As one of the leading enterprises in the construction machinery industry in China, Shantui Construction Machinery Co., Ltd. (Shantui) was among the Top 50 World Best Construction Machinery Manufactures, Top 500 Manufactures in China and Top 100 China Most Profitable Enterprises in Machinery Industry. Possessing seven business departments, six stock holding subsidiaries and three joint-ventured branch companies, Shantui had reached the goal of annual producing and selling 15,000 sets of bulldozers, 7,000 sets of road rollers, 160,000 sets of track assembly series, 80,000 sets of hydraulic torque converters, 25,000 units of transmissions and 1.4 million sets of four-wheeled construction machinery. In the company, there was a state-leveled technology center, Shandong Provincial Engineering Technology Research Center and post-Doctoral Scientific Research Working Station. During the Tenth Five-Year Plan period, Shantui totally succeeded in developing more than 60 types of new products, including 13 categories and 140 models of equipment products ranging from bulldozer, road rollers to concrete machinery, and 4 categories and 670 models of matching products covering track assembly and transmission. Besides, Shantui also did well in the field of producing technical equipment and specialized machinery.

In 2010, sticking to the development strategy of manufacturing diversified related products, conducting double drives in the field of economy and translation, focusing on the perspectives of internationalization and realizing leap-forward development, Shantui speeded up in optimizing the industrial layout. The annual production volume of bulldozers broke through ten thousand sets with the production and sales amount ranking to be No. 1 in the world; moreover, the concrete machinery, road rollers and compaction machinery also realized fast development, consolidating and strengthening the position of Shantui in construction machinery industry. The operation revenue of Shantui reached RMB 13.4 billion Yuan, creating the highest level of increasing and also becoming an important milestone in the history of Shantui’s 30-year operation, which was a sign of Shantui to march towards a new development stage.

•30-year Development to Create Fruitful Accomplishments

In order to change the situation in China that the nation totally relied on export in terms of large horse-powered bulldozers and to break through the null record of producing bulldozers with more than 180 horse power in domestic China, the former Ministry of Machine-Building Industry started to carry out the bring-in project of producing large horse-powered bulldozers in Jining in the 1980s. On January 1, 1980, the Ministry merged the three enterprise—the former Jining Machine Factory, Jining General Machine Factory and Jining Powered Machine Factory to establishe Shandong Bulldozer General Factory, and signed the Technological contract for Crawler Bulldozers with Japanese Komatsu Co., Ltd. The first D85A-18 bulldozer was successfully under trial in Shandong Bulldozer General Factory in March, 1981, and then in 1983, Shantui introduced undercarriage technology for crawler bulldozers from Caterpillar in America.

Till 1987, the sales of bulldozers in Shantui accumulated to break through the record of 1000 sets, and in December of the same year, Shantui became the export base for mechanical and electrical products under the approval of the State Import & Export Office for Mechanical and Electrical Products and the Ministry of Foreign Trade and Economy.

Developing into the 1990s, Shantui accomplished scaled production through bringing in and absorbing more innovative technologies, and the product categories and models in the company became diversified and sophisticated. During this period, in 1990, Shantui TY220 bulldozer won the only one national golden medal in the field; on May 30, 1995, Shantui established Komatsu Shantui Construction Machinery Co., Ltd. jointly with Komatsu Co., Ltd.; on December 27, 1996, Shantui shares (000680) was listed in Shenzhen Stock Exchange; in December, 1997, Shantui was titled to be the “National Customer Satisfaction Enterprise”; on December 25, 1998, the 5000th set of Shantui TY220 bulldozer was rolled off the line in the branch assembly factory of Shantui.

Entering the new century came, Shantui established Shantui International Business Park in 2003, branches such as Shandong CAB Co., Ltd., Structural Parts Co., Ltd., Steel Castings Co., Ltd. and Modeling Company entered the Park in turn.

In 2008, Shantui acquired Wuhan Chutian Company and entered the concrete industry, fastening the speed of diversification; in 2010, Shantui acquired 70% of Fuqi Company’s shares from Hongsheng Group to jointly develop the cause of fire fighting vehicles, laying more sound foundation for realizing the long-term strategic goal of Shantui.

•Self-innovation to Keep the Leadership in the Industry

For many years, Shantui successively maintained the excellent remarks of being No. 1 in such five terms of sales revenue, sales amount, marketing shares, export volume and profits in the bulldozer industry. Relying on self-innovation, Shantui continuously occupied the leadership of bulldozer industry in domestic China, becoming a crucial strength in the field of international construction machinery industry. The company paid great attention on self-innovation, and gradually built the development and research platform with relatively high technological level, developing a great amount of production with self-intellectual rights, including new types of bulldozers and compaction machinery.

In the course of developing and designing the products, Shantui kept upgrading the technological level and enhancing the rate of successful development, and some standards of Shantui had become the technological criteria in the industry. For example, the newly-launched 100-horse powered hydraulic bulldozer and SD52-5 crawler bulldozer had filled the gap in domestic market, reaching the leading level around the globe. The latest hybrid powered bulldozer project was a more revolutionary try and would bring a thorough reform to the bulldozer industry.

Since the eleventh five-year plan, Shantui launched more than 20 new products every year, winning 60 issues of national patents. Shantui put the application of patented technologies and new materials on a higher agenda, timely transferring the scientific technologies to real production force. The new products such as the first set of large-tonnage garbage compaction machine SR33YR, the first set of large-powered bulldozer SD52-5 in China and the supporting project SD10YE hydraulic bulldozers in the eleventh five-year plan had been widely applied new technologies, new materials and patented technologies. The products of Shantui reached the leading level in China, and the key technological index was going towards the international level.

With the effective protection and application of patented technologies, the technological level of products in Shantui achieved a new height, and some standards of the enterprise had become the general standards in the industry.

•Internationalized Perspective Indicated the Force of National Brand

In recent years, Shantui grasped the keys of self-innovation, actively took part in the international competition and presented the strength of made-in-China products. Till now, the bulldozers branded in Shantui had exported to more than 100 countries and districts in the world with a continuous increasing rate of marketing shares, further indicating the influencing power of national brand.

With the goal of strengthening the capital operation and widening the scales of the enterprise so as to provide strong backup force of participating in international competition, Shantui International Business Park as the platform for taking part in international marketing competition of Shantui was officially open on October 29, 2003. Shandong CAB Co., Ltd., Structural Parts Co., Ltd. and Shandong Shantui Ouyatuo Machinery Co., Ltd. opened on the same date. In 2006, Shantui SD22 and SD16 series of bulldozers passed the CE authentication which were all European and American standards, totally possessing the conditions to export to the European markets. In October, 2008, Shantui successfully accomplished the Vietnam projects, realizing the crucial transfer from product export to output of technology and management.

On April 17, 2011, Shantui Fushun Industrial Park laid the foundation under the plan of totally investing RMB 4 billion Yuan and using construction floor of 800 Mu. It was anticipated that the Park would own the production capacity of annually manufacturing 12,000 sets of various construction machinery after putting into production with production volume amount to RMB 10 billion Yuan. Moreover, the first phase of Shantui Concrete Machinery Wuhan Industrial Park finished on April 18, during which project Shantui would have reached the goal of producing 1,000 sets of concrete mixing stations, 5,000 sets of pump trucks, 10,000 sets of concrete mixing trucks and 1,500 sets of trailer pumps, which were all high end construction machinery. This Park formed a specialized industrial chain of matching equipment including one station and three trucks.

While the capital was operated in domestic China, Shantui planned to show more power on the international market. Through scientific control and prediction of market demand, Shantui elaborately arrange the layout and grasp the development opportunities on the market. Shantui took the markets Africa, South East Asia and Middle East which were relatively weak as the breaking though points, and areas including Russia, India and Brazil where the economy increased quickly as the key marketing places to enter the markets in Europe and Australia with deliberate plans. Now Shantui has formed several marketing plates such as African market, Russian-language market, Middle East and South East Markets, Middle South America market and Oceania market. Besides, relying on the positional advantages of the branch companies in Hong Kong, Brazil, Russia and Dubai, Shantui constructed a broad overseas sales platform to sophisticate the sales network in the global world. Shantui pushed forward the marketing mode of overseas dealerships and the dealers of the company had distributed in more than 100 countries and districts in the world. In 2010, Shantui exported over 2300 sets of machines with export volume of foreign trade up to 240 million dollars.

•New Power for Leap-Forward Development

As a new developing period had begun, Shantui decided to take more measures to push forward the pace of internationalization and diversification of the company. The measures were listed as follows:

1. Firstly, the company stuck to make use of innovative marketing strategy and strengthen the power of exploring markets. Shantui reinforced the analysis and predication about the market, respectively conducting macro predication and micro analysis toward the construction machinery industry. The company standardized the operation of signing the dealerships, and carried out qualified check to complete the checking standard. Through appointing professionals to the dealerships to support the sales of parts and accessories and to introduce the service of new products, Shantui took the marketing training as the key of operation, and gave the employees in Shantui and the dealer companies a comprehensive training course according to their respective areas. Shantui maintained strong backup force of development with the goal of satisfying the customers and exploring the market with efficiency marketing concept.

2. Then, Shantui continued to improve the quality of service and put the concept of offering timely service for all the customers into practice. In 2010, Shantui made a statistic to the data of 1299 pieces of customers’ satisfaction surveys chosen randomly, and it turned out that the indicator of customers’ satisfaction reached 8.74. Paying more attention on improving the service quality of the working staff in the dealer companies, Shantui cultivated a number of serving staff for the dealer companies and conducted authentication of ABCD levels to provide powerful guarantee for establishing a new platform of marketing. Meanwhile, Shantui opened the 400 hot line for national service, and finished the full upgrade of ERP service system, which improved the brand image greatly. In terms of control methods, Shantui realized simultaneous process control towards the dealer companies and factories, during which the dealer companies supervised the service quality.

3. Thirdly, the company implemented the strategy of making the enterprise strong by cultivating more talents. On the aspects of bringing in talents, Shantui kept innovating, stressing the working features such as localization of talents for international trade, duel drive of bringing in and cultivating talents. During the process towards internationalization, Shantui gave prominence to integrate into the local area, boldly attracting a number of local talents. Now there were over 80 workers with foreign nationality, who were under localized management.

Shantui introduced some foreign talents with high salaries from international famous companies, inducing Caterpillar, Ford and the Hong Kong and Shanghai Banking Corporation Limited (HSBC), and enhanced the force of awarding the local talents for scientific research. On the Conference for Scientific Innovation in the Field of Construction Machinery held on October 30, 2010, Shantui provided a rewarding fund up to RMB 2.5 million Yuan for the innovative achievements and those who erected examples for the others, among which the highest award fund for individuals reached RMB 300,000 Yuan. Careful cultivation for fruitful achievements, Zheng Hongliang as the Director of Information Department, Shantui was titled honorably to be “Mount Tai Scholar” of Shandong Province.

4. Last but not the least, Shantui increased the investment in terms of science and research and improved the level of product development. There were electric and intelligent lab, hydraulic part lab, transmission lab in the experimental center of Shantui, processing a series of experimental methods and platforms including reverse analysis of products, analysis on competitive products and specification analysis of machines, enabling to effectively verify and check the machines as well as the key parts. According to Shantui, there would have established more first-class facilities such as trial lab for structural parts and center for physical and chemical measurement in the experimental center. The company owned advanced developing methods including CAD, CAE and PRO/E to ensure the smooth and efficient conduction of product development. The Research Institute of Shantui also kept a long-term partnership with Tongji University, Jilin University, Chang’an University and Shandong University. At present, relying on the Development & Research Center and Post-Doctoral Working Station at national level, Shantui had introduced three doctors working in the company and succeeded in forging ahead many large projects.

Till now, Shantui processed several manufacturing bases including Shantui International Business Park, Shantui Heavy Duty Equipment Industrial Park, Wuhan Industrial Park, Fushun Industrial Park and Tai’an Ruichi Industrial Park. The products in Shantui ranged from earth moving machinery, road rollers, compaction machinery, concrete machinery, truck crane machinery to construction machinery and related parts, ten categories in total.

Marching fast and steadily on the way to be internationalized, Shantui was attracting the sight and attention from all walks of life at home and abroad. As a leader in the construction machinery industry, Shantui passed down the spirit of entrepreneur and innovation circling around the development strategy in the twelfth five-year plan, starting a new page towards becoming an internationalized construction machinery manufacture.
 
About Shantui

Shantui Construction Machinery Co., Ltd. (Shantui) specializes in the manufacture and sale of construction machinery products and related spare parts, such as bulldozers, road machinery, building machinery, industrial vehicles, etc. Shantui is China's first-class national enterprise, and the company is among the Top 50 global construction machinery manufacturers, Top 500 machinery manufacturing enterprises of China, and Top 100 profitable enterprises in China's machinery industry.  The company has received the titles of Hi-Tech Enterprise, Informational Model Enterprise in the manufacturing industry, and a Model of Corporate Culture, all in Shandong Province.