Growing Global Presence Has Strengthened Weichai’s Risk-Management Capacity

Date:2019-10-12 Source:www.chinaspv.com

On August 31 this year, 200 units Weichai engines (CKD) were delivered to China-Belarus Industrial Park in Minsk, the capital city of Belarus via China-Europe freight trains.

Recently, in Weichai’s headquarter in Weifang, Shandong province, the assembling of these Weichai engines was aired on TV. After their assembly, they will be delivered to Russia, Ukraine, and Belarus for operation.

According to Hu Haihua, Maz Weichai, as a joint venture co-founded by Maz and Weichai, started operation on November 18 last year. Located in China-Belarus Industrial Park, the company is able to roll out 20,000 units engines each year.

In early 1990s, Weichai set up its first service station in Indonesia, starting its overseas expansion. In less than three decades, it has merged and acquired France-based Baudouin, Italy-based Farratti, Germany-based Kion and Linde-Hydraulics, and the US-based Dematic and PSI. In addition, it has so far set its own factories in Myanmar, Ethiopia, Belarus, etc.

In 2018, Weichai realized an annual business revenue of over 230 billion RMB, 40% of which were from its overseas business. In the first seven months this year, Weichai’s exports jumed by 24% year on year. According to Tan Xuguang, president of Weichai, the company’s exports to Pakistan, Italy, Spain and Romania have maintained an annual growth rate of over 200%. In the later half of 2019, the company’s exports are expected to jump by 50% year on year. With a fast growing presence in the global market, Weichai has significantly strengthened its overall competitiveness and risk-management capacity.