Chapter 123 Fengkai Agricultural Machinery
Fengkai Agricultural Machinery was originally a small and medium-sized agricultural machinery company in Shandong Province, mainly producing internal combustion engine parts, low-horsepower diesel engines and walk-behind tractors.

Although the product does not have any special features, it is very popular in Southeast Asia, Africa and other regions.

This is also the point that the original owner of Fengkai Agricultural Machinery was most proud of.

It is a pity that the overall technological content of domestic agricultural machinery is low. In recent years, private capital has entered the agricultural machinery industry.

Some companies have only a few or dozens of people, mainly engaged in assembly, with almost no product drawings and no production of any parts;
Some set up street stalls, while the better ones built a simple assembly line, and there was no question of product quality or after-sales service.

Due to disorderly competition in the market, agricultural machinery has fallen into the quagmire of price wars.

At the same time, the prices of upstream steel and crude oil are also rising.
The industry's performance is deteriorating.

The original Fengkai Agricultural Machinery was no exception and fell into operational difficulties.

Finally, in October 2003, Jiahe successfully acquired Fengkai Agricultural Machinery.

After the acquisition,
Jiahe immediately integrated Fengkai Agricultural Machinery, simultaneously established an enterprise technology research and development center, and hired a top team of engineers in the industry.

Guo Yang also took the opportunity to hire Yu Honghai as general manager.

Yu Honghai's agricultural machinery distribution company is managed by his wife.

He was originally a son-in-law who married into the family. His father-in-law was a senior official in the Ministry of Agriculture. He had little say in the family, and the industry was in a recession.

Under Guo Yang's repeated temptations, he jumped out.

After the integration was completed, Yu Honghai organized the expansion of the agricultural machinery production base in Shandong Province, and a new factory in Jiuquan is also under construction.

The head of Fengkai R&D Center is Guan Cheng, who holds a Ph.D. in agricultural engineering from the University of Minnesota and once worked for a multinational agricultural machinery company.

The technical level is good.

For Guan Cheng, the experience of the past year has been quite magical.

The company's research and development is going very smoothly.

Dozens of patents have been applied for, some are in the queue, and some are in testing and development.

These patents are not just for appearance design or utility model patents, but invention patents with technical content and innovative structural technologies.

Especially the breakthrough in the field of power,

It made Guan Cheng feel like he was dreaming.

But think about it,
The technical information provided by the group company is also worthy of this achievement!

Guan Cheng was jogging in the agricultural machinery spare parts market. When his boss came to inspect his results, he became inexplicably excited.

When passing by the agricultural machinery industrial park, I met several familiar engineers.

"Guan Cheng, you're running so fast, is your wife here?"

"Look at how his mouth is split open from laughing. I think it's probably true."

Guan Cheng stopped to take a breath and looked at the engineers gathered at the door chatting. They were all experienced elites in the industry. There were also various machines placed inside and outside the door.

There are diesel engines, tractors and some matching farm implements.

"No, the company's product is about to be offline, and the boss came to take a look."

"It's been almost a year since you bought Lao Bai's crappy factory. What new products have you come up with?"

Guan Cheng said: "The company will soon launch new single-cylinder and multi-cylinder diesel engines, as well as tractor series products, and main bearing cap component materials."

"Aren't you guys producing diesel engines? Your products are not as good as the quality of big manufacturers, and the price is not cheap, so they are not easy to sell."

"Tractor? It can't be a walk-behind tractor!"

"After a year of research and development, why are we still dealing with these things?"

Guan Cheng shook his head and said, "It's different."

"What else could be different?"

"Nowadays, the products of ordinary factories are all similar. The only thing they compete with is who can be cheaper."

"You will know when the time comes."

Guan Cheng did not stop and walked back.

And at the same place, the discussion among several bosses continued.

"Old Bai is really lucky. Although the factory is not bad, it was sold for more than 2000 million. It's a lot of money!"

"I heard that Mr. Bai regretted his decision. Now the policy has started to change. Business this year is better than last year."

"Golden Harvest Group has invested so much money and hired so many experts. Perhaps they have improved the production process and significantly improved the product quality!"

A fat man with a face full of flesh said disdainfully: "Nowadays everyone is copying me and I copy you, what kind of innovation can there be?"

The fat man looked around arrogantly and said, "I don't believe Feng Kai can get up. Let's bet or not!"

"What are you gambling?"

"Can Fengkai's sales reach tens of millions next year? Whoever loses will run around the market naked!"

"Damn, such a big bet, Lao Zheng."

"I'll bet with you!"

There are also some calm people among them.

"I seemed to have heard something about the main bearing cap just now."

"Main bearing cap? That thing shouldn't be difficult to construct!"

"But not everyone can produce it. At least Fengkai has introduced advanced processing equipment."

Hearing this, the thoughts of several people cooled down.

"Old Zheng, do you still want to gamble?"

"Bet! I've never been afraid of anyone, why do old men always say one thing and one thing and one thing."...

Guo Yang has arrived at Fengkai's R&D center. After looking around for a while, he was confused about everything except the tractors.

Yu Honghai was not here either, as he was busy negotiating with local governments.

There are differences in the agricultural machinery product subsidy catalogs between the central government and provincial and municipal governments, and companies need to work on them one by one.

The central government’s agricultural machinery subsidy funds are actually not much, with only 50 yuan allocated to each project county.

To some extent, the role of central government subsidies is like a drop in the bucket.

To give a more intuitive example,

Five counties in Henan Province, a major agricultural province, will receive central government subsidies this year. Combined with the province's self-raised funds, the total investment is only more than 5 million yuan.

The annual investment in agricultural machinery in Henan Province was 30 billion yuan, of which subsidies from the two levels of finance accounted for only one three percent.

But this is a financial subsidy given directly to farmers, and it also reflects the country's determination to help the poor and the weak.

It is an important transformation from "agriculture supporting industry" to "industry supporting agriculture".

Therefore, the amount of funding from the central government is guiding and symbolic, and it more often expresses a political orientation.

The central government has arranged the funds, so your provincial finance department should follow suit.

If local officials want to climb up the career ladder, don’t they have to show some political achievements?

Are you a major agricultural county? A major grain-producing area?

Then you have to respond more actively!
Among them, Heilongjiang Province is a top student. In the first half of the year, excluding central finance, the subsidy funds from provinces, cities and counties exceeded 5000 million yuan;

As for the rest, Shaanxi Province, despite its tight finances, also contributed 2000 million, and Jiangsu Province 2000 million...

A rough statistic is that after the central agricultural machinery subsidy policy came out, most provinces and cities across the country introduced local subsidy policies.

The annual subsidy amount is close to 2.4 million yuan.

This number will double every year in the next twenty years.

Yu Honghai's father-in-law is in charge of agricultural machinery in the Shandong Provincial Department of Agriculture, and he himself has been engaged in agricultural machinery distribution for many years.

It would be perfect for him to go and make connections.

……

Guo Yang stayed in the R&D center for a while before waiting for Guan Cheng to come back.

After a while of greetings, Guan Cheng began to introduce himself.

"Mr. Guo, through the technical information provided by the group, Fengkai has made breakthrough progress in the following products:
One is the single-cylinder diesel engine. The new model is more environmentally friendly, energy-saving, material-saving and reliable.

The second is medium-cylinder and multi-cylinder diesel engines, with new models launched in multiple horsepower levels, generally meeting the Euro 2 emission standards.

The third is tractors, with three series of products launched: below 40 horsepower, above 40 horsepower, and above 100 horsepower.

At the same time, in response to the requirements of the group company, the company is now also able to produce some key parts. "

Guo Yang asked: "What is the technical level of the product?"

Guan Cheng gave a thumbs up.

"The technical level is top-notch in China and is competitive enough even in the international market."

Guo Yang smiled. After all, it was technical data analyzed from the world's top agricultural machinery. Even if he only took out a small part, it was enough for Guan Cheng to digest.

"Where's the combine harvester? Where's the hay harvester? Why don't I see any of them?"

Guan Cheng scratched his head.

"Neither the combine harvester nor the forage harvester has been successfully developed. Many key parts are too dependent on imports. Our supply chain system is still too poor."

This is indeed a flaw, and Guo Yang has no way to deal with it. The agricultural machinery industry seems simple, but it is actually complex.

The production of larger agricultural machinery products involves thousands of parts and components, which places very high demands on industrial chain and supply chain management.

In the eyes of many people, complete machines have higher technological content and make more money than their components. In fact, this is a typical misunderstanding.

The core technologies of the agricultural machinery industry are mostly found in key components, where high added value is reflected.

It is an open secret that whole-machine manufacturers "work" for these enterprises.

"What parts are missing?"

Guan Cheng said: "The combine harvester is not a problem, the self-developed diesel engine can meet the demand. The biggest problem is the baler of the forage harvester, which needs to be imported from Europe."

"Haven't we introduced some parts production equipment? Can we develop and produce them ourselves?"

Looking at Guan Cheng's awkward yet polite smile, Guo Yang understood immediately.

Depend on!
The agricultural machinery industry is really too detailed.

Guo Yang thought about it.
In this case, only tractors can be included in the agricultural machinery subsidy list.

“How many tractors can be produced annually?”

"With the assembly plant in Jiuquan, the annual production capacity can reach 1000 units."

Guan Cheng's heart was in his throat. Faced with the pressure from his boss, his original pride and complacency disappeared in an instant.

Come to think of it, there is really nothing for him to be complacent about.

The technologies are all already available in the group company, and the R&D center is just developing them according to the blueprints.

The other engineers in the R&D center also had a lot of thoughts.

Various scenes of me slacking off in daily life came to my mind, and I felt a little uneasy.

Guan Cheng said with a stiff upper lip: "The R&D center will strengthen management in the future..."

(End of this chapter)