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Xinhua Daily Published A Report On Xinyang Technology Group On The Front Page Of August 18, 2016.
Sep 30, 2018

The Xinhua Daily published a report on the Xinyang Technology Group on the front page of August 18, 2016. 

The following is the full report:


Grassroots "invisible champion", transformation and re-launch
The famous management guru Herman Simon put forward the concept of “invisible champion” in “Invisible Champion: Who is the Best Company”, that is, SMEs with a large share in the domestic or international market, but with low social visibility. . The reporter recently found in the Changzhou National High-tech Zone that in the face of economic downward pressure, a group of grassroots "invisible champion" enterprises are trying to lead a posture.
Bin Zhou, secretary of the Party Working Committee of Changzhou National High-tech Zone and secretary of the Xinbei District Party Committee, believes that grassroots enterprises can grow into "invisile champions", which are inseparable from their strong ability to adjust. Many of their practices in adjusting the structure of transfer are instructive.


Starting from 10 yuan
Developed the world's first "green change"

On August 15, Changzhou Pacific Power Equipment Group developed the world's first large-scale iron core energy-saving traction transformer, which passed the “technical review” of the railway company.
In the high-speed rail track, an average of “gas-insulated switchgear” is used every 0.8 km of track to ensure stable power supply during rain, windy or even earthquakes. It has been imported before, and the “Changtai” product was successfully developed in 2009. At present, “Changtai” is the only company in China that can produce this product, and it has a 60% share of the domestic high-speed rail market.
For such performance, “Changtai” has not been satisfied, and now it has become the only unit in China that has mastered the design and manufacturing technology of 220KV coil core transformer and the only special processing equipment with independent research and development project products. Gao Changkai, the founder of “Changtai”, told reporters that compared with the currently used laminated transformers, the winding core traction transformer can reduce the no-load energy consumption by more than 40%, so it is commonly called “green change”. One year, it can save more than 1 billion yuan in electricity costs.
Gao Guokai, who started his home repairs for 10 yuan, built his own set of "introduction inline". He cooperated with Southwest Jiaotong University and invited the experimenters and assembly workshops of Changzhou Xidian Transformer Co., Ltd. as transformers. Production as a support, successfully created a "new supply."
"Last year sales of more than 800 million yuan, after the completion of the new factory, my goal is 2 billion!" As a private entrepreneur, 69-year-old Gao Guokai is very grateful to the government. "At that time, Changzhou leaders took our father and son to run into the Ministry of Railways. In the process of 'green change' research and development, the provincial and municipal governments supported tens of millions of yuan." However, he also admitted that some bidding units like to use foreign countries. Big names, national brands are either wearing colored glasses, or afraid of taking responsibility. He hopes that the government can make a real move to reverse this phenomenon.


Textile machinery factory transformation
Production of carbon fiber that is light and strong
Affected by the market environment, sales of textile machinery products have generally declined in the past two years. However, the output value of the Changzhou No. 8 Textile Machinery Factory under the Liangchun Group in 2015 reached 160 million yuan, a year-on-year increase of more than 30%. This year, the company has also been producing at full capacity. What is the reason?
"Because we have been transforming!" Tan Liangchun, who founded the "Eight Textile Machinery" in the 1980s, said that the transformation is like a few treasures. From the warping machine of 50,000-100,000 yuan, to the warp knitting machine of more than 500,000 yuan, to the new warp knitting machine for manufacturing new materials of more than 5 million yuan... the multi-axial warp knitting machine produced by it, the output, Performance is at the world's leading level.
Since it is possible to produce a new type of finishing machine, why not directly produce new materials? Liangchun Group established Hongfa Zongheng New Materials Co., Ltd. a few years ago to start producing high-performance fiber warp-knitted composite materials. According to reports, the manufacture of blades on wind power plants of 1.5 megawatts or more, using traditional processes, requires 8-10 tons of chopped glass fiber, and if the new materials produced by Liangchun Group are used, the weight is only about half. The lighter the material, the faster the blades turn and the cost of wind power generation is greatly reduced.
Carbon fiber is a new type of material that is as light as feathers but ten times stronger than steel. It can be used in aerospace, rail transit, clean energy and other fields with broad development prospects. In 2010, Liangchun Group, through joint research with research institutes, became the only carbon fiber warp knitting machine manufacturer with independent intellectual property rights in China, and began to produce carbon fiber thereafter. In 2016, the Group built an overseas production base with an annual output of 30,000 tons of warp knitting materials in El Paso, Texas. In 2015, “Hongfa Latitude” achieved sales of nearly 10 billion.
The 75-year-old Tan Liangchun hopes that the government can introduce policies to facilitate the testing of new products.


"1 dollar acquisition"
Paint factory transforms along the industrial chain
The predecessor of Xinyang Technology Group was the paint factory founded by Zhang Wenjun in the 1990s. After more than ten years, it developed into the country's largest producer of unsaturated polyester resin. In recent years, in the face of the macroeconomic downturn and the lack of downstream demand, Xinyang Technology Group has continued to expand its industrial chain along the production of unsaturated polyester resin coatings. It has successively built a maleic anhydride production line and a phthalic anhydride production line. Fumaric acid production line, styrene production line.
In the interview, the reporter also heard a story of “$1 acquisition of a US-owned factory”. In 2008, the United States was in financial crisis, and the styrene producer of the unsaturated polyester resin coating upstream product, the US-based Changzhou Dongpu Chemical Company, had a debt of 370 million yuan. Zhang Wenjun bought it for 1 US dollar. The following year, Dongpu Chemical started to return to life. The sales amounted to 1.146 billion yuan and the profit and tax was 178 million yuan. It became a model case of mergers and acquisitions in the industry at that time. Through the operation of the styrene technology and talents accumulated by Dongpu Chemical, Xinyang Technology has successively built the second and third phase production lines of styrene. At present, the annual output of Xinyang Technology styrene reaches 800,000 tons, second only to Sinopec and PetroChina. , sit firmly in the first place in the national private enterprise peers.
In February 2015, Xinyang Technology Group once again released a transformational move: investing 50 million yuan to open the first chemical and chemical contract trading center in China's chemical industry supported by production enterprises, using e-commerce platform to trade chemical products such as styrene. . In 2015, the total transaction volume of the e-commerce platform reached 34.3 billion yuan. "Looking for new economic growth poles is the primary reason for building an e-commerce platform." Zhang Wenjun bluntly said that Xinyang Group is mainly based on the chemical industry, and its investment intensity is large. If it is simply extended, it will create excess and bring risks.
Speaking of the government's proposal, Xinyang Technology senior manager Xinzhong Chen called for further reduction of the burden on enterprises. "For example, the government's direct power supply policy for large users is a major benefit to alleviate the burden on enterprises, and hopes to further increase the share of direct power supply. ”
                                                                                                                                Xinhua Daily reporter Hang Chunyan

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