Layout Heavy Machinery Yuchai Group Initiated Challenges

Recently, Yuchai held a heavy machinery supplier conference at the headquarters of the Group, which mainly discussed the strategic cooperation between both parties and the simultaneous improvement of product quality and service quality. This indicates that Yuchai has launched a tough battle to fully develop and consolidate Yuchai’s heavy machine market.

At this special meeting of heavy machinery parts suppliers, 37 domestic parts and components companies participated. Representatives of the participating component suppliers provided positive feedback for Yuchai’s ambition to develop quality products for heavy machines and develop the market for heavy machines. Representatives of Honeywell in Shanghai, who has been collaborating with Yuchai for more than 10 years, said that they will fully support the development plan of Yuchai’s heavy machinery market. In response to this, a new production line will be put into use in the fourth quarter of 2010; Hainan Yuchai The company plans to invest 20 million yuan to carry out expansion and technological transformation of engine gear production; Guilin Fuda Crankshaft Co., Ltd., which recently signed a strategic cooperation agreement with Yuchai, has invested 150 million yuan in capacity and technological transformation.

Li Tiansheng, general manager of Yuchai Joint Stock Co., Ltd., conveyed the confidence and determination of Yuchai to open up and consolidate the heavy machine market to the participating parts suppliers. He said that Yuchai will further strengthen its strategic cooperation with various heavy machinery parts suppliers, increase the matching share of high-quality parts suppliers, and ensure the stable and controllable quality of heavy machinery. This meeting can be seen as a signal that Yuchai and various spare parts suppliers jointly launch forces and jointly launch offensives to the heavy machine market.

In fact, the time for Yuchai Heavy Machinery to launch into the market is not short, and it has been eight years since the launch of YC6M diesel engines in 2003. In the past eight years, Yuchai has been meticulously trying to fully exploit the heavy machine market. In the previous layout of heavy machinery products, Yuchai's YC6L diesel engine mainly targeted lightweight road heavy trucks, while the YC6M diesel engine focused on heavy-duty construction vehicles and semi-trailer tractors. The unveiling of the YC6K heavy-duty diesel engine launched at the end of 2009 has caught the attention of the industry. This 13L model adopts a new technology platform that is currently popular in Europe. Its maximum power reaches 520 horsepower, its emission reaches the national V emission standard, and it can be upgraded to Europe VI. It is the work of Yuchai to create a great sword for quality goods. . At present, the model has begun to be applied in semi-trailer tractors and cement mixers for Beijing buses and joint heavy trucks. With 8 years of development and precipitation, Yuchai's heavy machine product technology has matured and the product spectrum has been fully rolled out. In the current layout of Yuchai's heavy machinery products, the five series of 6A, 6L, 6M, 6K, and 6T powers cover 150-600Ps, providing high-quality and strong power guarantees for products such as medium- and heavy-duty trucks, engineering vehicles, mining vehicles, and ship machines.

In addition to making efforts in product performance, Yuchai's energy-saving and emission-reduction performance is also remarkable. On May 26, Yuchai's YC6L-50 V diesel engine was awarded the "China Road Transport Cup" Best Parts Award by the Ministry of Transport. It is the only company in the industry to receive this honor. As a leader in diesel environmental protection technology, Yuchai's SCR (post-processing) + electronically controlled high-pressure common-rail technology is mature and reliable. On June 12th, Yuchai launched a project to investigate the applicability of SCR technology to high-sulphur diesel. Successfully passed the acceptance by the expert group, and made sufficient technical reserves for the full range of heavy-duty diesel engines in the State Phase IV in the future.

Yuchai’s own efforts to upgrade heavy-lift product technology and production capacity have also been carried out. Recently, Yuchai will commission AVL and other research institutions to re-evaluate YC6M and other models to build a "golden model" for the heavy machine market. In the second half of 2010, Yuchai’s headquarters will add three new flexible processing lines. At that time, Yuchai will build an annual production capacity of 230,000 heavy machinery, including the joint power company in Wuhu, Anhui.

In addition, in order to protect the quality of market services, Yuchai continued its service brand. In 2010, based on the existing service network, Yuchai completed the construction of a service network in all provinces in the Mainland, becoming the most widely used diesel engine manufacturer in China. In June, Yuchai invested more than 50 million yuan in spare parts for heavy machinery, and at the same time carried out the “heavy machine service month” aimed at further improving Yuchai’s service quality. From Yuchai's general manager team to the technical backbone team, they went to 19 provinces and cities across the country to go deeper into the market to understand the use of products, to grasp the market information, to promote the rapid increase of services, and to drive the sales of Yuchai's heavy machinery. In the journey of the heavy machine market, Yuchai strives to create quality products, create brands, and provide the public with environmental protection, energy saving, powerful power, and cost-effective power products, leading the development trend of the industry.

With Yuchai’s efforts to build quality heavy machinery, the market reputation of Yuchai’s heavy machine products has been further enhanced. In the first half of 2010, the production and sales of Yuchai Heavy Machinery achieved substantial growth, among which heavy-duty diesel engines such as YC6M, YC6A, and YC6L achieved growth of 109%, 127%, and 192% over the same period.

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