Mountain Rebuilder: Soft Power Shapes Excavator Hard Brand

The Chinese excavator market is a market once monopolized by foreign brands, but now, the pattern is being rewritten strongly.

Xia Jiwu, general manager of Shanshan Reconstruction Machine Co., Ltd. (hereinafter referred to as the Mountain Rebuilding Machine) recently told reporters: “With the mountain reconstruction machine coming from behind, the history of all local brand excavators did not reach the end of a multinational giant.”

The Chinese excavator market is the global arena for construction machinery. Almost all of the world's leading excavator brands have entered China and have been monopolizing the Chinese market for many years. However, local brands began to rise and reached a market share of 38.53% in the first eight months of this year.

The mountain reconstruction machine is undoubtedly the "dark horse" in the industry. This company, which was founded only in March last year, saw sales of excavators increase five-fold before the merger and profit growth of ten times. People cannot help but ask: How was this "dark horse" made?

The company was founded 10 years ago and profited 10 times. In June 2009, Shandong Heavy Industry Group was established. Nine months later, its wholly-owned subsidiary Shanshan Reconstruction Machine Co., Ltd. was established after the integration of Shantui Co., Ltd. and Shandong Zhongyou Construction Machinery Co., Ltd.'s excavator business, and it also shouldered the heavy responsibility of building Shandong Heavy Industry Construction Machinery.

However, Shantui Group is one of the top 50 construction machinery manufacturers in the world, ranking top in the bulldozer market, but it does not have an excavator business. Shandong Zhongyou Construction Machinery Co., Ltd. has a history of producing and selling excavators for many years. Until 2009, sales of 600 units were almost negligible in the excavator market. On the other hand, in China's excavator market, although the sales volume of all local brands does not match that of Komatsu, the construction machinery enterprises such as Sany Heavy Industry, Yuchai, Liugong, etc. have had strong technology, talent, and products after years of development. And channel advantages.

Under such an industry background, on May 10 and 11, last year, the reconstruction machines Linyi and Jining excavation bases were laid one after another. According to the plan, the annual production capacity of these two bases is 10,000 units. On December 8th of that year, the first excavator at Linyi Base went offline. “One year the two bases started construction at the same time, and completed plant construction, production line installation, commissioning, and production in 7 months. This speed created a miracle in the industry.” Xia Xiaowu said.

This year, the Mountain Rebuilder produced 4011 excavators and sold 3,106 units. Sales volume increased fivefold and profits increased 10 times. At the same time, the agents are located in all major provinces and cities except Tibet, reaching more than 50 outlets with sales channels of 20,000 units.

However, due to the impact of national macro-control, the overall growth of the excavator market has slowed down this year, and some Japanese and Korean brands have even experienced a decline in sales. However, the major economic indicators for the first half of the year have achieved a growth rate of 110%.

Excavator upstart flashed into the frontline camp not only that, but the construction of two bases in Linyi and Jining with a capacity of 20,000 units last year broke the traditional development of the excavator industry.

What's more, the mountain reconstruction machine set off a wave of local foreign brands impacting foreign excavators.

Excavators can be used in place of loaders, bulldozers, etc. for construction work on a variety of occasions. Since the 1990s, the global annual output of excavators is much higher than that of loaders and bulldozers. However, in the Chinese market, excavators of foreign brands have always occupied an absolute monopoly position, and the market share of foreign brands once reached 95%.

However, the rapid rise of emerging enterprise mountain reconstruction machines, coupled with the rapid growth of local brands such as XCMG and SANY, has increased the market share of local brands. In the first 8 months of this year, local brands reached a share of 38.53%, surpassing the strongest foreign brand Komatsu for the first time.

In Xia Yiwu's view, the advantages of local brands gradually emerged: the competitiveness is very strong both in the small-tonnage area of ​​several tons and in the large-scale area of ​​several tens of tons. Local brands are also more suited to the Chinese market than international brands in terms of sales, and are doing even better in terms of maintenance and after-sales services.

Hardcore culture integration In a short period of one year, how did the Mountain Rebuilder gather talents, resources, products, and technologies and successfully became one of the domestic brands of excavators?

The answer is corporate culture. According to reports, there are 1,700 employees in the two production bases of Linyi and Jining, including 1,100 new employees, accounting for 65% of the total. “A lot of people were hired in the second half of last year and they have been employed for less than a year, including 90% of the management through recruitment.” Said Chen Songdong, deputy secretary of the party committee of the Mountain Rebuilding Machine.

As we all know, the most difficult part of corporate restructuring is cultural integration. In particular, companies like the Mountain Rebuilder, which have a majority of newcomers, do not do well. This is not only a mess, but it also seriously hinders the development of the company.

“Only the management team has a cultural background with different backgrounds.” According to Chen Songdong, most of the management are newcomers, and they are elites in the industry. They have strong self-awareness. How to integrate the outstanding corporate culture of the industry into one? Rebuild the test of the machine.

However, Shandong Heavy Industry’s “Inclusiveness, Communication, Responsibility” culture has created a good humanistic environment and brought them together. It is by relying on this elite team that the mountain reconstruction machine "rises overnight". Its ability to reproduce culture can not but surprise people.

Closely related to cultural reconstruction is the institution building. On the desks of the senior managers of the mountain reconstruction machines, there is a "hardworking" signboard. According to reports, this is also one of the important contents of the mountain reconstruction machine corporate culture.

Before the fine corporate culture content, Chen Songdong, who worked for Weichai for more than 20 years, frankly stated that no mature company can learn from its mature experience. Now, some corporate cultures of the Mountain Reconstructing Machine are also similar to those of Weichai. In order to establish a corporate culture that focuses on "post-80s" and "post-90s," the company also holds flag-raising ceremonies for all personnel on the 1st of each month to organize football, basketball and badminton matches, build gymnasiums, and hold national day essay contests to encourage Staff made reasonable suggestions and so on.

“The wise men create opportunities, the strong ones grasp opportunities, and the weak wait for opportunities.” Xia Yiwu, who had worked in the domestic and foreign construction machinery industry for many years and joined the mountain reconstruction machine last year, believes that the mountain reconstruction machine is not content with what has already been achieved. Its goal is to In 3 years, it will be the top three in China's industry brand and the top three in the world in 10 years. On the stage of the excavator, an international giant, to become one of the top three countries in the country and the top three in the world, it is impossible to walk step-by-step, and it must develop at a high starting point and by leaps and bounds. The reconstruction of mountains must start from the strong.