The reporter learned on July 19, 2011 that since entering the second quarter, the nation’s auto market has declined for two consecutive months, which has brought a significant impact on its supporting automotive engine market. According to statistics from the China Association of Automobile Manufacturers, in May 2011, the overall automobile production and sales in China were both lower year-on-year, and the automotive engine market also experienced a certain degree of decline. Looking at the current situation, the automotive engine market has reached a critical point of turning, whether it can maintain positive growth for the whole year, and the trend of the next three months will be critical.
With regard to this, what are the current status of domestic automotive engine companies that have been affected by high-speed growth in 2011 and started full-scale production in 2011? What are the judgments of industry leaders regarding future market trends? What adjustments have they taken? With these concerns in the industry Recently, the reporter entered the Weichai Holding Group, which ranks second among the top 100 Chinese machinery industry companies in 2010.
Begin to respond in advance to improve the ability to resist risks
"Weichai Holding Group ("Weichai") continued its rapid growth in the first quarter of 2011 and its production scale reached a record high. Since entering the second quarter, due to the slowdown of the global economic recovery and the tightening of domestic economic policies. Due to factors such as the decline in the supporting industry and the market, there was a noticeable fall from April to May, and the operating trend was high before and after. However, due to the adjustment of the market and business structure that had been initiated since the beginning of the year, WeiChai declined in the second quarter. It is obviously less than the average level in the industry, said Wang Guoyu, deputy head of the operation management department of Weichai Holding Group.
In 2010, due to the impact of macroeconomic policies, the demand for commercial vehicles and construction machinery that directly benefited increased. The downstream heavy truck customers Shaanxi Auto, Futian, Baotou Beiben, Jianghuai, and construction machinery customers Longgong, Lingong, and Xugong achieved significant growth. As a leading company in the domestic heavy-duty engine field, Weichai has also achieved rapid development.
“In this case, we analyze the industry policy and the macro environment, and we believe that this high growth momentum may slow down in 2011, and market demand may decline. To achieve stable development, we must start to respond in advance "Wang Guoyu told reporters.
Weichai defined the goal as “a global enterprise group that is driven by the whole machine and has the core technology of the powertrain, and has developed into an important global equipment manufacturing industry.â€
In fact, at the beginning of 2011, Weichai Group began to vigorously promote market and business restructuring to create greater value-added space. According to Wang Guoyu, firstly, the market structure was highlighted, and on the basis of consolidating the advantages of 10L and 12L engines in the heavy truck and 50 loader markets, as a strategic priority, the development of 2-4L engines, 5L/7L engines, and high-marine marine power was accelerated. And other products, gradually expand the market share in light trucks, passenger cars, non-installed, ships and other market, truly form a diversified market layout. The second is to highlight the adjustment of business structure, pay more attention to the development of engine extension products, take the engine as the core, and gradually strengthen the advantages of enterprises in power generation equipment, natural gas engine, remanufacturing, product export, aftermarket, logistics and other business areas, and realize and industry chain. Relevant parties work together to create and share value, explore new business areas, and reduce the company's future operational risks.
Diversify into the development of emerging businesses
In the production workshop of Weichai Power Westport (Weifang) New Energy Engine Co., Ltd., workers are busy assembling gas engines.
“According to the taxi drivers used, the use of gas engines has fallen by about 55% compared to the previously used gasoline engines, so the market demand is very large. Since the company officially put into production, the annual output has jumped. In 2009, It was 1,800 units, 3,600 units in 2010, and the target was 10,000 units in 2011. From January to May, 2,815 units had just been completed, a year-on-year increase of 189%. However, to complete the task, we must do a lot of work.†Weichai Power Westport ( Weifang) Ma Yuxian, general manager of New Energy Engine Co., Ltd. said.
In order to meet the matching needs of commercial vehicles, Weichai Power Westport combines the advantages of the strongest engine manufacturing in the country and the most advanced international gas technology. Based on Weichai Power's WP5, WP6, WP7, WP10, and WP12 LanQing series engines, Weichai cites advanced technologies. The gas electronic control system has successfully developed gas engine products such as WP5, WP6, WP7, WP10, and WP12 with power coverage of 155-280 kilowatts, meeting the national III and national IV emission standards and meeting the three different fuels of LNG, CNG, and LPG. It is widely used in various fields such as city buses, road buses, commercial trucks, and exported to many countries and regions.
Weichai Power Westport is a newly established joint venture. After years of hard work, the company has become the world's largest and independent new energy engine company in 2008.
The new energy engine project is only a microcosm of Weichai's march toward diversification. At Weichai Global Logistics Distribution Center, 44,000 square meters of engine production parts warehouse, 15,000 square meters of engine production parts sorting optimization library, 18,000 square meters of engine market service parts parts storage warehouse, 23,000 square meters of engine whole Storage facilities such as hangars, automatic identification and labeling technologies such as bar codes, smart labels, and radio frequency identification, and the use of global positioning systems and non-stop automatic payment system technologies, make people feel that Weichai Group has a high starting point and a high level of planning. Management, building a collaborative development, efficient operation, and planning a consistent supplier system.
“Through the construction of a full logistics value chain and the use of advanced information technology, the factory can arrange production according to the arrival date of the parts, reduce inventory, and master the production dominance. After the completion of the Weichai Global Logistics Distribution Center project, it will become the first-class domestic and international standards of modernization. The logistics and distribution center fully satisfies the 100 billion-level green power manufacturing logistics and distribution requirements, and lays the foundation for building a service-oriented manufacturing benchmarking company and building a modern internationalization Weichai Group.†Wang Guoyu is very optimistic about the prospect of the logistics park.
Weichai Group focuses on the market demand, adapts to the development trend of the industry, introduces new business, and creates a new product platform to ensure that the product strategy supports the realization of the Group's overall strategic goals.
Increase scientific research investment to enhance core competitiveness
In the technical center of Weichai, a large and bright design hall, more than 100 engineers and technicians are working at desks. The scene is spectacular. According to Sun Shaojun, executive director of Weichai’s scientific research department, Weichai currently has seven research and development centers in Weifang, Chongqing, Shanghai, Hangzhou, Yangzhou and other countries and regions such as the United States and Europe, and holds weekly video conferences to ensure Weichai collaborated with global R&D forces to keep a close eye on the world's cutting-edge technologies and develop products with strong competitiveness.
The front end extends to the United States and Europe, while at the other end, Weichai’s R&D is rooted in the market. In the generator set test area of ​​Weichai Heavy Machinery Power Generation Equipment Company, the reporter happened to come across the customer to check the production status of the equipment. The technical personnel of the power generation equipment company introduced and tested the technical attributes of the product to the customer at the production site. According to reports, in Weichai, not only customers can take the initiative to request, but related R&D personnel and sales personnel should also visit the users in accordance with regulations, thereby ensuring that advanced technology is rooted in the needs of users.
From the initial development of only a few dozen R&D teams to a team of more than 1,700 people, Weichai is very willing to invest in R&D, and it also benefits greatly. In recent years, the company has further increased investment in R&D. In 2010, Weichai’s headquarters spent R&D expenses of only 800 million yuan. In January-May 2011, R&D expenditure was Rmb350 million, up 94.4% year-on-year, and it occupied a new high in technology. At present, the company's independently developed technologies such as Weichai's ECU technology, new energy bus power, and national VI engine technology have gradually matured, further enhancing Weichai's core technology competitiveness.
“We have two platforms, the New Energy and Power Technology Innovation Strategic Alliance and the National Engineering Technology Research Center. We have mastered the core technologies represented by electronic control, cutting-edge technologies represented by new energy and hybrid power, and systematic integration represented by power. In these three major technical areas, Weichai will become a leader in the industry and provide solid technical support for the company's development in the next decade.†Sun Shaojun said that Weichai is confident to “challenge the global first goal†and strive to achieve sales. In 2015, it will achieve 200 billion yuan, and by 2020 it will exceed 300 billion yuan.
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