Run for High-speed Innovation Interview with Chairman of CSR Zhao Xiaogang

Core Hint: Structural adjustment for development, technical upgrade for market expansion, and mechanism reform for driving power , CSR, through independent innovation, continuously marketed high-end products with high added value, so as to provide Chinese high-speed railway EMU with Chinese heart , Chinese head , and Chinese face , with the result that Chinese rail transit equipments play a critical role in the international arena.

Recently, a 380km/h new-generation high-speed EMU was exhibited in the ShanghaiWorldExpoPark, and the lengthened streamline new locomotive provided Chinese high-speed railway EMU with high-performance Chinese face , which was right CSR GROUP s updated achievement in independent innovation.

By May 1, CSR s independently researched 350km/h EMU had run 10 million kilometers safely, with speed and safety indexes both creating world records. Only after we accelerate the transformation of development means and capitalize on independent innovation to launch high-end products with high added value can we survive eventually in the market , said Chairman of CSR Zhao Xiaogang.

Structural Adjustment for Development

Resolute Reform Leads to New Development Space

CSR Sifang Locomotive & Rolling Stock Co., Ltd. is the world largest high-speed train production base. In 2004, CSR Sifang, as CSR Group s first Level-I subsidiary company in industrial structure adjustment, eliminated backward internal combustion locomotives to produce all-new EMU and urban rail metro vehicles. Such structural adjustment stirred a great sensation in the Sifang Factory, touted as the Cradle of Chinese Locomotive Vehicles .

Transformation of development means is bound to result in pain, but no pain, no gain, and we should recede before moving forward. Resolute reform leads to all-new development space in the long run , said Zhao Xiaogang. Structural adjustment means focus on market demands

Thanks to the strategic adjustment, CSR welcomed its second spring. Made in CSR high-speed EMU shared 70% of Chinese market, and CSR also received orders of 4924 vehicles in urban rail projects. In addition, the new product structure facilitated CSR to step into overseas rail equipments market, and by now, its sales revenue ranked the third place among its global counterparts.

Technical Update for Market Expansion

Independent Innovation Fixes CSR s High Growth Rate

Despite global financial crisis s impact in 2009, CSR successfully developed new overseas markets like Saudi Arabia, Tunis, Singapore, and Turkey etc, with overseas contractual value up 60% from the corresponding period of last year.

Core technology is a magic weapon for CSR to achieve fast-rate growth against the unfavorable backdrop , said Zhao Xiaogang. Equipment manufacturers survival relies on its innovation ability, and the global financial crisis again proves that it is impossible for enterprises to achieve growth only through expanding production capacity.

By technical innovation, CSR firstly shattered the technical monopoly by European and American enterprises like ALSTOM and SIEMENS, and it altered the situation that A-type metro vehicles in China depend only on import so that the purchase cost to high-end metro vehicles in China decreases by one-third.

By technical innovation, CSR continuously developed the world speediest EMU, and by the end of 2009, CSR had launched 242 EMUs into the market, with market shares surpassing 70%.

Also by technical innovation, CSR s overseas markets have been extended to more than 40 countries and regions in five continents, and CSR accordingly becomes the rail transit equipments vendor in China with the most export orders and the fastest growth in overseas market.

During the process of accelerating its transformation of economic development means, CSR focused on the implementation of Innovation Strategy , said Zhao Xiaogang. Today, CSR s new-generation 380km/h EMU experimental EMU has rolled off the production line, and once it achieves success in operation, China s high-speed

Mechanism Reform for Driving Power

Give Full Swing to the Capital and Talent s Functions

It is easy to say but hard to implement the Innovation Strategy , and an efficient mechanism is indispensable to give full swing to the capital and talent s functions.

By listing, CSR established the modernized enterprise system and it paid more respect to the market s voice , said Zhao Xiaogang. After being listed, CSR was continuously funded by the capital market in its technical innovation. In addition, the pressure from the capital market also urged the enterprise to adapt its technical innovation to the market demands.

To cultivate talents factory by virtue of significant projects will become CSR s long-term mission in talents building , said Zhao Xiaogang. CSR will attract talents by its participation into internationally advanced programs, keep talents by its takeover of state-level key projects, treat well talents by scientific incentive system, and train talents by Open and Joint Innovation mode, so as to continuously enlarge its talents team. By now, CSR is staffed with 12,000 engineering technicians, China s only academician of ChineseAcademy of Engineering in rail transit equipments manufacture industry, and more than 2000 senior experts of different subjects.

Lots of high-tech talents provide the enterprise with sufficient talents reserve, and they are also the guarantee for the birth and industrialization of innovation results. While creating value for shareholders, CSR also achieves new development competitiveness. Such favorable circulation is right the reason why CSR has inexhaustible power of innovation , said Zhao Xiaogang.