Sany's five strategies actively respond to uncertainty
Sany's five strategies actively respond to uncertainty
China Construction machinery information
Guide: after acquiring German elephant global concrete machinery giant Putzmeister at the beginning of this year, Sany recently acquired German concrete mixer enterprise intermix GmbH for 8.1 million euros through its subsidiary. The global economic downturn will bring good acquisition opportunities, and also give Sany
after acquiring German "elephant" global concrete machinery giant Putzmeister at the beginning of this year, Sany recently acquired German concrete mixer enterprise intermix for 8.1 million euros through its subsidiary, and then adjusted the collet position under the experimental machine GmbH
"the global economic downturn will bring good acquisition opportunities, and also give Sany International 'hunting' opportunities." Xiang Wenbo, President of Sany Heavy Industry, said at the 2012 Fudan International Forum on management that at the same time, the company is gradually focusing on internationalization as a way to break through the industry difficulties under domestic regulatory policies
continuous asset investment and investment in infrastructure construction have enabled China to enjoy 20 years of rapid growth. Sany Heavy Industry, founded in 1994, was also one of the beneficiaries. Last year, it achieved 50.7 billion sales, a year-on-year increase of 50%, and its profit also reached 9.7 billion
however, the regulatory policies since the second half of last year have led to a sharp decline in the industry of construction machinery, which also welcomes users to visit our company, and even the profits of listed companies have decreased by 80% over the same period last year. Nevertheless, Sany achieved a profit of 5% in the first quarter of this year. Xiang Wenbo said, "but there is still uncertainty about how the world situation will develop next and how it will affect China's economy."
one of the uncertainties encountered by Xiang Wenbo is that Sany Heavy Industry was originally scheduled to go to Hong Kong for IPO promotion on July 16 this year, but it was cancelled for some reason. He admitted that the rumors of cash flow and "layoff storm" have done great harm to the company and affected the IPO issuance to a certain extent. He said that the company prepared to land H shares not because of lack of money, but because it hoped to obtain an international platform to support more international acquisitions
but the challenge of internationalization is enormous. In fact, not only Sany Heavy Industry, in recent years, the number of overseas mergers and acquisitions of Chinese enterprises going out has increased. According to the Ministry of Commerce, non-financial foreign direct investment in the first half of the year was 35.4 billion US dollars, an increase of 48.2% year-on-year, of which the amount of cross-border mergers and acquisitions has accounted for one third of the total foreign investment in the same period. Research data shows that the failure rate of overseas investment of Chinese enterprises is about 67%, while the international average failure rate is about 50%
an important reason is that Chinese enterprises have the "relocation" thinking of "going global while the brain remains at home". However, Xiang Wenbo believes that after the merger, it should be more about inclusion than integration. "It's like I found a German wife. It's impossible to transform her into a Chinese. The orders of China's plastic extruder enterprises have rebounded sharply." he said, similarly, if the German wife wants to turn me into a German, it's impossible. After Sany acquired Putzmeister, Germany, it did not send a Chinese person to the company, but this year the company's profits rose a lot, "so where is the body and brain in mergers and acquisitions?"
five coping strategies
make up lessons, fitness, reform, hunting and breakthrough are Sany's "trump card" to deal with uncertainty. In recent years, the rapid growth of Sany Heavy Industry, almost every year to build another Sany Heavy Industry, talent demand will also double. Xiang Wenbo said, however, with the rapid growth in the past few years, there is no time for effective training of personnel. This year, the development speed slowed down, and enterprises also began to carry out large-scale training to "make up lessons" for employees, including operation, assembly, dismantling of machines, etc
in addition to "making up lessons", Xiang Wenbo said that Sany's second way to deal with uncertainty is "fitness"
although Sany Heavy Industry has developed rapidly in recent years, is it objectively strong? Xiang Wenbo also made a question mark in his heart, so he wanted to "keep fit". "We need to adjust the pace, that is to strengthen internal management, strengthen independent innovation, improve product quality, enhance the competitiveness of our enterprises, and strengthen our health"
the third way is to change. As a manufacturing enterprise, Sany knows that manufacturing capability is the foundation of the enterprise, and to become a "century old store", we must implement lean production through quantitative measurement. Therefore, a deep-seated manufacturing reform guided by lean thinking kicked off in Sany
in addition, as mentioned above, the global economic downturn has also brought good acquisition opportunities, giving Sany the opportunity for the fourth strategy to play a role - that is, "hunting". Xiang Wenbo revealed that recently, Sany Heavy Industry has several overseas acquisition projects
the fifth trump card of Sany Heavy Industry is "breakthrough". With the downward trend of the Chinese market, the overall environment faced by the entire construction machinery industry is not good. Sany Heavy industry began to focus on internationalization. "Breakthrough" is to use internationalization to reduce its dependence on the Chinese market