, France's Alstom, Germany's Siemens, Japan's Hitachi and Kawasaki Heavy Industries, etc. The competition is fierce. From the current point of view, because CRRC is backed by the huge market of China, its revenue has a significant advantage.

Keywords: Central enterprise style, central enterprise cooperation

 Therefore, whether it is CRRC or China Power Construction, in order to maintain a leading edge in international competition, there must be a very good cost-effective solution. It is difficult to be competitive if you go alone. Therefore, the combination of the two at this time is actually an accurate prediction of the future trend of the international market. For example, many countries along the Belt and Road are still in the developing stage and lack capital, technology, and management experience. With the deepening of the “Belt and Road” layout, whether it is with China Power Construction as the leader or CRRC as the leader, with Chinese banks and other financial institutions, enterprises from the entire industry chain go to the sea in groups, and strive to provide local systems. The one-stop "Chinese solution" that can realize from a single product to a full life cycle service will have a significant competitive advantage. The previous strategic cooperation of the two marriages is different. Because both parties have extensive and in-depth cooperation foundations in all aspects, whether it is the complementation of the industrial chain, the needs of their own business development, or the positioning of the domestic and foreign competitive landscape, and the combination of the two parties is bound to open up an international new world! Editor/Xing Wentao、Design/Zhangtao