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Hu Yueming: Reconstruct NGC through a Second Undertaking

Published: 2010-07-08

    

Source: www.chinacements.com

Chairman of Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd. Mr. Hu Yueming

When I first saw Mr. Hu Yueming, the chairman of Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd., it reminded me of the famous general Zhou Yu during the period of the Three Kingdoms. They share the same refined temperament -- elegance and gracefulness, full of foresights, broad minded, courage and wisdom, and created a kingdom in the same place known as Nanjing. Facing such a kingdom of machinery equipment manufacturing, everyone shall be convinced of the excellence of its leader and creator.


Chairman of Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd. Mr. Hu Yueming (Left),CEO of www.chinacements.com Mr. Shao Jun(Right)

  To Produce World First Class Products

Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd. (hereafter referred to as NGC) has a history of over 40 years. It started from producing small gearboxes, and after generations of our staff’s efforts, the company has developed into a large group expanding products to serve many industrial sections including metallurgy, building material, power generation, mining, lifting cranes, energy, national defence, etc. Now the output value and equipment capabilities are listed as No.1 in China and No.2 worldwide. Within 3-5 years, the output of NGC will still  improve, aiming to be world No. 1 in the transmission equipment industry.


NGC always adjusts its pace of development according to the market demand and supply, especially since the reform and opening-up. NGC has insisted on producing world advanced products of first class and keeping technology as the foundation of development, to be at the forefront of the equipment manufacturing industry not only in China but around the world. And Mr. Hu Yueming explained that “the reasons we manufacture high end products are as follows, first, the high end product may have better economic benefits; second, it may change the image of China in respect to the world equipment manufacturing industry and progressively surpass global competitors”. But high end products aren’t necessarily accepted by the market. On the contrary, the mechanical equipment manufacturing industry is less advanced in comparison with Europe and America, therefore the company who wants to be world first class will face all kinds of doubt not only at home but also abroad. It can be said that NGC has chosen the most arduous and longest way.


In order to ensure high quality standards, NGC has purchased many world leading large machinery manufacturing equipment. For example, the 6 meter gear grinding machine from Germany, which is the only one in China—and there are only three such machines around the whole world; bevel gear machine from Germany with largest working diameter of 2 meters; the gearbox casing machining center from Italy; the German Leitz cordinate measuring machine, which is the largest worldwide; the 4 meter carburizing furnace from Austria etc, global top quality machine tools. From the hardware equipment it ensures quality products.

But not all high quality products can necessarily win customers, the key is acceptance of the market.Then how can we win the market’s trust? Mr. Hu’s answer is “to attach importance to both domestic and international markets and boost domestic sales with an international reputation”. First sell products to world famous companies to achieve their approval and support, then enlarge the domestic market. For this purpose, NGC has to pass a series of audit and assessment procedures set by foreign customers to earn their trust and attract their orders with high performance-price ratio. After securing a position in the foreign market, we will come back to open the domestic market and attract the customers with international popularity. Through continuous efforts, NGC has overtaken European and American peers in the wind power gearboxes with world’s best production scale and economic efficiency.

  Become a world first class enterprise

NGC insists that “Only international brands can exist in the domestic market”. Mr. Hu also gave his explanation, “A mechanical equipment manufacturer without an appropriate position in the foreign market will end and fail in the domestic market”. To market with an image of world first class, is the only way to create a favorable environment in China. The only way to lead to international branding is globlization. Keep the international market as the strategic target and make the biggest first class product worldwide to establish a position in the markets at home and abroad to grow into No.1 in the world’s equipment manufacturing industry.
  
Grow strong before growing big; provide quality products, perfect service, have a competitive price. These are the indispensable factors in international competition. Only enterprises with a position in the global market may grow strong after becoming big so as to make your voice heard in the foreign market. Acquisitions are inevitable for becoming big. Mr. Hu’s comments on acquisitions are: “First, the big acquires the small”, i.e. the enterprise with more capital shall acquire the enterprise with less funds. A snake eating an elephant will add to the risks. “Second, the strong ones acquire the weak”. A big enterprise with a strong basis shall acquire small enterprises. To acquire a small company with strong advantages will ensure the ability to guide it. It’s not necessary to take the complete company, but to get its core parts such as technology talents and an efficient management team. What’s more, attention shall be paid to the differences in local culture, company background, etc. The company is prepared for becoming strong only when it has grown into a big company, step by step through acquisitions, self-development and various methods.

  Build up another NGC within 5 years

NGC has filled up many blanks in the technology, equipment and products for the domestic market through fourty years’ of development and accumulation. It has been ranked among world leading enterprises for a number of consecutive years. Yet Mr. Hu Yueming doesn't take these achievements as miracles. He told us that if NGC had gotten more time for accumulation, it would have grown even bigger than today. If conditions are ripe, he said, another NGC could be built up within 5 years.

  
In order to build another NGC, a second undertaking is necessary. Mr. Hu Yueming told us that without a second undertaking, NGC will be destined to fail in 10 to 20 years. All century-old establishments are set up on the foundation of continuous innovation. Mr. Hu also listed the conditions for a second undertaking. First: accurate perception for future market. The future market refers to the emerging market which could be guided through efforts and practice. Second: a core leader who has considerable technical accomplishments and the ability to lead a complete technical team. Third: a number of professionals. A core leader is not enough without support from a capable technical team. The fourth is capital. Put in some money to have a trial in the beginning and inject a large amount of capital to enlarge the scale when the project is ready for batch production for the market. The next condition is the management system and the last is brand. Mr. Hu Yueming told me that among these six conditions, the future market and the core leader are the crucial factors that matter. As the chairman, he is focusing 80% of his energy on the second undertaking to get hold of the overall operation and inject fresh blood into NGC through the second undertaking to turn the “dream” into a fact of establishing a century-old establishment.

From the left: Vice General Manager of the Building Material Equipment Sales Company, Mr. Gu Shuping, Mr. Zhang Xiaoping, Mr. Gao Jian, Vice General Manger of NGC and General Manager of the Building Material Equipment Sales Company, Vice General Manager of the Building Material Equipment Sales Company, Mr. Shi Limin and Mr. Jiang Yifan

From the left: Gu Shuping, Gao Jian, Zhang Tao, Jiang Yifan, Zhang Xiaoping, Shi Limin

  Refined gear, accurate placement of talent


The development of NGC is dependent on technical innovation, and the key driver of technical innovation is talent. The sources of talent are recruitment and cultivation. Mr. Hu stressed: “NGC attaches great importance to the cultivation of talent and I think the most precious resource of the company, more than anything else, is its talent.”

Talent is most important for NGC. The company’s development needs support from talent in not only the management but on all levels. Actually, a good ordinary worker is talent. Mr. Hu stated: “We have a batch of good managers who are doing the daily work with good performance. They are the real heroes.” NGC put a lot of manpower, money and property in cultivation and education for its talent and to provide good environments for working and living, fill the hearts of employees with sense of belonging and add to cohesion of the enterprise. Mr. Hu doesn’t want to fire any employee without abundant reasons, therefore the employees could settle down to work for the company. What’s more, graduates with good majors from good universities can enjoy a special policy in NGC and better opportunities for development. Young people with genuine ability and learning could be furnished with opportunity to stand out for promotion.

Besides emphasizing and cultivating talent, NGC also advocates internal harmony. The managers shall get on well with their subordinates so that the workers may smile sincerely during inspection of the workshop. Mr. Hu himself is also easygoing, there’s nothing arrogant about him. He talked and laughed with his staff during my visit, mentioning the popular novel of working life, ‘Go, Lala Go’. He regarded the expression “human-based management” as looking down from a commanding position, therefore advocates using “get on well with”. NGC also cares for employees in difficulties. “Our company will cover 100% of the medical expenses for employees suffering from cancer. We will never send our employees home to wait to die.” He claimed.

NGC also has a unique standard for recruitment. For example, if the wife of a worker in the company is up to requirements, NGC will encourage her to join the company. Therefore the couple will share happiness and work more actively, resulting in a harmonious team.


Photo of the China cement team and the top management of NGC

Cement industry: Another growth point for profits

NGC entered the cement industry over 20 years ago, and Mr. Hu is still full of confidence for the future. He believes that there are wide demands in the future for the Chinese cement industry. The out-of-date capacity will be removed sooner or later. It will come to its end not by an order from the government but through advancement of society. At the same time, small equipment suppliers are destined to be removed because the cement factories need large advanced equipment. The removed equipment will be replaced with new ones, resulting in a considerable market. 

NGC insists on its principle in manufacturing only the latest, largest and most advanced equipment. It has successfully developed the world’s largest cement mill reducer of 5400 KW transmission power, which has been put into application in an Indian cememt production line. The 4500 KW vertical raw material mill has been awarded the first prize of national technology advancement; the 4800 KW central drive cement mill reducer at the 2000t/d new type dry method cement production line was delivered from NGC and has been put into use for over 7 years. At the end of 2009, reporters from China Cements witnessed the following scene: a one-yuan coin was put on its edge on the cement mill reducer, the coin stood still even though this mill was running very noisely. All the people present applaused in surprise. This is only a small example of NGC’s pursuit of quality and perfection. Mr. Hu told us that when the time is ripe, NGC may establish a dedicated building material company and the cement industry will become another growth point of profits.

Now NGC can provide all types of reducers for cement production lines, including raw material vertical mills, cement milsl, slag mills, coal vertical mill reducers; central drives, planetary cement mill reducers; side drives, single side double transmission reducers, roller mill reducers; kilns, lifting machines, belt conveyors, dressing machine reducers, etc.

“Our staff is from all over the world, our equipment is from all over the world, our materials are from all over the world, our managements experience is from all over the world and our products are sold to all over the world.” NGC’s splendid achievements were not accquired by chance. They are the results of comprehensive management of improving productivity and cost control. We have never adopted a casual attitude or been overoptimistic during the progress. Step by step, we move forward and approach the target of world No.1 in the equipment manufacturing industry through a second undertaking.

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