Editor's Note: The revitalization of the equipment manufacturing industry, the promotion of independent innovation, and the promotion of industry from the big to the strong, are important elements for achieving economic restructuring and optimization and transforming the mode of economic development. It is also Shandong Province to implement the scientific concept of development and do a good job in current economic work. One of the key points. Recently, the Shandong Provincial Party Committee and Provincial Government issued the Opinions on Improving the Ability of Independent Innovation to Accelerate the Adjustment of Industrial Structure, and to accelerate the transformation from “Made in Shandong†to “Created in Shandong†and build an advanced manufacturing province with international influence. Made specific requirements. The development model and innovative experience of the Weichai Holding Group are of great significance for the adjustment of the industrial structure in Shandong Province. Years old and cold. In the newly-built casting workshop of Weichai, fiery iron splatters and a modern production line run at full capacity. After annual sales revenue exceeded RMB 40 billion, Weichai Holdings Group is moving toward a higher target of “100 billion yuan in sales revenue and entry into the world’s top 500â€. Equipment manufacturing industry has been regarded as the backbone of industry. As the largest auto parts group in China and Shandong's largest equipment manufacturing company, the rapid rise of Weichai is standing up to the backbone of “Made in Shandongâ€. The production of a high-power engine usually requires hundreds of parts. Based on maximizing its own core strengths and fully optimizing the allocation of social resources, Weichai’s approach is to “do something wrongâ€: master core technologies, produce key parts and components, and make the most advantageous plates stronger. , while others are handed over to supporting manufacturers, which in turn drives the clustering of the entire industry cluster. Casting is one of the key links in engine production, directly related to the quality of the engine, and it was once the “bottleneck†that restricts the rapid development of Weichai. In 2005, Weichai decided to invest more than 1 billion in building a new foundry. At that time, a large number of foreign used casting equipment was waiting in the wings to enter the Chinese market. It was suggested that Weichai purchase cheap second-hand goods and reduce investment costs. However, Weichai was unmoved and decided to build it in accordance with the "internationally advanced, domestic first-class" standard. The ultimate purchase is the world's most advanced production equipment. First-rate equipment, coupled with first-rate technology management, create first-class production efficiency. Ren Xingwu, director of Weichai Casting No. 2 Plant, told reporters that the new foundry has been officially put into production for two months, the labor productivity per capita has increased threefold, and the reject rate has been controlled below 2%, which is 8 percentage points lower than that of similar companies. Only this one will create more than 40 million yuan worth of economic benefits in a year. For the matching parts and components of engines such as oil pumps, pistons, bolts, belts, etc., Weichai has taken the form of social procurement, which is produced by the supporting enterprises according to the orders. Longkou Long Pump Fuel Injection Co., Ltd. was originally a farm machinery repairing plant with an annual production value of only a few million yuan. Since the long-term supplier relationship was established with Weichai, Weichai's output technology and management have allowed it to continuously expand its annual sales. Revenue exceeded 1 billion yuan. Wendeng Tianrun crankshaft also used the opportunity to pick up firewood and grew into the largest and most powerful leading enterprise in the industry in China. It is precisely because of the superiority and strength of core business that Weichai has secured a leading competitive advantage in the market. By the end of last year, the market share of Weichai engines in the field of heavy-duty vehicles with a total mass of over 14 tons had reached 36%, an increase of 9 percentage points year-on-year; the market share of loaders with more than 5 tons had reached 82%, and the transmission business sector With a market share of over 92% in heavy-duty vehicles, it has become a well-deserved industry leader. At the same time, due to the optimization of supply chain management and business development model, Weichai's production scale has expanded rapidly. In the past five years, the company's sales revenue has doubled and increased. By the end of 2007, it had realized an annual sales income of 40 billion yuan, becoming China's largest auto parts group. According to statistics, Weichai has driven more than 300 suppliers with its own power. There are more than 170 companies in Shandong alone, and there are many “little giants†with output value of hundreds of millions or even billions. At the same time, a large industrial cluster has formed around Weichai's engine manufacturing. With the vigorous power provided by the "engine," Weichai has not only satisfies the role of intermediate product manufacturers, but has begun to leap onto the platform of the capital market, and has fully integrated the upstream and downstream resources of the industrial chain to create a larger industrial cluster. The development of Huichai’s history is always closely linked to a wonderful capital story. Around 2000, Weichai divested its non-mainstream business through corporate restructuring and established clear capital bonds with certain supporting companies. In March 2004, Weichai became the first internal-combustion engine company listed on the Main Board of Hong Kong to be listed in Hong Kong. In the international capital market emerged; in August 2005, Weichai spent a billion to successfully acquire the Hunan Torch and become its largest shareholder. This case is also the largest domestic public bidding for capital mergers and acquisitions; August 2006, Weichai The strategic restructuring “ST Juli†became its controlling shareholder and injected high-quality assets such as medium-speed machine factories and complete sets of plants, striving to build China’s largest marine power manufacturer. "In the context of a market economy, entrepreneurs must understand how to use capital to operate, integrate internal and external resources, and make the company bigger and stronger quickly," said Tan Xuguang, chairman of Weichai Power. Through the capital market to promote mergers and acquisitions of enterprises, the resources will be re-optimized, guide and support the production factors to high-tech enterprises, so as to promote the optimization and upgrading of industrial structure. Following this idea, Weichai has successfully built China's largest heavy-duty truck industry chain in a short period of time. If the engine is compared to the "heart" of the car, then the "powertrain" consisting of the axle and gearbox is the "spine," and only a strong "heart" and a developed "spine" are heavy. The car can only speed up. After the merger of the Hunan Torch Torch was completed, Weichai Holding Group had products including engines, gearboxes, spark plugs, axles, and vehicles. It began to build the most complete and strongest heavy-duty automobile industry chain in the country. In recent years, the world’s top 500 have been optimistic about China’s equipment manufacturing market and further accelerated its pace in the domestic staking area. It is in this sense that Tan Xuguang said that the ultimate goal of Weichai’s capital integration is not simply to increase the size of the company, but to strengthen the company, further enhance industrial status and industry competitiveness, and fully participate in international market competition. Enhance the competitiveness of Shandong equipment manufacturing industry in the country and even in the world market.