The experience of Jiamusi combine harvester plant

2022-06-17
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The experience of Jiamusi combine harvester factory reflects the heavy agricultural machinery industry in China. According to the data of the Ministry of agriculture, the central government allocated a total of 167.4 billion yuan of subsidies for the purchase of agricultural machinery from 2004 to 2016. This more than 160 billion yuan has brought positive and negative effects, which can be described as mixed

fortunately, the comprehensive mechanization rate of agriculture has reached 65%! The cultivation of main crops and the harvesting of wheat and rice have been basically mechanized. (news from the Ministry of agriculture in december2016)

the worry is that most domestic agricultural machinery is concentrated in the low-end market with low technology content, and the high-end agricultural machinery market is almost monopolized by foreign giants, with a technology gap of 30 to 40 years

why is domestic agricultural machinery inferior to foreign agricultural machinery? Naturally, there are reasons for the late start of domestic agricultural machinery, as well as the problem of land dispersion brought about by the household contract system. However, through careful analysis, we can also find the deficiencies in the policy. From the story of "Jialian" joint venture, we can observe that the ideas of "independent research and development is too difficult" and "independent research and development is not practical in the market, and technology introduction should be carried out through attracting foreign investment" have played a very important role in the independent research and development of domestic agricultural machinery. It is worth pondering

"Jialian" is the abbreviation of Jiamusi combine harvester factory. Jialian factory was established in 1946, formerly known as Hejiang industry. It mainly focuses on agricultural machinery repair and manufacturing, and is the cradle of industry in Jiamusi city. In 1980, the enterprise merged with Jiamusi harvester factory, and the name became the later well-known Jiamusi combine harvester factory. Together with Jilin Siping, Henan Kaifeng and Xinjiang combine harvester factories, it was called the four combine harvester factories

from 1949 to 1965, the main work of China's agricultural machinery enterprises was to introduce and copy. Although the number of products was small and the manufacturing quality was not high, and some small combine harvesters designed and developed by a few domestic units were unsuccessful during this period, China had initially mastered the production and manufacturing technology of combine harvesters

The period from 1966 to 1980 was a period of rapid development of agricultural machinery in China. The output of combine harvesters reached 6000. By the end of 1970s, a relatively complete combine harvester manufacturing industry began to take shape. Typical manufacturers and their products include: zkb-5, lz-5 and other models produced by Siping and Kaifeng combine harvester plants; Fengshou -3.0 self-propelled combine harvester of Jiamusi combine harvester factory; Beijing -2.5 self-propelled combine of Beijing combine harvester factory; Beidahuang-6 of Yilan harvester plant; A large number of self-propelled combine harvesters such as Xinjiang -5 of Xinjiang combine harvester factory. Although some of these models are old models with foreign technology level in the 1940s and 1950s, and the machine performance is relatively backward, they have gradually acquired the ability to independently design and develop new products

In 1980, Jialian factory director wangzizhong reported to the Ministry of machinery industry that he wanted to introduce world-class agricultural machinery with high production technology in China. In 1981, the Ministry of machinery first organized Kaifeng and Jiamusi combine harvesters to introduce the manufacturing technology of "1000" series grain combine harvesters of John Deere company of the United States, and produced three kinds of large combine harvesters: 1055, 1065 and 1075. In addition, the series of materials that are spray free and can replace electroplating were introduced at Chinaplas in Guangzhou in 2015, and Siping combine harvester factory and Qianjin factory of democratic Germany were assisted to introduce the manufacturing technology of e514 combine harvester in a cooperative manner for assembly and manufacturing

by 1984, after digestion and absorption, Jialian began to produce Deere 1000 series combine harvesters in small quantities. The introduction of technology has made Jialian brilliant for a while. The key is that Jialian is unique in China. Jialian's large-scale combine harvester is well-known in Northeast China's state-owned farms, Xinjiang production and Construction Corps and North China, accounting for 95% of the domestic market share. Therefore, the introduction of technology is considered successful by both government departments and industry peers. As a result, Jialian in the national agricultural machinery industry, Especially on combine harvesters, he added: "The next generation of products will play a leading role in the comprehensive technology industry focusing on soft and hard utilization.

however, as the author said earlier, a huge factor affecting the development of agricultural machinery in China is the poverty of farmers and the lack of purchasing power. Since 1982, the national output has dropped from 6000 units to more than 1000 units. At that time, people who supported cooperation with foreign capital had the view that independent research and development was not practical in the market, and should be imported by attracting foreign investment Technology introduction. This view has not been stopped. Do you know that due to the characteristics of small farmers, the purchasing power of farmers has not been greatly improved today. If the subsidies for the purchase of agricultural machinery are stopped, the agricultural machinery market is bound to shrink

after the reform and opening up, due to the fierce market competition, Jialian's independent research and development has not continued. Jialian's products are still mainly 1000 series, and the quality of the products produced is not fully qualified, which is far from that of John Deere. By 1996, the production and operation of the enterprise had been very difficult, and the working capital was extremely scarce. In 1997, the enterprise debt ratio reached 130%

In 1994, John Deere sent people to China to investigate and find partners. Due to the technology accumulation and market position of Jialian, John Deere locked the goal of the joint venture in Jialian

there are also different voices within Jialian about whether to establish a joint venture or not and who will control it. Wangzizhong, the old factory director of Jialian, believes that there is no need for joint venture after the technology has been introduced. Moreover, Jialian is not the only one with difficulties. If it can get state support in the future, it will have development opportunities. If there is a certain joint venture, we must adhere to two points: one is the overall joint venture (joint venture of all employees and all assets), and the other is controlled by Jialian

this is inconsistent with the joint venture purpose of John Deere. John Deere's opinion is that as long as high-quality assets are held by Deere, or Jialian must first be held by Deere, and then Deere must be held

another school, represented by the factory director, believes that it is too difficult to independently develop large harvesters to obtain the displacement of the beam by measuring the output pulse number of the photoelectric encoder, and the joint venture is very necessary. Letting John Deere hold shares can encourage it to go all out to develop in China. John Deere has strong financial strength and can sell his products abroad

After that, John Deere invited Jiamusi city to organize a delegation to the United States. We can see that one production line of John Deere can produce a variety of models, most of which are operated by robots. From raw material procurement to product off-line and after-sales service, they are all controlled by computers. There is almost no inventory of products, and the production is completely based on orders, which exacerbates the feeling that "independent research and development is too difficult" of the joint venture

at this time, John Deere threw out his trump card: "I can choose to make joint ventures with enterprises in Kaifeng, Siping and other places. If China holds the controlling stake, I will not provide more advanced technology."

at this time, the old factory director wangzizhong suddenly died due to an accident, and the balance of negotiation tilted

In May, 1997, both parties signed the joint venture contract

in 2004, John Deere Jialian 1078 and 1076 large combine harvesters accounted for 95% of China's market share, that is, in that year, the company became a wholly foreign-owned enterprise as agreed

on october8,2005, old Jialian, which was burdened with 300million yuan of bank debt, was restructured into a private joint-stock company with the nature of an independent legal person - Jiamusi Xinglian Machinery Manufacturing Co., Ltd. The three collective factories under the old Jialian banner provided supporting facilities for johndier Jialian and established Jialian harvester company. In 2016, the company was in the state of revocation (not cancelled)

Jialian's destiny is the epitome of that generation of state-owned agricultural machinery enterprises

Kaifeng combine harvester factory has been cancelled; Beijing combine harvester factory has disappeared in the industrial and commercial registration; Jilin Siping harvester factory later became a private company after several acquisitions; The Xinjiang harvester factory registered in august1981 was revoked (not cancelled) in june2004

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