On October 18, a delegation led by Mayor Han Yuanli and Deputy Mayor Xuan Jiajun headed to Yuchai Machinery Co., Ltd. (YM) and Yuchai Heavy Industry Company Limited (YHI) to survey issues including the enterprises production and business operations in the extremely complex economic situation, the production plan for the next quarter and the anticipation of annual target fulfillment, thereby finding out their concrete difficulties and solve problems for them in coordination with the municipal government, the Luchuan County Government and relevant departments under the municipal government.

Wu Qiwei, general manager of YM and Zhang Shiyoing, general manager of YHI briefed the delegation on the overall production and operation conditions of YM and YHI in the first eight months of this year, the analysis of the industrial situation, as well as the progress of the solving of the seven categories of 24 problems that Yuchai needs relevant government departments to coordinate to solve when Han personally visited Yuchai last time.

Wu Qiwei (1st L) shows Han (2nd L) around YMs micro & light engine workshop

At the briefing, Wu introduced YMs current situation and business environment from the aspects of market sale, the market situation of the domestic industry and Q4 plan. Affected by the overall industrial slump, YMs total engine sales have dropped slightly year on year, but its sectors of bus, passenger vehicle and marine engine have maintained growth, Yuchais overall market share has picked up by 1.3 percent, he said, adding new highlights have emerged endlessly in the market and gas engine sales have grown by 10 percent year on year; hybrid engines are primarily used on buses and Yuchai boasts the highest technology in this aspect; the school bus market has been warming, in which Yuchai holds a share of 65 percent.

Zhang Shiyong (1st L) shows Han around YHIs assembly workshop

Zhang briefed Yulins municipal leaders on YHIs major business indicators in the first three quarters, the analysis of the situation of the construction machinery industry and corporate management. The recession of the construction machinery industry this year has been unprecedented over the three decades since the beginning of the reform and opening up, amid which YHI has weathered an acid test, he said. Encouragingly, as agents of many large construction machinery manufacturers have closed down, YHIs 31 agents have stuck together with YHI to pull through. Besides, YHI has made some progress in informatization construction, ranking first in the industry in the level of informatization management of agents. According to market demands, YHIs sales of mining trucks and non-excavating products are expected to boom the next year.

After hearing the report, Han delivered an important speech. He noted, according to the two reports, good and bad news mix at present. Despite more bad news, we have seen some highlights. Next, we should tap potential and enlarge the highlights. The government and relevant government departments should serve enterprises by building platforms and creating environment for corporate development. In the complex economic context, Yuchai should read the market and build confidence.

Regarding Yuchai, Han raised three requirements. Firstly, Yuchais leaders should face up to the current situation of industrial development, and realize it is amazing that Yuchai has forged ahead against all odds, YMs market share has risen and YHIs distributor and sales networks have been sound amid the overall economic slump. The two enterprises should take effective measures to pull through under the leadership of the group. Secondly, we should see our own highlights, explore potential and open up new markets. As a leading enterprise, Yuchai should keep pace with world top enterprises in such aspects as scale management and refined management. In the negative economic situation, the Yuchai should seize the opportunity and intensify internal building to push forward transformation and upgrading. Lastly, Yuchais executive level should build confidence, overcome difficulties and make a final dash in the fourth quarter.

At the briefing, heads of government departments, including the Luchuan County Government, the Management Committee of Yuchai Industry Park and the Yulin Commission of Industry and Information Technology, exchanged ideas on the questions raised by Yuchai. Han gave instructions in problems yet to be solved including the land requisition of the foundry center and villager relocation and land requisition for the gas project (Phase 2), as well as new problems including the drainage of Yugong Road in the foundry center project, requiring relevant departments to address these problems as soon as possible.

(Text by Yang Mingze)