CIMC Vehicles signs historic cooperation agreement

China-based OEM, CIMC Vehicles, is taking the next step in its industry-leading digital transformation journey.

CIMC Vehicles will cooperate with Siemens Digital Industries Software to maintain its long-term development of global business and promote the digital transformation and high quality development of the global semi-trailer industry.

CIMC Vehicles signed an agreement with Siemens Digital Industries Software in Shenzhen, Guangdong Province, last month.

Li Guiping, CEO and President of CIMC Vehicles, and Liang Naiming, Global Senior Vice President and Managing Director of Greater China of Siemens Digital Industries Software, and representatives of both parties attended the signing ceremony.

At the ceremony, Dr Li Xiaofu, Chief Technology Officer of CIMC Vehicles and CEO of strategic business division of truck bodies, as the representatives of CIMC Vehicles, introduced the history of cooperation with Siemens Digital Industries Software.

It is reported that Dr Li Xiaofu participated in the construction of CIMC Vehicles’ first semi-trailer ‘Light Tower’ plant, completed the overall planning and construction of CIMC Tonghua’s Super Magalhães Project, and led the construction of several ‘Light Tower’ plants with production automation and digitalisation.

According to the data, ‘Light Tower’ Plants integrated virtual simulation, big data, Internet of Things and digitalisation technologies, and were equipped with highly automated equipment (such as CNC laser cutting machine, robotic welding workstation, KTL plant and powder coating line), enabling large-scale automated flexible production. As they have solved the problems including obsolete production equipment, technology lag, increasing labour cost and difficulty in energy conservation and emission reduction, ‘Light Tower’ plants are an effective measure to promote the development of the industry from traditional manufacturing towards intelligent manufacturing.

“In terms of global manufacturing strategy, high-end manufacturing has become the focus of economic competition among all parties,” said Dr Xiaofu.

“Developing high-end manufacturing and implementing digital transformation is an important means for ‘Made in China 2025′ strategy.

“It is not only a core measure to optimise the industrial structure, but also a direction for China’s semi-trailer manufacturing to develop towards high quality and compliance.”

Dr Xiaofu added: “Since CIMC Vehicles started cooperation with Siemens Digital Industries Software in late 2014, both parties have worked together from consultation and planning, POC verification to comprehensive construction of system over seven years. CIMC Vehicles’ products involved gradually covered three major businesses, namely, semi-trailers, truck bodies for specialty vehicles, and truck bodies for refrigerated trucks, achieving the coverage of comprehensive range of CIMC Vehicles’ product categories.”

In addition to the expansion of cooperation scope between the two parties, the depth and breadth of cooperation have also been developing.

Leveraging systems ranging from 3D CAD (three dimensional Computer-aided Design Software) tools to CAD + PLM (Product Lifecycle Management), CIMC Vehicles has gradually achieved the integration of design and process and the modularisation management of products. Both parties have gradually expanded their cooperation from domestic business to global business.

Liu Ruofeng, Vice President of Siemens Digital Industries Software, China (High-end Equipment/Industry Machinery and Enterprise Key Accounts), also shared his prospects for the cooperation between the two parties. Subsequently, Dr Xiaofu and Ruofeng signed the global agreement on behalf of the two parties.

The signing of the global agreement marks that the cooperation between CIMC Vehicles and Siemens Digital Industries Software has entered a new stage of global business. Dr. Li Xiaofu said that “Currently, CIMC Vehicles has entered a new era of comprehensive digital transformation. Product data, as the data source of enterprise digital construction, will fully support the implementation of CIMC Vehicles’ business philosophy of ‘Intercontinental Operation, Local Manufacturing’”.

Guiping stated that digitalisation is a strategy that CIMC Vehicles needs to implement consistently throughout its ‘Sophisticated Manufacturing System’, and it is also an inevitable requirement for the Group’s sophisticated manufacturing to enter the crucial period. As the first global manufacturer of high-end semi-trailers and specialty vehicles with ‘A+H’ dual listing status, CIMC Vehicles will continue to enhance innovation-driven development and promote digital transformation so as to fully realise the sophisticated manufacturing strategy and management of new infrastructure by 2025, opening a new chapter in China’s intelligent manufacturing and high-end manufacturing.

At present, CIMC Vehicles’ ‘Sophisticated Manufacturing System’ is well-established, and its economies of scale are further highlighted. So far, CIMC Vehicles has globally established 13 ‘Light Tower’ plants for the production of semi-trailers, six ‘Light Tower’ Plants for the production of truck bodies of specialty vehicles, and two ‘Light Tower’ plants for the production of truck bodies for refrigerated trucks, as well as ‘Product Module’ for several series of semi-trailer products, and conducted digital transformation and upgrading, in order to continuously expand the niche market and improve gross margins, and scale new heights in the strategy of ‘Intercontinental Operation, Local Manufacturing’.

In other news, CIMC Vehicles reported a 20 per cent increase in revenue year-on-year for Q3 2021.

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