Different from the past, the "old face" German technology giant Heraeus, who has participated in the exhibition for four consecutive years, moved traditional Chinese musical instruments to the scene of the China International Import Expo (hereinafter referred to as the "Expo") this year, highlighting the "Chinese elements" at the same time, and playing a high-profile sign of "helping The Chinese core".
As an exhibitor in the first integrated circuit zone of this year's Expo, Heraeus focused on displaying a variety of key materials and technologies in the field of integrated circuits, covering wafer manufacturing, packaging and testing, terminal applications, etc.
At the booth next door, the "new friend" American semiconductor technology company Texas Instruments, which participated in the exhibition for the first time, also hung a slogan of "core to China" - multinational enterprises took the initiative to show "Chinese heart" and further upgraded the localization strategy in China, which became a major feature of this year's scene.
During the Expo, not only a large number of products, technologies and services completed the Chinese debut or the global debut, a considerable part is also the "Chinese customized model", multinational companies through these products, technologies and services, accelerate localization and integration into the Chinese industrial chain, while seizing China's huge business opportunities, but also provide innovative impetus for China's "intelligent manufacturing".
Target these focus areas
Chips are undoubtedly the hot field at the moment. According to the calculation of China's semiconductor industry, China's integrated circuit sales revenue reached 884.8 billion yuan in 2020, with an average growth rate of 20%, which is 3 times the growth rate of the global industry in the same period. China is gathering global superior resources, building an integrated circuit industry chain ecology, promoting the innovation and development of domestic enterprises in related fields, and is committed to solving problems such as the shortage of high-end chips for the Chinese market.
On November 6, Ai Zhouping, President of Heraeus Greater China, told CBN that China is one of Heraeus' most important markets, accounting for one-third of the Group's global revenue. "Our development and China's strategic co-resonance coincide with What China needs, and we have the technology and capabilities." Ai Zhouping said the company sees itself as part of China's industrial chain.
Texas Instruments showcased its innovative technology and rich analog and embedded processing products, officially launched the product distribution center in Shenzhen on the spot, and signed memorandums of cooperation with a number of customers in the industrial, automotive and other fields.
Jiang Han, vice president of Texas Instruments and president of China, told First Finance and Economics that in the face of the supply challenges brought by the lack of cores, the new factories they laid out as early as 2019 will be mass-produced early next year, which will greatly enhance the chip supply capacity.
At present, the global epidemic is still repeated, and countries are stepping up the research and development and production of new crown drugs. Through cooperation with Shanghai Zhijiang Biotech, multinational pharmaceutical company Boehringer Ingelheim has provided important support for the latter's bispecific antibody drug syzj001 for the new crown virus.
On November 6, the two companies jointly announced that Boehringer Ingelheim will provide syzj001 with services such as production process development and optimization, production of stock solutions and preparations CGMP, and support for CMC filing documents.
SYZJ001 has completed all preclinical studies and will enter the Pre-Ind procedure for Phase I clinical trials. This is an anti-coronavirus treatment drug originally developed in China, and it is also a bispecific antibody drug with a relatively leading global research and development progress.
For Boehringer Ingelheim, it is also the first strategic partner to land after the completion of the second phase of the expansion of its biopharmaceutical business in Zhangjiang, Shanghai. After the expansion in the first half of the year, its biopharmaceutical production capacity reached 6,000 liters, which is three times that of the beginning of the construction.
The field of energy conservation and emission reduction is also valued by multinational companies. With the proposal of China's "double carbon" goal, the domestic demand for energy conservation and emission reduction has allowed many foreign-funded enterprises developing in China to see new opportunities.
On the same day, grundfos, the world pump giant who participated in the Expo for the fourth time, launched a number of low-carbon environmental protection global debut products in one go, including intelligent products such as the Yushui intelligent monitoring platform designed for the needs of the Chinese market, accelerating the layout of the Chinese market.
According to Grundfos estimates, pumps consume about 10% of the world's electricity energy, and if high-efficiency pumps are used, the world will save 4% of energy consumption. And in practical applications, the procurement cost of the pump accounts for about 5% of its full life cycle cost, the maintenance cost accounts for 10% to 15%, and the energy consumption cost in operation accounts for about 85%, so it is more valuable to solve the energy consumption cost in operation.
Among the world's first new products launched by Grundfos, there is also a "Shanghai R&D" product , the Grundfos Ling adaptive prefabricated intelligent pump set. Grundfos will locate the global headquarters of the Commercial Construction Division in Shanghai in 2021, which is the first systematic solution designed and produced by the Chinese team and will be launched to the global market after the establishment of the new headquarters, and the development process lasted only 6 months.
Fang Yong, General Manager of Grundfos Commercial Construction Business Unit in China, introduced that the new product integrates the mechanical structure, control system, sensors, edge computing gateway and cloud platform of the pumping unit into a complete system, which can save up to 20% of the pump power consumption compared with the traditional assembled pump group with the same configuration.
In addition, in the fields of heavy trucks and small toys, multinational companies continue to increase their weight in China.
"This is Volvo Trucks' biggest investment in China in nearly 10 years." At the Expo on November 5, Volvo Trucks debuted with its flagship model fh, and Dong Chenrui, president of Volvo Trucks China, told CBN that the model equipped with i-save fuel saving solutions has higher fuel efficiency and can save up to 10% fuel consumption, and this car is planned to be localized in the Chinese market in 2022.
The LEGO Group released seven new LEGO toy products in one go on the 6th, which is the largest new product release of LEGO that has participated in the Expo four times. The new products include a Wukong Series set, two traditional Chinese festival sets and four Super Mario series products, which is also the fourth consecutive time that LEGO has released new products inspired by Chinese culture at the Expo.
Accelerate integration into China's industrial chain
As the epidemic is still continuing, to a certain extent, the development of the "home economy" has been stimulated, and the surge in toy sales has brought about a significant increase in the performance of the LEGO Group, and the company's operating profit in the first half of the year increased by 104% year-on-year, and the net profit increased by 140% year-on-year.
Huang Guoqiang, senior vice president of LEGO Group and general manager of China, told CBN that LEGO is continuing to increase its investment in China, and the total number of authorized stores in China will reach 300 by the end of the year, and plans to continue to add 80 stores in 2022.
Not only ordinary consumer goods, but also high-end products such as heavy-duty trucks are also accelerating localization. In August this year, Volvo Trucks acquired Jiangling Heavy Duty Truck, a subsidiary of Jiangling Motors, and its production base in Taiyuan. In this way, it will become the third commercial vehicle company to set up a wholly-owned factory in China and will start producing Volvo fm, fh and fmx series heavy-duty trucks for Chinese customers from the end of 2022. The Taiyuan plant will have an annual production capacity of 15,000 units per shift and 30,000 units in double shifts, making it volvo Trucks' fifth-largest production base in the world.
As the world's largest commercial vehicle market, in 2020, China's heavy truck sales reached 1.6194 million units, an increase of 37.94% year-on-year, accounting for more than 37% of the world's total. However, at present, the domestic heavy-duty truck market is priced at less than 300,000 yuan of products accounted for 90%, Chinese local brands dominate, while foreign heavy-duty truck products are generally priced at more than 500,000 yuan, and no one has sold more than 10,000 yuan.
Dong Chenrui said that Volvo Trucks will adopt the method of synchronous release to introduce the latest models and technologies to China in the shortest possible time. "More than 10 years ago, China's heavy-duty truck market was a pyramid structure, and high-end trucks only occupied a small part of the spire market, but in 2021, it began to show a diamond structure, the high-end market grew the fastest, and by 2030, there will be an inverted pyramid structure, and high-end trucks will occupy the mainstream market." He said that since 2017, China's high-end truck market has grown at a compound annual growth rate of more than 50%, and at this rate, the proportion will reach 40% by 2030.
"The advantage of domestic production is not only the reduction of taxes and fees, the delivery cycle will also be reduced by 80% compared with imports, and the localization of production will bring about a decline in factory and labor costs." He said that the core competitiveness of localization comes from the localization supply chain.
In addition to localization of production, many multinational companies have also moved their design, R&D teams or global headquarters to China. For example, Heraeus has moved its R&D centers in the semiconductor and photovoltaic fields to China, and its Shanghai Innovation Center, which was completed three years ago, specializes in chip assembly and component soldering and testing services for Chinese customers, so as to help customers jointly develop products that meet local needs for the Chinese market.
Jiang Han also said that many of Texas Instruments' products, from chip definition, design to test and packaging, are completed in China, rather than just a small part of global research and development.
Chai Xiaozhou, president of Honeywell Safety and Productivity Solutions Group China, also told CBN that the group already has strong local research and development capabilities in China, and the more than 20 factories it has established have strong local manufacturing capabilities, "especially during this time, almost every company has encountered the problem of raw material shortage." Because we have strong local R&D capabilities, we can redesign our products to replace suppliers with local chips or raw materials to ensure that customers don't stop. ”
It is also worth mentioning that Boehringer Ingelheim and Jiang Biotech cooperated to choose the CDMO (Biopharmaceutical Contract Development and Production) model. Because Zhijiang Biology does not have drug production capacity, through this model, it can supply it with stable and reliable drugs for clinical use.
Since the opening of Boehringer Ingelheim's biopharmaceutical base in China in 2017, it has provided contract manufacturing operations for a number of domestic innovative pharmaceutical companies and the world's top multinational pharmaceutical companies, including BeiGene's self-developed pd-1 inhibitor terelizumab, which was approved for listing at the end of 2019. On October 11 this year, Boehringer Ingelheim announced that it has become a co-construction partner of Shanghai's world-class biomedical industry cluster, and will empower innovative drugs "Shanghai R&D, Made in Shanghai" through CDMO in the future and go global.
"In recent years, the number of innovative drugs in Shanghai has continued to grow, and the corresponding number of production licenses has reached 27, showing that CDMO can greatly stimulate the research and development and listing process of innovative drugs, and also change the phenomenon of R&D enterprises selling young seedlings." Wang Bin, general manager of Boehringer Ingelheim Biopharmaceutical (China) Co., Ltd., told CBN.