Sany Heavy Industry: Climb to the top of the world's construction machinery

A successful strategic decision can establish a competitive advantage for the next 5 to 10 years. For Sany Heavy Industry, the company chose to enter the field of concrete machinery when it was founded, and it was listed in 2003 and later became China's share reform *5656 shares. Nowadays, in terms of internationalization, Sany Heavy Industry has once again laid the first foundation.

At the beginning of 2012, Sany Heavy Industry acquired Putzmeister Holdings Co., Ltd. (commonly known as Elephant, hereinafter referred to as Putzmeister), which shortened its internationalization process by 5-10 years. This 33-day cross-border merger and acquisition has enabled Sany Heavy Industry to jump from China's largest construction machinery enterprise to *5653, becoming the world's largest construction machinery company in the field of concrete machinery.

Liang Wengen said: "In the acquisition of Putzmeister, we do not look at its balance sheet, the balance sheet is important, but the important thing is whether we and the M&A target are strategically complementary.

It was the timely appearance of Putzmeister that allowed Sany Heavy Industry to find a new fulcrum of internationalization. Liang Wengen said to himself that he has two things that he is happy about today, one is to get the admission letter of Central South University after the college entrance examination, and the other is this merger and acquisition, "because the merger and acquisition has indeed reached a * to the ground, laying the foundation of Sany Heavy Industry World * 5656." He said.

*5653 ambition

In 1986, Liang Wengen, Tang Xiuguo, Mao Zhongwu, and Yuan Jinhua left the state-owned enterprise and went to the sea to start a business. These four blood-soaked brothers sold sheep and made wine together, but they all failed. After some reflection, Liang Wengen saw the scarce welding materials in the market, so he led everyone to raise 60,000 yuan to set up Lianyuan Maotang Welding Materials Factory. Starting from a basement, after repeated experiences from failure to success, by 1989, the small factory founded by Liang Wengen and his partners achieved an income of 10 million yuan.

1989 was the starting year of Sany Heavy Industry, and the company began to plan the development of the group in this year. Two years later, Xiang Wenbo joined the Sany Heavy Industry team and suggested that the company move from Lianyuan to Changsha and enter the construction machinery industry, which was deeply recognized by Liang Wengen. In 1993, the company changed its name to Sany Group, with Sany Heavy Industry and Sany Materials, and the headquarters was moved to Changsha as suggested.

It was also at that time that Sany Heavy Industry and Putzmeister intersected. Liang Wengen waited a whole day to see the story of Putzmeister's products, which happened at the industrial exhibition the following year. In addition to Putzmeister, international brands such as Caterpillar, Komatsu, Hitachi Construction Machinery and Liebherr have also entered China, seizing 90% of the market share. The Chinese market has become the most competitive international market.

* In the early years, Liang Wengen and his partners spent their time in painful torment. At the time of Sany Heavy Industry's grass creation, the first batch of 6 trailer pump products were returned not long after they were sold, because the hydraulic control system of the supporting core product was not up to standard, and the trailer pump had quality problems. At that time, one of the suppliers who could provide the hydraulic control system of the trailer pump was from Japan, and the other was a company in Guiyang, but Sany Heavy Industry could not afford to buy Japanese goods, and the company in Guiyang planned to build its own trailer pump and could not supply it to Sany Heavy Industry for a long time. For three consecutive years, Sany Heavy Industry Tractor Pump could not step through the technical threshold, cash flow was facing depletion, sales were also very difficult, and almost all the leaders of the group went out to run orders.

In order to solve the technical problems, in June 1995, Liang Wengen went to Beijing to find his fellow countrymen, and Yi Xiaogang, director of the Hydraulic Center System Office of the Beijing Institute of Automation (now the executive vice president of Sany Heavy Industry), asked for help. Yi Xiaogang is a technologist with the ambition to achieve his ideals through technology. Although he and Liang Wengen have different ideals, their enthusiasm for their careers is the same. Three months later, Yi Xiaogang joined Sany Heavy Industry as a technical partner.

In fact, Yi Xiaogang had not been in contact with a concrete trailer pump before. Yi Xiaogang, who started from scratch, mastered and transformed the concrete trailer pump from every technical detail. He first changed the traditional high and low pressure switching pipeline of the concrete trailer pump to a valve device, and in this transformation process, another thing happened. At that time, neither the workshop director nor the employees agreed with Yi Xiaogang's new design, which directly hindered the verification of this technology. After Liang Wengen learned about it, he called all the relevant personnel together, and he asked Yi Xiaogang: Yi Gong, do you think this will work? Yi Xiaogang replied: There must be no problem, we can't blindly imitate because foreign countries are like this, there is no breakthrough. Yes. Just do as you say. Liang Wengen supported Yi Xiaogang. As a result, Sany Heavy Industry has its own *5656 patents. Yi Xiaogang's status as a technical leader is no longer criticized.

Subsequently, Yi Xiaogang began to tackle the core technology hydraulic control system of concrete trailer pump. Still starting from scratch, by understanding the functional redesign of each component of the system, in order to solve the problem of standardized production, all the parts used are procured from the market. In less than 30 days, Sany Heavy Industry's own hydraulic control system for concrete trailer pump was launched. At the end of 1995, Sany Heavy Industry's 60A concrete trailer pump was commissioned and rolled off the production line.

The breakthrough of Sany Heavy Industry's concrete trailer pump is only a small microcosm of the ups and downs of Sany Heavy Industry and Liang Wengen. Every time Sany expands its new product line, it will take foreign giants as imaginary enemies, because the height of the opponent determines its own height.

In construction machinery, concrete pumping technology above 400 meters has been monopolized by Germany for a long time. At the end of 2000, Sany Heavy Industry Pumping was used for the 406-meter-high Hong Kong International Financial Center to be built by Sun Hung Kai Group. In the excavator market where Caterpillar, Hitachi, Komatsu and other American, Japanese and South Korean companies are entrenched, Sany Heavy Industry established Sany Heavy Machinery, which is mainly an excavator, in 2003, and Liang Wengen gave Sany Heavy Machinery a special right of way to purchase R&D and production equipment, and he can directly sign it. By the first quarter of this year, Sany excavator had a market share of nearly 18%, leaving Caterpillar and Komatsu far behind, and ranking firmly in the market after last year*5656.

At present, Sany Heavy Industry has fully entered the field of construction machinery manufacturing, and its leading products are concrete machinery, road construction machinery, excavation machinery,Piling machinery, hoisting machinery, trenchless construction equipment, port machinery, wind power equipment and other full range of products. Among them, concrete machinery, piling machinery, and crawler hoisting machinery are domestic *5656 brands.

Over the years, Sany Heavy Industry led by Liang Wengen has always adhered to the road of independent innovation and won an international reputation for China's construction machinery. At present, Sany Heavy Industry has *5652 technology development center and postdoctoral mobile workstation, with a total of 4,141 patents applied for and 2,211 valid patents authorized. Twice won the second prize of the National Science and Technology Progress Award, of which Sany Heavy Industry Technology Innovation Platform won the second prize of the 2010 National Science and Technology Progress Award, is the first enterprise in the construction machinery industry and Hunan Province since the founding of the People's Republic of China, and the construction machinery industry has won the honor of *5652*5661.

Behind Sany Heavy Industry's innovation ability is Liang Wengen's great attention to R&D investment. Liang Wengen said: Every year, we spend 5%-7% of our sales revenue on research and development. Moreover, there is no cap on R&D funds, and R&D investment is at the *5653 level.

Challenging the world's good level, independent research and development, independent innovation, has achieved the status of Sany Heavy Industry China*5655, the world's 6th largest construction machinery manufacturer. In recent years, Sany Heavy Industry has been continuously rated as one of the top 500 Chinese enterprises, the strongest enterprise in comprehensive efficiency and competitiveness in the construction machinery industry, the top enterprise in Forbes China, the most independent brand with growth potential in China, the most competitive brand in China, the iconic brand in China's construction machinery industry, and the top 50 brands in Asia.

* Sleeve new pattern

In 2011, Sany Group achieved sales revenue of 75 billion yuan. In July of the same year, with a market value of 21.584 billion US dollars, Sany Heavy Industry was shortlisted for the first time in the Fortune Global 500 list of the United States, becoming the *5,656 Chinese machinery manufacturing enterprises on the list. With the addition of Putzmeister, Sany Heavy Industry, which has already entered a new stage of history.

At the 2012 Sany Group Business Report Conference, Liang Wengen set a goal of crossing 100 billion yuan for Sany, and further, he hopes that by 2017, Sany Group will achieve a sales target of 300 billion yuan, surpassing Japan's Komatsu to become the world's second, and striving to surpass Caterpillar in the United States to become the world's *5656 in 2022.

Liang Wengen predicts that in the next 10-20 years, China's economy will continue to grow rapidly. First of all, there is still a lot of room for infrastructure construction in China. China has a population of 1.3 billion, which is several times that of the United States, but there are 5,800 airports with runways in the United States, and only about 300 in China have large-scale infrastructure construction, so there is market space for the development of the machinery manufacturing industry.

At the same time, the revenue contribution from the international will increase qualitatively. At present, Putzmeister concrete machinery occupies 21.5% of the market share in the global high-end market, far ahead. Putzmeister's market share in some traditional and emerging market countries is 10% in Germany, 33% in Western Europe, and 60% in India. With the addition of the combination of Sany Heavy Industry's products, Putzmeister's potential to open up the international market will be further released.

In addition, Sany will establish its own overseas bases and play a synergistic effect with Putzmeister. So far, Sany Heavy Industry has successively invested in R&D and manufacturing bases for construction machinery in India, the United States, Germany and Brazil. Sany has a total of 21 overseas subsidiaries, covering 150 countries and exporting its products to more than 110 countries and regions. Following Putzmeister, Sany has also strengthened the pace of overseas construction of joint ventures. On February 28, 2012, Sany Heavy Industry Co., Ltd. and the international crane giant PALFINGER Group of Austria established two joint ventures, one of the joint ventures, Sany PALFINGER Special Vehicle Equipment Co., Ltd. is located in Changsha, with a total investment of 900 million yuan and a registered capital of 300 million yuan. Another joint venture is located in Austria with a total investment of 4 million euros and a registered capital of 2 million euros. The two joint ventures will each have a 50% stake in each investor.

The troika of independent factory construction, overseas mergers and acquisitions, and the establishment of joint ventures has deeply stimulated the overseas expansion of Sany Heavy Industry.

The strong layout from domestic to overseas has given Sany Heavy Industry a solid foundation of *Ding*5653. Therefore, Liang Wengen called on his colleagues in Sany Heavy Industry: I hope that everyone must build Sany into a *5653 enterprise and build the Sany brand into a *5653 brand, which is an important way to serve the country and realize their life ideals, and it is also an excellent way to contribute to all mankind.

For this heavy ideal, Liang Wengen, China's richest man in the 2011 Forbes and Hurun Rich List, has to hold a half-hour breakfast meeting with the core team at 7:30 a.m. every day, and insists on working until 9 p.m., and has always maintained the habit of listening to work reports while walking.

Others look at Liang Wengen and think he is an ascetic, but he himself thinks that this is a happy life to catch up with ideals. Not only him, but also his brothers Tang Xiuguo, Mao Zhongwu, Yuan Jinhua, who were with him early, as well as Xiang Wenbo, Zhou Fugui, Yi Xiaogang, Wang Zuochun, Zhao Xiangzhang and others who joined one after another, are all people who chase their ideals, and all of them are workaholics.

Liang Wengen often said that the key to creating today's Sany Heavy Industry is people. He said: technology can be learned, management can be learned, but whether you can learn well, * after the team, perseverance and hard work.

In addition to the core senior management team, Sany pays special attention to recruiting talents and establishing a talent echelon. Among the more than 10,000 R&D personnel of Sany Heavy Industry, 4,000 are talent reserves. Sany Heavy Industry has comprehensively built a talent pool through independent training, school-enterprise joint education, and the world's *5660 university training and learning plan. Liang Wengen even plans to set up his own university to meet the needs of enterprises while sending talents to the society.

Sany Heavy Industry, which is becoming increasingly international, has also set up recruitment platforms in the United States, Japan and Germany, which are rich in high-end talents, and expects to introduce high-end talents in R&D, technology and international management, which are in short supply.

Liang Wengen's personal style is to spare no expense to corporal Lixian, and cooperate with Sany Heavy Industry's perfect incentive system to mobilize the enthusiasm of every employee, so as to ensure the product quality and development potential of Sany Heavy Industry.

Liang Wengen also insisted on being virtuous and not avoiding relatives. His son Liang Zaizhong, after graduating from the University of Warwick in 2006 with a major in computer science, started as a workshop dispatcher of Sany Heavy Industry, and has now been promoted to vice president of Sany Group, director of financial headquarters, and secretary of the Youth League Committee of Sany Group Co., Ltd. of the Communist Youth League of China. Liang Jae-chung, who grew up under Liang Wengen's careful tutelage, dreamed of surpassing his father, and he said that my life goals were more often designed by my father, and I could only take it as my responsibility to surpass my father.

Several other founders of Sany also followed Liang Wengen's example and encouraged their children to work and grow up in Sany Heavy Industry. The deliberate cultivation of the new generation by the founders of Sany Heavy Industry has hidden a miracle for the future of Sany Heavy Industry.

In the Liang Wengen chapter of CCTV's popular public welfare short film "Everyone Can Become a Talent", an office surrounded by gardens, rows of tall excavators, and ultra-high pump trucks with their heads stretched out represent the innovation and entrepreneurship of Liang Wengen's era. He said in the film: Entrepreneurship will not be smooth sailing, and starting a business will also go through ups and downs; From 66 meters, to 72 meters, and then to 86 meters, we continue to refresh the world record in the field of pump truck manufacturing, and challenge our own height in order to change the height of the world.

If one day Sany Heavy Industry substantially establishes the status of *5653 enterprise, Liang Wengen, whose dream comes true, will return to the countryside.