Model of Machinery Industry: Chang Lin's Flexible Transformation of Enterprise Development Modes and Adjustment of Industrial Structure

In the field of China's machinery manufacturing industry, there is a company with roller ranks third in the industry and excavators among the top three among domestic national brands; it is the world's largest manufacturing base for walking tractors, and the domestic market share of walking tractors reaches 40%. This company is Shandong Changlin Machinery Group Co., Ltd. (hereinafter referred to as "Changlin Group").

In recent years, Changlin Group has taken the lead and has made flexible changes in the development mode of enterprises in technological advancement and technological innovation, implemented industrial restructuring, improved core competitiveness, and overcome difficulties. In 2009, the Group’s production and sales volume rose against the market under the impact of the international financial crisis, achieving sales revenue of 3 billion yuan and profits of nearly 100 million yuan.

Transferring ways to expand the market

The Changlin Group looks for business opportunities around the market and changes its way to development. The group is focusing on supporting the production of three agricultural products on the basis of walking tractors and diesel engines as its main products, transforming traditional production methods of agricultural machinery, and rebuilding the new image of “Fenghe Agricultural Sciences and Equipment Agriculture”. Regional, different users, and products required by different markets for new product development. The tractors SH101, SH101-1J, and SH101-2CJ have unique and novel designs and have applied for national patents, leading the new trend of the hand-holding industry. Three diesel engines, the SH185, SH190, and SH1115, took the lead in the industry to meet Euro I emission standards. The SH1GL-63 rotary tiller designed and modified is compact in structure and flexible in operation. SH60A, SH100, SH120 series shutters have become a good helper for planting users in vegetable greenhouses. Up to now, a total of 3.8 million hand-held tractors and diesel engines have been produced. The Maijinong and Yingbao high-efficiency compound fertilizers developed and produced by the Changlin Group Fertilizer Company have become China Quality Milestone's reputation tracking brands. In August 2005, a new "2,000 tons of peanut active peptide" project was added.

The Changlin Group, on the basis of consolidating its original products, implemented industrial upgrades early and conducted technical cooperation with the German Weber Company to mass produce roller. In 2003, 1,000 sets of rollers were rolled off to achieve both production and sales. ZL-50G series loaders developed and manufactured by ourselves are stable and widely favored by customers. In 2004, it collaborated with Shantui Construction Machinery Co., Ltd. on a new excavator project, which created a record of more than 30 units in operation that year. In October 2005, the self-developed CL750A compact loader was sold for 2,000 units in the year. Road rollers, loaders, and excavators were awarded many successful bids for major engineering construction machinery at home and abroad and were exported to more than 20 countries and regions in Asia, Africa, and the Americas. The development of agricultural machinery and engineering machinery and equipment has been implemented in parallel, and the transformation from the traditional agricultural machinery processing and manufacturing to the construction machinery manufacturing and management methods has been truly realized.

Adjusting the structure of the business to break through the great industry

The Changlin Group adjusted its product structure with an accurate market positioning and implemented the business strategy of “mainly one industry, diversified breakthroughs”. In 2004, Changlin Group invested heavily in the introduction of world-class Lockhamdi Vertical Boxless Casting Modelling Lines from Spain, introduced the HWS Static Pressure Casting Modeling Line from Germany, and cast products from extensive single mechanical black castings to auto parts. The development of precision castings such as aluminum castings has become a supplier of accessories for famous automakers such as BMW, General Motors, Ford, Volvo and Chery. The Changlin Group has achieved high-precision, precision casting from traditional machinery manufacturing and casting equipment. The direction of change and upgrade. At the end of 2008, the company invested 2.6 billion yuan to launch the "600,000 sets of major equipment hydraulic main parts industrialization project", which broke through the major bottleneck of hydraulic main parts, lifted the international giants' threat to the strategic security of China's hydraulic industry, and realized Chang Lin. The group extends from the precision casting industry to the hydraulic industry industrial chain closely related to the construction machinery industry. Faced with the pressure of international monopoly, Changlin Group takes the revitalization of the national equipment manufacturing industry as its mission, and focuses on realizing the industrial upgrading of the country’s major machinery and national defense equipment, and implements the optimization of industrial structure. It is estimated that the annual operating income will reach 6 billion yuan. The high-end hydraulic parts project with annual profit and tax of 850 million yuan will become Changlin Group's new profit growth point.

At present, Changlin Group has formed a business structure of diversified, multi-variety, multi-structures in which agricultural machinery, engineering machinery, chemical fertilizers, precision castings, and biotechnology are integrated into R&D production and sales.

Innovating to Create a New Brilliant Enterprise

The Changlin Group regards science and technology innovation as an important part of the transfer method and structural adjustment. It insists on the development of new products to develop a generation, a reserve generation, and a pre-research generation. Currently, Changlin Group has an enterprise technology center with 9 research institutes and 4 quality inspection centers, including tractors, internal combustion engines, agricultural machinery, road machinery, and shovels. It has independent research and development capabilities and has developed 20 varieties in total. 171 models of new products completed more than 40 major technological transformation projects. In 2009, Changlin Group was named "National High-tech Enterprise". The "Multi-functional Agricultural Equipment and Facilities Development" project won the bid for the national "Eleventh Five-Year Plan" technology support plan major project. Has completed 110 provincial-level scientific research projects, 103 of which have won national patents.

The Changlin Group pays attention to the combination of production, education and research while strengthening internal technological innovation within the company. He has established strategic cooperative partnerships with Luotuo Institute, Shandong University, Tsinghua University, and China Agricultural University. Together with the School of Materials Engineering of Shandong University, Shandong University of Technology and Shandong University of Science and Technology, a metal material and metal casting laboratory was established.

It is understood that since 2009, the Changlin Group has implemented the "Toyota-style lean production management model" that is currently more advanced in the world, and the new internal management mode of enterprises has transformed its mode and structure to achieve a powerful driving force for leapfrogging development. .