On September 3, the 6th presidential meeting of the 3rd China Machinery Industry Federation (CMIF) was held in Weifang, Shandong Province. The meeting deployed industrial transformation and upgrading at present, as well as CMIFs work for the next period. Yan Ping, chairman of Yuchai Group, attended the meeting as the vice president of CMIF.

Yan Ping speaks at the meeting

At the meeting, Wang Ruixiang, vice chairman of the Proposal Handling Committee of the CPPCC and president of CMIF, delivered a speech. He learned the spirit of the important speech by President Hu Jintao on July 23, noting the important discourses in the speech, including three dependences, are of great importance in guiding the machinery industry in coping with present challenges. In the first half of this year, the growth of the overall output, sales and fixed assets investment of the machinery industry retreated continuously, financial costs soared, and problems including product price fall and order insufficiency have severely impeded industrial development, he said, adding the industrial slump will probably continue in the coming two years, thus industrial enterprises should lose no time in transformation and upgrading, and should develop high-end products and consolidate foundations. He reviewed CMIFs work in the first half of this year, and full acknowledged the efforts of industrial enterprises in transformation and upgrading. Also, he exchanged ideas with other attendees on public service platform construction, member opinions and appeals and the change in CMIFs term of office.

The continuous slump of Chinas construction machinery industry has provoked an in-depth discussion among attendees. According to sources, in the first half of this year, the machinery industry value added was down 7.2 percent year on year, 1.5 percent than the countrys industrial growth in the same period. According to previous development experience, industrial growth dropped sharply in the first half, the situation remains severe, and whether the industry can realize moderate growth is a severe problem to be faced by industrial enterprises, said Cai Weici, executive vice president of CMIF. He went into issues including why the industry is passive in the face of the severe market situation and how to turn crises into opportunities.

As the pacesetter of Chinas machinery industry, Yuchai has made great efforts in product R & D and corporate management this year in order to turn crises into opportunities. In a speech, Yan introduced the development of the internal combustion engine industry and the construction machinery industry, as well as Yuchais experience in transformation and upgrading in the current situation. Since the beginning of this year, in order to push forward corporate strategic transformation, Yuchai has increased research input, developed specialized products including Chinas largest-tonnage electric hydraulic excavator, Chinas first engine specific to school bus engine, coach-specific engine and gas engine, thus pushing forward the specialized and high-end development of the industry. Meanwhile, Yuchai has practiced lean manufacturing to raise manufacturing level, and developed by quality, thus accomplishing healthy development. Also, Yuchai has paid closer attention to top technological staff and common workers, to steadily enhance corporate cohesion and competitiveness.

Attendees identified themselves with Yuchais experience, and agreed that industrial enterprises should accelerate transformation and upgrading in the current situation, and large-sized enterprises should lose no time in developing new products, fostering new market growth points and marching towards high-end equipment.

(Song Yonggeng)