Workers assemble hydraulic products at the Linde Hydraulics factory in Aschaffenburg, Germany. Weichai bought a 70-percent controlling stake in Linde in 2012, which has since grown to 90 percent. (Photo provided to China Daily)
M&As help Weichai to evolve from an engine-maker to conglomerate
Weichai Group, a State-owned enterprise or SOE based in Weifang, East China's Shandong province, has metamorphosed from an engine-maker until 2009 into a conglomerate now, with a global presence across powertrain systems, intelligent logistics, automotive, construction machinery and luxury yacht sectors.
Its desire to evolve into a leading innovation-driven company is taking it into the clean energy sector next.
Its strategy toward that goal is to integrate global resources via mergers and acquisitions, and establish innovation centers at home as well as abroad, said Tan Xuguang, Weichai's chairman.
Last year's sales revenue was 236.05 billion yuan ($35.14 billion), up 7 percent. Forty percent of it was generated overseas as Weichai's products are sold in more than 110 countries and regions.
Tan said sales revenue is expected to reach $100 billion by 2025 after merging with China National Heavy Duty Truck Group, also known as Sinotruk, an SOE headquartered in Jinan, capital of Shandong province. Incidentally, Tan, 58, was appointed chairman of Sinotruck in September 2018.
"Standing on the shoulders of giants, we integrate the world's leading innovation resources into ours to build Weichai into a world-class company," said Tan at the plenary session of the Shandong delegation during the annual session of the 13th National People's Congress in Beijing on March 6.
"Our efforts at integrating global resources focus on optimizing Weichai's business structure, instead of just expanding our business scale overseas," he said.
Weichai is tapping into the marine market through strategic restructuring of the Italian Ferretti Group, the world's largest luxury yacht manufacturer, Tan said on March 20 in Rome.
Tan was awarded the Leonardo International Award in recognition of his outstanding contribution to economic exchanges between China and Italy the same day.
