Manufacturers use innovation as catalyst
Local government supports traditional companies in their resolve to upgrade and find new drivers for growth in the new economy
Traditional manufacturing businesses in the Weifang Hitech Industrial Development Zone are speeding up innovation to support efforts to replace old economic growth drivers with new ones.
One of the companies in the zone benefiting from this support is leading heavy truck engines and components manufacturer Weichai Group.
The company announced that its annual sales revenue for 2017 reached 200 billion yuan ($31.8 billion) last December, with total net profits exceeding 10 billion yuan, according to Tan Xuguang, chairman of the board of directors of the group.
Weichai has made such gains thanks to its development into an international and market-oriented business with a diversified product and service portfolio that covers six sectors — powertrain development, smart logistics, vehicle production, engineering mechanics, luxury yacht developments and financial services.
Founded in 1946, Weichai has a long history and has achieved significant results in powertrain development.
“Weichai is the only company in the world that has developed a complete powertrain system that includes engines, transmissions and
We have launched five innovation projects ... to stimulate companies’ innovative thinking and enhance innovation capacity.” Wang Zhende, deputy director of the industry and information office at the economic development bureau in the high-tech zone
axles. It is our core competitiveness,” said Li Shaohua, vice-president of Weichai Power.
Shandong Supermaly Generating Equipment Co, a traditional power-generating equipment manufacturer in the high-tech zone, has also experienced significant growth in 2017, after the company carried out an innovation-driven development strategy.
About 80 percent of its power generators were exported last year, accounting for up to 40 percent of Russia’s total market share.
“We design products based on real demands in local markets,” said Chen Guangliang, deputy general manager of Supermaly. “We offered Russian clients some relatively simply structured but highly stable and reliable products that can work properly in low temperatures and high altitudes, which helps increase our market share.”
Hoaco Automation Technology, a leading emerging business focusing on precision equipment manufacturing in the zone, has promoted innovation since its establishment. The company is at the stage of rapid expansion in line with the boom of China’s electronics industry.
Tian Rouxin, assistant to the general manager at Hoaco, said that the company has strengthened its research and development capacity over the past few years. It has developed the world’s first 20-station circular knife die-cutting machines which are used in manufacturing.
“We reported 130 million yuan industrial output value in the first half of 2017, up 70 percent year-on-year,” Tian said. “We are confident about developments in 2018.”
Aiming to support companies’ innovation, Weifang Hitech Industrial Development Zone has released a series of measures to support business innovation. Added to that, the government is building up a new industrial system to speed up regional economic growth.
“We have launched five innovation projects, including research and development center upgrading and high-end equipment certification, to stimulate companies’ innovative thinking and enhance innovation capacity,” said Wang Zhende, deputy director of the Industry and Information Office at the Economic Development Bureau in the zone.
The administration of the zone is aware that innovation should not just be promoted among a small group of companies. There should be an overall atmosphere of innovation to prompt companies’ transformation. The zone has provided financial support and policy support to create that atmosphere.
Supported by the zone, most enterprises in the region have established their own R&D centers. As a result, many new products and technologies have been introduced to the market. Zhuang Jian contributed to this story.