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One Axle Turns the World: Through Fengbao Heavy Industries, Viewing the Resilience and Ambition of the New Star in the Axle Industry
06/28/2023
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Linzhou: According to the latest statistics from the China Automobile Industry Association, Linzhou, Henan, accounts for approximately 40% of the total production of auto parts in China's heavy-duty vehicle market. Among them, the production of automotive alternator claw gears occupies about 70% of the national market share, making Linzhou the largest county-level automotive parts production base in the country.


Hongqi Canal: Known as the "Eighth Wonder of the World," Hongqi Canal is a project constructed by the people of Lin County (now Linzhou) in the 1960s under extremely difficult conditions, diverting water from the Zhang River to Linzhou. It is often referred to as the "artificial river."


Fengbao Heavy Industries: Fengbao Heavy Industries’ parent company, Fengbao Group, is not only the largest private enterprise in Anyang City but also one of the top 500 private companies in China. Fengbao Group manages numerous subsidiaries, including Fengbao Special Steel, Fengbao Pipe Industry, Heavy Industries Technology, High Energy Materials, and Datong Logistics. Among these, Fengbao Special Steel is a leader in the private sector for seamless steel pipe production, ranking among China’s top producers of seamless pipes.


An industrial hub, the spirit of splitting mountains, and a gathering of talents, they seem to form a beautiful concentric circle with Fengbao Heavy Industries. It feels as if their axle can turn the world.


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Fengbao Heavy Industries would likely have no objection to this metaphor. As the creator and builder of this "concentric circle," this emerging axle manufacturer located at the foot of the Taihang Mountains is hoping to carve out a future for the axle industry, armed with the "Hongqi Canal spirit" and positioned to thrive amid the ongoing industry reshuffle and transformation.


Whether this future can be realized depends on the present—if we sketch the picture with simple numbers: Fengbao Heavy Industries' axle project, with an investment of 3 billion RMB, is the largest-scale automated intelligent axle production line investment in China. It has a complete industrial chain and boasts a production capacity of 600,000 trailer axle assemblies, 200,000 drive axle housings, 3 million wheel hubs, 2 million brake drums, and other supporting components annually. The strength and spirit woven by this “concentric circle” will produce high-quality products that are affordable to customers, giving Fengbao Heavy Industries a leading edge from the start.


The automated and intelligent axle production line project, which was launched in 2018, is part of Fengbao Group’s response to the "Made in China 2025" initiative and is listed as a key project in Henan Province. This marks Fengbao Group’s entry into the axle equipment manufacturing sector, following its earlier success in steel and oil pipes, marking a new round of transformation and industrial chain extension for the company.


Currently, the six world-class trailer axle production lines use visual, information-based, digital, and intelligent manufacturing equipment, ensuring high-quality, high-precision, and high-capacity production. This marks a comprehensive reform in the design, production process, and product strength of Fengbao Heavy Industries.


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As Chairman of Fengbao Heavy Industries, Li Jingmin is one of the key figures leading the company in establishing its brand both in China and internationally.


Upon first meeting Li Jingmin, his simple attire and grounded speech make him appear approachable and easygoing. However, behind him lies an extraordinary history of experiences, honors, and contributions: he holds a master's degree, is a member of the Communist Party of China, a senior engineer, and has served as a member of the Linzhou Municipal People's Congress since 2006. He is also a national labor model in the steel industry, a labor model in Henan Province, and an outstanding private entrepreneur in Henan.


With a strong sense of career and social responsibility, Li Jingmin has dedicated himself to revitalizing national industries and contributing to local economic development through innovation and green development. Under his leadership, Fengbao Special Steel has grown from a small iron factory with an annual output value of 10 million RMB into one of the top 500 private enterprises in China, with annual sales exceeding 10 billion RMB. This achievement ended Linzhou's history of having iron but no steel and pioneered steelmaking and seamless pipe production in the city.


The slogan "Unity is strength" perfectly captures the advantages of combining the scale of Fengbao Group. With the backing of "Fengbao Special Steel," Fengbao Heavy Industries' products offer exceptional cost-effectiveness, making it one of the most complete enterprises in the axle industry supply chain. From iron ore smelting to integrated steel processing, from intelligent production to smart assembly, Fengbao Heavy Industries can handle it all in-house.


By controlling the quality of materials from the source—whether it's iron ore, casting, wheel hubs, brake drums, or brake pads—Fengbao Heavy Industries effectively reduces costs, bringing real benefits to users. This unique approach in the axle industry is aimed at "creating value for customers and building a world-class axle brand." The company’s goal of making Chinese trailer axles widely used in China’s semi-trailers is a key driver behind its investment in an automated manufacturing, assembly, and testing production line.


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On that morning at Fengbao Heavy Industries' showroom, looking at the products that had kept the Fengbao team working day and night, one couldn’t help but feel a sense of pride for the creators. These products may soon be widely used in trailers, a satisfying thought for those who had labored to create them.


On the other hand, through conversations with Li Jingmin, it became clear that Fengbao Heavy Industries aims to change not only the products but also the entire industry. This includes investing in product research and development, recruiting top talent, and becoming a leader in green manufacturing. In addition to enhancing its service network, Fengbao Heavy Industries plans to offer high-tech, cost-effective, customized products specifically designed for the Chinese market, which has a large and complex transportation infrastructure.


Bearing the heavy responsibility of "making national brands famous worldwide," and with the strategic vision of "Chinese semi-trailers using Chinese axles," Fengbao Heavy Industries has both the power and the belief to achieve this ambitious goal. Whether in terms of capabilities or strategy, Fengbao Heavy Industries has developed significant resilience and a bold ambition to lead the industry.


As one of the key implementers of this vision in China, Li Jingmin has witnessed the significant changes in the traditional automotive parts industry. Now, he looks around and sees a landscape that has undergone many reversals, challenges, and transformations. His thoughts, ideas, and words reflect the actions and strategies of this emerging axle manufacturer as it navigates the industry's transformation, laying the groundwork for a bright future. He once said: "Split the Taihang Mountains, and the Zhang River flows through. The people of Lin County have great ambitions, daring to change the world." Fengbao Heavy Industries shares the same ambition, breaking through barriers and moving forward.


In fact, the mission Li Jingmin undertakes today is not only the starting point for Fengbao Heavy Industries but also the path that many traditional automotive parts giants must consider. While Fengbao Heavy Industries needs to continue proving its vitality in an era of transformation, it also hopes to keep surprising the world with its innovations.


 

*Article sourced from: Commercial Vehicle, written by Fang Yanan, edited by Sui Yi (slightly modified).*