Zhuzhou's rail transit equipment industry is regarded as a trump card for Hunan to connect with the Yangtze River Economic Belt and the "Belt and Road" Initiative. The "Hunan Province Action Plan for Aligning with the 'Belt and Road' Strategy (2015-2017)" proposes to rely on leading enterprises such as CSR Zhuzhou Electric Locomotive Research Institute, CSR Zhuzhou Electric Locomotive, and CSR Zhuzhou Electric, as well as the National Engineering Research Center for Converter Technology, the State Key Laboratory of Traction and Control for Locomotives and EMUs, the National Enterprise Technology Center, and the Maglev Research Center of National University of Defense Technology, to strengthen technological innovation and system integration capabilities, and to form a world-leading R&D and manufacturing center for high-end rail transit equipment.
Today, the rail transit equipment produced in Zhuzhou not only runs across China's vast territory but also serves as a pioneer for Made in China expanding overseas, setting multiple records including China's first export of electric locomotives and intercity EMUs, and has successively won orders for nearly 30 projects worth over 30 billion yuan in rail transit equipment.
On February 1, 2015, after the work conference on the "Belt and Road" construction was held, the determination to concentrate efforts at the national level to promote high-speed rail going global became very clear. In addition, after 15 years of separation, CNR and CSR were to merge again, further strengthening Zhuzhou's determination to build a world-class R&D center, manufacturing center, and service center for rail transit equipment.
In early September, the final assembly workshop of the Urban Rail Division of CRRC Zhuzhou Locomotive was bustling with activity. Rail transit vehicles such as Changsha Metro Line 1, Huanghua Airport Maglev, Shanghai Disney Line, and Shenzhen Metro Line 11 were being assembled and debugged. Among them, the EMU exported to Malaysia attracted particular attention due to its noticeably narrower car body.
On the large screen at the entrance, a video of Premier Li Keqiang's visit to the workshop on July 4, 2014, was repeatedly played: "I promote your products on every foreign trip." With this super salesman, "high-speed rail diplomacy" has become the locomotive for China to advance the "Belt and Road" strategy.
Premier helps promote, can't afford not to work hard
On September 8, a meter-gauge (one-meter track gauge) EMU with a designed speed of 160 km/h departed from Kuala Lumpur, marking the entry into operation in Malaysia of the world's fastest meter-gauge EMU made in Zhuzhou. Meanwhile, in Tianxin, Zhuzhou, known as the "cradle of China's electric locomotives," workers were still rushing to produce EMUs soon to be exported to Malaysia.
Iran, Uzbekistan, Kazakhstan, Singapore, Turkey, India, Malaysia, South Africa, Ethiopia, Macedonia... Locomotives, metros, light rails, and EMUs manufactured by CRRC Zhuzhou Electric Locomotive Co., Ltd. (abbreviated as "CRRC Zhuzhou Locomotive"), with cumulative contracts exceeding 30 billion yuan, are sailing into various parts of the world along the Maritime Silk Road, becoming representative works of "China's Intelligent Manufacturing."
"The Premier helps us promote our products; can we not work hard? We must work even harder," said Liu Youmei, academician of the Chinese Academy of Engineering and director of the Expert Committee of CRRC Zhuzhou Locomotive. The company has now established a strong innovation system and has achieved an upgrade from Made in China to Intelligent Manufacturing in China. For example, while other domestic rail transit equipment enterprises produce standard-gauge (1435 mm) EMUs, CRRC Zhuzhou Locomotive innovatively designed China's first highest-speed meter-gauge EMU and simultaneously achieved export.
Beyond going global, also stay local
In addition to "going global," CRRC Zhuzhou Locomotive also aims to "stay local." Zhou Qinghe, chairman and general manager of CRRC Zhuzhou Locomotive, introduced that product sales are the starting point. When the time is ripe, the company cooperates with local governments and well-known enterprises abroad to implement a localization strategy. Among them, the CRRC Zhuzhou Locomotive ASEAN Manufacturing Center, which was completed and put into operation in Malaysia on July 9, is the "railway factory" with the highest technical level and strongest production capacity for rail transit equipment among the ten ASEAN countries.
In Zhou Qinghe's view, Made in China not only attracts overseas customers with cost-effectiveness but also possesses "additional services" that competitors cannot match.
"We can not only quickly teach locals how to build 'trains,' but supporting enterprises also simultaneously teach locals to make components," Zhou Qinghe said vividly. Through the cluster-style "China's Intelligent Manufacturing" export of rail transit equipment from complete vehicles and core components to important parts, surrounding supporting enterprises are driven to go global together, achieving the landing of rail transit industry clusters in export destinations. This landing of complete industrial chains is extremely attractive to countries that lack a basic rail transit industry but hope to rapidly improve their rail transit equipment levels.
Supporting parts can be sourced within a five-kilometer radius, giving CRRC Zhuzhou Locomotive unmatched delivery capabilities compared to competitors. For example, in the South African project, CRRC Zhuzhou Locomotive completed the development of the first locomotive in just 8 months (the international norm is 18 to 36 months), and then dispatched substantial manpower and resources to complete the localized production of 95 locomotives on time. South African President Zuma personally cut the ribbon for the rollout of the last locomotive.
Going global is not just rigid business
Building factories in multiple countries, creating China's largest single export order record in the same industry with a $2.1 billion South African electric locomotive contract... Summarizing these achievements, Zhou Qinghe said that Chinese enterprises "going global" is not just rigid business; it also requires customers, target countries, and regions to identify with you culturally. "Once they identify with you, many things will be easily resolved."
Zhou Qinghe introduced that in Malaysia, CRRC Zhuzhou Locomotive not only designed the EMU product with the head shape of a Malayan tiger but also set up dedicated women's carriages and prayer rooms for Muslims. In the intercity EMU "4S" shop invested and built by CRRC Zhuzhou Locomotive—the Malaysia Maintenance Company—70% of the employees are locally recruited. Therefore, in addition to specially setting up prayer rooms inside, the company also arranges special work schedules for Ramadan to meet the needs of religious employees.
These "heart-winning" actions not only make cooperation more pleasant but also lay the foundation for further cooperation. Zhou Qinghe revealed that in 2015, the rail transit equipment manufacturing bases invested and built by CRRC Zhuzhou Locomotive in Malaysia, Turkey, and South Africa will be put into operation successively.
Standing by the Yangtze, looking at the Xiang River
Building "Belt and Road" enterprises to "go global together"
Against the backdrop of promoting "Made in China 2025," how can Zhuzhou consolidate its status as an industrial town?
He Anjie (Secretary of the Zhuzhou Municipal Party Committee): To implement the "Made in China 2025" outline, Zhuzhou will fully leverage the advantages of its manufacturing industry, especially the transportation equipment manufacturing industry, to promote innovative development.
Liu Riyan (Deputy Director of the Zhuzhou Municipal Economic and Information Commission): Of the 94 special projects under "Made in China 2025," all 4 selected projects in Hunan are in Zhuzhou. This is the greatest confidence for Zhuzhou enterprises to go global. Zhuzhou will focus on planning and guiding key projects to cluster into five major thousand-billion industrial clusters: rail transit equipment, automobiles, aviation, apparel, and ceramics, as well as strategic emerging industries such as new materials, new energy, electronic information, and biomedicine.
As a transportation hub city, how will Zhuzhou leverage its advantages in the Yangtze River Economic Belt?
He Anjie: We will fully utilize Zhuzhou's clustering advantages in industries such as rail transit and its advantages in science and technology talent to build Zhuzhou into an important inland railway port in central China, a national important comprehensive logistics hub, and an important comprehensive transportation node connecting the "Belt and Road."
With the construction of the "Belt and Road," what strategies will Zhuzhou enterprises adopt to explore overseas markets?
Zhou Qinghe: Our experience in exploring overseas markets is constantly enriching, and our own strength is also growing. In the future, we will gradually shift to "going global together." For example, the industrial park in South Africa is a "joint going global" effort by CRRC Zhuzhou Locomotive, taking the South African electric locomotive project as an opportunity, together with CRRC Zhuzhou Institute, Zhuzhou Electric Company, Liancheng Group, and other enterprises.
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