Weichai Power makes significant strides over past two decades

(chinadaily.com.cn)| Updated : 2024-03-26

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On March 26, Tan Xuguang, chairman of Sinotruk and Weichai Power, delivered a keynote speech at the Weichai Power's 20th Anniversary of Listing & Reform, Innovation and Development Achievement Seminar held in Weifang city, located in East China's Shandong province.

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The Weichai Power's 20th Anniversary of Listing & Reform, Innovation and Development Achievement Seminar held in Weifang, Shandong province. [Photo provided to chinadaily.com.cn]

Tan noted that in the 20 years since Weichai Power's IPO listing, the company's operating revenue has increased from 6.2 billion yuan ($850 million) in 2004 to 214 billion yuan in 2023, a 33-fold increase, with a cumulative revenue of 1.87 trillion yuan. The capital market highly recognizes Weichai Power's comprehensive global strength, investment value, and brand influence.

In 2009, Weichai Power Co Ltd, a leading Chinese automobile and equipment manufacturing firm based in Weifang, Shandong province, made a strategic move by acquiring the century-old French engine company Baudouin, which was on the verge of bankruptcy. This acquisition gave Weichai access to Baudouin's advanced technology for high-speed engines above 16L. This allowed Weichai Power to successfully enter the high-end markets in Europe, the Middle East, and beyond, increasing its global reach.

The majority of Weichai Power's export orders are for large-bore engines. Traditionally, this market was dominated by companies from Europe, the United States, and Japan. Weichai Power broke this monopoly by leveraging its global R&D platforms to develop new-generation M-series large-bore, high-end, high-speed engines. This expansion of product categories, from single marine engines to high-end vessels, mining trucks, land-based power generation, and more, has earned the company recognition in international markets.

Weichai Power's multiple acquisitions reflected its overseas expansion and accelerated entry into the high-end manufacturing market. Through acquisitions in fields like fuel cells and high-end logistics equipment, the company has established a presence in the domestic market and filled critical technological gaps.

After over a decade of development, Weichai Power has built a "super family" worldwide through mergers and acquisitions. Ten high-tech companies from Europe and the United States, including France's Baudouin, Germany's Kion, Linde Hydraulics, USA's Dematic, PSI, Ceres Power in the United Kingdom, Canada's Ballard, Germany's Aradex, Austria's VDS, and Switzerland's FISCHER Spindle, have become shining pearls on Weichai's business map. Weichai Power's overseas business constitutes more than 40 percent of its total business, with a transnational index of 48.57 percent.

In addition to its far-reaching market strategy and customer-oriented services, Weichai Power's entry into international high-end markets is propelled by global high-end brands. The company's business scope has now expanded to powertrain systems, commercial vehicles, agricultural equipment, smart logistics and other business segments.

Twenty years ago, when Weichai Power was listed on the Hong Kong Stock Exchange, it embarked on a global journey, continuously shining on the world stage. Looking ahead, the company is committed to becoming a global leader in high-end manufacturing and contributing to the transformation of China's manufacturing industry.