Special Interview to Mr. Lu Jinhong, the Chairman of the Board of Sino-American Zhejiang Maximal Forklift Co., Ltd.

Sino-American Zhejiang Maximal Forklift Co., Ltd., established in December, 2005, is headquartered in the Lushan Industrial Park (in Fuyang City), Hangzhou, Zhejiang Province. After several years’ development, Maximal nowadays possesses state-of-art parts processing center, painting lines, assembly streamlines, forklift performance testing infrastructure and forklift part trial station, which are all matched with computer control system. As the main products manufactured in the company, the forklifts and various kinds of warehouse machinery branded in Maximal are widely used for the tasks of loading, unloading and material handling tasks in diversified industries including mining, transportation, warehouse and logistics, etc.

It has been four years since Maximal entered the forklift industry. During these years, Maximal products has gradually been known and well-received by the customers at home and abroad; meanwhile, the company keeps on strengthening the cooperation partnership with the enterprises from the same industry, aiming at expanding the forklift and warehouse machinery market, which contributed a lot to the development of industrial trucks and the construction of local economy.

Recently, Chinaforklift.com (www.chinaforklift.com, English version: www.forkliftnet.com) called at Zhejiang Maximal Forklift Co., Ltd., and conducted a special interview to the Chairman of the Board, Lu Jinhong (Mr. Lu hereinafter), probing into the mysterious issue on how Maximal — called as the dark horse in forklift industry—created wonders in a short time. 

Chinaforklift.com®:  Since 2005, new enterprises have continuously entered into the big family of forklift industry. However, the furious strike taken by the financial crisis from the second half of 2008 had washed out a few of the newly emerged enterprises, just like sands taken away by the waves. The reasons for the failure of these enterprises were different from one to another, among which the strategic options in the past years counted much for a part of them. Mr. Lu, how do you think about the corporate strategy?

Mr. Lu: As is known to us, the corporate strategy is the essential guidelines for the enterprise to realize long-term development. Once the corporate strategy was set down, it could not be altered in a random way. There existed a lot of enterprises, who had not enough ability to make correct estimation of the whole resource when making corporate strategy and entered an industry which required more resources than the enterprise possessed by itself. The only one result would be the failure of the enterprise, due to the fact that it was totally wrong at the very beginning of making corporate strategy.

Meanwhile, there were also a number of enterprises that did not own any clear developing strategy. Always marching forward like throwing stones into the river to test the depth of the water, these enterprises were endowed with inconceivably good luck if they succeeded while it was natural if they ended up with failure at last. Therefore, in my opinion, correct and proper corporate strategy shall be regarded as the core element during the course of the development, as well as the key for the enterprise to succeed on the marketplace.

Chinaforklift.com®:  Since Maximal Forklift Co., Ltd. started operation in 2006, the company had developed fast and steadily, like a dark horse in the industry, which was praised to be one of the most prospective enterprises with continuous development momentum. Mr. Lu, can you share the successful experiences of Maximal with us?

Mr. Lu: Seen from the present stage, Maximal is still on the way to be successful. What we have done just hit the points about which should be finished during the fundamental development period for an enterprise. It is just the beginning and what we pursued is to develop on a steady basis, by a sustainable way and at a high quality level while keeping rational developing speed and healthy developing modes as well. There is a long and hard way for Maximal to march along; in spite of that, if we stick to take the strategy of meeting the market demand as our orientation and providing the customers with best service as our tenet, Maximal will have had a much brighter future in the end.

Chinaforklift.com®:  After the global financial crisis passed away last year, the forklift industry in China got a leap-forward development in the first half of 2010 as the whole industry realized a dramatic rise at a 70% increasing rate. What is your view on the development of forklift industry with respect to the developing status at present and in the future?

Mr. Lu: It is true that the forklift industry in our country has experienced a relatively fast development. Relying on the strong demand of our domestic market, we walked out the dark days under the influences of financial crisis, earlier than our foreign counterparts. Meanwhile, we shall see that it is as fierce as before in terms of low price competition in the field of forklift industry, needing more concerns and self-disciplines of all the enterprises in our industry.

Chinaforklift.com®:  The competition in small-tonnage forklifts has always been furious on domestic market, thus many forklift manufacturers expanded their product lines and completed the product categories by starting developing and manufacturing large-tonnage forklifts, all-terrain forklifts and explosion proof forklifts so as to avoid facing with the overheating competition. How much will Maximal invest in terms of developing new products this year？

Mr. Lu: The competition in the range of small-tonnage forklifts is incredibly fierce, resulting in an awkward situation that their sales price is too low to make profits anymore. As for Maximal, we launched diversified kinds of products in these years, including 16T, 25T, three-wheeled stackers, 5T battery forklifts, aiming at continuously enhance the operational quality of the enterprise.

This year we plan to further strengthen the investment to develop products under the principle of improve market segmentation, complete the product series so as to enlarge our market shares.

Chinaforklift.com®:  Mr. Lu, is there any new product to be launched in the next year? Would you mind introducing some of them to us?

Mr. Lu:We will introduce ten models of new products to the market next year, and we welcome our customers, cooperative partners and media to our company to see our new products.

Chinaforklift.com®: A number of the enterprises in China are positioned in developing and manufacturing products while a little attention has been paid on the aspect of service and technology. How about Maximal in terms of product-oriented and service-oriented development? What are the specific measures taken to improve the service?

Mr. Lu: Most of the enterprises are in the situation of taking products as their operational orientation, and products are indeed the base and root of an enterprise to survive and develop in the market. However, it is not enough for an enterprise only to emphasize products, which will be an obstacle for the enterprise to serve the market in a better manner and will also block in the way of increasing market shares.

Maximal has always kept in mind the principle of improving the service level and quality. We plan to establish a diversified and integrated solution, emphasizing the development and innovation of product while combing various elements such as product service, logistics design, development and manufacture of special products and technological consultancy together, so as to gradually complete the service system. 

Chinaforklift.com®:  It was informed that Maximal had increased sharply in the field of export. Lots of enterprises had focused their developing efforts on the domestic market. What is the plan of Maximal in the respect of market layout?
　　
Mr. Lu: Our experience alerted us that singly depending on one certain market would bring unanticipated risk to the operation, which would be greatly unfavorable for the development of the enterprise. Therefore, going through this financial crisis, we have adjusted our marketing strategy thoroughly.

After discussion, we decided to focus our marketing strategy on expanding the covering range of our Maximal products on the market and rearrange the marketing structure to balance the operation of the company. This would be implemented specifically through two ways:

Firstly, pay more attention on domestic sales and enlarge the proportion of domestic sales business. We increased the investment in the direct sales points, and planned to make full use of the network of direct sales points and dealers to occupy more domestic market while to enhance the stability of the sales amount of our products.

Secondly, rearrange our distribution in global market. We reinforced the development and promotion on the marketplaces in the areas including east Europe, North Europe, South America, Middle East and Southeast Asia. In 2008, the sales amount of Maximal products in the Western Europe reached to be 65% of the sales amount in the global wide; till 2010, the sales amount in the markets mentioned above increased to occupy 75% of the total export volume, which greatly broadened the covering area of Maximal products and optimized our marketing structure at the same time.
　
Chinaforklift.com®:  Mr. Lu, it was reported that you are a paraglider fan. While busy with the business, you also have rich amateur hobbies. Can you tell us about how to balance your hobbies and business?
　
Mr. Lu: Nowadays we are in an era full of competition and everyone undergoes enormous pressure, especially those who run a corporation. We will undergo much more pressure than the layperson, so we need to release our pressure after a period of hard working.

As for me, I think operating the paraglider to fly in the sky must be one of the best methods to release the pressure and it is also a very healthy sport, which is beneficial for me to keep fit. This will never affect my work; on the contrary it makes me get a better mood to go on my work and also ideally improve my living quality. By the way, I want to call for all the entrepreneurs to own their unique ways and methods to relieve themselves from everyday work, and wish everyone keep healthy and a colorful life. 

Chinaforklift.com®:  What do you think is the role of the external environment in the growing course of an entrepreneur?

Mr. Lu:The external environment counts a lot on the development of a company and even more on the growth of an entrepreneur. Taking Hangzhou as an example, it ranks in the first class in the whole China in terms of geological position, humanistic environment, political atmosphere and commercial surroundings. Every year I have several opportunities to take part in some learning and communication activities organized by the Government or the enterprises, which helped me a lot to master advanced information. 

I am lucky to build up my business in such an ideal external environment. What we should do is not only to make good use of such excellent external conditions, but also to become creators to establish more satisfactory and fair commercial environment for the next generation.

Chinaforklift.com®: At present, all the countries and communities are advocating for green operation so as to be eco-friendly. What measures will Maximal take to further protect the environment?

Mr. Lu: In the future, if the marketplace is a battle, the war must be aroused around the issue of environmental protection. Based on this, we always fasten our developing pace on battery forklift products. Moreover, we also plan to enlarge our investment on hybrid vehicles with the hope to grasp the advanced developing opportunity in the field of manufacturing eco-friendly vehicles, which is not only for the better development of the enterprise and to response to the call of the government, but also the social responsibility of all the enterprises.

Editor's notes:

Since the establishment till now, Maximal has developed so fast in the short years and has become the dark horse in forklift industry in China. The rapid emergence of the company has formed a so-called “Maximal Rate”, which left a deep impression to all the users, counterparts from the same field and the media as well. There are some competitors of forklift industry taking some special research on Maximal. The success of a company mainly lies in the appropriate corporate strategy and the sincerity of the staff, while the managers’ wit, intelligence and pioneering spirit are also indispensible factors contributing as much to the success of the company.

From Mr. Lu, we can clearly see the adventurous character belonging to an entrepreneur, who is willing to pursue new breakthrough in life and also on business, to refresh with new ideas and to face challenges with confidence and courage. The management team of Maximal comprise of young staff full of vigor and energy, symbolizing the culture and spirits of the whole company, together with the leading and advancing sense of Mr. Lu, which has constructed an innovative operation atmosphere and formed the core of unique “Maximal Culture”. It is believed that such kind of operating mode and culture in Maximal will create more wonders and that Maximal will go much further in the future.

About Maximal:

Sino-American Zhejiang Maximal Forklift Co., Ltd. is a subsidiary of Zhejiang KNSN Pipe Pile Co., Ltd. The group stands on building machine industry and owns more than ten years technology research experience and accumulation in the industry. The group has six subsidiaries with more than 1500 employees. It owns RMB580 million Yuan of total asset. The yearly output value is up to RMB850 million Yuan.

Zhejiang Maximal Forklift Co., Ltd. has introduced American advanced forklift technique design, production technology and management philosophy. It owns international advanced component processing center, component coating line, assembly line, machine performance test line, and forklift component test table, which are all provided with complete set computer-control system. It is making effort to build the brand of Maximal forklift with standard of internalization, specialization, and environment protection.

The company has totally invested RMB120 million Yuan. It covers an area of 66600 Square Meters. The designed production capacity is 15000 forklifts per year. The product is controlled and supervised during the whole process from the assembly of the components to the test of the machine and service after sales. Moreover, it has a team of 40 high caliber and well-experienced scientific research talents. It always takes scientific innovation as the important task for raising core competence of the company. It has set up long-term technology and information cooperation relationship with Zhejiang Industrial Design Institute, Hangzhou City Building Design Institute, and the Design Institute of Zhejiang University, which provides powerful technology guarantee for producing quality forklifts.

The company has formed a product structure of 1-4.5T Inner Combustion forklifts, 1-3T battery forklifts, container handling forklifts, LPG forklifts, and reaches forklifts. It will continuously strengthen the research force; enlarge the range of the products, so as to meet the different demand of domestic and overseas customers.