2013 is an important year of China's economic transformation and upgrading.

In the first half of 2013, Yuchai Group, China's largest internal combustion engine manufacturing base, entered the year of strategic adjustment, too: by measures such as innovating the mode of subsidiary management and control, intensifying product technology upgrading, developing external markets and fostering new profit growth points, Yuchai endeavored to steadily expand its business scale and market share, kept accumulating strength for fulfilling the corporate dream and boosted the fulfillment of China dream by outstanding green engines.

Structure optimization, healthy development

In the first half of 2013, Yuchai Group adjusted its industrial restructure with its operating revenues up 2.24 percent year on year, maintaining overall healthy development. Yuchai's key subsidiaries wrapped up major reforms and adjustments with their revenues growing steadily. Yuchai Petronas Lubricants Co., Ltd. completed joint-venture cooperation, with all its business indicators growing rapidly. Benefiting from the concept of "beautiful China", sanitary equipment orders of Yuchai Special Vehicle Co., Ltd. soared and were expected to outnumber those last year. Yuchai Logistics Co., Ltd. fulfilled 57.2 percent of its annual profit target.

Nanning base of Yuchai R & D Center

As the core subsidiary of Yuchai Group's engine sector, Yuchai Machinery Co., Ltd. (Yuchai Machinery) has been advancing lean manufacturing in an all-round and in-depth manner to increase operation benefit. In the first half of this year, its production and sales soared. It sold over 270,000 engines, with its share in the engine market up 1 percent year on year, maintaining its lead in the industry; it achieved sales revenues of over 10.5 billion yuan, up 13 percent year on year.

Rapid development has been attributable to internal management improvement. Lean manufacturing activities of Yuchai Machinery have gradually become industrial models. After Yuchai Machinery practiced lean manufacturing, in 2012 alone, its sample line quality was up over 28 percent, efficiency up over 27 percent and average equipment failure rate down 29 percent. In October 2012, Yuchai Group comprehensively launched lean manufacturing, selecting CSR Yuchai Sichuan Engine Co., Ltd., Yuchai Power Machinery Co., Ltd. and Yuchai Huayuan Machinery (Yulin) Co., Ltd. as the pilot entities for lean manufacturing. 19 projects were established for Phase 1 of lean manufacturing, of which 18 were up to standards during inspection, accounting for 94.7 percent of all implemented lean manufacturing projects. These projects are expected to generate financial revenues of 12.5969 million yuan.

Also, Yuchai has created a "full-process, dynamic and stereoscopic" business management mode and a "five-dimensional matrix indicator management system" to monitor subsidiaries' indicators of operation capacity, profitability, solvency, risk control and human resources management, laying a solid foundation for the healthy and sound development of Yuchai Group.

"Green intelligent manufacturing"

To develop healthily, an enterprise should first ensure its core competitiveness. Amid the market slump in 2013, Yuchai pushed forward corporate transformation through technical upgrading, focused on building the only "national engineering laboratory" in the engine industry, maintained its technical lead and pushed core technologies of engine R & D towards world level.

Yuchai Foundry Center, Asia's largest foundry workshop

Green is a trend of technological development. In the first half of 2013. Yuchai focused on "green intelligent building" to promote green product upgrading. Yuchai's new product trial-manufacturing workshop is the "holy land" for Yuchai's "green intelligent manufacturing". There advanced technologies such as 3D printing, gravity casting, alloy casting and non-metallic material testing were applied first and gradually spread to the front line, thus boosting overall manufacturing level.

"Green intelligent manufacturing" has boosted Yuchai's technical level. Plug-in hybrid power has always been considered as a top hybrid technology. This year, Yuchai's plug-in hybrid power has officially gone into operation with the completion of technical reserves. As China's only homemade hybrid engine manufacturer, Yuchai has begun to extend from the traditional diesel engine industry to a wider range of core technical fields such as AMT and battery.

In 2013, besides powertrain, Yuchai developed "Yineng" remote intelligent vehicle control system which can remotely monitor engine operation, making Yuchai leap forward into the era of "IOT".

One step ahead, steps ahead. After years of efforts, Yuchai has formed its unique three core technical platform: combustion control system, electronic calibration and powertrain matching.

Besides core engine technologies, Yuchai has taken new steps in fields such as special vehicle, excavator, lubricant production and core parts manufacturing.

At the Clean Rural Sanitary Equipment Exhibition of Guangxi Zhuang Autonomous Region on June 19, 2013, Yuchai's sanitary equipment such as mini hook vehicle and container garbage collector enjoyed great popularity. This is a comprehensive technology and equipment upgrade of Yuchai Special Vehicle Co., Ltd. focusing on the activity themed "Beautiful Guangxi, Clean Country". The company has seized the market opportunity to improve its capacity for independent R & D and embarked upon a road of healthy development.

Also, Yuchai has intensified cooperation with foreign advanced enterprises, research institutes and institutions of higher education to introduce advanced technologies. Yuchai Petronas Lubricants Co., Ltd. was established in 2013 as Yuchai's another milestone in foreign cooperation. Through the cooperation, Yuchai's lubricant R & D technology will achieve a qualitative leap.

Intensifying ASEAN operations, opening for development

Since 2012, the Chinese engine market has restored smart growth. To expand its development space worldwide, Guangxi based on Guangxi has drawn strength from ASEAN and relied on its technical and geographical advantages to intensify its operations in ASEAN.

Yuchai has conducted vigorous operations in ASEAN over the past several decades. Since Yuchai brought its products to Vietnam in the 1960s, its various products have spread all over South Asia, with a market inventory of over 70,000 units in ASEAN.

Since 2000, Yuchai has established seven offices in countries like Vietnam, Myanmar, Indonesia, the Philippines and Malaysia, whose services cover all ASEAN countries. These offices are committed to advancing the development of the ASEAN market, outlet distribution and machinery parts management. Besides, Yuchai has 39 service agents in the ASEAN market.

Vietnam is the top priority of Yuchai's overseas operations. Over the years, Yuchai has signed 9 agents with a total of 20 parts outlets. In north and central Vietnam, parts can be delivered to customers within 8 hours; in south Vietnam, parts can reach customers in 20 hours. Now all vehicles running on bus lines in Hanoi and Ho Chi Minh and o operated by Chongzuo-Lang Son International Coach United Company are powered by Yuchai. Also, Yuchai marine engines have broken foreign brands' domination in the Vietnamese market. In Halong Bay, Yuchai engine was successfully installed on the largest local cruise liner.

On mountainous and steep Sulawesi Island, Indonesia, people generally take coaches carrying European and American engines, with high travel cost. In 2012, New Liman took the lead to introduce eight Chinese coaches powered by Yuchai YC6L330-30 engine, whose prices are less than half of European and American coaches. More surprisingly, these coaches are not inferior to 380hp European and American coaches in terms of power performance, which could breezily climb over every steep slope. The result of fuel consumption statistics showed a fuel consumption of 29L to 31L per 100 kilometers, far outperforming 36L to 37L of European and American engines! Yuchai-powered coaches have rapidly occupied the local market to provide outstanding services to local residents.

Since the establishment of overseas offices and a perfect service network system, especially driven by China-ASEAN Expo, Yuchai Group has gradually stepped up its development in ASEAN countries. From generating unit at first, to gasoline engine and diesel engine later, and to gas engine and marine engine now, Yuchai's products have extensively served ASEAN countries' relevant fields such as automobile, construction machinery, agricultural machinery and ship. Yuchai brand has become the prioritized power of more and more Southeast Asian customers.

Apart from large engines, Yuchai has kept expanding its product scope to meet needs of Southeast Asian countries. For instance, Yuchai has launched sugarcane combine and field transporter in north Vietnam, and extended these products from Vietnam to other markets, thus fostering new grow points and achieving "green development".

(Source: Song Yonggeng, Li Wei, Yang Mingze/Guangxi Daily)