Xinhuanet.com, Nanjing Jiangsu, 6th Nov. 2012 ( Reporter of Xinhua News Agency, Hua Weilie) Founded in 1989, XCMG has been a market leader in the engineering machinery industry of China for 23 years. At present, ranking No. 5 in the world's engineering machinery industry, it is a large scale enterprise group in the engineering machinery industry of China with the largest scale, the most diversified products, the strongest competitiveness and the greatest influence. The turnover of XCMG increased from RMB 386 million yuan when it was just founded, to more than RMB 87 billion yuan in 2011, ranking No.1 among its counterparts. Mr Wang Min, representative of the 18th CPC National Congress, president of XCMG received the interview by Xinhua News Agency.
Reporter: In 2012, XCMG put itself in the ranks of the Top 5 in the world's engineering machinery industry, which has enhanced the market share and the brand image of high-end equipment manufacturing of China. What do you think constantly drives XCMG forward and what makes it a world-class enterprise?
Wang Min: At present, the international economy is on the downward trend, and growth of both external and internal demand is slowing; however, thanks to three magic weapons, XCMG has made growth against the trend.
First, it's technological innovation. Technological innovation is the primary magic weapon that enables XCMG to be No. 1 in China's engineering machinery industry in the consecutive 23 years. In recent years, XCMG has transferred from low-end assembling to high-end manufacturing by mastering a series of core technologies through technological reform and innovation. XCMG has spent more than RMB 1 billion yuan on R & D annually in latest years, and in 2011, its expenditure on R & D accounted for 5.7% of its turnover.
Second, it's internationalization strategy. Internationalization is the core of the development of XCMG. At present, XCMG is building overseas manufacturing bases in Poland, Brazil and other countries. It has 10 overseas components centers in countries such as Sri Lanka, Venezuela, etc, more than 100 international distributors and more than 500 contracted service providers, which makes a better and better overseas service network and remarkably enhances its service performance. XCMG's products have been sold to 147 countries and regions, ranking No. 1 in the engineering machinery industry in terms of earning foreign exchange through export.
Third, it's talented personnel. XCMG has more than 4000 personnel who specialize in R & D and process research, and it boasts more than 80 technical elites in the high-end engineering machinery industry. XCMG's National-Class Technology Center is always ranking No. 1 in the assessment by National Development and Reform Commission. Meanwhile, with its R&D centers located throughout the world, XCMG is trying to provide strong intelligence support for its development by making full use of global talents resources so as to become a world-class enterprise.
Reporter: In June this year, XCMG's four bases including All Terrain Crane Base, Loader Intelligence Base, Concrete Pump Base and Concrete Mixer Base were officially put into use. The four bases are the largest in the world, with the state-of-the-art process and technology and the strongest capability of lean production. What do you think these four bases mean to XCMG? What are the highlights?
Wang Min: When the four bases reach the designed capability, the total capacity will be increased by RMB 40 billion yuan, equaling to creating a new XCMG. It symbolizes a vital industrial upgrading and strategic transformation of XCMG in the 12th Five-Year Plan. By establishing these four bases, XCMG has upgraded the traditional industry by pushing forward the deep integration of informatization and industrialization as well as promoted the industrial transformation and upgrading and the change of its development mode.
With years' experience in the engineering machinery industry, XCMG's four bases have displayed new shining points in the new stage. First, with highly integrated, flexible, intelligent and full digital management, XCMG has obtained the capability of lean production and quality manufacturing that can be compared to world-class enterprises. It is committed to constructing a high-end national industry by adhering to following the path of new type industrialization with the characteristics of high efficiency, energy reservation and environmental protection; second, XCMG has made a breakthrough in the brand-new manufacturing model of manufacturing 6 - ton plus large tonnage loaders, 120 - ton plus super large tonnage cranes in bulk; third, with the technology of Germany Schwing, XCMG has launched a brand-new plate of complete set of concrete machinery, which has great potential for growth and strong capability.
Reporter: After XCMG ranks No. 1 among the Top 10 of the global movable cranes by surpassing LIEBHERR, it is aimed at building No. 1 Brand of the global cranes. How does XCMG defeat its strong competitors and become No. 1 in the global crane market?
Wang Min: For many years, XCMG has been committed to studying the core technology of cranes, deeply combining the engineering application with clients' demand and constantly building core competitiveness. It sets its goal of becoming No. 1 brand among the global cranes by emphasizing on the Six Highlights.