On May 25, Shandong Heavy Industry Group was born. On the same day, Weichai Power, Shantui Stock, and the newly renamed Weichai Power Machinery Co., Ltd. (formerly “Shandong Juliâ€) issued an announcement at the same time: “On May 7, the Governor’s Office of the People’s Government of Shandong Province agreed in principle. All three state-owned assets of Chai Holding Group Co., Ltd., ShanGong Group and Shandong Automotive Industry Group Co., Ltd. have undergone an overall reorganization, and Shandong Heavy Industry Group Co., Ltd. (tentative name) has been established." At this point, the joint reorganization of enterprises in the province promoted by the Shandong Provincial Government officially kicked off. It seems that the “marriage†between Weichai Power and Shantui Shares, which has long been popular in the industry, seems to be about to become a reality. But how, when and where will the three companies implement the reorganization? How will senior personnel be appointed? Will it be simply added or will there be more in-depth integration? Each of the three companies will benefit from these issues? No one knows. However, the stock market has given a positive response. Affected by the news, on May 25, Weichai Heavy Machinery Co., Ltd. opened higher and moved higher in the morning, reaching a daily limit in just over ten minutes. Weichai Power Co., Ltd. and Shantui Stock Co., Ltd. all showed significant increases. According to the statistics of the reporter, during the four trading days since May 25th to June 1st, Weichai Heavy Machinery Co., Ltd. had three daily limit stops, with a cumulative increase of 37.5%. Rumors come true? Since the end of September 2008, Jiang Kui, executive deputy general manager of Yuanshan Pushing Co., Ltd. has been removed from office and served as deputy secretary of the party committee and deputy general manager of Weichai Holding Group. The rumors about Shantui’s upcoming “easy-to-owner†have failed in the industry. go. The guess of this "intriguing" move is that the Weichai Holding Group will take Shantui's shares to a halt. However, at present, ShanGong Group still holds 21.10% stake in Shantui and is its largest shareholder. Moreover, for the ShanGong Group, which has undergone many “cuttings†in recent years, Shantui shares are the only quality assets that it can still control. The industry judged that “If you only want to get Shantui shares through common mergers and acquisitions, it is impossible! Cooperation can only occur at the level of the two group companies.†On March 12, Shantui shares and Weichai Power were affected by the rumor of restructuring, and their A shares were temporarily suspended from trading. On March 16th, the two companies respectively issued a clarification announcement stating that “there was no planning negotiation for the asset restructuring and no signing of intentions, agreements, etc.†and it promised that the above items would not be planned within the next 3 months. . After a wave of waves, it started again. On March 23, Shantui was again forced to suspend trading due to reorganization of the rumors. The rumors of this time were replaced by China National Heavy Duty Truck. Afterwards, both parties denied the rumors at the same time. An official from the Shandong State-owned Assets Supervision and Administration Commission said, "This is a totally hearsay." On May 25th, the Shandong Heavy Industry Group emerged from the world and to some extent quelled various speculations from the outside world. The announcements of the three companies on that day stated that after the reorganization, the Shandong Heavy Industry Group and its affiliated companies established a standardized parent-subsidiary company management system, and established a standardized corporate governance structure in accordance with the requirements of the “Company Law†and the modern enterprise system. The reorganized Shandong Heavy Industry Group, whose corporate ownership status remains unchanged, will not change after the reorganization is implemented, and the actual controllers of Weichai Power and Shantui Shares will not change. In fact, as early as March 4th, Shandong Province issued a draft of “Auto Industry Adjustment and Revitalization Planâ€, which clearly stated that “we must support Weichai Power, the joint restructuring of Shandong Automobile Group and Shandong Construction Machinery Groupâ€, and foster 8 ~10 large-scale enterprise groups with strong competitiveness, including two companies with operating income exceeding 100 billion yuan. According to industry analysts, the formation of Shandong Heavy Industry Group achieved the idea of ​​building a large-scale auto parts industry group in Shandong Province. Once the reorganization of the three major groups is completed, it will not only integrate and improve the upstream and downstream industrial chains of auto parts in Shandong province, but also provide more space for capacity expansion and industrial upgrading. Weichai leading This is just the beginning. Up to now, the reorganization path and future plans for the regional integration have not yet been made public, and the specific implementation has yet to be announced. However, it is clear that the reorganization will not adopt the method of regrouping another group with a certain group. The reporter noticed that there is a widespread speculation on the Internet: “The restructuring will use the 'Shangang (Shandong Iron and Steel Group) model', through the establishment of the holding company Shandong Heavy Industry Group, the Weichai Holding Group Co., Ltd., Shangong Group and The property rights of the Shandong Automobile Industry Group are all transferred to the company, forming a pattern of three major groups under the control of a holding company." According to statistics, Weichai Holding Group Co., Ltd. is China's largest auto parts enterprise group. The company's three major business segments (powertrains, commercial vehicles, and auto parts) are in an absolute dominant position in their respective domestic market segments. In 2008, the Group's sales revenue reached 49 billion yuan. Prior to this, Weichai Holdings has made its goal to “strive to reach 100 billion yuan in 2012 sales revenue and enter the world’s top 500â€. Insiders pointed out that "adding" through mergers and acquisitions is an important means to achieve this goal. [next] It can be seen that in recent years, the group has attacked the city and successfully implemented capital operations several times. Following the successful entry into the Zhuzhou Xiang Torch Spark Plug Co., Ltd. in 2005, it successfully acquired the French Boduuan Engine Company in January 2009. At present, only Weichai Power owns clusters of subsidiaries consisting of Shaanxi Heavy Vehicle Co., Ltd., Shaanxi Fast Gear Co., Ltd., Zhuzhou Hunan Torch Spark Plug Co., Ltd., and Mudanjiang Fortis Automotive Air Conditioning Co., Ltd. . As another focus of the forthcoming Shandong Heavy Industry Group Shantui has become a professional manufacturer of bulldozers in China's construction machinery industry. Since 2003, the company's bulldozers have been ranked first in China's bulldozer industry for six consecutive years. In 2008, Shantui Group achieved operating revenue of 6.6 billion yuan, an increase of 37.5% year-on-year; export value of 270 million US dollars, an increase of 72% year-on-year, and consistently occupied over 80% of China's bulldozer export market share. By the end of February this year, Shantui’s domestic bulldozers’ market share has increased to 57%. At the same time, the data show that Shandong Automobile Industry Group Co., Ltd. is less well-known, its registered capital is 78.1 million yuan and its total assets are 3 billion yuan. With an annual output of 60,000 light trucks, auto parts, 1 billion yuan production capacity. However, according to informed sources, although this seems to be a combination of three parallel companies, due to the outstanding strength of Weichai Holdings, Shandong Industry Group and Shandong Automobile Industry Group Co., Ltd. cannot compare with each other, and there is a wide gap. It can be foreseen that Weichai Holdings will become the leader of the reorganization and will enjoy greater power in the future Shandong Heavy Industry Group. On June 1, industry sources disclosed to reporters that Tan Xuguang, chairman of Weichai Holding Group Co., Ltd., was likely to assume the post of chairman of Shandong Heavy Industry Group Co., Ltd. Jiang Kui was appointed as general manager, and there was a possibility that the automobile industry could be made in Shandong Province. Group Construction Co., Ltd. Party committee secretary and president Sun Jiancheng served as general manager, but Jiang Kui is the most likely company. The company is headquartered in Jinan. The purpose of the reorganization What will this reorganization bring? According to media reports, all three companies recently stated that "the reorganization has not yet materially affected their company." On June 1st, an insider from Hebei Xuangong told the reporter that “For Shantui, the impact is mainly on the improvement of the industrial chain. Weichai will bring many benefits to its product cost control and sales channels. "Hebei Xuangong is also a key enterprise in the bulldozer industry, and its domestic market share has been at the forefront. The reporter noted that the media also has many different opinions. Some people in the industry pointed out that “the three parties’ restructuring has the feasibility of success, but the difficulties of late integration should also be worth paying attention. First of all, the three parties’ products are quite different, and a simple 'adding' to put the assets together is not a success. The plan, how to coordinate market development and human resources, corporate culture will become a difficult problem in the implementation of the later plan.Secondly, the specific interest distribution involved in the tripartite process in the reorganization process directly relates to the rhythm of reorganization, and it will also become a problem worth considering. ." In fact, the emergence of regional large-scale group companies in various parts of China in recent years has been a common occurrence, with successes and failures. However, the operation of internationalization and grouping has become an irresistible trend for corporate development. It should be noted that the formation of large corporations in a business-led and capital-based manner is a development approach that conforms to the laws of the market economy. This has long been different from the planned economy model led by the government when the regional restructuring took place in the mid to late 1990s. Among these, it is worth our attention that in the process of restructuring large groups, we should carry out in-depth and comprehensive integration of cultural differences and product structure, highlight brand advantages, reduce redundant construction, achieve balanced development, and enhance overall competitiveness. It is the meaning and purpose of the reorganization.