Wetzetu——Currently Managing Director of Wirtgen International, former CEO of Wirtgen (China) Machinery Co., Ltd. In 1982, Wirtgen road construction machinery entered the Chinese market. In 1987, Mr. Wetzetu began to be in charge of the Wirtgen Chinese market. He has lived in China for 35 years, and his love and familiarity with China is even more than that of many native Chinese. In his words, "I am an old friend of the Chinese people". This is also confirmed by the "Yanzhao Friendship Award" awarded to the foreign expert from Germany by the Hebei Provincial Government last year.
Wetzetu witnessed Wirtgen's growth in China with his own eyes, and personally promoted the localization and internationalization of Wirtgen China, which is legendary for the Chinese road machinery market. 2022 coincides with the 40th anniversary of Wirtgen's entry into the Chinese market. For this reason, the industry media conducted an exclusive interview with Mr. Wetzetu. Together with him, we experienced the development of Wirtgen in China over the past 40 years. Green" mystery.
"My entire Chinese team and I have been and are practicing the tenet of "close to the customer" day in and day out. Wirtgen's success in the Chinese market stems from the recognition and support of customers..." Referring to customers, Wetzetu's words are full of gratitude.
Q1.Over the past 40 years, how has Wirtgen Road Construction Machinery built an industrial "moat" in China's road machinery market that cannot be easily crossed by competitors, thereby establishing a sustainable industrial competitive advantage?
Wetzetu:
My entire Chinese team and I have been and are practicing the tenet of "close to the customer" day in and day out. As a manufacturer, in order to dominate the market development, you must build the most important market moat. First of all, it is necessary to establish a first-class staff team, always practice the concept of "close to customers", and be able to gain the trust of customers. The backbone team of Wirtgen China is very stable, and the employee retention rate is very high. I see this as a "sustainable industrial advantage" for the company to grow.
Secondly, over the years, through the acquisition of the 4 famous brands VÖGELE, HAMM, KLEEMANN and BENNINGHOVEN, Wirtgen GmbH has grown into what it is today Known as the Wirtgen Group.
All of these brands have a long history in the field of road construction and maintenance machinery and mineral processing business where they are located, and can be called "hidden champions". Customers can benefit from intelligent synergies by owning a "fleet of equipment" consisting of multiple brands under the Wirtgen Group, thereby enhancing their business competitiveness.
In addition, since 2011, the Wirtgen Group has implemented the Chinese market strategy, developing high-quality customized models suitable for the Chinese market, and better meeting the expectations of Chinese customers at reasonable prices. This strategic move Wirtgen Group's equipment such as milling machines, asphalt pavers and road rollers has always been at the forefront of the market share in China.
By setting up its own industrial "moat", getting close to customers, meeting customer needs, and launching product competition strategies adapted to the Chinese market, the Wirtgen Group's production capacity in China has steadily increased, starting from the first assembly plant in Langfang in early 2004, and ending in October 2021. Yuelangfang factory completed two expansions. Today, the Wirtgen Group's production capacity in China reaches 4,000 units per year.
▲Wirtgen China Langfang factory after the completion of the second phase expansion
Q2.As the founder and trader of Wirgen GmbH, you have created and promoted the development of the Wirtgen Group in China for 40 years. What driving force has enabled you to serve the Wirtgen Group and take root in the Chinese market for 40 years?
What elements have the top-level team of Wirtgen China you led injected into the company so that Wirtgen Road Construction Machinery always occupies the high-end market in the field of road machinery in China?
Wetzetu:
First of all, the concept of "closeness to the customer" is the absolute advantage of the Wirtgen Group's success in the market. The second is the Wirtgen China team. I have built one of the best teams in the industry over the past few decades. They are stable, reliable, trustworthy and well-recognized by customers.
In addition is our network of Wirtgen agents in China. We have been implementing a professional agency system since 2012, fully focusing on the distribution of Wirtgen Group equipment. The agents are all well-trained professionals and are highly appreciated by our Chinese customer base.
Last but not least are the products that the Wirtgen Group manufactures in China. Equipment from Wirtgen, Vögele and Hummer not only meets the needs of Chinese customers, but also enables continuous improvement based on customer feedback, local production, and high quality standards, making them highly competitive in the market.
▲So far, more than 15,000 Wirtgen Group equipment has been active on road construction sites
Q3.Over the past 40 years, how has the Wirtgen Group promoted localization in the Chinese market? What's the next step?
Wetzetu:
The Wirtgen Group acquired the Vögele brand in 1997 and the Hummer brand in 2000, realizing the Wirtgen Group operation. The first Chinese factory, located in Langfang, Hebei Province, started production of Hammer's twin-drum rollers in 2004, and soon began producing Wirtgen milling machines and VÖGELE asphalt pavers.
The new factory was officially put into operation in 2015, with a 100% increase in production capacity. At the end of 2021, the new factory will complete its first expansion, achieving an annual production capacity of 4,000 units in China. Moreover, the factory has also achieved a comprehensive upgrade of operations and quality management through the digital work center.
Q4.How do you view the growth of local road machinery companies in China? In the face of today's increasingly fierce market competition, how does Wirtgen respond?
Wetzetu:
In the field of road machinery, domestic brands and manufacturers have made great progress in technology and manufacturing. Whether it is the domestic market or the international market, with the rise of the overall level of the manufacturing industry, the competitive pressure from the industry is gradually increasing, but at the same time, it also provides the impetus for Wirtgen to maintain the leading technology and quality. Wirtgen China always maintains a high respect for our Chinese counterparts and takes "real" competition from local Chinese competitors very seriously.
The rapid growth of China's local road machinery brands allows us to rethink our development strategy and focus more on our customers. Support them better, do more for their business, and ultimately let them get more value from our devices.
Q5.Although China's local road machinery companies have made rapid progress in recent years, it is still difficult to shake Wirtgen's leading position in the field of high-end road machinery, especially in the field of large-scale milling machines. Leading is difficult, and long-term leadership is extremely difficult. Do you think Wirtgen What's the secret to Root's ability to maintain this lead?
Wetzetu:
The most important point is to focus on customers and maintain a close relationship with our customers. In addition, we have a strong team and professional agent network composed of passionate employees who love their work, the company they work for. Last but not least, provide customers with top-of-the-line equipment in this industry.
Q6.How do you view the trend of China's road machinery market this year? What kind of deployment does Wirtgen China have in new product strategy and channel support?
Wetzetu:
2022 will be a difficult year for China's construction machinery market. The first is that the rapid growth in the past two years has gradually saturated the pavement market. Secondly, the current situation of new crown pneumonia epidemic prevention and control in some areas is still severe. Affected by the epidemic, some projects in some areas have been forced to delay the start. Thirdly, due to the market downturn, some customers face serious cash flow problems, the investment return cycle becomes longer, and profit margins decline, which affects the purchasing power of some customers.
Nevertheless, Wirtgen China is still optimistic about the future growth of China's road machinery market. We will not give up the Chinese market and plan to provide local customers with more choices of locally customized models. For the Wirtgen brand, we are introducing the new 1-meter cold milling machines W100HR and W 130HR. The new series of medium-sized milling machines (models W125CF, W155CF and W185CF) have been launched this spring, and it is believed that these newly developed machine models will bring surprises to customers. For the VÖGELE brand, the launch of the SUPER1680 asphalt paver that meets the China IV emission standards has also been welcomed by the majority of Chinese customers. In the fall of 2022, we will launch a new model that meets the National IV emission standards and has a maximum paving width of 13m. For the Hummer brand, we will introduce new models HD18, HD20 and HD50 of HD series small rollers, which will replace the previously imported models HD8, HD10C and HD13/14. In the middle of this year, we will launch a new generation of large twin drum rollers HD138i and HD148i that meet the National IV emission standards, as well as their respective oscillating compaction versions.
Since the beginning of 2022, we have provided customers with HC series 20-26-ton full-hydraulic single-drum rollers HC208D, HC228D, HC268D. Customers who are more cost-sensitive can also choose more cost-effective single-drive configuration models.
Q7.What vision and expectation do you have for Wirtgen China in the next 3 to 5 years?
Wetzetu:
We are very optimistic about the market prospects of Wirtgen Group equipment in China. Although the growth rate has slowed down in the second half of 2021 and early 2022 due to multiple factors such as the epidemic and rising raw material prices, I still firmly believe that the "14th Five-Year Plan" for China's infrastructure construction can be realized. The projects are large enough to meet each manufacturer's goals. In China's benign and fair market competition environment, stronger companies will be able to survive better. Wirtgen China has made all preparations for the competition in the next 3 to 5 years.
40 years in the same boat. Since the first Wirtgen milling machine was settled in Tianjin in 1982, and now more than 15,000 Wirtgen Group products are spread across construction sites in China, Wirtgen China has experienced extraordinary development under the leadership of Mr. Wetzetu. course. Mr. Wetzetu devoted almost all of his career and golden years to China. His pragmatic style, respect for employees, customers and the market have won the love and respect of Wirtgen China and the agency staff. , and also won the deep friendship of many Chinese customers. After nearly 40 years at the helm of Wirtgen China, Mr. Wetzetu will also usher in another phase of his life.
Currently, Mr. Wetzetu has returned to the headquarters of the Wirtgen Group as Managing Director of Wirtgen International. I would also like to pay tribute to Mr. Wetzetu who has contributed to the development of China's road construction and maintenance industry.
Wirtgen China's new generation of "helmsman":
Chief Executive Officer Du Ruikai (left)
Yu Yongzhi (right), executive director in charge of sales and customer support
Confucius said, "There is no confusion at forty". Perhaps, for Wirtgen, who has developed in China for 40 years, he is not confused about the need to constantly iterate product upgrades and services to create higher value for users; he is not confused about having a firm belief in his heart and doing things that are always considered correct and valuable; Don't be confused with agents and partners to face challenges head on, stay focused, and always maintain a leading position in the industry!
Editor in charge: Yan Kexin
Proofreading: Ma Zixuan
Reviewer: Yu Dapeng Chen Lu
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This article is edited and edited by the Data and New Media Development Center of China Highway Magazine. For reprinting, please indicate that it is reprinted in the WeChat public account "China Highway" in front of the article.
