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    Weichai oversea brands appear at China International Import Expo, Weichai internationalization strides forward to the harvest time

    2018.11.06

    Embrace the era of globalization and cooperate for a win-win future. From November 5th to 10th, 2018, China's 1st China International Import Expo was held in Shanghai. Weichai's Linde Hydraulics, Linde Forklifts, Ferretti, Dematic and PSI, etc., have attracted the attention of guests all over the world. They not only witnessed the openness and inclusiveness of the Chinese market, but also gained unprecedented opportunities for development due to the powerful power of “China Power” – Weichai.

    Weichai oversea brand appears at China International Import Expo

      

    Weichai Overseas Brand Exhibition Zone, located in the intelligent and high-end equipment hall of China International Import Expo, covers an area of 700 square meters. Its overseas brands such as Linde forklifts, Linde Hydraulics, Ferretti, Baudouin, Dematic and PSI display the latest technologies and products in smart logistics, high-end yachts, high-end hydraulics, high-end power, and clean power and so on.

    Dematic is a supplier that optimizes the supply chain and meets customer material handling needs through integrating automation technology, software and services in high degree. In the intelligent logistics display area, its second-generation multi-layer shuttle was transporting the material box to the designated location in a flexible and orderly manner. The high-efficiency operation of automation, intelligence and unmanned manner has won the praise of the guests present.

      

    inde forklifts, a subsidiary of KION, is a global leader in the material handling market, exhibited handling robots and hydrogen fuel cell forklifts, attracting a large number of visitors. In particular, Linde electric forklifts using hydrogen fuel cells have achieved zero emissions, green pollution, leading the energy solution in the future.

    Ferretti is a world-famous yacht manufacturer. The two luxury yachts were dazzling at the show, allowing the audience to feel the exquisiteness and luxury made in Italy at close range.

    The hydraulic technology from Linde Hydraulics mainly displayed hydraulic units specially developed for the Chinese construction machinery, agricultural machinery and other markets. Baudouin demonstrated the high-end power of its new platform; PSI's clean energy power represented the world's industrial leading level, ideal for Chinese customers.

    Deeply cultivate the “Belt and Road” to build global presence

      The Sino-Belarus Industrial Park in Minsk, Belarus was performing an amazing “Speed of Weichai” – less than 4 months after commencement, the main structure of the steel structure of main powerhouse is capped, the office building and auxiliary room enter the interior decoration stage, equipment installation......surprising the Belarusians who are more used to a slower pace. This is the Maz project of Weichai, which is the “Belt and Road” project personally witnessed and concerned by General Secretary Xi Jinping. Product sales will cover Belarus, Russia, Ukraine and other countries.

      

    In 2013, China pioneered to propose the “Belt and Road” initiative and opened a new chapter in global development. In the face of historical opportunities, Weichai decisively "goes out to sea", actively sought for opportunities for development under the new era, and built a global operating map in the "The Belt and Road" economic region.

    After years of exploration and cultivation, Weichai has gradually formed an overseas operation strategy of “Trade export + localized production + technology export + mergers and acquisitions”, and successively completed mergers and acquisitions of France Baudouin, Italy Ferretti, Germany KION and Linde Hydraulics, etc.; it implemented local manufacturing in India, Thailand and Belarus; boosted local industrial level in Ethiopia and Myanmar by means of technology output; accelerated comprehensive layout of products and brands in the “home door”, Southeast Asia, and the four major markets of Middle East and North Africa, CIS, and South Asia. In 2017, Weichai Group achieved annual revenue of RMB 220 billion yuan, of which 40% of its revenue came from overseas, officially completed the global layout and became the pioneer of the “Belt and Road” in China.

    As Weichai's global integration entered the harvest period, Weichai's overseas business performance remained strong in 2018. The orders of KION increased by 17% year-on-year, and Linde Hydraulics also entered a stage of booming production and sales. In the Middle East, the Weichai Middle East Operation Center was officially established, which will accelerate the promotion of local business.

    In addition, Weichai also actively sought for overseas cooperation, and has successively reached strategic cooperation with Bosch Group of Germany, Ceres Power of the United Kingdom, Ballard and Westport of Canada, etc. to accelerate the layout of new energy and promoted the landing of major high quality projects of Shandong old and new growth driver conversion.

    Help European and American brands to demonstrate "China Power"

      

    When the global financial crisis broke out in 2008, Weichai smelled the opportunity from the other side of the ocean and began to explore the implementation of overseas mergers and acquisitions. At present, all of Weichai's overseas M&A business has achieved profitability and effectively promoted the transformation and upgrading of domestic business. By M&A of Baudouin, Weichai further expanded its engine product chain; by M&A of Germany Linde Hydraulics and landing of joint venture factory, Weichai integrated "Weichai Engine + Linde Hydraulics" and created a hydraulic powertrain, promoted the high-end upgrade of China's agricultural machinery and construction machinery market; By M&A of KION and Dematic, Weichai built a smart logistics industry chain; by M&A of PSI, Weichai opened a channel to enter the North American market... after several oversea layout, Weichai got development in the global opening and rapidly grown in the industrial integration.

    It is easy for mergers and acquisitions and difficult to integrate. For the international operation of the company, Tan Chaiguang, the leader of Weichai, has his own principles: abide by “Strategic unity, resource sharing and independent operation” in operation, and pursue “respect and diversity” in culture. Through industrial synergy and complementary advantages, under the strong support of Weichai, these overseas companies that have been acquired have successfully escaped the operational crisis and embarked on the fast-track of development.

    Baudouin is a century-old engine company that has a glorious history, and its annual sales peak reached 2.2 billion euros once. Under the impact of the global economic crisis, this century-old factory was in a bankruptcy crisis. In 2009, Weichai wholly acquired Baudouin. After joining the Weichai family, Weichai gave Baudouin the thoughtful support. From research and development, procurement to management, and finance, Weichai not only sent a professional team to Baudouin, output a mature management model, but also helped Baudouin to emerge from the “muddy” on the verge of bankruptcy through business collaboration and resource sharing. In order to improve the market competitiveness of Baudouin, Weichai vigorously promoted the localization process of Baudouin, and closely integrated the brand resources of Baudouin with the market resources of Weichai, giving full play to the advantages of “European quality + China cost”.

    In 2009, Baudouin sold only 70 engines a year, all of which were concentrated in the fishing power market. By 2016, Baudouin has completely stopped losses, with annual sales of more than 800 engines, and its business has expanded to fishing boats, coastal defense vessels, passenger ships, power generation and other fields, with footprints across the Mediterranean coast, Southeast Asia, China and North America. Today, the ferry equipped with the Baudouin engine has run on the East River in downtown New York, becoming a beautiful local landscape.

    KION Group was also caught in a business dilemma due to the financial crisis in 2008, with high debt and was undersold by major shareholders. In 2012, Weichai acquired and reorganized KION, and successfully promoted the listing of KION in Frankfurt, injecting a strong impetus to revitalization of KION. In 2017, KION’s global sales were approximately RMB 7.7 billion euros, realizing year-on-year increase of 37%; net profit was RMB 430 million euros, realizing a year-on-year increase of 73%. KION CEO Gordon Riske praised the cooperation with Weichai and believed that this was a successful case of German-Chinese cooperation and achieved mutual benefit and win-win results.

    Industrial synergy is the trump card of Weichai to help overseas subsidiaries quickly get on the right track of market. In the past, Linde Hydraulics was the internal supply factory of KION, after joining Weichai, the first problem was to return to the market. Weichai pioneered the concept of “Hydraulic powertrain”, integrating the advantages of Weichai engine and Linde’s hydraulic products, helping Linde Hydraulics to successfully enter the high-end agricultural machinery, construction machinery and other markets. With the landing of joint venture of the two companies in Weifang, Linde Hydraulics has achieved rapid development in China and the Asia Pacific market. Yang Guoxi, the marketing manager of Linde Hydraulics (China), has recalled his first communication with Germany Linde Hydraulics like his, not very friendly. “We later proposed that the two parties should jointly create a hydraulic power system. In the future, developed China and even the Asia-Pacific market that have giant potential, they soon changed their views on us.”

      

    On March 2017, Weichai strategically invested in PSI. In just three months, Weichai has established a business synergy channel with PSI. 5 branches were set under the PSI Establishment Coordination Committee, covering product, market, procurement, manufacturing and finance. The committee's job is to help PSI and Weichai to open channels for resource sharing and product collaboration. At the same time, Weichai has planned the market strategy for PSI, bringing unprecedented hope and strength to PSI.

    In the era of globalization, we are all tangled in the global economy. Only cooperation can realize win-win. In the future, Weichai will cooperate with the resources at home and abroad of the Group to serve the Chinese market, participate in global competition, and achieve a new era of cooperation and win-win.

     

     

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