Tan Xuguang: Weichai Group must be at the forefront

On the afternoon of November 17th at 2 o'clock, Tan Xuguang, Secretary and Chairman of the Party Committee of Shandong Heavy Industry Group and Chairman of Weichai Group, presided over a video mobilization meeting for leaders of Weichai Group. More than 1600 people participated in the meeting, both online and offline, sounding the call for Weichai to take the lead in the high-quality development of Shandong's equipment manufacturing industry. On behalf of the group, the mobilization order of "Six Leading" was issued to 100000 employees worldwide!

The following is the full text of the speech:

Weichai Group, as a globally influential, leading enterprise in China's industry, and the largest equipment manufacturing group in Shandong, holds a mobilization conference for thousands of leaders today to sound Weichai's pioneering role in the high-quality development of Shandong's equipment manufacturing industry. Here, I would like to emphasize that being at the forefront is the theme of today's meeting. Below, on behalf of the group, I am issuing a mobilization order for 100000 employees worldwide to 'six at the forefront'.

One is that high-end power is at the forefront.

Over the past 20 years of development in Weichai, the power system has become a highly competitive business sector for the group and a top priority for future development. We need to maintain a leading position in core technology, intelligent manufacturing, and digital transformation for medium and high speed engines, and build the world's only innovative business model based on the "12th Five Year Plan" and "13th Five Year Plan". We will build the world's most competitive core advantage and support the implementation of the dual million unit power system strategy. In the "14th Five Year Plan", we will achieve double growth on the basis of existing sales.

High end heavy-duty commercial vehicle power. During the 14th Five Year Plan period, the engine's thermal efficiency should reach 55% and its lifespan should reach 2 million kilometers, creating the world's most competitive product. Focusing on the 2030 and 2060 dual carbon strategies, we will complete the technical layout of China's seventh emission standard within two years, and meet the fourth stage limit requirements for fuel consumption in China ahead of schedule.

High end engineering machinery power. Build a hydraulic power train for excavators weighing 20 tons or more, with a 15% lower fuel consumption and a 10% increase in efficiency compared to foreign competitors, achieving the "Double Ten" goal and a market share exceeding 30% during the "14th Five Year Plan" period; The power of large-scale mining equipment has achieved 20000 hours of no major repairs, fully replacing foreign imported brands with customer support, establishing an absolute competitive advantage of Weichai hydraulic power assembly in the world's only business model.

High end agricultural equipment power. The CVT powertrain with over 200 horsepower has been industrialized, surpassing international first-class competitors, and fully meeting the urgent needs of the domestic market. The CVT powertrain with over 500 horsepower will achieve a comprehensive breakthrough by the end of next year, completely breaking the foreign blockade and monopoly on China.

High end power equipment power. Seizing market opportunities and achieving breakthroughs in high-power power generation units, especially in large oil fields and data center markets, we are moving towards the world's highest performance indicators, breaking through 20000 hours of no major repairs, and comprehensively replacing imported products.

High end marine equipment power. Build a globally leading ship propulsion system, build a marine equipment power system industry chain with core technologies and leading advantages, and increase the market share of marine power to over 65%, with high-end products accounting for over 40%. Build a national brand of marine equipment.

Secondly, new energy power is at the forefront.

The development of new energy vehicles is the only way for China to move from a major automotive country to a strong automotive power. Developing new energy represented by hydrogen energy is an important way to achieve the "dual carbon" goal. Weichai aims to lead the world in the field of new energy power systems, especially in the field of fuel cells.

The technical indicators of hydrogen fuel cells need to achieve global leadership and create the most satisfactory hydrogen fuel cell products for customers in the field of commercial vehicle applications. Relying on the only national fuel cell technology innovation center in the country, through the combination of independent innovation and open innovation, to achieve independent and controllable core technologies; To be the world's first to achieve commercial application of solid-state oxide fuel cells in the field of commercial vehicles, with a power generation efficiency exceeding 65%; The first to achieve large-scale commercial application of high-power hydrogen fuel cell heavy-duty trucks with a power output of over 300kW, with a product lifespan of 35000 hours and a power generation efficiency of over 60%.

The manufacturing volume of fuel cells needs to achieve the first in the world. Become a leading global provider of fuel cell system solutions for all series and fields. Relying on the only Shandong Province "Hydrogen into Ten Thousand Houses" technology demonstration project in China, we aim to achieve full field coverage of fuel cell system applications, meeting the extreme conditions of -40 ℃ low temperature, 55 ℃ high temperature, 3000 meter altitude plateau, and the use needs of harsh environments such as sand, dust, and salt mist. Facing future market development, we will build the world's largest production and manufacturing base for fuel cells and key components, as well as a after-sales service network covering the entire product lifecycle.

To become a global standard leader in the field of fuel cells. In the fields of fuel cell reliability, safety, and fault diagnosis, we will promote the continuous upgrading of national, local, and industry standards, and transform them into international standards, contributing Weichai's wisdom and Chinese strength to the global industrial development!

Thirdly, smart agriculture is at the forefront.

Weichai Group should fully leverage its global core resource advantages and technological innovation advantages, and lead the country in the field of smart agriculture.

To achieve autonomous driving technology throughout the entire process of cultivation, planting, management, and harvesting, we must be at the forefront. Fully leverage the core technological advantages of Weichai Group's hydraulic, electrical, and transmission powertrain to ensure the commercialization of L3 level CVT tractors and harvesters for unmanned driving by the end of 2022. During the 14th Five Year Plan period, more than 500 unmanned farms will be equipped and fully deployed in all scenarios.

To achieve full process coverage of precision agriculture technology and stay at the forefront. Fully leverage the advantages of high-precision navigation and remote sensing technology applications, develop precise application technologies for seeds, fertilizers, water, and pesticides, and reduce fertilizer and pesticide inputs by more than 10%; Develop intelligent precision harvesting technology to achieve a further 1% reduction in single machine loss rate and an average cost saving and efficiency increase of over 10% per mu.

To achieve the commercialization and implementation of smart agricultural management systems at the forefront. Build a smart agricultural management system with precise collaboration of "cloud brain" control and "agricultural machinery+crops+soil+environment", striving to achieve the promotion and application of over 20 million mu during the "14th Five Year Plan" period.

The smart agriculture sector is a new business growth pole since Weichai's strategic restructuring of Lovol Heavy Industry. We need to focus on the national rural revitalization strategy and the new model of agriculture in Shandong, play a good role in supporting the core technology of agricultural mechanization, plug in the wings of technology for agriculture, and let China's high-end agricultural machinery and equipment stand up globally!

Fourthly, scientific research and innovation achievements are at the forefront.

The number of scientific research and innovation achievements directly reflects the core competitiveness of an enterprise. We need to boldly invest and be willing to "burn money" to make innovative talents crazy about their dreams, and launch a large number of world-class innovation achievements. During the "14th Five Year Plan" period, we will invest a total of 40 billion yuan in research and development expenses, accounting for 6% of sales revenue.

To achieve key core technologies at the forefront. Taking the lead in breaking through the 55% thermal efficiency of diesel engines, reserving engines that meet the national emission standards, releasing the first heavy-duty commercial vehicle hydrogen internal combustion engine, conquering carbon cycle fuel engine technology, and promoting carbon peaking and carbon neutrality.

To achieve cutting-edge technology and basic research at the forefront. Collaborating with clients to develop new electronic/electrical architectures, domain controllers, and electronic control software platforms in the field of commercial vehicles, and leading the country in areas such as digital twins, big data algorithms, and tool chains. To achieve significant breakthroughs in the fields of basic materials, catalysts, solid-state battery processes, and overcome the "bottleneck" technology that restricts the development of the industry. We need to summarize and refine the experience of the 13th Five Year Plan, create new models and paths in the innovation of industry university research cooperation, and stay at the forefront of the country! To cooperate with the most advanced enterprises in the global industry with an open mind and achieve win-win results! Multilateral cooperation among enterprises is the only way to win future development!

To achieve technological innovation awards leading the way. In the next 5 years, there will be over 50 science and technology awards at the provincial and ministerial levels, including 5 at the national level, striving to win the National Science and Technology Progress Special Prize; At the end of the 14th Five Year Plan, a total of 5000 invention patents were authorized, and multiple Chinese invention patent gold awards were successfully applied for.

To achieve an innovative ecosystem at the forefront. We want Weichai to become the most coveted technology platform for global innovative talents! Becoming the highest earning career platform for innovative talents globally! Become a warm and happy platform for global innovative talents to settle down!

Fifth, leading the way in creating social value.

For decades, Weichai has been a responsible state-owned enterprise. We must actively demonstrate the "Weichai Effect" in the economic and social development of the province, and create a community with a shared future for stakeholders.

To play a leading role, integrate high-quality resources across the province, attract excellent domestic and foreign suppliers to settle in Shandong, drive the coordinated development of the upstream and downstream of the industrial chain, and create a trillion level industrial cluster in the province. To accelerate the transformation of new and old driving forces, a series of major projects such as digital industrial parks and fuel cell industrial parks should be completed and put into use as soon as possible, injecting new energy into development. To contribute sustained and stable taxation to provinces, cities, and regions, and repay society with performance. We need to vigorously recruit talents and attract more than 3000 outstanding graduates and high-end talents from society every year. We must actively implement the enterprise's dual carbon strategic plan and continue to lead the industry in technological upgrading and green development!

Sixth, high-quality and high-speed development is at the forefront.

Weichai has been pursuing high-quality development for over 20 years, and without this concept, today's achievements would not have been possible! We need to focus on our main business and strive to achieve breakthroughs in both business performance and development efficiency. We will ensure that our revenue reaches 100 billion US dollars by 2025 and 1 trillion RMB by 2030. Weichai, a Fortune 500 company that is not one of the world's top 500, never seeks to live up to its reputation! We must not only look up at the starry sky, but also be down-to-earth and use our strength to win global respect! To adhere to balanced development across all sectors, not only should powertrain and heavy-duty truck businesses maintain their global leading position, but other business sectors also strive to enter the industry's top position. Building the first trillion level equipment manufacturing group in the province is a mission entrusted to us by the times and a heavy responsibility entrusted to us by the people of the province. We must hold onto our goals and not relax, and we must be at the forefront!

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