Innovation, a Heavy Responsibility Interview with Chairman of CSR Group Zhao Xiaogang

Capacious, bright, and spotless factory plus automatic processing equipments constitute the birthplace of the modernized high-speed EMU.

This is CSR Sifang Locomotive & Rolling Stock Co., Ltd. s high-speed EMU production workshop and it is also the world largest high-speed train production base. So far, the workshop s high-speed EMU has run more than 10 million kilometers safely along the high-speed railway, which not only creates the world highest record in running speed, but also achieves the world highest level in safety and reliability.

CSR s transformation from the Cluster of Small Workshops to Modernized Production with the World Advanced Technology exemplifies Chairman of CSR Zhao Xiaogang s words: innovation affords CSR inexhaustible development power and it is also a heavy responsibility.

Resolute Reform Brings in All-new Development Space

CSR was far from Modernized Production 10 years ago, as Chairman of CSR Zhao Xiaogang s saying: CSR Sifang was only a large-scale enterprise with 12000 employees, it in itself resembled the Cluster of Small Workshops and kept away from large-scale industrial production .

In 2004 CSR management was determined to reshuffle the CSR Sifang Locomotive & Rolling Stock Co., Ltd. into CSR s first level-I subsidiary, and it would give up production of the old and backward internal combustion locomotive featuring high energy consumption and large emission so as to produce new EMU and urban rail metro vehicles geared to the market. In industrial structure, the management stripped auxiliary businesses off the group and adjusted the company structure to meet market demands.

At that time, many elderly employees put forward disagreement: CSR Sifang is the cradle of China s locomotive vehicles, and if CSR has its own competitive product after the management strips the locomotive business off the group?

Recede first before moving forward, and no pain, no gain. CSR should be committed to producing advanced high-tech products with development potential , CSR management including Zhao Xiaogang said resolutely.

Such strategic adjustment brought CSR Sifang all-new development space. The company clinched the historical opportunity Introduce and Assimilate Overseas Advanced High-speed Train Technologies to successfully introduce the above 200km/h EMU technology, and it mastered EMU design, manufacture, quality control, and test technologies in a short time.

On July 31, 2006 China s first domestically manufactured 200-250km/h EMU rolled off the production line at CSR. In June 2008 the company successfully researched and produced large-formation high-speed EMU 16-vehicle formation. In September 2008 the company successfully researched the world first long-formation sleeping EMU and put it into running.

By implementing the 20-250km/h EMU project, CSR Sifang systematically set up the high-speed EMU technical platform, in addition to embarking on the High-speed EMU s technical improvement and independent R & D , said Zhao Xiaogang.

In December 2007 CSR announced the birth of China s first independently researched 300-350km/h EMU so that China became the world fourth country that can independently research and produce above 300km/h EMU.

Innovation Leads to Chinese Brand

Research and development will always go on. After successfully developing the 300km/h EMU, CSR fixed its eyes to higher goal: research and development of 380km/h EMU.

The new-generation Model CRH380A EMU s running speed hits 380km/h, with experimental speed exceeding 400km/h near to the airplane s cruise speed, and thus we should tackle complicated aerodynamic environments in the R & D. Compared to the airplane, EMU will be faced with the ground airflow s interference, train body s vibration in the event that two trains come across, and airflow change when the train body passes through the long tunnel. As a result, outline design of the high-speed train is more challenging than the airplane , said Zhao Xiaogang.

On the basis of systematic research to different design factors and railroad conditions, CSR technicians, through comparison and analysis, figured out 20 kinds of train head designs, and they finally sifted out 5 optional head designs by comprehensively analyzing the technology, culture, and engineering feasibility as well as conducting 3D flow field value simulation analysis and multi-objective optimization. Meanwhile, they completed 17 items and 75 times of simulation calculations.

As to bogie technology, CSR s CRH2 High-speed EMU Bogie was awarded National Scientific Progress Level-I Prize , and CSR High-speed EMUs equipped with such bogie have run 90 million kilometers in total, with total passenger traffic hitting 123 million person-times.

With respect to safety performance, CSR s independently researched products achieved remarkable progress in some parameters compared to original Japanese vehicle. For instance, the train s derailment factor in both China and EU is not greater than 0.8, and original Japanese vehicle s maximum derailment factor is 0.72 when the hourly speed hits 250km. However, the maximum derailment factor of CSR Sifang s independently researched 350km/h EMU is only 0.34 when the hourly speed arrives at 386.3km.

In terms of passenger comfort index, CSR s independently researched CRH2 High-speed EMU is more advantageous. As to vibration and noise reduction, original Japanese vehicle s noise in the carriage ranges between 66db and 69db when the hourly speed hits 250km, and the noise rockets to 72db when the hourly speed arrives at 300km. However, carriage noise of CSR s EMU maintains at 67-69db when the train runs at 350km/h as compared to Boeing Airplane s 80db and Audi car s 76db hourly speed: 120km.

The new-generation 380km/h EMU with independent intellectual property will roll off the production line in H1 this year, and its maximum speed will hit 380km/h, with experimental speed surpassing 400km/h. Such EMU will become the world speediest train with the highest technical content and optimal system configuration, so it is a milestone project to China high-speed railway , said Zhao Xiaogang proudly.

Active Mechanism Brings up Innovation Power

It is easy to say but hard to make independent innovation! Lots of enterprises lack core technologies but numerous scientific research institutes always fall into the predicament No product after making achievements, and no industry after developing products . However, CSR successfully rids itself of such contradiction .

For instance, CSR Zhuzhou Electric Locomotive Research Institute transformed from a state-owned electric locomotive R & D institution to a trans-industry, diversified, professional and modernized high-tech enterprise group centering on core technologies. It has eventually set foot in three major industries like traffic equipments, new materials, and new energies, with sales revenue this year being estimated to surpass 10 billion yuan.

How can CSR gain inexhaustible power of innovation Zhao Xiaogang told us the answer.

First, go public for financing to establish modernized enterprise system. The enterprise s development needs both technical innovation and capitals. By being listed for financing, CSR raised lots of capitals to support its technical innovation. More importantly, CSR reshuffled its system fundamentally by listing, and its governance structure also altered, with the result that CSR established the modernized enterprise system.

While producing blood to CSR, the capital market also brings CSR huge capital pressure. However, such pressure facilitates CSR to continuously seek improvement and make technical innovation , said Zhao Xiaogang.

Second, establish the mechanism boosting unceasing technical innovation. For the sake of mastering core technologies, CSR made the strategic choice to transform from Manufacture-oriented enterprise to Innovation-oriented enterprise, in addition to launching the construction of three platforms like design technology platform, manufacture technology platform, and product technology platform. CSR also integrated its internal technical resources.

Third, rear high-quality talents team. CSR, based upon Walk Out strategy and the capital operation needs, built up talents factory while implementing projects. Through the project implementation, CSR fostered its talents team at a fast rate and it gradually and pertinently established a strong talents management support system, in a bid to internationalize its talents management.

At present, CSR is staffed with 12,000 engineering technicians, 1 academician of Chinese Academy of Engineering, 9 state-level middle and young-aged experts, and 134 government-subsidized experts, 168 professor-level senior engineers, and 1777 senior engineers.

Pressure from the capital market spurs the enterprise to make improvement, and it transforms into the power of technical innovation. Our industry-study-research innovation mode provides the enterprise with lots of high-tech talents, and the sufficient talents reserve offers support for the birth of the innovation results and output of final products. After the innovation results have been transformed into products and the industrialized production, CSR will create unfailing value for shareholders, which can be blamed for CSR s inexhaustible power of innovation , said Zhao Xiaogang.