Weichai Group Produces and Sells 1.05 Million Engines in 2021 with New Record High

　　On January 4, 2022, the first day at work after the New Year holiday, Weichai Group held a ceremony in the production workshop of the Weifang headquarters to celebrate Weichai Group’s production and sales of 1.05 million engines in 2021. Under the witness of employees and customer representatives, Tan Xuguang delivered the "1.05 millionth engine" to Shacman.

　　With production and sales exceeding one million engine in 2020, Weichai Group continued to exert its strength and break through the declining tendency with once again setting a new record in the global diesel engine industry. This shows that Weichai’s leading position as “world’s largest diesel engine industry cluster” has become more stable, and the development curve of "diversified, balanced and decyclical" has become clearer. Weichai set an example and created a model for the high-quality development of equipment manufacturing enterprises in Shandong Province, and has become the most beautiful sight in the global industry.

　　2021 is an unusual year. Industry is down, competition is intensified, and the fluctuating epidemic has exacerbated the global supply chain crisis. In the face of profound changes in the domestic and international environment and severe market challenges, Weichai decisively took actions and won against the declining tendency with an annual production and sales of 1.05 million engines.

　　The extraordinary performance benefits from the strategic layout of specific market segments and the precise understanding of customer needs. In 2021, Weichai's full range of engines blossoms and shines in all fields.

　　Coincidentally, Sinotruk, a "brother company" under the Shandong Heavy Industry Group, also handed over a dazzling result -- 220,000 engines were produced and sold in 2021. As a result, Shandong Heavy Industry Group's total production and sales of engines in 2021 reached 1.27 million units. Tan Xuguang, the man at the helm, became the well-deserved "king of power in the world."

　　Under the severe epidemic situation, behind two consecutive years of production exceeding 1 million engines are Weichai’s aim at the forefront of technological innovation, high R&D standards and large investment, and R&D investment of 10.3 billion yuan in the past three years. In 2021, the National Fuel Cell Technology Innovation Center led by Weichai Power settled in Shandong; the National Internal Combustion Engine Product Quality Inspection and Testing Center led by Weichai successfully passed the review; Weichai Lovol released the first independent CVT heavy-duty intelligent tractor in China, filling up the domestic technological gap. At the same time, Weichai took the lead in implementing the mechanism of “volunteering for project leaders” to spike innovation vitality. Core technologies such as engine thermal efficiency, fuel cell, commercial vehicle powertrain, CVT powertrain, hydraulic powertrain, etc. continued to make breakthroughs, realizing the innovation chain reaction and accelerating the transformation to mid-to-high end of the value chain.

　　Grasping technology with one hand, Weichai also constantly builds technological capability with the other hand. With transformation, Weichai established major projects to release new driving force. Looking back to 2021, Weichai has also achieved good results in the conversion of new and old growth driver and the promotion of industrial transformation and upgrading.

　　Shandong Province regards accelerating the conversion of new and old growth driver as the key to implement new development concepts and promote high-quality development. It also persists in making the “top ten” modern advantageous industrial clusters including high-end equipment. As one of the important players, Weichai has continuously accelerated the deployment of new business models and new technologies, cultivated new driving force, and continued to inject new vitality into the high-quality development of Shandong's equipment manufacturing industry.

　　In terms of major projects for the conversion of new and old growth driver, since 2020, Weichai Group has implemented a series of projects focusing on intelligent manufacturing, high-end power, new energy industries and the improvement of scientific research capabilities, with a total investment of 33 billion yuan and 16 major projects. Up to now, 12 have been completed, with a completed investment of 23 billion yuan. The 4 projects under construction, with an investment of 10 billion yuan, will all be completed and put into use before 2023.

　　In terms of new business modes and new technologies, Weichai's hydrogen energy industry has entered a "blooming and fruiting period" in 2021, and it has successively carried out hydrogen energy parks, high-speed and port demonstrations, and successfully created the "Hydrogen Power Corridor" in Shandong Peninsula. Among them, the newly developed 162kW high-power hydrogen fuel cell was successfully applied to the snow car of the 2022 Beijing Winter Olympics, which is the first in China, advanced in the world, and completely domestically produced. At the same time, Weichai has comprehensively deployed new businesses such as Internet of vehicles, intelligent driving, and electronic control systems. It has continued to invest heavily in building new business products, parts and core competitiveness in key technologies, and has taken a step toward the goal of leading the development of the global industry.

　　In 2022, China's economy will stay stable. "Only with stable manufacturing industry, will you get the basic industrial market more stable." Weichai, which shoulders the heavy burden, has started at the forefront of the high-quality development of Shandong's equipment manufacturing industry, and has aimed at the leading positions of high-end power, new energy power, and smart agriculture etc. In the new journey of 2022, Weichai will fulfill its trust and mission.