AVIC Sanxin: The rising upstart of special glass

Han Pingyuan: AVIC Sanxin has realized the transformation to high-end special glass field by improving technology and management.

Han Pingyuan's office has four big characters, "God rewards diligence", which is not only the motto of the entrepreneur, but also the portrayal of AVIC Sanxin's continuous progress.

Han Pingyuan, who started with art glass and tempered glass, has made Sanxin Curtain Wall a golden brand in the industry through decades of hard work, but he has not stopped. When executives at the Toledo Museum of Art were worried about an oversized curved window frame to express the futurism of their glass pavilion, AVIC Sanxin provided them with a professional solution. The success of this project has made AVIC Sanxin recognized in the high-end market, and it has become one of the few highly specialized companies in the world that can undertake tasks involving glass bending and shaping.

AVIC Sanxin has been involved in the special glass field since 2008, and 30% of its profits in 2009 came from special glass. In 2010, they continued to increase investment in the field of special glass, and completed the layout of four special glass production lines in Hainan. In the same year, the company achieved operating income of 2.342 billion yuan, a year-on-year increase of 38.98%. The net profit was 65.504 million yuan, a year-on-year increase of 74.11%.

Seize the market opportunities and identify the new positioning of TeGlass

In August 2007, before Shenzhen Sanxin went public, it has undertaken curtain wall projects for many domestic airport expansion projects, ranking among the top three in the curtain wall industry. However, Han Pingyuan found that the gross profit margin of this industry is gradually decreasing, and due to the unstable customer base and the long management chain, there is a development worry that the increment will not increase the income.

At the same time, as the country pays more and more attention to energy saving and environmental protection, the utilization rate of energy-saving products in the construction industry and industrial fields continues to increase, and environmental protection special glass has also ushered in a period of great development. The slow development of the special glass industry abroad is subject to high labor costs and insufficient supply capacity. Such constraints are relatively small in China, therefore, the high-end special glass industry has begun to shift to China.

“In the next 5 years, the demand growth rate of environmental protection glass represented by Low-E glass will be as high as 50%. It has become our top priority to transform to high-end special glass and open up new business growth space. "Han Pingyuan said.

When the funds raised from the listing were in place, Sanxin started the Low-E energy-saving glass production line project with an annual output of 1.4 million square meters and the construction of the Sanxin energy-saving curtain wall product production base in Daya Bay. The first step in the transformation of the glass industry.

The core technology of the high-end special glass market is in the hands of foreign manufacturers PPG and Pilkington. Their ban on high-end glass technology has led to very few domestic glass companies involved in special glass. "If we want to enter the high-end special glass market, we must introduce advanced foreign technology." Han Pingyuan made up his mind. However, the road ahead is fraught with difficulties.

The cooperation negotiation between AVIC Sanxin and PPG can be described as twists and turns. In a hotel in Hong Kong in November 2007, Han Pingyuan and the marketing director of PPG China discussed technology transfer. intention. However, after entering 2008, PPG is also facing the adjustment from the traditional glass manufacturing industry to the coating market. Therefore, it is possible to transfer high-end glass technology. Therefore, in January 2008, Han Pingyuan and an executive director of the company flew to the PPG headquarters in the United States to discuss cooperation. PPG sent a vice president and two directors to receive them, and only gave Han Pingyuan 5 minutes to meet. However, Han Pingyuan attracted the other party by introducing the advantages of AVIC Sanxin and analyzing the Chinese market in place, so the meeting lasted for an hour.

AVIC Group, the parent company of AVIC Sanxin, is the resource background that attracted PPG's final decision to transfer. The former CEO of PPG China and now the independent director of AVIC Sanxin also played a role in deepening the trust between the two parties. In April 2008, AVIC Sanxin and PPG reached a technology transfer agreement for "Total Oxygen Combustion and Online Low-E Coating Energy-saving Glass", and obtained "Online Coating" and "Total Oxygen Combustion", "Super White Online TCO Solar Coating Glass" and other 5 world cutting-edge technologies.

Upgrade technology and management to create a special glass industry chain

"The introduction of PPG technology is one of the prerequisites for our development of special glass layout, but we are more concerned about the self-owned core technology. To this end, We have set up two R&D teams, one is responsible for introducing, absorbing and digesting new technologies; the other team is responsible for researching the deep processing of new materials. We will create our own core technology on the basis of absorption. The core of high-end glass manufacturing is technology, not equipment. AVIC Sanxin is now trying to absorb advanced technology as soon as possible." Han Pingyuan explained the steps of their introduction and internalization.

The R&D strategy of AVIC Sanxin is divided into three stages. The first stage is to digest technology and achieve mass production of high-end glass production lines. The second stage is to improve on this basis. TeGlass Design and Research Institute has become the main body to undertake this task, that is, to develop deeper and better technologies on the basis of introduction and absorption.

In order to rapidly improve its technical strength, AVIC Sanxin also relies on external R&D resources. The research and development cooperation with Bengbu Glass Industry Design and Research Institute and Beijing Aviation Materials Research Institute has enabled them to quickly enter related fields.

Of course, PPG is also their subject of study. There is no ready-made production process for PPG's high-end technology in China. Therefore, they sent business backbones to PPG to learn. At the same time, in order to ensure the smooth production of the product line, PPG also sent a group of engineers to lead their work. In this way, the backbone of Sanxin It can also be practiced in practice.

During more than ten years of development, AVIC Sanxin has reserved a group of professionals and core backbones in the glass industry, who have provided Han Pingyuan's blueprint for special glass layout and talent guarantee. Han Pingyuan took the lead in promoting these backbones at the beginning of the layout of Teglass. For example, Wang Jinlin, who has served Sanxin for more than ten years, graduated from the Department of Materials Science and Engineering of Zhejiang University. As the general manager of Hainan AVIC Special Glass Company, he led the personnel of Hainan AVIC Company to work hard for 9 months. With the assistance of PPG Company, in May 2010, he successfully completed the production of electronic glass and ultra-thin float glass in Hainan. Official mass production. At the same time, Hainan's second line (600 tons of ultra-clear TCO solar glass production line per day) also completed the ignition ceremony on January 24, 2011 and officially mass-produced.

Han Pingyuan invested 3.2 billion in the field of special glass and invested in the construction of 4 high-end glass production lines at one time, which is the first in China's glass industry. After the high-end glass production line such as glass, the AVIC Nanite Glass Base took shape.

"Hainan did not have such an idea at first. We wanted to move into the high-end special glass market at first. Later, the entire strategic layout was gradually launched, and the layout of four lines was completed. At the end of 2009, the China Securities Regulatory Commission approved the private placement of AVIC Sanxin. With ample financial support, the transformation will be successful." Han Pingyuan's blueprint for Te glass became a reality in such continuous and progressive actions.

15 years of development, AVIC Sanxin has realized the transformation and upgrading from curtain wall engineering to high-tech, high-value-added special glass. A small glass processing factory with an annual output value of 13 million yuan has now developed into a 2.3 billion annual output value. Listed company.

"The company plans to invest 3% of its operating income in research and development every year", Han Pingyuan tasted the sweetness of product technology upgrades, "We already have 40 researchers specializing in the research and development of aerospace glass, and this team will continue to expand. In the future, we hope Become a leading enterprise in the research and development, production and manufacture of high-end new glass materials."

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