XCMG creates new benchmark for intelligent manufacture: an example of promoting “Made in China 2025” with the German Industry 4.0

Premier Li Keqiang and Chancellor Merkel witnessed the conclusion of the strategic agreement between XCMG and SAP GmbH

With the presence of Chinese Premier Li Keqiang and the visiting German Chancellor Merkel, XCMG Chairman Wang Min and SAP Software Vice President and Managing Director of Greater China Li Qiang signed the strategic cooperation agreement in the afternoon of October 30, which was a major part of the signing ceremony for Sino-German  Economic & Trade Cooperation Projects held at Shangri-La Hotel in Hefei, capital of east China's Anhui Province. Before that, the two top leaders attended the Second Meeting of the Sino-German Advisory Committee on Economy with business leaders from both countries. XCMG Chairman Wang Min was invited to attend the meeting and delivered a special speech as a representative of Chinese key enterprises.

At the Second Meeting of the Sino-German Advisory Committee on Economy, the attendees exchanged views and points on “Innovation Cooperation”, “Financial Cooperation” and other issues of great concern. In the following seminar and talks, Chinese Premier Li Keqiang and German Chancellor Merkel listened to the speeches delivered by entrepreneurs from both countries. In his speech, Chairman Wang introduced XCMG’s investment and cooperative efforts in Germany and its future plans, and proposed an array of positive and constructive advice on policy supports for Chinese businesses’ investments in Germany to Chancellor Merkel, which received great attention from the leaders and the attendees. His advice on the extension of visa validity for Chinese investors to Germany got enthusiastic response from Chancellor Merkel who vowed to make a further investigation and come up with specific solutions later.

After that, the signing ceremony for Sino-German Economic & Trade Cooperation Projects  was held. With the presence of Chinese Premier Li Keqiang and German Chancellor Merkel, XCMG Chairman Wang Min and SAP Software Vice President Li Qiang signed the strategic cooperation agreement.

XCMG is a leading construction machinery manufacturer in China and one of the top five in the world. SAP GmbH is the world’s leading supplier of enterprise management solutions and a close business partner for global famous enterprises.

The strategic cooperation between the two sides will, based on the upstream and downstream in the construction machinery value chain and dependent on the mega data technology and application, extend the intelligent cloud service of the Internet of Things to XCMG’s intelligent manufacture and intelligent service in order to cover and optimize the R&D and design, installation and commissioning, intelligent logistics, risk precaution and other business procedures in relation to the construction machinery. It will also help to strengthen XCMG’s abilities in the R&D and design collaboration, intelligent manufacture, intelligent service and risk control in its globalization process, promote the risk precaution, safety and security safeguard and utilization of the construction machinery, and improve the competitiveness of XCMG brand on international markets; maximize the loyalty of overseas markets and customers through the provision of value-added services,  so as to provide a reproducible and promotable product realization for Chinese equipment manufacturing enterprises in their competition and service for global markets, and increase the reputation and popularity of "Made in China".

SAP Vice President Li Qiang said that currently, the Chinese government is making great efforts to push forward the business transformations of enterprises with “Made in China 2025” and the Internet +, while a great many Chinese enterprises are working on and put into practice the product innovation and intelligent manufacturing. Among them, XCMG has taken the lead in the Industry to comprehensively cooperate with SAP on the Industry 4.0 solutions, and positively explore the business opportunities in its transformation from the conventional manufacture to service-oriented manufacture by using the intelligent manufacture and intelligent service. He also hoped that SAP's digitized core platform will help XCMG to take the lead in transformation and update of its business growth mode in global equipment manufacturing industry, make further progress, gradually access to the markets for high-end products, surpass its competitors and set an example in the transformation and update from conventional manufacture to innovative manufacture for Chinese equipment manufacturing industry.

Furthermore, Li Qiang said that as a strategic business partner of XCMG, SAP GmbH will take advantage of its experts and technical resources to ensure the successful implementation of the cooperation projects. He also hoped that SAP’s solution dependent on Industry 4.0 will be popular and satisfactorily implemented in XCMG, produce excellent outcome and turn XCMG into a demonstration user of SAP Industry 4.0 in the industry, and SAP will provide the best technical support to help XCMG realize its vision of Industry 4.0 at home and Industry 4.0 service abroad, and pave out the successful way of Industry 4.0 for other Chinese manufacturing enterprises.

XCMG Chairman Wang Min said that since the inception of business connections between the two sides in 2009, XCMG and SAP have had fruitful cooperation in the improvement of the engineering construction through the informatization of the enterprise. With the release of "Made in China 2025 by the State Council, the two sides hoped to utilize the innovative cooperation characterized by the deep integration of informatization and industrialization to realize the strategic development goal of "Intelligent XCMG".

The signing of the comprehensive strategic cooperation agreement between XCMG and SAP symbolized the commencement of the first Industry 4.0 project under Sino-German cooperation framework, which would play a profoundly exemplary and demonstrative role in Sino-German cooperation, in particular the Industry 4.0. This project is the first implementation of the Industry 4.0 in China, and it will contribute significantly to in the update and transformation of the whole equipment manufacture industry, promote the improvement and implementation of "Made in China 2025", create a new benchmark featuring XCMG’s "Intelligent manufacture", and build up XCMG’s sustained competitive advantages, so that the strategic cooperation between the both parties will become an example to promote deeper integration between Chinese and foreign enterprises, achieve win-win situations and contribute to the transformation and update of Chinese equipment manufacture enterprises.

On October 29, Premier Li Keqiang and Chancellor Merkel reached agreement that China and Germany will make joint efforts to promote the strategic connection and complement between "Made in China 2025" and "German Industry 4.0", introduce and renovate Germany’s advanced technologies with China’s complete industrial system and big markets, and achieve win-win situations for both sides. The signing of the strategic cooperation agreement between XCMG and SAP GmbH is a specific measure of action between the two countries in this regard, and will become a new lighthouse project of positive and profound significance to promote the new industrial revolution by China and Germany.

In the future, XCMG will give full play to its characteristic passion, innovation and enterprise to make contributions to the leapfrog development of the national industries.