In the midst of a challenging business environment marked by production difficulties and a sudden drop in market demand, Henan Zhongyuan Internal Distribution Company is striving to innovate and open up new markets. On February 1st, as the sound of machinery echoed through the factory floor, Chairman Xue Delong shared with the author the company's ongoing efforts. Earlier this year, the company signed an agreement with International Truck Company, North America’s largest truck and engine manufacturer, to supply 600,000 cylinder liners annually, beginning with batch deliveries. At the same time, new domestic clients in the agricultural machinery sector are also starting their operations. With a total investment of 2.2 billion yuan in the Central Plains Industrial Park, the company continues to grow and achieve new milestones.
Established in 1958, the company has grown over 51 years into a large enterprise with annual output of 23 million cylinder liners, sales revenue of 1.8 billion yuan, and export value of 70 million U.S. dollars. It employs 4,500 staff members and has held the top position in China for 20 consecutive years in the sales of positive-brand cylinder liners. Additionally, it has ranked first in Asia for 18 consecutive years.
Xue Delong emphasized that, despite the economic downturn, the company has focused on scientific management, technological innovation, and product development to expand its market presence. In the international market, it successfully launched new products for MWM and international trucks in Russia and Brazil, delivering 22 types of products in batches. In the domestic market, eight new customers were added, opening up fresh opportunities for growth. The company’s core competitiveness has significantly improved. Last year, it was recognized as a "National High-tech Enterprise" by the Ministry of Science and Technology and became a member of the "Cylinder Sleeve Working Group" of the National Standardization Committee. This has positioned the company as a key player in setting industry standards. As one of the few companies with the authority to shape these standards, it has realized the goal of “top enterprises setting the standards.†Furthermore, it established the first postdoctoral research workstation at the county level in Henan Province, creating a platform to attract high-level professionals and aiming for breakthroughs in major technical challenges.
“Sincere and persistent, hardworking and passionate, with the courage to innovate, we will surely secure long-term success,†Xue Delong said, expressing the company’s determination in the face of the uncertain economic climate in 2009. He added that the company is currently focusing on the construction of the Zhongyuan Internal Distribution Industrial Park, which involves a total investment of 2.2 billion yuan. Key projects include an annual increase of 10 million cylinder energy-increasing projects, the second phase of the Central Plains GKN project, and an annual output of 20 million car cylinder sets. Other initiatives involve modular construction projects for auto parts. Once completed, these projects are expected to generate an estimated annual sales revenue of 8 billion yuan and profits and taxes of 1.5 billion yuan.
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