JINAN, Shandong – Weichai Holding Group Co., Ltd., China’s leading comprehensive manufacturer of engines, vehicles and equipment, is looking to achieve annual sales revenues of $100 billion by 2030.
The announcement was made by Tan Xuguang, chairman of Weichai as well as chairman and Party secretary of parent company Shandong Heavy Industry Group and Shandong Transport Industry Holding Group Corp., at Weichai’s 2020-2030 Strategy press conference here on December 18, as the company’s annual revenues in 2017 surpassed ¥200 billion.
The milestone comes six years after annual revenues exceeded ¥100 billion for the first time in 2011 and 13 years after they exceeded just ¥10 billion in 2004 when Weichai went public in Hong Kong.
“Our sales revenues for 2017 are expected to reach ¥220 billion with a profit before tax of more than ¥10 billion,” said Tan in his speech. “This means Weichai can now call itself a global conglomerate.”
In fact, about 40 percent of the revenues and 30 percent of the profits from Weichai in 2017 came from its overseas business.
The company’s 2020-2030 Strategy encompasses one target ($100 billion in revenues) and two phases with nine specific measures.
The two phases designate Weichai’s traditional business surpassing world-class levels by 2020 and new energy business leading global development by 2030. “We are going to create a respected global company and a Global 500 company with continuous improvement in competitiveness, and we will be paving the way in the modern transformation of Shandong Province.”
The nine measures include: transforming Weichai into a global leader in smart logistics total solutions; integrate Linde hydraulic and Weichai engines to create a hydraulic powertrain system; integrate global resources and speed up breakthroughs in hydrogen fuel cell, solid-state fuel cell and solid-state lithium battery core technologies and achieve engineering localization; by 2020, increase diesel engine heat efficiency from the current 46 percent to more than 50 percent and natural gas engine heat efficiency from 39 percent to 42.5 percent (striving to reach 45 percent). Achieve breakthrough in the core technologies of 10,000-kWh marine power and lead the world in this arena; lead the industry in intelligent driving technologies for heavy-duty vehicles with Shaanxi Auto entering into the top echelon in this field; become the leading industry supplier of AT, AMT and electric drive axles; speed up promotion of Faraday yachts in China’s coastal cities; build its first digital factory in Weifang and lead China’s equipment industry in terms of smart manufacturing; and establish a new innovation ecosystem gathering high-end talent.
Weichai has grown significantly over the last decade on four major fronts:
“Golden” industrial chain with heavy-duty powertrain as core: From 2005 to now, Weichai has supplied 5.87 million engines, 6.7 million transmissions and 3.54 million axles to the industry.
Shaanxi Auto one of the front runners in the heavy-duty truck industry: It has sold 879,000 heavy-duty trucks since 2005.
Global Weichai: From Baudouin, Ferretti Group, Kion Group AG, Linde Hydraulics, Dematic to PSI, Weichai has acquired numerous big name overseas brands and assets to expand its portfolio.
Upgrade to high-end manufacturing: Weichai has formed domestic-leading and globally advanced R&D and testing capabilities and attracted numerous high-end talents. Its Fast transmission brand accounts for more than 70 percent of the heavy-duty vehicle industry.
Tan predicated at the press conference that China’s heavy-duty truck market would exceed 1.1 million in 2017 but fall slightly to 800,000-1 million units in 2018. He also disclosed that Weichai and Shandong Transport Industry Holding Group will eventually merge.