In the textile industry, Shandong Qilong Group’s qualifications are not old: it entered the textile industry in 2003; in Shandong Guangrao, which has a “global rubber tire production base”, Shandong Qilong Group is a veritable newcomer: when interviewed by reporters, Long Steel invested RMB 1 billion in construction of its all-steel radial tire production line, which will be put into production at the end of 2010. This is also the first time that Panlong Group, which focuses on spinning and weaving, has stepped into the tire manufacturing industry. "Later" does not mean "late". With its unique business philosophy, Shandong Xiaolong Group is simply interpreting the myth of "lapping behind".

"Laters" hit the bargain

Shandong Guangrao, the famous “tire township”, only dozens of meridian tire manufacturers.

In 2009, Shandong Haolong Group, which has been engaged in the spinning industry, also decided to join the industry and invest RMB 1 billion to build an all-steel radial tire production line with an annual production capacity of 3 million sets.

“Don't watch us go into the late line, but the starting point is high.” In the production workshop where one eye never stops looking, Yuan Tingshu, chairman and general manager of Shandong Yilong Group, is full of hope. “The total construction area of ​​this workshop is 220,000 square meters. At present, the world's largest single cell plant will have a capacity of 3 million sets of production lines by the end of 2011. Not to mention Guangrao's tire companies have more than one 3 million sets of production capacity at a time. We are the first one!”

For enterprises to develop, there must be high investment; for the industry to develop, it must form a scale advantage. In Yuan Tingshu's view, this is also the reason why Xiaolong entered the tire manufacturing industry because Guangrao's tire production has formed a scale. Almost all equipment manufacturers and raw material suppliers in the world have offices in Guangrao.

For latecomers, whether late entry means that they have lost the opportunity for development? Yuan Ting-shu, who likes to come from behind, apparently does not agree: Although Xiaolong Group entered the textile industry in 2003, it achieved a production value of more than 70 million yuan.

“As long as the right opportunity is seized, the latecomers will have more advantages.” Yuan Tingshu’s reason is: “latecomers” have more opportunities to use the latest technology and equipment, which is conducive to energy saving; “later” is also more automated , have more advantages in terms of efficiency and productivity. “As an easiest example, in the past, a production line with a capacity of 3 million units per year required 3,500 employees. Now, as long as 2,000 people are enough.”

In fact, before the official completion and production, the Nine Dragons Group has “cheap” to “cheap”: because of the timing of the election, the tire industry entered the tire manufacturing industry in the context of the global economic downturn caused by the financial crisis, which originally required an investment of 2 billion yuan. Only 3 billion sets of all-steel radial tire production lines can be built. "Our goal is: strive to exceed 6 million sets of production capacity in 4 years!" Yuan Ting-shu said.

Take the market "nose" walk

"To be a company, the market is the first one. Entrepreneurs must take the nose of the market, rather than being led by the market to their own nose." Yuan Ting-shu likes to say this.

This is not empty talk. It is precisely because of the accurate grasp of the market that this spinning and weaving-based private enterprise has survived the most difficult period since the financial crisis. “The financial crisis led to the closure of a large number of factories, and many inventory of cotton textiles at home and abroad have been cleaned up. Now our spinning production is simply in short supply, and weaving even achieves order-based production, and we must cash transactions.” Yuan Tingshu Say.

When the financial crisis led to the closure of a large number of domestic textile enterprises, why did the Xiaolong Group go its own way? The reporter learned that, in fact, after the second half of 2008, after the global financial crisis, Xiaolong Group had experienced very difficult stage. At that time, Nine Dragon Group's spinning and weaving factories had not only no profit, but also lost money almost every day. According to Yuan Ting-shu's own words, “It is not easy to take leave, stop production, and pay employees as usual. It's up."

However, the pressure was put under pressure to survive this difficult period and the days were better, because he knew that in the field of spinning and weaving, Xiaolong had mastered advanced technology and was fully capable of producing high-end products that met the market demand. And these are not comparable to small workshops with low technological content that can only produce low-end products.

"Who said that textile is a sunset industry? I don't think so!" said Yuan Tingshu. The entrepreneur-born entrepreneur speaks neatly and his way of thinking is quite different. In his opinion, if the textile industry uses advanced equipment to produce high-end, high-value-added products, it will only be in short supply, and how can it be called a “sunset industry”?

Private Enterprise Archives

Shandong Haolong Group Co., Ltd., located in Guangrao County Economic Development Zone, was established in June 2003. It now has total assets of 1.5 billion yuan and 2,600 employees. It is a cotton processing, spinning, weaving, bedding, starch, and charcoal. The provincial-level high-tech enterprises and provincial key enterprises of agricultural industrialization are integrated into black production, sales and international trade.

Reviews

From spinning, weaving, and tire manufacturing, it should be said that Xiaolong Group is undoubtedly a latecomer in any field. According to people's traditional thinking, it has actually missed the best opportunity for development. However, "later" has become an advantage. As Yuan Ting-shu, chairman of Xiaolong Group, puts it, the latecomers do not have as many heavy burdens as their predecessors, and they can achieve one step in terms of capital, equipment, technology, and personnel. It seems that doing business sometimes requires "reverse thinking." The most critical issue is how to use the later advantages.

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