Steel Pumps,Pumps For Steel Industry,Centrifugal Water Pump,Horizontal Chemical Water Pump Sichuan Zigong Industrial Pump Co.,Ltd. , https://www.zgpump-global.com
In 2005, China's construction machinery sales accounted for 11.7% of the international market. If calculated by the number of equipment, this figure has reached 22%, of which the share of international brand products (including direct imports) in the Chinese market is close to 50%, indicating that China Construction machinery market and enterprise development have entered the international market environment.
In addition, China’s exports of construction machinery products reached 2.94 billion U.S. dollars in 2005. The first time that imports and exports have remained basically flat, which has reversed the situation of serious deficits in import and export volume over the years, and the competitive momentum in the international market has gradually emerged.
Under such circumstances, international multinational corporations headed by Caterpillar Inc. of the United States both favor China's big market and give high attention to the potential competitiveness of Chinese construction machinery companies in the international market. They regard the development in China as an important development strategy of the company and gradually increase their investment in China.
At the same time, a number of private enterprises have emerged in China's construction machinery industry, such as Sany Group, Longgong Group, Fangyuan Group, Huaxia Group, Ningbo Ruyi, Zhejiang Nuoli, and Shanhe Smart Group, etc. They rely on efficient and flexible corporate operations. The mechanism has injected new vitality into the development of China's construction machinery. However, due to outdated operating mechanisms and inconsistent with the game rules for the development of the market economy, some state-owned enterprises are either dissolving or facing crisis of survival. So now the domestic construction machinery market has evolved into a state of separate governance for foreign capital, private enterprises and state-owned enterprises. In addition, over 13 major products of construction machinery have experienced excess capacity in the domestic market, and competition has become increasingly fierce. The operating mechanism of state-owned enterprises cannot adapt to the needs of market development and has been transformed into an urgent task for the survival of state-owned enterprises. XCMG, the flagship Chinese engineering machinery company, is also facing the same situation.
Compared with foreign companies and newly emerging private enterprises in China, the development of XCMG is obviously not enough. In terms of mechanical technology, apart from individual products such as truck cranes, there are still certain advantages. The overall technology is only equivalent to the level of the international 80s. Most of the products are in the imitation phase, and the manufacturing methods are still relatively backward. In terms of industry policies, there are currently no restrictions on the entry of foreign branded products into the Chinese market, and there are still some policies that exceed national treatment in taxation. International giants such as Caterpillar have entered the Chinese market in a joint venture or wholly-owned manner. With the advantages of capital, brand, technology, etc., after monopolizing the high-end market, it is entering the mid-range market. In terms of operating mechanism and cost, a group of private enterprises represented by Sany Heavy Industry and Longgong Group, with their flexible operating mechanisms and cost advantages, have occupied more and more shares in the mid-range and low-end markets in China.
Reforms such as arrows
In 1989, Xuzhou Heavy Machinery Factory, Xuzhou Engineering Machinery Factory, Xuzhou Loader Factory, Xuzhou Yu Machinery Factory, Xuzhou Bridge Factory, Xuzhou Hydraulic Component Factory and other 15 subsidiaries were established in the form of “Nine Unity†to form XCMG. Since then, XCMG has been receiving strong support from the central and local governments. The cumulative investment in XCMG has reached 1.87 billion yuan, including 1.06 billion yuan in loans, which has nurtured the company into an industry leader with sales scale and product variety as its symbol. The boss, Xugong Machinery, which is a core enterprise mainly engaged in construction machinery, has maintained its leading position in the sales of construction machinery in China.
In the past decade, however, Xugong’s comprehensive economic efficiency indicators have been relatively low due to the problems of enterprise systems and mechanisms. In the top eight companies in the industry with similar sales scale of Xugong Machinery, Xugong’s comprehensive economic efficiency index and core competitiveness have all dropped to the last in 2005. With the exception of wheeled cranes, the market competitiveness of other products has declined year by year. . In 2005, the Group's sales were 13.1 billion yuan (including Xugong's brand value of 7.66 billion yuan), which was 3.8% lower than in 2004, and its main business profit was 37% lower than in 2004. This situation is contrary to the overall development trend of the industry.
In addition, the market share of Xugong’s competitive product roller has fallen from 55% in 1995 to 29% in 2005, and the loader has dropped to the sixth place in the country, all of which have suffered operating losses. Therefore, the foundation of XCMG's leading position in the construction machinery industry has begun to shake.
In addition, XCMG and its subsidiaries have loans of up to 2 billion yuan at various domestic and foreign banks, and more than 70% of Xugong Machinery’s equity has been used for mortgages, of which nearly half of the loan repayment period is due to mature in the first half of 2006. Faced with huge repayment pressure. Therefore, attracting investment and reforming and completely solving Xugong’s huge debts and difficult restructuring tasks have become a top priority for Xugong Group.
Establish basic ideas for restructuring
The basic ideas of Xugong’s restructuring are: the overall restructuring of holding company Xugong Machinery, the introduction of foreign financial investors, capital increase and capital expansion, and the complete conversion of operating mechanisms; while introducing foreign investors, innovative management concepts, innovative technologies and talent mechanisms, plus The company will independently develop its products, comprehensively improve its product quality and technical content, vigorously enhance its core competitiveness, and properly handle the issues left over from history in the XCMG Group.
In the process of attracting investment and restructuring, Xugong also confirmed the "two basic stability, five favorable, one goal" reform policy. “Two basic stability†means maintaining the basic stability of the workforce and management team, achieving a smooth restructuring, and replacing the identity of a state-owned enterprise; “five benefits†means: it is conducive to the long-term, healthy development of the company and is conducive to the conversion of operating mechanisms. It is beneficial to the improvement of Xugong’s overall image, which will help improve international competitiveness and solve the problems left over by history. “One goal†is to continue to make the “Xcugong†national brand an internationally renowned brand.
In order to achieve the above objectives, all restructuring of XCMG is planned to be carried out in three phases: the first phase completes the reform of the property rights system, transforms the company's operating mechanism and innovates the management system; the second phase selectively introduces foreign key advanced technologies and management, and increases R & D and independent innovation efforts to open up markets at home and abroad to improve competitiveness; the third phase to complete the Xugong Machinery listed overseas, becoming a public multinational company, to achieve capital socialization.
Capital Reform is a Rational Choice for the Existence and Development of Xugong Machinery
Internationalized construction machinery market