Since Linde Hydraulics Co., Ltd. and Co., Ltd. have separated KION from the company, they have faced slow market expansion, high production costs, low management efficiency, and inadequate plant construction. In the past two years, under the pressure of the global downturn, Linde Hydraulics has passed Analyze the status quo, formulate change plans, and fully promote structural business restructuring. At present, the company gradually moves on track and achieves a break-even.
Linde hydraulic plant top view
Develop new markets
While maintaining the existing market, Linde Hydraulics actively expands new customers. Since the beginning of 2015, Linde Hydraulics has continuously deployed new markets while maintaining the existing market and customers. First, it is customer oriented to increase customer response speed; second, visit potential dealerships to prepare for Linde Hydraulic North America's independent business development in the future; thirdly, customer visits are project-oriented and have successfully docked 6 projects. More than 90 projects are being docked; the fourth is to strengthen sales and post-market construction. On the one hand, implement a new organizational structure, optimize business processes, integrate the company's advantageous resources, and formulate incentive measures; on the other hand, optimize the dealer network and promote post-market sales.
Especially in the Chinese market, Linde Hydraulics has performed product matching in various fields such as cranes, agricultural machines, and forklifts. In order to achieve batch support as soon as possible, the Sino-German technical team worked closely together to speed up the product prototype debugging process and shorten the cycle of product entry into the market.
Reform and Innovation
Linde Hydraulics systematically reformed its business processes by conducting structured business restructuring projects. The enterprise reform progressed smoothly and received the support of all employees. It has implemented a new corporate organizational structure (including the expansion of management), released new corporate core values, and established a new employee communication and communication platform; the order delivery process and the customized product production process. , new project assessments and approval processes continue to improve; product innovation accelerated. The cost reduction of the BR02 and BR02a products is progressing smoothly. The valve products will be switched from the sheet valve to the casting valve. The VT valve and variant products will actively promote mid-range product development projects. It is expected to be completed in 2017.
cut costs
In the global downturn, effective cost reduction is an effective way to increase the competitiveness of enterprises. Linde Hydraulics first reduced procurement costs, focused on global procurement, accelerated China-based procurement, launched Linde Procurement Day, and actively promoted cost-reduction plans for existing suppliers; at the same time, personnel optimization was conducted, although the reorganization project led to a decrease in personnel. However, the company's overall operation is in good condition, its quality level has reached new heights, its timely delivery rate is 95%, and its labor productivity is 97%. This reflects employees’ recognition of corporate culture and strong sense of responsibility; optimizing management costs and making full use of shareholder contributions. Reduce IT costs by 2 million euros, energy costs by 1.4 million euros, and other expenses. Look for new suppliers for payroll, job training and external logistics.
New factory construction
The modern factory is the basis for the efficient and high-quality production of hydraulic products. It is an important guarantee for Linde Hydraulics to provide customers with high-quality hydraulic products. Linde Hydraulics temporarily relied on leased Linde forklift plants and facilities to carry out company business after being stripped from Linde forklifts, which was not conducive to the long-term development of the company. To this end, Weichai invested in the construction of a new 71,000-square-meter plant in Aschaffenburg. Linde Hydraulics' new factory in Germany is currently advancing according to the construction plan. The factory building will be completed by the end of April 2016 and will be put into use in November 2016.
At the same time, the new plant building of the Linde Hydraulics Joint Venture has been completed in China, where Linde Hydraulics regards it as an important market, and an opening ceremony was held.
"We can't change the wind, but we can set the right direction to control the storm." The existing difficulties will not be able to pressure Linde Hydraulics. It will be the inevitable choice for Linde Hydraulics to break through the difficulties and move ahead. Linde's every step forward is inseparable from Linde's efforts. With the joint efforts of Linde Hydraulics Group and Linde Hydraulics and the support of shareholders Weichai, Linde Hydraulics will do its utmost to achieve its annual budget targets and strive to become the group's new profit growth point.
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