Economic Daily: Hunan Sany Heavy Industry: Building a "Circle of Friends" Overseas

"Sany Heavy Industry is China's 5655 and the world's fifth largest construction machinery manufacturing enterprise. Our concrete machinery is the world's *5656 big brand; Excavators have maintained China's * 5656 for 6 consecutive years, and the market share has increased from 12% in the past to 24% now, and the profit of excavators alone reached more than 300 million yuan last year, and the annual profit is expected to exceed 1.2 billion yuan this year, which is 4 times the profit of last year...... "Xiang Wenbo, president of Sany Heavy Industry Co., Ltd., said.

The transformation of Sany Heavy Industry is in great pain. The core business fell from 30 billion yuan at the peak to 3 billion yuan; The number of personnel has been reduced from 70,000 to 30,000 now; Various overcapacity has caused huge cost pressure on Sany Heavy Industry. Xiang Wenbo told reporters that in the face of difficulties, we must unswervingly reduce costs to ensure stable development; We must unswervingly take the road of internationalization, which is the direction of enterprise transformation and upgrading.

"At present, the difficult time of Sany Heavy Industry has passed, the level of internationalization is improving, the business capacity is improving, and the confidence of employees is also improving." Xiang Wenbo told reporters that before the international financial crisis, 90% of Sany Heavy Industry's sales were in China, and now nearly half of its overseas sales are now: in 2014, Sany Heavy Industry achieved international sales revenue of 9.822 billion yuan, accounting for 32.3% of the company's sales revenue; In 2015, Sany Heavy Industry's international sales revenue exceeded 10 billion yuan, accounting for 42.5% of the company's sales revenue. The company's overall industrial layout is highly consistent with the national "Belt and Road" strategic region, and the business momentum of major overseas regions is good, and sales in Asia-Pacific, Latin America, North Africa and other regions have achieved rapid growth. At the same time, Sany Heavy Industry is also the first machinery manufacturing enterprise in China to invest and build factories in India, the United States, Germany, Brazil and Indonesia. At present, it has more than 4,000 overseas employees, 4 overseas R&D and manufacturing bases in India, the United States, Germany and Brazil, as well as 7 overseas sales regions and member companies in Asia Pacific, Latin America, South Africa, North Africa, Central Asia, the Middle East and Russia, and has established a product sales network in more than 70 countries and regions around the world, and its products are exported to more than 100 countries and regions.

Strong winds blow overseas

On August 5, the Olympic Games opened in Brazil. Zhu Qingqiao, director of the Department of Latin America and the Caribbean Affairs of the Chinese Ministry of Foreign Affairs, said that the "Chinese elements" were shining everywhere inside and outside the Olympic Games, which could be called an "exhibition of economic achievements" of China-Brazil cooperation. And Sany Heavy Industry is one of the best.

Statistics show that the total cost of the Rio Olympics is about 11.5 billion US dollars, of which 7.1 billion US dollars are invested in infrastructure construction. China Construction Machinery and Equipment has participated in almost all Olympic engineering construction projects, including the construction of Olympic venues, and Sany Heavy Industry's main products such as lifting machinery, excavators, and road machinery are the main force. For example, in the construction of the Rio Olympic Village, half of the equipment came from Sany Heavy Industry; The Baja Olympic Park is the heart of the Rio Olympic Games, and Sany Heavy Industry participated in the construction of 7 new venues and 2 existing venues with road rollers, excavators, cranes, concrete machinery and other equipment; Maracanã Stadium is the main venue of the Brazilian Olympic Games, and the construction requirements are extremely strict.Truck cranesCooperate with pumping equipment to help the construction of venues; Metro Line 4 is an infrastructure project of Rio Olympic Investment*5655, and the cranes and excavators of Sany Heavy Industry have undertaken the heavy responsibility......

Xiao Hua, director of Sany Heavy Industry Brazil, said that the Rio Olympic project has high requirements for equipment, and Sany Heavy Industry Equipment can widely participate in these projects, which shows that local customers have highly recognized the quality and performance of Sany Heavy Industry products, and Sany Heavy Industry's fast and efficient after-sales service and parts supply system also provides a reliable guarantee for the construction of the project as planned.

In fact, two years ago in the World Cup in Brazil, Sany Heavy Industry was also the winner of *5655 in the field of construction machinery. In all 12 stadiums of the World Cup in Brazil, at least 8 can see the figure of Sany Heavy Industry. Only Sany Heavy Industry has more than 60 cranes involved in the construction of the World Cup. Benefiting from this, Sany Heavy Industry has maintained a relatively stable development in the case of unstable local economy in Brazil, and Sany Heavy Industry's cranes have continuously occupied the position of market *5656, with a market share of 40%.

Following the Belt and Road Initiative

Let's follow the pace of Sany Heavy Industry and set our sights on the world——

This is the Atacama Desert in northern Chile, the "country of the end of the world", which has lasted for more than 400 years without rainfall, and is the driest place in the world. You see, in such a drought, hot, wind-blown and sand-stricken place, Sany Heavy Industry's five 37-meter pump trucks and one 43-meter pump truck have been working here for six consecutive years, pouring more than 5 million cubic meters of concrete and building beautiful buildings. This has also won the reputation of "Desert Pump King" for the pump truck.

This is the site of the reconstruction of the Sayan-Shushensk hydroelectric power station, Russia's *5655 hydropower plant and the sixth largest hydropower plant in the world. After many comparisons, the Russian side found that the excellent performance of Sany Heavy Industry equipment can meet the strict requirements of the local extremely low temperature construction in winter, so it finally decided to purchase 6 pumping equipment to participate in the dam reconstruction project.

Burj Khalifa is a world*5656 high-rise building located in Dubai, United Arab Emirates, which is a 150-storey, 704.9-meter-high steel structure concrete building. With 21 sets of pumping equipment with incomparable pumping height, it has shown its skills in the construction of the Burj Khalifa, which is also the first construction machinery brand printed with the words "Made in China" in the project......

These are just a microcosm of Sany Heavy Industry's overseas "circle of friends". Liang Wengen, chairman of Sany Heavy Industry, believes that the national "One Belt, One Road" strategy is a best opportunity for Sany Heavy Industry, and enterprises must rely on large projects, borrow ships to go to sea, go to sea in groups, and accelerate the pace of internationalization of enterprises through overseas direct sales and overseas investment.

"The difficulties and challenges facing internationalization are the world's worries and lack of understanding of Chinese capital. International culture, conflict of interests, and political game will all be reflected in the process of enterprise internationalization. This is a problem we must face, and we face and solve it with local thinking, international ideals and goals. For example, India is a very proud nation, very different from Chinese culture, if you use Chinese to manage Indians it is very troublesome, will cause a series of problems, but with Indians to manage is very simple. Xiang Wenbo said that "the localization of culture and the localization of management" are the innovations of Sany Heavy Industry, and it is also the basic experience of Sany Heavy Industry for so many years of internationalization.

The layout of the plan is internationalized

Sany Heavy Industry's performance in the international market is inseparable from Liang Wengen's strategic judgment.

The internationalization of Sany Heavy Industry has always been called the third entrepreneurship by Liang Wengen: *5656 entrepreneurship is the establishment of township enterprises; The second venture is to transfer the industry to Changsha, Hunan; The third venture is to adhere to the road of internationalization and lay out the "Belt and Road".

As early as the golden age of China's construction machinery market, the group began to formulate a strategic plan for taking the road of internationalization. At the time, many people were skeptical of the Group's internationalization strategy. On the one hand, 50% of the market in the field of construction machinery is in China, and concentrated in the southeast coastal area, and the development in the country is relatively easy; On the other hand, the difficulty and investment in overseas market development are very large, and it is likely that the gains of enterprises outweigh the losses. However, at that time, the group firmly established the strategic idea of internationalization, set up a special team to lay out the "Belt and Road", and determined the direction of improving products and services by understanding the market covered by the "Belt and Road".

Looking at the global layout of Sany Heavy Industry, it is obvious that it is highly compatible with the "Belt and Road". In the "Silk Road Economic Belt", Sany Heavy Industry has occupied a favorable position in the Northwest Heavy Industry Industrial Park in Xinjiang. Sany Northwest Heavy Industry covers the Xinjiang market and will form an overall layout facing the northwest and radiating Central Asia. In 2013, Sany Northwest established a marketing company in Central Asia, which is responsible for the marketing of Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan, Pakistan and Afghanistan. In 2014, sales in Central Asia increased significantly compared to the previous year.

Also distributed in the key points of the "Silk Road Economic Belt", there are also Sany Heavy Industry Middle East Region, Russia Region, Sany Heavy Industry German Industrial Park and Sany Heavy Industry through the merger and acquisition of the world's concrete conveying equipment market of the largest enterprise Putzmeister and the establishment of high-end concrete machinery production base. According to data, the sales volume of cranes in the Middle East has remained *5656 for two consecutive years, and excavators account for *5656 in the export volume of Chinese-funded brands.

The Maritime Silk Road takes key ports as nodes, and its domestic starting point is coastal port cities, including Fuzhou, Quanzhou, Guangzhou, Zhanjiang and Haikou. In this key area, Sany Heavy Industry has established the Zhuhai Industrial Park to carry out marine engineering equipment business, which is the second largest new business segment after Sany Heavy Industry entered the field of energy equipment. According to the plan, the company will spend 3 to 5 years to build Sany Marine Heavy Industry Zhuhai Industrial Park into a park with an annual output value of more than 20 billion yuan. In fact, Sany Heavy Industry has established production bases in typical port cities such as Shanghai Lingang, Kunshan and Huzhou in Jiangsu, and basically completed the layout in China.

In addition, in the Maritime Silk Road, Sany Heavy Industry's international business is also very mature. The Asia-Pacific region, the North African region, and the India Industrial Park are growing rapidly. The Asia-Pacific region is one of the fastest-growing international units of Sany Heavy Industry*, with an average annual sales growth rate of more than 70% in the North African region. Sany India Industrial Park is a 5,656 overseas industrial park built by Sany Heavy Industry, and its sales volume in 2014 has increased by more than 60% compared to 2013.

The Belt and Road Initiative has brought development opportunities and potential to Sany Heavy Industry. Xiang Wenbo, president of Sany Heavy Industry, said: "The national 'Belt and Road' strategy is the spring of construction machinery enterprises. At present, Sany Heavy Industry has been deployed and developed in many countries and regions along the route, and 70% to 80% of the overseas markets are in this economic corridor with the longest span in the world. In the future, the company will continue to develop overseas markets with the help of the 'double gathering' strategy focusing on key products and key regions to connect with the 'Belt and Road' strategy. ”

On how to better connect with the national "One Belt, One Road" strategy, Xiang Wenbo put forward the goal of "five little tigers" to go to sea. He said that in addition to construction machinery products, Sany Heavy Industry will also build the business fulcrum of the "Belt and Road" strategy through residential industrialization projects, smart ports, new energy technologies, and intelligent oilfield mining projects.