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2022-07-25
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Looking at the internationalization of China's agricultural machinery from Lovol's European strategy

looking at the internationalization of China's agricultural machinery from Lovol's European strategy

China's construction machinery information

now, the world is about to enter the era of "industry 4.0"

in order to keep pace with the development of global economy and technology, China has put forward the economic strategies of "made in China 2025" and "the Belt and Road". The important task of realizing this Chinese version of the "industry 4.0" strategy and the "leading force" naturally falls on the shoulders of "leading enterprises" in all walks of life (especially in manufacturing)

the author notes that when Lovol heavy industries put forward the strategic goal of "globalization" in 2008, less than 200 of the company's 16000 employees were able to communicate freely in English. Although their products can dominate the domestic market, they still lack sufficient competitiveness in the international medium and high-end mainstream agricultural equipment market

7 years later, Lovol heavy industries has taken the first step in a down-to-earth manner towards the seemingly "unrealistic" goal of globalization

in 2014, Lovol heavy industries successfully acquired apos, a century old European agricultural machinery enterprise, and matemark, a leading European enterprise in the field of agricultural machinery manufacturing; On september15,2015, Lovol apos Group Co., Ltd. was further integrated with Lovol Europe's assets and incorporated, completing the construction of a full value chain operation platform in Europe. On november8,2015, Lovol Arbos group released a whole series of products with international technical standards, such as new self-developed and serialized power shift tractors and precision seeders, to the world at the agricultural machinery exhibition in Hannover, Germany

from a "native" local enterprise to today's first step of "globalization", Lovol heavy industries "why?"

the "global dream" of local giants

2011 is the beginning year of Lovol heavy industries' globalization strategy after three years of gestation and preparation. Lovol Europe technology center was officially established in this year

what is the domestic agricultural machinery industry like in 2011

in that year, the total output value of agricultural machinery industry was only more than 280billion yuan, but the year-on-year growth rate of the industry was as high as 33%, and the industry development was in the "golden age" of rapid growth; In that year, the corn harvester market was just emerging, the wheat harvester market was saturated, and Lovol heavy industry accounted for nearly 70% of the sales in the field of wheat harvesters; In that year, senior experts and "big men" in the industry were calling for a gap of at least 30 years between China's agricultural machinery and the world's advanced level of agricultural machinery, a serious low-end overcapacity, a serious homogenization of products by pressing the calibration key, a low competitiveness in the international market, and almost unable to enter the European and American markets with a small force. China's agricultural machinery manufacturing industry urgently needs a breakthrough in its independent innovation ability

however, how difficult is independent innovation

in the agricultural machinery market at that time, the most popular products were wheat machines, corn machines, rice machines and tractors, most of which were derived from a single drawing. Moreover, the situation at that time was that the market was hot and the prospect was bright. Should a strong man break his wrists, start anew and innovate from scratch? Why? Is it worth it

at this time, Lovol heavy industries launched its own globalization strategy

the senior management of Lovol heavy industry at that time believed that it was not feasible to carry out independent innovation and build things behind closed doors in "their own backyard". It was necessary to "go out", seek appropriate technical routes, and rely on international advanced R & D foundation and technical talents for R & D. However, this "going out" cannot be a general joint venture or cooperation, and the "market for technology" route, even if it is effective, will take too long, and the gains will outweigh the losses. Lovol heavy industries must master the autonomy of technological innovation. How do you do it? In addition, Lovol heavy industries has chosen the following route: focus on me, first easy, then difficult, step by step

in 2011, Lovol heavy industries Europe R & D center was established, and then in 2013, Japan R & D center was established. At that time, Lovol overseas R & D center was quite mysterious among people in the agricultural machinery industry. On the one hand, the center had just been established and was in the early stage of operation, so it really had no achievements; On the other hand, industry insiders and domestic media may also regard Lovol heavy industries' "globalization" strategy as a new marketing means, but they did not pay much attention to it, or even did not take it seriously for a time

it is against this background that Lovol European R & D center is in full swing

at that time, Lovol Europe R & D center was mainly aimed at the R & D of new power shift tractors, which was used as a platform to attract talents around the world, and concentrated in Germany, Italy, France, the United States and other traditional agricultural machinery powers to seek high-quality resources for acquisition

after four years of hard work, Lovol heavy industries' global dream finally achieved fruitful results in 2014

apos and matermacc

matermacc company, I believe that people familiar with agricultural machinery will not feel strange. In 2014, Lovol heavy industries, with the help of its relatively mature European business platform, wholly acquired matemark, a European high-end agricultural machinery enterprise

"it is very difficult to acquire such an enterprise. Localized operation must be carried out. It is impossible to succeed without the operation of Lovol European R & D Center for more than 4 years." Shenyang, director of Lovol Europe business, said

wangguimin, chairman and general manager of Lovol heavy industries, said that the acquisition filled the technical gap of China's high-end seeders and core components, and laid a more solid foundation for Lovol heavy industries to expand its business at home and abroad

before acquiring matemark, Lovol heavy industries also acquired another brand with a low profile, namely Arbos, which has a history of 100 years

compared with Matt mark, the brand apos seems strange to people. However, in Italy, this enterprise, whose core business is high-end harvesting machinery and tractors, has a high reputation

Lovol heavy industries acquired Arbos, on the one hand, for its mature technology of tractors and harvesters, and on the other hand, for Arbos, a brand once famous in Europe and America

after the baptism of Lovol and the redefinition and creation of the European R & D center, Arbos has taken on a new look and been reborn. It will rebuild its brilliance on the stage of globalization

strategy always strives to be the first and innovation is endless

Lovol heavy industries has explored a way for China's agricultural machinery to go global with its own practice

this road, which was not favored at the beginning, has been proved to be one of the effective ways for China's independent innovation of agricultural machinery and "going global"

why can Lovol heavy industries "take the lead" to truly "go global" strategically and use overseas resource platforms for independent innovation? The answer is vision and judgment, long-term strategic planning

"before 2011, looking at the domestic agricultural machinery industry, the transformation and upgrading encountered a bottleneck. Lovol heavy industries determined that it was necessary to set up R & D centers overseas, integrate high-end human and technical resources in Europe and the United States, and introduce advanced product development methods." Shen Yang told the author, "for Lovol heavy industries, capital investment is one thing. I think it is more important for the enterprise to have vision and judgment. These may not be bought by money, and we need to accumulate and cultivate bit by bit in the process of project operation."

"how to improve the technical content of local agricultural machinery and tools, so as to promote the rapid development of the domestic agricultural equipment manufacturing industry? In Lovol heavy industries' view, we should accelerate the implementation of the 'globalization' strategy, borrow ideas from the world, and integrate high-end human and intellectual resources for our own use." Wangguimin said. "The globalization strategy is not only to sell products abroad, but also to achieve global R & D and global procurement and sales through the integration of global resources, so as to improve the technical level of products, so that our products and such machines should be able to collect half of the fragments in the garbage belt within five years and stand on the same level with international brands."

Lovol heavy industries said so and did so

the author learned that Lovol heavy industries not only released new products such as Arbos tractor and Matt mark precision seeder at the Hannover exhibition in Germany, but also formulated a series of product plans to ensure that Lovol heavy industries will launch new products every year in the global medium and high-end agricultural machinery field in the next few years

relying on the R & D and innovation system with international layout, Lovol heavy industries' product line will be continuously improved, and its brand value in the world will be further improved

from the establishment of the European R & D center to the successive incorporation of Arbos and matemak, and even the establishment of Lovol Arbos group, Lovol heavy industries' globalization is just the beginning

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