Weichai Power, which is affiliated to Shandong Heavy Industry Group, and XCMG, two major enterprises with independent brands in China's equipment manufacturing industry, announced that they would work together to develop world-class products.
On September 22, Mr. Tan Xuguang, Chairman of Shandong Heavy Industry Group and Weichai Power, and Mr. Wang Min, Chairman of Xuzhou Construction & Machinery Group, signed the strategic cooperation framework agreement at XCMG headquarters. The two sides have decided to extensively collaborate in the fields of capital, market, technology research and development, overseas markets exploitation and other areas taking advantage of industrial resources, so as to jointly promote the revitalization of national equipment manufacturing industry.
Weichai Power is one of China's most powerful integrated automotive and equipment manufacturing group and also plays a significant role in the global market. The company has China’s best industrial chain of commercial vehicles with businesses covering vehicles and powertrain (including engine, transmission and axle). It has become an international industrial equipment enterprise group being of large scale, leading technology and national strategic importance.
XCMG is a leading company in China’s construction and machinery industry, where it always stays at the first position. The company currently ranks 5th in the world's construction and machinery industry and holds the largest share in domestic market of nine types of construction machineries and parts, of which crane trucks and large-tonnage road rollers manage the number one position for worldwide sales. It also exports approximately ten thousand construction machineries to 169 countries and regions every year. XCMG has now become the largest enterprise group in China’s construction and machinery industry with the characteristics of the largest scale, the highest-level technology, the most complete product range, the largest export volume, strong competitiveness and influence, and great national strategic importance.
Weichai Power and XCMG are both superior companies in their respective industry. And they are highly complementary in their main businesses. The two sides have conducted a preliminary high-level visits and exchanges, when through in-depth discussions and friendly consultations, both sides agreed to establish a comprehensive strategic partnership.
Under the agreement, the two sides will cooperate fully in area of capital operation, product development, marketing and other fields, involving hydraulic, engines, gearboxes, axles and other products. XCMG will get the support from Weichai in terms of new technology and market of power transmission system to enhance their competitiveness in an all-round way. And meanwhile a further increased proportion of XCMG products will be supplied to Weichai. Furthermore, the two sides will strengthen visits between senior management, and have established the chairman exchange and visit mechanism.
The executive teams of both sides paid high attention and were unanimously favorable to the signing of the strategic cooperation agreement. Tan Xuguang, chairman of Weichai Power, commented that the powerful alliance between the two giant companies of Weichai Power and XCMG, would exert a significant influence on construction and machinery industry and boost the development and growth of national equipment manufacturing industry.
Wang Min, chairman of XCMG, said that years of good cooperative relationship with Weichai Power had led to a high compatibility in both products and markets of the two companies, and coming to a strategic cooperation agreement would definitely bring more opportunities for the future market exploitation and product development of both sides. In addition, the close combination of the two national brands, we believe, will shine an extraordinary spark in the Chinese equipment manufacturing industry.