Zoomlion Creates the “Macro” for International Construction Machinery Industry

Zoomlion Creates the “Macro” for International Construction Machinery Industry

Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd. ("Zhonglian") was established in 1992. It is a hospital industry entity founded by 8 scientific and technical personnel of the Changsha Construction Machinery Research Institute starting with a loan of RMB 500,000. After 14 years of development, Zoomlion currently has total assets of more than 4 billion yuan, annual sales revenue of nearly 4 billion yuan, and more than 6,000 employees. For three consecutive years, the company has been named "China's Top 50 most Developed Listed Companies" and "Most Growing Listed Companies". The comprehensive performance index ranks among the top companies in the list, ranking among the "China's Top 500 Most Valuable Brands". Ranked 193th, and entered the top 50 of the world's construction machinery, forming a competitive strength with the world's strong brands compete for a long time, showing the strong vitality of a technology-based company.

In the history of Zoomlion's 14-year history, independent innovation is the basis for the sustainable, healthy and stable development of the company and is where the vitality of the company lies.

In 1992, the Changsha Construction Machinery Research Institute established an industrial entity, first of all a concept of innovation. Zoomlion made breakthroughs in the transformation of scientific research achievements to achieve a positive interaction between scientific research supporting industry and industrial back-feeding scientific research. Since the establishment of the company, the average annual growth rate of sales income and profits of Zoomlion exceeded 60%. The leading products have covered 10 series and more than 100 varieties, and have become the most complete product category in the Chinese construction machinery industry. In this process, a corporate culture system was gradually formed with the core concept of “honesty, good fortune, and profound forging ahead”.

In the cultural atmosphere of encouraging innovation, the scientific concept of the scientific and technical personnel has been intensified. Internally, the company has implemented marketization operations such as separation of appraisal and hiring, subject open tendering, etc., and established a supply guarantee mechanism for scientific research funds, a technology innovation evaluation mechanism, and a scientific research distribution mechanism. Enhance the driving force of independent innovation. The investment in research and development funds of enterprises has accounted for more than 5% of annual sales revenue, and reached 7% at the highest, truly embodying the positive interaction between scientific research support industries and industrial back-fed scientific research. The company created the first three domestic market share, such as tower cranes, sanitation machines, and saw blades, and the second domestic market share for car cranes and concrete machinery, and gradually completed the industries of four major industrial parks and seven major production bases. The layout has grown into a backbone enterprise in the Chinese construction machinery industry and an iconic industrialized enterprise in Hunan Province, achieving remarkable social and economic benefits.

As a company with a background in national research institutes, Zoomlion is committed to leading the technological advancement of the industry. They believe that the first is to grasp the direction of technological progress in the industry and play a leading role; the second is to focus on forward-looking technology, core technology and common technology research, play a good role in promoting sustainable technological progress in the industry; Third, focus on the country, industry The formulation of standards has played a good role in benchmarking. Therefore, they pay attention to the original innovation of technology, integrated innovation and re-innovation based on the introduction of digestion and absorption, making full use of their own national enterprise technology centers and post-doctoral mobile workstations, setting up a common technology research platform, and increasing investment in the application of generic technologies. Support the development of the whole industry and benefit the industry as a whole.

At present, Zoomlion's professional and technical personnel account for nearly 40% of all employees, 21 people who enjoy special government allowances, and 9 young and middle-aged experts at national and provincial levels. In recent years, it has completed 645 major scientific research and new product projects, won 143 national patents, completed 25 key scientific and technological research topics including the Ninth Five-Year Plan, the Tenth Five-Year Plan, and the “863”, and 55 special topics. The establishment and revision of more than 300 national and industry standards is currently the system of 178 effective standards and revision of the focal point. Independent innovation has enabled Zoomlion to fully fulfill its important responsibility of leading the industry in technological advancement. Take the concrete pumping machinery as an example. Before 1992, the domestic market was monopolized by foreign products. Under the impetus of Zoomlion, the number of domestic manufacturers has reached as many as 100. Our own brands not only recapture more than 95% of the domestic market, but also Has been sold to overseas markets, forming a capacity to compete with multinational companies.

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