Original Manufacturing-based Smart Customization: 2016 SH Bauma Exhibition XCMG writes the legend of an innovation leader-XCMG NewsXuzhou Construction Machinery Group Global

The unbroken spell of the wet, chilly weather in the early autumn can’t dampen visitors’ strong interest in the 8th China International Engineering Machinery, Building Material Machinery, Engineering Vehicle & Equipment Exposition (Bauma China 2016) which opened on Nov. 22, 2016 in the fully packed Shanghai New International Expo Centre in Pudong, Shanghai, where the lines of “hefty steel men”, embodiments of humanity’s wisdom and advanced craftsmanship, made their rare appearance, standing towering and greeting crowds of admiring guests from around the world.

Widely known as the most high-profile industry event in China and even across the Asian Region, and as the extension to the largest engineering machinery exhibition Bauma Germany, the Expo provided another opportunity for a plethora of global engineering machine makers to duke it out in Shanghai Bund following their strength showing in the last April at Munich. With the title of Original Manufacturing-based Smart Customization and on the strength of its strong lineups of all-star products, innovation achievements based on state-of-art technologies and smart manufacturing techniques, and optimally integrated solutions, XCMG Group, the top player in the Chinese engineering machinery sector, stepped into the limelight by setting the golden benchmark of Creating cutting-edge technology-based durable products for the industry and launching the first-ever cloud platform in the industry: XCMG Cloud, fully demonstrating the exquisite craftsmanship and the advanced level in smart manufacturing of a global manufacturing power, the Made-in-China enterprises’ unremitting pursuit of perfect product quality, and the extraordinary power of globally collaborative R&D and integrated innovation.

Covering a floor area of nearly 300,000 square meters, the Expo reportedly debuted the most competitive new-type products developed by over 2,900 exhibitors from 41 countries around the world, and attracted more than 190,000 professional visitors. XCMG Group, the top exhibitor by the outdoor exhibition area for eight consecutive sessions, unveiled as many as 70 types of main products and 45 pieces/sets of spare parts or non-physical models within its exhibition area of 6,160 square meters during this session, being the strongest highlight of the exhibition event due to its record exhibition scale and the wide variety of exhibited items.

At the opening ceremony in the Nov. 22 morning, XCMG unveiled to a large crowd of domestic and international visitors a large batch of new products and new technologies. Highlighting its independent innovation strength and embodying the advanced level across the sector in China, all these offerings are full of high innovation and creation, and are the typical works from fully pursuing its product concept of Creating cutting-edge technology-based durable products" and fully committing to its service philosophy of making market-oriented development or improvement based on customers’ needs. In addition, a series of brand experience and customer appreciation activities were held at the event, with various prizes and titles being awarded winners, including XCMG Group’s Award of Thank for Your Contribution User Satisfaction Survey, the Award of G-Generation Excellent Value Leader in Crane Sector, the Award of China’s Forklift Championship, and the title of the brand ambassador of XCMG’s Road Building Master. Deeply impressed by these episodes, many visitors stopped to watch or even get into serious business discussion and consultation with XCMG’s on-site sales force and officials.

At the special briefing in the afternoon, which was attended by global customers, dealers, suppliers, MIIT officials, military representatives, technical experts, industry professionals and media outlets, XCMG articulated to the participants its golden benchmark of Creating cutting-edge technology-based durable products, a set of highly looking-forward standards of actions for the industry, and announced that it has partnered with various well-known enterprises, including Huawei, Alibaba and China Telecom,in launching and operating the first-ever cloud platform in the Chinese construction machinery industry: XCMG Cloud in a bid to promote its fast transformation and upgrading, fulfill its sacred responsibility as an industry leader, and help its domestic peers to climb up the industry summit.

National Crown Jewel of the Chinese Engineering Equipment Manufacturing

With a strong commitment to unremitting pursuit of perfect craftsmanship over the past 73 years and a proven track record of leading industry innovations for 27 years，XCMG is well positioned for integrating its deep expertise and matchless craftsmanship into the new initiative of leading industry changes.

At the opening ceremony, Mr. Qi Jun, President of China Construction Machinery Association, fully recognized that as a representative of corporate champions in the sector, and making a big splash at the exhibition event and a deep impression on visitors with its eye-catching theme of Original Manufacturing, XCMG Group fully demonstrated its new strengths as a leading globally trusted construction equipment solution provider and its superior international brand image of relentlessly pursuing Quality, Innovation, Value and Responsibility. Mr. Wang Ming, Chairman of XCMG Group, took the lead in setting the golden standard of actions for the industry: Creating cutting-edge technology-based durable products, not only showing XCMG Group’s resolve in firmly following a global development road to venture into high/mid-end brand markets through innovation-led efforts, but also further highlighting the high ambition and courage of a Chinese manufacturer in pursuing product up-gradation and competing with world-class giants.

Aggressive push into high/mid-end brand markets through promoting innovations and leading changes. Marked by unique characteristics of being smart, integration, safety, reliability, energy-saving, efficiency, core function and sophistication，the exhibited products were arranged into 10 key business sections: hoisting machinery, earthwork & mining machinery, loading-transmitting machinery, road maintenance machinery, concrete machinery, pile working & underground engineering machinery, special purpose vehicles, sanitation machinery, core components and IT-based smart solution, to highlight the advantages of different product lines and the innovation strength of XCMG Group in leading the industrial peers.

All the 70 items on display at the event were reportedly the elaborately-wrought products, and made their first appearance in the public, raising strong interest from professional visitors. Among them, the most eye-catching items included the first-of-its-kind 8-bridge 1200T all-terrain crane XCA1200, brand-new Internet Plus smart crane XCA60_E, the Mining Jumbo-dubbed XE3000 excavator, XDE300electric drive mining dump truck, GR3505 high-powered mining land leveler, highly pedigreed XS365 super-tonnage road roller and LW1100KV heavy loader, fully bringing into relief XCMG’s technological strengths in making G-generation hoisting machines, D-serial excavators, V-serial loaders, 5-serial full range pavement construction machines, and the innovation-driven progress in pushing into high/mid-end brand markets.

At the event, XCMG also debuted a large batch of its flagship arrivals, including its independently developed double-wheel trench cuter XTC85，the Sino-German jointly developed S9 platform productHB52K pumper, the world’s first-of-its-kind full operating mode, fully hydro-pneumatic suspension, all-terrain five-axis dump truck, the national first-of-its-kind TWZ260 tunneling platform and the national first-of-its-kind heavy-duty SQS625A lorry-mounted telescopic crane.

XCMG has long been committed to providing integrated construction solutions tailored to its customers, and has persistently pursued exploration, innovation and practice in various new application fields, as evidenced by a quick sequence of brand products, including power-driven container reach stackers, building hoists, crushing machines, tunnel borers, push benches and aerial work platforms. With4 complete product lines: 1.5T-400Thydraulic excavators, 1.8T-12T loaders and 260HP-550 HP mining land leveler, 30T-400T mining dump trucks, XCMG is able to provide integrated equipment solutions of full range earthwork and mining machines to its customers.

In addition, as its business diversification into manufacturing services is gaining traction, XCMG also provides a wide range of packaged services and fully integrated solutions, including equipment leasing, on-site construction management, device safety, operator services, wheel or crawler crane hoisting schemes, pile & foundation construction schemes, and aerial operation platform leasing schemes. By providing its customers with nanny-like considerate services and expert-like asset management, XCMG has retained and further consolidated its reputation of being the most competitive brand in the engineering machinery leasing sector in China.

Mr. Jianzhong Sun, Machinery Vice President of XCMG, said that we have recently shifted our focus onto this golden standard of actions. Nowadays, we are giving a higher priority to our key core technologies and core components, and are making an aggressive venture into high/mid-end brand markets in a bid to enhance our enterprise values and our user values, to get out of the industry’s current plight and break bottlenecks of enterprise growth.

In the efforts to address the tricky issues of industrial hollowing-out and becoming more intelligent, by focus on seeking major breakthroughs in key core technologies and components, XCMG demonstrates its high ambition as a “prospective champion” in engineering machinery sector. With much fanfare, XCMG unveiled at the exhibition event a large batch of iconic high-end key components, including the world’s first-of-its-kind super-tonnage excavator boom cylinders, domestically advanced firefighting truck aluminum alloy water pipes, various types of complete import substitutes such as MYF serial electric cabinets and WA drive axles, multi-scenario hoisting schemes and the “Mysterious Sage” IT-based smart terminals. These highly creative new-type products made a big splash and soon became the focus of much attention from amazing visitors, testifying the powerful force of the domestic manufacturing.

Leading the Charge into Overseas Markets

Strength speaks louder. The grand glory at the exhibition hall comes from XCMG’s longstanding firm belief, unremitting commitment to its holy mission, persistent pursuit of perfection and relentless efforts.

With the global engineering machinery market being deep in the doldrums, XCMG Group, as an iconic brand in the Chinese engineering equipment, has continued to grow its principal operations: engineering machinery and make a lot of great achievements: having ranked first for 27 consecutive years by key industry indicators, being the only domestic corporation on the list of the global top 10 enterprises, commanding the largest market shares of its 9 categories of products, including auto cranes, road rollers and rotary drilling rigs, retaining the highest global sales of mobile cranes and heavy-duty road rollers, and successfully launching more than 100 sets of the first-of-its-kind major equipment and key components in the domestic markets.

At the same time, XCMG Group also leads its domestic peers to venture overseas markets, building its “Gold” brand in international markets and acting as an endorser to the Chinese equipment manufacturing.

Over the past decades, XCMG has built an extensive marketing network covering five continents. So far, it has 34 parts enters, 40 subsidiary companies and offices, 300 international dealers, more than 500 contractual service providers, a Brazilian production base and 6 offshore assembly plants, and operates R&D centers respectively in Germany, the United States and Brazil, and a European procurement center. In addition, it has acquired three European companies including Schwing and exports more than 100,000 units each year of its main products to 176 countries around the world, with its market share respectively in Brazil, Russia, Australia, Central Asia and the Middle East among the top three of international brands.

Meanwhile, XCMG has always attached great importance to the aftermarket development, providing a strong boost to its dealers and enhancing its global service capabilities in a bid to increase its brand influence around the world. In response to the national strategic initiative of building the One-Belt-One-Route, XCMG launched in 2015 a series of overseas service activities in 26 countries along the routes, and won the strong trust in its precision services from customers worldwide. In partnership with Sinopec, it successfully developed and launched XCMG-specific oil products in 2016, providing its users with a safe guarantee for hundreds of thousands units of devices.

Without doubt, XCMG’s great achievements benefit from its firm adherence to the internationalization strategy. At the upcoming 2016 annual global dealer conference, more than 300 dealers and partners from more than 60 countries will work with XCMG on mapping out future development plans, testifying their strong satisfaction with this cause of international cooperation.

When asked about friendly cooperation and mutually beneficial innovation over the past years with XCMG, Mr. Mohammed, General Manager of the Sudan DAL Engineering Company, gave a fully emotional comment: as the largest engineering machinery sales firm in Sudan, we are very happy with the cooperation with the best engineering machinery maker in China. By now, more than 1000 sets of XCMG machines have exported into Sudan and are widely used in various sectors such as road construction and mining, making great contributions to improvement of the Sudanese living environment.

This kind of cooperation testifies the strong sense of responsibility and the strong sense of mission of XCMG as a large international enterprise. We are confident in helping XCMG grow into the top brand of the engineering machinery industry in Sudan.

XCMG is also highly recognized in Brazil, another country on the opposite side of the Ocean. On October 25 (local time), the dialogue between the Brazilian President and the Chinese entrepreneurs at the Presidential Palace attracted much attention from around the world, with XCMG being the focus of "Made-in-China" topic during the event. The delegate led by Wang Min, Chairman of XCMG, and Wang Yansong, Machinery Vice President of XCMG, was given a warm reception by the Brazilian President Michel Temer, who not only spoke highly of XCMG’s firm commitment to Brazil during its hardest times and its great achievements made in Brazil, but also thanked XCMG for its good demonstration effects to more potential Chinese investors in Brazil.

To be an innovation leader and high/mid-end brand maker, we, XCMG group, will firmly march on along the road of international development. In the face of daunting challenges posed by the Brazilian economic difficulties, Mr. Wang gave his firm answer: stick to the strategic arrangement of centering upon Brazil and reaching out into the South America. While Brazil suffered from the economic downturn, we should be even more committed to it and stay together with it, only this can we live up to a world-class brand of being most respected and trusted by its global users!

Creating an eternal legend of an Industry Leader

Firm belief is our motivation to move ahead. To achieve the goal of “two centuries” and accomplish the sacred mission of rejuvenating the Chinese nation, a new generation of citizens must stay true to their mission and keep on moving ahead. Inspired by the great mission and responsibility of national rejuvenation, all the workers in XCMG will stick to their firm faith and continue their persistent pursuit, leading the industry to pioneer a new Long March to the global industry summit by Creating cutting-edge technology-based durable products and making continuous innovations.

In this critical period of transformation, upgrading and innovative improvement of the equipment manufacturing industry, it is even more necessary for XCMG, as an industry leader, to take the lead in making explorations and breakthroughs. Mr. Wang Min, XCMG Chairman, has already put forward clearly the business philosophy of going global, being focused on core operations, offsetting weaknesses and pursuing for sustainable growth, took the lead in setting the gold standard of actions of Creating cutting-edge technology-based durable products for the industry, and drawing the international development route of venturing into high/mid-end brand markets through innovation-led efforts.

It is our hope that they can become the ideas and beliefs shared by all workers in the engineering machinery industry, become the gold standard of concerted efforts, and become an integral part to the cultural kernel and essence in the Chinese manufacturing industry. It is our hope that they can motivate us to create crown jewels and world-class brands in the industry by leading innovations and pursuing perfection. Globally, Chairman Wang made the firm promise to the global customers of XCMG being committed to Creating cutting-edge technology-based durable products.

In his presentation at the news briefing on the golden standard, Mr. Suoyun Li, Vice-general manager of XCMG Group, formulated XCMG’s imminent initiative of leading industrial changes: Creating cutting-edge technology-based durable products, and set an ambitious goal of taking the lead in six aspects: product reliability, environmental suitability, safety, maintainability, controllability and cost efficiency, with the focus being fixated on 4 attributes: user-friendliness, workability, durability and practicability. He continued to point out that in order to effectively implement the golden standard, we will carry out 10 actions in quality management to become the powerful engine of making achievements of global significance through great efforts and unremitting pursuit of perfect product quality.

Technological lead and innovation leadership are the soul of efforts to create high/mid-end brands. Since 17 G-generation brand-new hoisting machines were launched in April 2016 and the proposal of technological intelligence, environment friendliness, high efficiency and high performance was made to the industry, interest in these innovative products has stayed at a high level, with their sales making up over 30% of the total within just half a year. In addition, V-serial loaders, D-serial excavators, the integrated technological platform concrete products and 5-serial complete pavement construction machines also achieved rapid sales growth due to their integrated self-dependent innovation genes, bringing new vitality to the sustainable development of the industry.

More than one product innovation of XCMG has reportedly led over the world’s advanced technologies. In the overall replacement of Beijing Sanyuanqiao Bridge project in 2015, the bridge framework replacement was completed within just 43 hours. During the replacement, 4 sets of 500T and 300T all-terrain cranes and other devices used in the process were XCMG’s equipment, including the 4000T crawler crane, which was dubbed as the eternal wonder maker and the world’s number one crane. Many XCMG products, like the world’s number one crane, represent the advanced level of products in China and even around the world, making XCMG the industry epitome of core technological achievements.

Apart from cutting-edge technologies, durability is also the lifeblood of engineering machinery sector. The life cycle of engineering machines is in the range of 10-15 years. High standards throughout the whole manufacturing process are the guarantee for effective use for a longer period, and the actual cases of technological lead and durability come from these crown jewels.

In the hot, dry Pilbara mining area of Australia, the outdoor temperature often rises above 37°. A super tonnage excavator has operated well for more than 6000 consecutive hours. Such a good performance is just attributed to its perfect XCMG hydraulic oil cylinder in its huge body.

XCMG managed to make major breakthroughs in the domestic ultra-large oil cylinder technologies, drawing widespread acclaim from its users both at home and abroad. Just as an equipment director in the Australian mining area put it, the trouble-free use time of a Chinese hydraulic ram is even longer than that of many top international products. XCMG parts are really a piece of gem we excavated from a massive heap of made-in-China products.

During a creative-focused gathering "Dinner in the Sky" in the Four Seasons Hotel in Lujiazui, Pudong District of Shanghai two years ago, 22 diners and two French chefs on a metal platform were lifted upward into the air, enjoying the scenery over their dinner. The platform and the devices they were riding on are the XCMG 300T all-terrain crane. According to the Belgian host, this is the first time they chose to use Chinese devices following their careful examination. The XCMG crane completely satisfied all of their requirements, including safety, smoothness, reliability and comfort.

The XCMG legend of technological lead and durability has been repeated all over the world. From the Qatar World Cup Stadium construction site to the Brazilian Olympic Games Main Stadium construction site, and from the pipeline laying project in a Houston oil region, a Turkish railway station, Kenya's Capital Airport to the cross-sea bridge in Maldives and the likes, the bright "XCMG Gold" is ubiquitous in almost every construction sites.

The same is true of construction sites across the country. On the 5400-meter-high, remote Mila summit in Tibet, QAY300A all-terrain crane has recently completed a task of large tonnage hoisting. Despite trials and hardships of more than half a century, the 5T truck cranes from the 1960’s are still in good condition. In the City of Dandong in Northeast region, different generations of XCMG cranes remain to be used side by side, often shocking passers-by. In the Lujiangba service area of Yunnan, a tri-wheeled internal combustion road roller engraved with Mao Zedong's quotations was made in 1970’s, and was still in normal use until being recently collected by a local museum as a "jalopy". In the eye of Guo Yinghe in Northern Shaanxi, no matter how advanced, any foreign gadget isn’t a match to his over-2-decade-long ZLJ50 clamp loader...

In a reply to a reporter from the People’s Daily during a recent interview, Mr. Wu Jianglong, Vice President of XCMG Group, said: thanks to these products, XCMG has become the forerunner and guide in the engineering machinery industry. High product quality is the powerful force driving an enterprise to realize great-leap-forward development. XCMG delivers the high brand quality to its users, and is rewarded with good word-of-mouth and trust. Exquisite craftsmanship and product durability are undoubtedly the benchmarks for XCMG creating national Crown Jewels.

Build a strong brand and develop smart manufacturing

At the special briefing in the afternoon, in partnership with various well-known domestic enterprises, including Huawei, Alibaba and China Telecom, XCMG launched the first-ever cloud platform in the Chinese construction machinery industry: XCMG Cloud, signifying that XCMG is well poised to take advantage of opportunities from the rising tides of “Made-in-China 2025” and “ Industry 4.0” , and has taken a more solid step forward in forging the first cloud platform for the industry.

In future, your destiny will be defined by platforms. Either you benefit from them or you are left behind by them.

In his presentation, Mr. Yang Yong, Vice General Manager of XCMG Group, articulated the strategic positioning of XCMG-Cloud platform, user-oriented core applications and future plans. He pointed out that, with the industry-leading technological architecture being the main venue and highly creative XCMG workers being main carriers, XCMG’s Cloud consists of three layers: IaaS platform, PaaS platform and SaaS platform. Cloud computing and cloud services have led to incredible innovations in the consumption world. Launch of the platform is supposed to raise the service level and deliver better results in the Chinese industry.

In 2016, XCMG cooperated with Alibaba in build China’s first Predix platform-XCMG Cloud. Triggered by major breakthroughs from the gold standard of technological lead and durability, a change campaign of Intenet + Cloud Technology + Manufacturing has started in XCMG.

On July 15, 2016, the technological crowd funding platform: XCMG - Cloud was officially launched, and On October 12, the first green innovation industrial design competition on the platform was completed. The value proposition and innovation practice of XCMG workers: Join hands in the cloud change the world has paid off. Through the highly inclusive cloud platform, huge amounts of data will be fully shared, global wisdoms will be integrated, and more impossibilities will be challenged and disrupted over and over again.

Similarly, with the world-class ideal and pursuit of going international, XCMG will take on the responsibility of a national Crown Jewel, make concrete efforts to contribute to global development, and reshape the world’s future. In 2014, XCMG made a "green" promise to the world, and launched a bold initiative of partnering in innovation to build a more environment-friendly world. Soon after, XCMG marched into the environment protection industry, further fulfilling its social responsibility of protecting our environment. In 2015, XCMG won the award of Green China Corporate Social Responsibility Achievements, becoming the only one having received the honor in the domestic engineering machinery industry.

At the 2nd China Brand Forum hosted by the People's Daily on Nov. 8, 2016, XCMG was invited, as an industry representative together with other domestic manufacturing giants including Wanda and Gree, to deliver a keynote speech titled Original Manufacturing Molds National Crown Jewels, won the first China Brand Award-Innovation, and received high recognition from leaders, experts, scholars, entrepreneurs and the media.

Due to these achievements, XCMG’s brand reputation and popularity are growing.

Based on his in-depth analysis, Chairman Wang concluded:

Why did customers prefer engineering machines made by international giants in the past? There are largely three reasons: advanced technology, high reliability and added values to customers. In recent years, by pursuing the golden standard of technological lead and durability in its R&D, design, production and manufacturing, XCMG takes advantage of opportunities from the deepening adjustments in the engineering machinery industry, vigorously grows its domestic high/mid-end customer base, and cooperates with participating countries of the One-belt One Route program and other emerging market countries. Thanks to these efforts, XCMG retains its leading position in the domestic engineering machinery industry, and also demonstrate the strength of the Chinese brands matching international giants.

These are the new wisdoms and new abilities in the era of XCMG’s Original Manufacturing.

In the eye of XCMG, there are only enterprises but no sunset industries. Chairman Wang is full of confidence about the development prospect of his enterprise and his industry. Looking forward to the Made-in-China 2025, as the founder, the blazer and the leader in the Chinese engineering machinery industry, XCMG will try its best to be among the top three in the global engineering machinery industry, reshaping itself into a globally trusted world-class international company with unique value creativity.