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NPC deputy Yan Ping: Yuchai's second startup promotes corporate transformation& upgrading

On the afternoon of March 9, in an exclusive interview from in Beijing, Yan Ping, an NPC deputy, chairman and Party secretary of Guangxi Yuchai Machinery Group Co., Ltd. (Yuchai Group), said that the strategy of second startup focusing on corporate transformation and upgrading mapped out by Yuchai Group in early 2014 is actually the requirement of the enterprise after advancing to a certain level, as well as the requirement for following the trend of national development and adapting to the new economic normal after the national economy developing to a certain degree.

He said, some new problems have emerged for Yuchai Group's systems, products and core competitiveness reserves during its rapid development in recent years. Obviously the enterprise's product orders have encountered a new challenge in the new normal. The challenge is twofold: one the one hand, the enterprise has not seen a massive increase in orders stimulated by the four-trillion-yuan package in the past; on the other hand, China's energy conservation, emission reduction and economic restructuring have posed new requirements for the enterprise's products. Thus, Yuchai mapped out the strategy of second startup focusing on transformation and upgrading early last year.

Yan thought that the ultimate purpose of the second startup is to bring corporate competitiveness to a higher level in the new economic normal.

"We adhere to the principle of 'recovery and abandonment', 'recovery' is recovering something in which we have core products, concentrate talents on and have the right of speech, and 'abandonment' is abandoning something which consumes much energy, has little technology content and is not supported by the country through restructuring," Yan said.

With the support of the CPC Yulin Municipal Committee and the Yulin Municipal People's Government, Yuchai has vigorously promoted corporate transformation and upgrading.

The practice over the past year shows that we are prosperous in engine production. Despite an overall decline of 10 percent in engine sales on national economic restructuring last year, Yuchai's share picked up by 1.5 percent. Last year is the best year for Yuchai's engine sector, Yan said.

Yan said, as to how to evade investment and financing risks and adjust the industrial structure, the most important is "recovery and abandonment" to Yuchai Group. This is a great pain to the enterprise, especially to its key leaders. Some products which have been cultivated for five to six years have to be abandoned due to national economic restructuring. The pain is a test to us.

In the second startup over the year, Yuchai Group's industrial health and competitiveness has been boosted. Yuchai planned to complete its second startup in three to five years, and then Yuchai's core products--engines will probably have a higher right of speech in the country.

"Yuchai's engine sector has been ahead in the country, but our market share in Europe and the rest of the country remains inadequate, so our biggest dream is to increase the overseas market share of overseas engines to around 20 percent in three to five years to truly reflect the fundamental objective of bringing our products to the world," Yan said.

(Huang Qichao/Yang Zhengbao/Luo Sha/Chen Renyi/Pan Jincai/

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