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Yuchai: moves from "outstanding power" to "green power"

Yuchai Machinery, outstanding power was a popular brand advertised in the world for some time. Yuchai used more than half century to develop from a small size state owned factory that could only produce 1,000 diesel engines with an annual sales income of only 15 million Yuan to the largest independent manufacture base of diesel engines in the world, with an annual output of over 600 thousand and sales income of 18 billion Yuan. Like a high speed engine, Yuchai takes the leader of the Chinese internal-combustion engine industry and moves the industry direction from outstanding power to green power. The achievement represents the spirit of self-innovation core concept and the hard work.

The first Euro- IV heavy-duty diesel engine in China was independently developed by Yuchai. It has the advantages of good power performance, low emission, fuel efficiency and low noise. In the summer of this year, Yuchai defeated a large number of competitors to win the bid of 2000 Euro IV heavy-duty engines to the Beijing Olympics and  became one of the power providers for the transport of Olympic athletes.

Shen Jie, the Chief engineer of Guangxi Yuchai Machinery Co., Ltd., said: Yuchais access to the platform to compete with the overseas brands signaled that the technology of Yuchai engine has entered the top rank of the world.

Entering the 1st engine plant where the first 6105 medium diesel engine was off the producing line, we saw comprehensive and advanced equipments.

Senior technician of the plant Peng Jiayong said: the R&D team successfully developed the 6105  model diesel engine by their hard work. Everyone was pride of the success. In the past, all domestic vehicles assembled with the foreign engines. The successful R&D of 6105 model diesel engine added the Chinese hearts to the home made autos.

The engine is not only the motor of a car, but also the heart for Yuchai to survive and develop. In the early date of the foundation of the Guangxi Zhuang Autonomous Region, only producing the single agricultural tractor diesel engine, Yuchai was hard to develop and had to watch helplessly the Chinese market be occupied by foreign internal-combustion engine makers handily.

In the 1980s, after China opened to the market economy, Yuchai awared that: production not suitable for the market is destined to fail; only the self innovation of the new model of engines aiming at the market could enable the enterprise to have a robust heart and continue developing.

Between 19921994, within the short 2 years, grabbed the opportunity of the new round of reform, by the sub-contracting management and joint venture stock reform, Yuchai independently developed 6105 model diesel engine and occupied  half of the domestic market. The product broke the monopoly of foreign diesel engine. Yuchai became the second largest manufacturer in the world and  the largest base of diesel engine in China .

Power, fuel efficiency and long duration are the 3 major factors to measure the performance of an engine. They are also the unstop pursuits of the engine industry. If the R&D innovation slows down, the enterprise will be surpassed by rivals immediately. After the lasting 10 years high speed development since 1985, due to the slow development of new products and slow marketing, Yuchai plunged into the bottom again.

As a matter of fact, as early as 1993, at the peak time of the sales of 6105 diesel engines, Yuchai had developed  the R&D of the more powerful 6108. But the R&D and marketing were slower than the competitors, so the opportunity was seized by the counterparts.

After briefing what happened Yuchai set up the principle of applicable and leading for the development of new products and strengthened the technical innovation. Since then one by one, the light-, medium- and heavy- duty diesel engines were introduced to market. Yuchai regained the market share. The constant self-innovation upgraded Yuchai and also rejuvenated the company by installing a new young heart into the aged enterprise. From 2000, Yuchai has achieved the high speed growth. Its annual output of diesel engines in 2007 was 7 times of the 2001.Its annual sales income increased from several billion in 2001 to 18.3 billion in 2007.

In 2007, based on the green development and win-win in harmony strategy, Yuchai launched a reform campaign--from outstanding power to green power--from the R&D to all sections in production. Yuchai successfully developed some products with full independent intellectual property rights, such as the first home made micro-size sedan diesel engine YC4W, first home made Euro- IV diesel engine and natural gas engine.

The emission indicator of the Euro-V electronic control diesel engine YC 6L -50 is only half of Euro-V emission standards. It catches up with the world level of engine R&D for the first time. And it is 5 years ahead of the implementation of national emission standard.

Today, a group of 26 Euro-III models of 6 series passed the international CE certification. Yuchai obtained the permits to EU market. It is the first one in the industry in China . In 2007, its export of engines exceeded 29 thousand, with a yearly  growth of more than 263%. The products were in high demand over 50 countries or regions in the Southeast Asia, the Middle East, and Eastern Europe .

The chairman of the Board of Yuchai Group Yan Ping pointed out: Yuchai will continue the cooperation with counterparts from home and international; further strength the competitiveness of core products through innovations in science and technology; and expand the industrial chain around the core business; so as to build Yuchai to be a large international corporation.

With the strong force of self-innovation, Yuchai not only realized the rapid growth, but also contributed a lot to the economy of Yulin. Recent years, Yulin Party committee and municipal government implements the strategy to grow Yulin by strengthening Yuchai to take the advantage of Yuchai. The local government introduced the supporting businesses; extended the industrial chain of Yuchai; and grew the industrial cluster of Yuchai to create Yulin into the green power base of China and the largest independent diesel engine production base in the world. Currently, the machine industrial cluster headed by Yuchai begins to work.

Source: Guangxi Daily
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