Weichai enters the electric power industry chain with 56 billion yuan
Recently, the first batch of production equipment for Weichai Fudi New Energy Power Industrial Park project has been successfully delivered, and it is expected that the first phase of the project will be officially completed and put into operation by the end of December 2024.
It is reported that the Weichai Fudi New Energy Power Industrial Park project is jointly invested and constructed by Weichai Power, a subsidiary of Shandong Heavy Industry, and BYD, two Fortune 500 companies. The plan is to create a research and development manufacturing base that runs through the entire industry chain of new energy commercial vehicle power batteries, motors, electronic controls, and electric drives.
The total investment of the project is 56 billion yuan, covering an area of about 1700 acres, and is divided into three phases of construction. After all three phases of construction are completed by 2030, the annual sales revenue can reach 100 billion yuan.
The Weichai project is divided into two parts: one is the strategic cooperation between Weichai Power and BYD to build a power battery research and development manufacturing base, which will have an annual production capacity of 50GWh battery cells after completion. Secondly, Weichai Power will establish a manufacturing base for other core components of new energy vehicles, which will have an annual production capacity of 50GWh battery packs, 500000 flat wire motors, 400000 electronic controls, and 50000 electric drive assemblies.
Weichai, originally established in 1946 as Weifang Diesel Engine Factory, was one of the earliest manufacturers in China to produce diesel engines.
From the 1950s to the early 1980s, Weichai Factory successively developed and produced various types of medium speed diesel engines ranging from 51 kW to 99 kW.
In 1984, the National Development and Reform Commission and the National Economic Commission of China confirmed Weichai Factory as one of the designated factories for the research and production of Steyr WD615 series diesel engines.
In October 1999, Weichai Factory acquired Sichuan Changjiang Diesel Engine Factory.
In December 2002, Weichai Power Co., Ltd. was established by Weichai Factory with operating assets, liabilities, and cash contributions related to the production and sales of WD615 and WD618 series diesel engines, in conjunction with other initiators who injected cash.
In March 2004, Weichai Power (stock code 2338) was listed on the main board of the Hong Kong Stock Exchange.
In August 2005, Weichai Power successfully acquired Hunan Torch.
In August 2006, Weichai was awarded the "2006 China Manufacturing Top 500" and ranked 71st.
In April 2007, Weichai Power was listed on the Shenzhen Stock Exchange as an A-share company.
In December 2007, Weichai Power launched a power solution: Weichai Powertrain System.
In January 2012, Weichai Group announced a € 374 million acquisition of a 75% controlling stake in Faraday.
In 2012, Weichai Power acquired the German Kaiao Group - with a capital increase of 467 million euros to acquire 25% of Kaiao's shares, and 271 million euros to acquire 70% of Linde Hydraulic's shares under Kaiao.
In 2014, acquired 33.3% of the issued shares of Kaion Company on the Frankfurt Stock Exchange in Germany.
In June 2016, KIONGROUP PAG, an overseas subsidiary of Weichai Power, fully acquired Dematic for $2.1 billion and entered the field of automated logistics.
In May 2018, Weichai Power signed a strategic cooperation agreement with Ceres Power, a solid oxide fuel cell (SOFC) supplier from the UK, in Weifang, Shandong.
In June 2019, the White Paper on China's Hydrogen Energy and Fuel Cell Industry was released at Weichai.
In October 2019, Weichai Power and Zhejiang Geely strategically cooperated to develop methanol engines and jointly layout the methanol heavy-duty truck market.
On March 31, 2020, Weichai's 20000 hydrogen fuel cell engine factory was officially put into operation.
On September 16, 2020, Weichai Group released the world's first commercial diesel engine with a thermal efficiency exceeding 50%.
In July 2024, selected for the 2024 Fortune China 500 list, with a revenue of $30223.5 million, ranking 138th.
Weichai's unrealized business models
In 2020, Tan Xuguang, Chairman of Weichai Group, introduced that its high-pressure hydraulic technology based on Linde Hydraulic focuses on the market of construction machinery such as excavators with a capacity of over 20 tons. Integrating the engine and hydraulic system into a hydraulic powertrain to provide customers with an integrated solution.
Tan Xuguang said that Weichai has innovated the business model of hydraulic powertrain globally, and is also the only one in the world with this model. Currently, the engine does not have a hydraulic system, and hydraulic companies do not produce engines. Weichai integrates the two.
In a public video, Li stated that if Sany XCMG's excavators are unwilling to use Weichai's hydraulic powertrain, then Shandong Heavy Industry's excavators will comprehensively accelerate and occupy the market.
But a few years have passed, and we don't know if this path has been successful, but we know that Sany XCMG's market has not been occupied.
Weichai's New Energy Path
Although Weichai's hydraulic powertrain business may not be successful, it cannot be denied that Weichai is the most powerful engine company in China and has achieved considerable results, making it a well deserved giant in the machinery industry.
In the macro environment of new energy, Weichai Power did not stick to fuel power, but also timely embraced new energy power.
In May 2018, Weichai Power signed a strategic cooperation agreement with Ceres Power, a solid oxide fuel cell (SOFC) supplier from the UK, in Weifang, Shandong.
In June 2019, the White Paper on China's Hydrogen Energy and Fuel Cell Industry was released at Weichai.
In October 2019, Weichai Power and Zhejiang Geely strategically cooperated to develop methanol engines and jointly layout the methanol heavy-duty truck market.
On March 31, 2020, Weichai's 20000 hydrogen fuel cell engine factory was officially put into operation.
Now, Weichai Power has invested heavily in entering the battery industry chain, demonstrating its strategy and determination to maintain its position as a power giant.
On December 3, 2024, Weichai released its full range of new energy commercial vehicle power batteries for the industry for the first time, including heavy-duty truck power batteries and light-duty truck power batteries, all of which use blade battery technology.
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