Global network boosts profile and expertise
The year 2009 marked an important milestone for Weichai Power, a leading internal combustion engine manufacturer in Weifang, Shandong province.
In 2009, five years after its public listing in Hong Kong, the company completed its first overseas acquisition — the French diesel engine maker Baudouin.
With large-bore engine products and technologies from Baudouin, Weichai Power managed to make headway in the European and Middle Eastern markets.
After that, Weichai Power quickened its pace of “going global”. In 2012, it acquired 70 percent of Linde Hydraulics, a modular drive systems provider from Germany, and in 2018, it bought a 19.9 percent stake in Ballard Power Systems to become the largest shareholder of the Canadian fuel cell company.
Through international acquisitions, the enterprise has entered overseas high-end manufacturing markets, its technologies in many key fields have been enhanced and its business portfolio has diversified, said a staff member of Weichai Power.
Today, Weichai Holding Group, the parent company of Weichai Power, has established a network of 11 foreign companies, including Baudouin, Ballard, Ferretti from Italy and Aradex from Germany.
Its main business ranges from powertrain systems, commercial vehicles and agricultural equipment to intelligent logistics and marine transportation equipment.
Tan Xuguang, chairman of Weichai Power, said that during the past 20 years, the company has created its own mechanism for international resource integration and built a strong industry chain linked to the global market.
Adhering to the management philosophy of “strategic unity, coordinated development, resource sharing and independent operation”, its collaboration with overseas subsidiaries has reaped remarkable achievements, he said.
The German forklift manufacturer Kion Group, for example, has seen its annual revenue double.
In addition, the Italian luxury yacht maker Ferretti went public on the Milan stock exchange in June 2022, after its initial public offering in Hong Kong.
Data from Weichai Power showed that it generated revenue of 214 billion yuan ($29.61 billion) in 2023, up 33 times from 2004.
In terms of powertrain systems, engine sales reached 736,000 units, including 66,000 for export, representing a year-on-year increase of 21 percent.
The company has received recognition in the global market for its comprehensive strength, investment value and brand influence, Tan said.