◎ Gu Weilin and Hu Qi

40-year Development Resulted in a Wonderful Transcript

The year of 2018 was a year full of challenges for Zhongding. In this year, China’s automobile market had a negative growth for the first time, the macro environment where the Sino-US trade war was intensified had an impressive and far-reaching influence, the market performance was unsatisfactory, however, Zhongding Group actively took various measures to ensure stable production and operation, various economic operation indexes had certain growth on the basis of last year, the sales revenue hit another historic record high to reach 1.8 Billion Yuan, and the tax amount exceeded 600 Million Yuan.

The wonderful “transcript” of Zhongding can be further extended. In this year, Zhongding Group further perfected the construction of joint R&D platforms in Europe, America, Shanghai, the headquarters of Ningguo, etc. and jointly established “Tsinghua University - Zhongding Rubber & Plastic Seal Joint Research Center” with Department of Mechanical Engineering of Tsinghua University; the construction of Sino-German Intelligent Town, a key engineering project jointly invested and built by Zhongding Co., Ltd. and Germany, commenced, aiming at building a featured town leading globally with distinctive industry and integrated development of “three industries”; Zhongding Group constantly accelerated its industrial restructuring and intelligent manufacturing, and its operation layout of “global R&D, global production and global sale” was increasingly perfect......

Zhongding Group opening the market with seal has always been devoted to auto rubber component market, and has developed 20,000 products such as engine system, chassis system and body system.

During 40-year development, the “resume” of Zhongding never lacked honor. As the “First Batch of Single Champion Demonstration Enterprises in Manufacturing Industry in China”, it ranks among Global Top 100 Enterprises in Automobile Parts, and China Top 30 Enterprises in Automobile Industry. What is particularly remarkable is that since 2011, Zhongding has ranked top 20 among “Ranking List of Global Top 50 Enterprises in Non-tire Rubber Products” for eight years in a row.

As a leading enterprise in Anhui Ningguo Industrial Agglomeration Development Base of Core Basic Parts, Zhongding turns from a “supporting role” into a “famous role” over 40 years of development, Ningguo also becomes one of the most influential production bases for auto rubber parts in China, accounting for about 20% share of the national market of non-tire auto rubber parts, with the production and sales volume stably ranking first in China for years.

By the end of 2018, the total number of Zhongding’s employees had broken through 20,000, the total assets had broken through 20 Billion Yuan, Zhongding had established production and sales companies in 13 countries in South and North America, Europe, etc. to become an international enterprise group.

From Weak to Strong, Grasping Core Technology Was the Key

In 1979, Xia Dinghu aged 35 came to Ningguo from Wuxi to take over Ningguo Hydraulic Seals Plant, a township enterprise on the verge of closure. After he combined a series of reform measures of “taking rubber seals as main product and performing performance pay”, the enterprise was quickly resurrected.

“The growth of the Hydraulic Seals Plant mainly benefited from the policy orientation of the nation at the beginning of the reform and opening-up. However, as for the township enterprise itself, it still had the weaknesses such as ageing equipment, backward technology and poor worker quality.” Xia Dinghu still retains the memories.      
Where was the opportunity for breakthrough? He quickly found the answer: deepening the reform, accelerating technical innovation and improving the staff  quality. 

Led by Xia Dinghu, Zhongding Group successively carried out strategic cooperation with multiple advanced enterprises in Japan, Korea, etc. to introduce advanced technologies, equipment and management systems. By introduction, digestion and absorption and re-innovation, it gradually completed all-round transformation of existing enterprise technical strength to start the “reshaping” change.   

“The core technology can not be bought with money and can not be exchanged with the market. Only by grasping the core technology can we not be controlled by others.” In recognition of this, Xia Dinghu decided to establish the institute of the company in 1993 to encourage the employees to make technical innovation. Hereafter, benefiting from stable talent support, Zhongding’s production technology was greatly improved, the product upgrading was constantly accelerated and some products completely replaced the imported products.   

“For example, the domestic market of engine oil seal always relied on import for technological problem in the past, however, through technical tackling, the oil seals produced by Zhongding were high-quality and inexpensive and finally replaced the imported products.” Xia Dinghu said, Zhongding won the subsequent bid of oil seal of GE with no suspense.      

Only by innovation can we never stop. Nowadays, Zhongding has developed and produced over 20,000 products, with its rubber seals and special rubber products of Dinghu Brand famous all over the world, and its scale and benefit constantly improved.

In 2006, Zhongding Stock was successfully listed in Shenzhen Stock Exchange to become the first stock in China’s rubber seal industry; in 2014, the global sales revenue of Zhongding successfully crossed the mark of Ten Billion Yuan.  

Zhongding Implemented the Strategy of “Going Out” to Be Equal with World Advanced Enterprises

In February in early spring, in Zhongding Industrial Park located at Ningguo Economic and Technological Development Area, there were a great number of plants and many vehicles and people coming and going, the hot production scene was stronger than the Spring Festival atmosphere.

“This is production equipment of automobile resonance block, which can lower the amplitude peak under high temperature condition and reach the purpose of damping and noise reduction.” This is the production site of Zhongding Group Weigu Technology (Anhui) Co., Ltd.  

Weigu is one of the leading enterprises in European damping and noise-reducing technology, which was acquired by Zhongding Seals Co., Ltd. in 2015, it came back to Ningguo to carry out “contrarian investment” and build factory in 2016, thus breaking the long-term monopoly of overseas manufacturers in the market.    

In recent years, Zhongding Group fully took advantage of “two markets and two resources”, configured global resources through overseas merger, built global R&D and production service system within an extremely short time, greatly improved its enterprise innovation ability and core competitiveness in global market and became a global enterprise integrating production, sale, R&D and service.     

From its going out to establish American branch for the first time in 2003 to its acquisition of French TFH Company in 2017, Zhongding Stock acted frequently to go out over 15 years. 

Specially since 2018, it has taken advanced technology and high-end market as the target to complete a series of mergers and acquisitions in European and American markets targetedly; it has cumulatively invested over Four Billion Yuan to acquire 13 enterprises overseas, successfully integrated into the global supply chain system consisting of international auto giants such as BMW, Mercedes-Benz, Volkswagen and GM and formed the layout of transnational operation.      

Implementing the development strategy of “going out” changed the development mode of Zhongding and turned the original single export into global R&D, design, manufacturing, logistics and sale to form perfect integrated industrial chain. 

Through a series of overseas mergers and acquisitions, Zhongding constantly improved its comprehensive strength and sales revenue to rank the 13th in the 2018 List of Global Top 50 in Non-tire Rubber Products. Its business scope expanded from single production and sale of auto seals to the fields such as auto rubber parts and high-end sealing products for aerospace, petroleum and natural gas.          

What is worth mentioning especially is that Zhongding also narrowed the gap with overseas advanced technology within the shortest time, with its technologies such as battery sealing system, noise-reducing and damping chassis system, automobile air suspension and motor system and new energy battery cooling system ranking top in the world. 

“Now we are on the equal footing with the world advanced enterprises. Global production, global sale and global R&D, now there are our R&D teams in every corner of the world, and there are our production sites and products everywhere.” Xia Dinghu said proudly. 

In 2019, Zhongding Group will take construction of Sino-German Intelligent Manufacturing Town as the opportunity to promote Removal and Expansion Project of Zhongding Damping and Noise-reducing System; meanwhile, it will promote Anmeike Project of Xuancheng Economic Development Zone, it will invest Two Billion Yuan in the first batch and utilize the technology and market advantages of German AMK to produce series of air suspension and motor products in Xuancheng.

“After completion of Anmeike Project, it is expected to form an annual sale scale of Ten Billion Yuan and build a new Zhongding.” Xia Dinghu said confidently!