Guangxi Yuchai Joins Haihong Group to Build Industry Cluster

Recently, a good news came from Guangxi Yuchai Group. The company formally entered the Zhejiang Haihong Group Corporation and successfully completed the registration of the equity change business. Chen Chunqiang, the chairman of Haihong Group appointed by Yuchai, has already fulfilled his duties.

At present, the severe cold economy has caused many companies not to dare to act rashly. Yuchai chose this opportunity to enter the hydraulics industry, which is its own development needs, and it is also a firm confidence in the healthy economic development of China in the future. "We must use strategic business vision to deal with the winter, but we must also think ahead about the future of the company," said Yu Ping, chairman of the board of directors of Yuchai Group.

In recent years, China's construction machinery has been booming. In a short span of 10 years, the production and sales volume of excavators has increased by 19 times, of which the development momentum of small excavators is even more rapid, but the hydraulic components of construction machinery rely on import restrictions. The development of the industry. Yuchai Group's engineering machinery segment is the largest production and export base for small construction machinery in the country and is also subject to the restrictions imposed by imported hydraulic components.

Haihong Group has outstanding reputation and industry position in the hydraulics industry. It is a high-tech enterprise in Zhejiang province and an outstanding enterprise in technological advancement in the province. It is widely recognized by the industry for its strong ability to digest technology and reinvention ability. Forklift trucks and loader series hydraulic products have a strong advantage and a large share in China, among which the forklift valve hydraulic series products have a market share of 70% in the domestic market, and the domestic market share of loader valve hydraulics series products has reached. 50%. Haihong products are in the forefront of the domestic hydraulic industry in terms of technological advancement and quality reliability. Comprehensive economic indicators have been at the forefront of the domestic hydraulic industry for 10 consecutive years.

In the Yuchai Group's six industrial sectors, the size of the construction machinery sector is second only to the core business engine segment. The sector is becoming stronger and bigger, which is of great significance to the development of the Yuchai Group. Holding the hydraulic parts enterprises, on the one hand, can solve the bottleneck problem of hydraulic parts, on the other hand, the localization of small digging accessories will help reduce procurement costs, improve product competitiveness, and make the Yuchai Engineering Machinery Industrial Cluster stronger and stronger. The foundation for the development goals of the construction machinery sector.

The holding of Haihong Group is another successful example of the operation of Yuchai Jiji as an investment and financing management company in recent years. In 2006, we successfully operated the cooperation between H&Q Asia Pacific and Engineering. In 2007, Yuchai Group successfully signed a 4 billion yuan strategic cooperation agreement with the China Development Bank, and it has secured a credit line of RMB1.7 billion for project loans. Under the influence of the global financial turmoil and the weakening of the domestic economic situation, Yuchai Group soberly realized that as the core business of the Group’s engine industry and construction machinery industry are becoming more and more fierce, the industry is based on “building a world-renowned brand,” Achieve the vision of a large multinational corporation group, and develop a strategy that focuses on developing the industrial chain by focusing on the main business, and focusing on the development of related industrial products such as engines, construction machinery, special vehicles, auto parts, automotive chemicals, and logistics. The Group adopts "strategic management and control." + The "combined financial management and control" combined management model will manage all subsidiaries, concentrate on strengthening and expanding the main industry clusters, and control and control fine enterprises with high correlation and core components. Haihong Group's holding is another major investment in Yuchai's investment and financing management. In the next two or three years, Yuchai Group will strengthen Haihong through technology, capital, management, and market support and become a global supplier of hydraulic products for construction machinery and a hydraulic production base with international competitiveness.