The important step to multi-element of heat power machine

1, the biggest national general power machine manufacture was been inject capital

Injected the high-qaulity capital form zongshen power is the first important step for zongshen general power machine co,.ltd to be an interlationalized power machine manufacture base.

Chongqing zongshen general power machine co.,ltd is the biggest general power machine manufacturer in china, they concentrating on the develop, manufacture and sales of all kinds of general gasoline power machine. They have a capabiloty of produce 2,800 thousand pieces of gasoline general power machine together with 500 thousand pieces of mini generator series, mini tillage machine, lawn mower, mini water pump.

2, power source product is core of the whole value chain with the character of high technique, high adjunctive value, rapid growth speed.

In whole value chain of power machine, the power source product is core, just like the CMOS chip of the computer. The 2 major trend in the international market is: the providing and the demanding are both huge; the market growong really fast. By the rough estimation, the intentive order by now form Asia, Africa and other 12 countries are over one miilion pieces, it shows the he potential of the market.

3, another overfly followed with united with Piaggio

In the early years, Zuo ZongShen already put “lean manufacture, international cooperate” as the core process to be a centennial corporation. Zongshen as the bigest scale manufacturer of motorcycle engine enterprise, it owns the most important core factor to be the international manufactruer of heat power machine. Been cultivated for years and then inject the capital in the right time to be a listed company, this is zongshen industrial Group’s second multi-cooperation with the industial leader with MTD right after Piaggio. All of these gave zongshen general power machine co.,ltd a wing to grow.

An competitive competitor in the global market with great bargaining competence.

What makes zongshen so different among so many general power machine manufacturer.

According to the administrant expert Michael Porter, the stratage for a corporation to be competitve needs 3 stratage: low-cost stratage, be diversity, industial convergency stratage. Form this theory, we can see that zongshen general power machine already owns these afctors to make itself be competitive.

1, the low-cost predominance from both industrial field and corporation itself.

(1) industrial displace trend.

Form the global industrial trend, it seems like the westen developed country displace their machine manufacture to the developing countries, because these countries have active economy, cheap labor, huge demading. All of these make our countries have a advantege to produce low-cost product. The main predominance of chinese genertor is our competitive price. Chinese generator price is 30%--40% lower than the congeneric product in the US market, and even 2/3 lower than Japanese product.

(2) favourable political support form the government.

Zongshen general power machine co.,ltd will be benefit form the natinal west part developing policy and chongqing governmental favourable policy, the income tax will be paid by 15% till 2010, this is practially deducted the company’s operate cost.

(3) the industial convergency domino offect.

The general power machine industry already became the economic stanchion together with motorcar and motorcycle. Chongqing area gothers all the related industry with general power machine and most of them are long term copartners. Plus, the quantity of general power machine is large which made the purchase cost even lower.

So we can see that, Zongshen Group already enter a overfly Era with 2 listed companies, this Group will be the top heat power industry.