How Can Fujian Xinyuan Heavy Industries Occupy Half of the Eheel Excavator Market


Fujian Xinyuan Heavy Industries Co., Ltd.

Worker assembles wheel excavator at Xinyuan Heavy Industries' digital factory.                                                    Worker assembles wheel excavator at Xinyuan Heavy Industries' digital factory.

                                                    Wheel excavator made by Xinyuan Heavy Industries are ready to be delivered.

                                                   Zheng Zeqi, the second generation of creator, scrutinizes the first wheel excavator made by his father.


Excavator sales volume has been called the "Thermometer of economic activity". In the field of wheel excavator, Fujian Xinyuan Heavy Industries Co., Ltd (hereinafter referred to as "Xinyuan Heavy Industries"), located in the Hardware mechanical and electrical industrial park of Luogang district, Quanzhou city, is acting in a low-key manner, but their performance is impressive. According to the statistics of China construction machinery industry association, in 2022, the market share of Xinyuan Heavy Industries in the industry wheel excavator is as high as 47.7%, sales of 750 million RMB, ranking first. Their products are not only sold across the country, but also exported to Southeast Asia, the Middle East, Africa, North America and other regions. The company's sales volume is 710 million RMB from January to November, and it is expected that the annual sales in 2023 will be about 800 million RMB, an increase of about 7% over 2022.


Xinyuan Heavy Industries, founded in 1990, is a repair store in Quanzhou, struggling to become a leader in the wheel excavator industry, won the national level specialization, speciality and new "Small Giant" enterprise, leading enterprise in Fujian province and other honorary titles, for more than 30 years in the domestic wheel excavator market is far ahead. It has witnessed China's small wheel excavator market from scratch, and also experienced the process of wheel excavator market from using auto parts assembly to the development and production of excavator-specific components, and step by step to lead China's wheel excavator from relying on imports to independent R & D. Today, Xinyuan Heavy Industries is striving to become a leading enterprise in the domestic wheel excavator market.


Today, Xinyuan Heavy Industries is trying to build a 5G intelligent construction machinery industrial park, radiating the local formation of an excavator parts supporting industry chain. How can Xinyuan Heavy Industries occupy half of the wheel excavator market? What is the inspiration of its road to success? Recently, the Southeast Web reporter went to Xinyuan Heavy Industries to investigate.


Layout of Intelligent Manufacturing

Xinyuan Heavy Industries Will build a new 5G intelligent construction machinery industrial park

Material preparing, welding, assembly, testing ...... reporter recently walked into the digital factory production workshop of Xinyuan Heavy Industries, seeing a piece of steel plate to a complete wheel excavator "Metamorphosis". Workers are maneuvering equipments to catch up with orders and busy production. In the finished product warehouse, many technologically advanced wheel excavators are ready to deliver, the scene is spectacular.


The reporter learned that the digital factory of Xinyuan Heavy Industries is equipped with the world's most advanced laser cutting equipment, automatic robot welding system, CNC gantry machining center, orbital shot blasting production line, automatic robot coating production line and other advanced equipments, which can realize highly automated production process of the host structural components of the undercutting, assembling and welding, CNC machining, surface treatment and painting.


"As early as 2008, Xinyuan Heavy Industries began to introduce robot welding and automation technology. The use of advanced production equipments allows us to improve production efficiency and product quality, in the mean time reducing production costs, which makes our products more competitive in the market." Zheng Yongzhong, Chairman of Xinyuan Heavy Industries, said, "More than 30 years of profound technical precipitation and the spirit of innovation that constantly seeks for new ideas and changes, this is one of the secrets that Xinyuan wheel excavators can lead the market."


"If you want to do a good job, you must first make good use of your tools. In order to stay ahead of the industry, we planned to build an advanced digital factory in the construction machinery industry as early as 2014." Zheng Yongzhong introduced that on July 15, 2022, the PLM system (full life cycle management system) of Xinyuan Heavy Industries was re-launched, which marks that the company's digital R&D and design system has achieved milestone, and it is an important symbol of the company's transformation and upgrading to digitalization and intelligence.


The reporter understands that Xinyuan Heavy Industries' PLM system links each part of design, development, procurement and manufacturing within the enterprise, turns the module of single combat into a complete combat legion, and realizes the efficient collaboration of product research and development through the digital cloud platform. After the system is online, it realizes online and data-based R&D document management, BOM management and other core technical businesses, improves cooperation among design, procurement, manufacturing and management departments, reduces the error rate and repetitive work, organically combines information technology, modern management technology and manufacturing technology, and efficiently manages data resources, product information, development process and production resources at all stages of the product life cycle, and improves the enterprise's market responsiveness. management of data resources, product information, development process and production resources at all stages of the product life cycle, and improve the enterprise's market resilience and competitiveness.


It is worth mentioning that, for the current Chinese economic development from high speed growth to high quality development stage, Xinyuan Heavy Industries, based on the demand for expanding production capacity, will invest in the construction of a 5G intelligent construction machinery industrial park, to achieve a high degree of interconnection between the production and the intelligent network, to create a higher quality and innovation and technology of the products, radiating the local formation of a supporting industry chain for the excavator parts and components.


"Now our factory has introduced PLM, ERP and other management systems, and in the future, after the completion of the 5G Intelligent Construction Machinery Industrial Park, we plan to apply automatic intelligent warehousing and AGV transportation, which will form a comprehensive digital management. In the future, to create a flexible production line that produces 1 excavator in 15 minutes, it is expected that the annual output can reach more than 10,000 units." Yan Wenshan, deputy general manager of Xinyuan Heavy Industries, told the reporter.

Stick to independent research and development

Continuously maintain the industry's leading position

If not mentioned, you can hardly imagine that such a large private enterprise was a repair store with only three repairmen, thanks to Zheng Yongzhong dare to continue to try to focus on independent research and development. As early as 1990, coinciding with the development of Quanzhou, see the business opportunities of Zheng Yongzhong in the local repair shop, a few years down the road, the small store business scale bigger and bigger, and renamed and upgraded to a repair plant. This shop had earned money, but Mr. Zheng Yongzhong did not stop there, with a wealth of maintenance experience, he decided to develop and produce wheel excavator.


In 1998, in three acres of land in the factory, the face of insufficient funds, simple equipments and lack of sales network and other difficulties, Zheng Yongzhong led the team step by step to find out, from a screw to the wheel excavator of each component and then to the whole machine off the line, put into use, they went forward, all the way through the thorns and thistles. Finally in 2000, Xinyuan Heavy Industries successfully invented China's first 5-ton 360-degree full rotated hydraulic wheel excavator, filling the gap in domestic market. The first batch of 2 excavators were made, two companies tried them, after trying use, they felt surprise and then purchased 5 units more excavators.


Xinyuan Heavy Industries' wheel excavator went into the market and the customers gave superior feedback, this injected more confidence to the chairman Mr. Zheng Yongzhong, he led the team to focus on R & D, the production of a number of good reputation, excellent quality products. Yan Wenshan told reporter that, as an early member of the company, he witnessed a generation of different styles and models of excavators born, each excavator also has its own "fan" groups, sales are good, they are unique and got leading technology in wheel excavator industry.


Originally, each development of a new product, Xinyuan heavy industries R & D team will not only consider the manufacturing costs, machine performance, usage cost and other factors, but also take into account the market demand, customer demand. Among them, the 65W-7 double-drive excavator that left the factory in 2008 was comparable to imported models with excellent climbing performance and efficiency, and this excavator was popular among customers who needed to work in mountainous areas at that time.


Since December 1, 2022, the domestic excavators fully upgraded to "National IV". After the upgrade, the product technology threshold is raised again. This is not only a review of the technical strength and comprehensive competitiveness of each excavator manufacturer, but also a reshuffle of the industry. Xinyuan Heavy Industries had been laid out in advance as early as 3 years ago. With its deep technical deposits, 3 years of independent research and development, the overall power, hydraulic system and control system for a comprehensive upgrade, the successful launch of 13 new models "National IV" products, in the configuration, control, energy saving fields reach the industry's leading level.


After 30 years of R & D accumulation and technical precipitation, Xinyuan Heavy Industries ultimately make the most intuitive presentation of top quality. Till now, Xinyuan Heavy Industries has submitted more than 230 patent applications, and has obtained 5 national invention patents, 89 utility model patents, 52 appearance patents; the products  cover from 5 to 15 tons economic and high-end hydraulic wheel excavators, forming a standardized, serialized, with a good comprehensive competitive advantage in the market.


Inheriting the spirit of enterprise

The "second generation of creators" starts from the bottom line of work

In the Xinyuan Heavy Industries production workshop, the reporter observed that each assembly line workers were carefully working on the last process of manual quality inspection. For the products that had not passed quality check, they will manually "Take off the shelf". For the 30+ years, Xinyuan Heavy Industries adhere to the "Technology creates new things, Distinction comes from quality" spirit of enterprise, growing to a heavy industry leader in the wheel excavator industry. Many workers in the company can easily say how they are practicing the spirit of enterprise in their positions.


This year's 24-year-old Zheng Zeqi is the son of Zheng Yongzhong, six years ago after graduating from high school, he came to the company to practice. As soon as he entered the company, he was arranged to work in the production workshop, starting from the most basic work like ordinary workers. Even if he later went to college and came back to the company to follow the study during the holidays, he still worked in different positions on the front line, and had worked as a welder, assembler, and cargo porter.


"Working in so many positions, the most impressive work is bucket welding, it is not the most difficult work, but it test my patience and confidence the most. When welding, the weld seam should be flat, and there should no be any welding defects such as porosity and slag entrapment." Zheng Zeqi told the reporter, in the front-line positions he understood the company's entrepreneurial spirit more.


Now, after graduating from college, Zheng Zeqi is working as a technical engineer in the company, mainly responsible for communicating customers with technical problems, and participating in the company's new energy products research and development work. Conscientious and meticulous, he and his colleagues take the initiative to understand the market and customer needs, and will feedback the needs of all parties to the R & D team, to help them improve product performance and quality. It is expected that next year at the earliest, the company is expected to develop new energy products that meet market demand.


"I'm glad to be involved in the research and development of new energy products, and I believe that under the efforts of our generation of Xinyuan Heavy Industries workers, the development of Xinyuan Heavy Industries will definitely get better and better. We will also continue to plough into the wheel excavator technology industry, adhere to independent research and development, and produce products that meet market demand and customers needs." The young man Zheng Zeqi said, he is full of vision for the future.


"Construction machinery is one of the most important industries for the development of the national economy. At present, China's construction machinery industry is gradually maturing and has entered a period of stable development. Xinyuan Heavy Industries has focused on the research and development and manufacturing of small and medium-sized excavators for many years, and has continued to iterate and innovate its products, basically launching new models every two years, demonstrating the company's strong technological innovation capability." According to Cai Haiyi, secretary and vice president of the School of Intelligent Manufacturing and associate professor at Quanzhou Vocational and Technical University, the digital factory built by Xinyuan Heavy Industries has ensured the stability and reliability of its product quality. The company's products cover 5 ~ 15 tons of series products, the formation of a more complete product line, and occupy a large market share in the small and medium-sized wheel excavators, it is not easy.


Cai Haiyi suggests that on the one hand, Xinyuan Heavy Industries should continue to implement digital transformation in the whole process of product production and manufacturing management, so as to realize rapid response to market changes and improve production efficiency; realize full-cycle quality traceability of products and improve product quality; improve supply chain resilience, reduce operating costs, reduce energy consumption and emissions, and realize green production. On the other hand, it is recommended to seize the opportunity of the development of electrification, network connectivity and intelligence in the construction machinery industry to develop new energy excavators and remote unmanned intelligent control technology based on 5G technology, to further enhance the functional value of the products and to maintain the leading position in the market.