Everyone knows that China's economy is driven by two-wheel drive, so manufacturing and urbanization are the mainstream of China's economic development. The manufacturing industry relies on transformation and urbanization relies on reform. Experts predict that 50 to 60% of China's traditional manufacturing industry may not be able to pass. Past labor advantages, cost advantages, capacity advantages, and policy advantages have now become bottlenecks. Hubei put forward "competing and upgrading, upgrading and increasing efficiency". The industrial policy prompted the industry to speed up the transfer of batches, digest a batch, integrate a batch, eliminate a batch, and upgrade a batch. In a word, adapt to market decisions. There is only one way ahead of the enterprise - reform. The reform is that the state is loosening the enterprise. For the enterprise, the essence of reform is innovation. Enterprises rely on innovation for development and innovation to increase dividends. We believe that there is no choice but to follow this road. Below, I will make some reports on the transformation and upgrading of Yuli to all leaders, experts and colleagues, and play a role in inspiring the jade. If anything is wrong, please criticize and correct. 
Li Guilin , general manager of Hubei Yuli Company , turned the product from low added value to high added value
In the first two decades, Yuli's products are mainly made of ordinary sheet-like abrasive cloth sandpaper, sand cloth is more than seven yuan per square meter, water sand is only three yuan per square meter, wood sand is more than one yuan per square meter, and a net profit of sandpaper Only a few cents. By the end of the 1990s, Yu Li realized that it was difficult to make a greater development of the company with only one sandpaper. Therefore, Yu Li took great risks to China's first domestic base fabric processing line and the first belt manufacturing line. The price of the product rose from a few yuan to a few square meters and a square meter. The added value is also increased accordingly. Yuli is the glory of Yuli today because of this successful product upgrade. At present, Yuli realizes the potential risks of relying on a common abrasive belt. Because this ordinary belt is made more and more people, the added value of the products is getting lower and lower, and the market competition is getting more and more fierce. At the same time, the accuracy of the belt is not up to the requirements of some professional customers. 40% of China's high-grade abrasive belt market is still a foreign product, and the price is firm. After introducing the European equipment and technology in 2002, Yuli has improved and innovated to produce a mid-range belt suitable for the market. The added value of the belt product has once again increased. In the past, a car shipped tens of thousands of yuan, and now it has increased to several hundred thousand yuan. The next time the product was upgraded, Yu Li focused on the production of high-grade abrasive products such as abrasive abrasive belts and superabrasive belts. At the same time, according to market changes, it was decided to redesign an ultra-wide belt base processing line and manufacturing line with ultra-wide width, high artificial intelligence, energy saving and environmental protection. We know that the risks are great, there is no precedent for domestic counterparts, but we decided to fight.
Second, labor-intensive steering technology-intensive
Yuli has always been the corporate god in the hearts of the people of Tongcheng. In the last century, Yuli’s contribution to Tongcheng was not only taxation, but also a greater contribution than taxation. That is to arrange a large number of people to work. At the most, Yuli arranged for local people to employ 3,000 people. The people admire Yu Li from the bottom of their hearts and thank Yu Li. In the new century, Yu Li realized early that the labor dividend and cost factors will gradually fade away with the passage of time and the progress of society. Yuli has increased the investment in equipment technology reform. The basic principle is that no matter how big the equipment technology investment is, as long as it can replace the manual operation with mechanical operation, we will resolutely change it. For example, the automatic product packaging stacking line currently in use, investing more than 4 million yuan, saving nearly 20 people. There is also an ongoing automatic product quality binding line, with a planned investment of more than 10 million. If successful, it can save 200 people. Through nearly ten years of hard work, Yuli relies on technological progress. On the basis of increasing annual output value, our employment has decreased year by year, and the total number of employees has dropped from more than 3,000 in the past to more than 1,000 now. Labor time has been reduced from 365 days in the past to more than 200 days.
Third, from high energy consumption, high pollution to low energy consumption, low pollution
Yuli's equipment used to be dried by steam as a medium. It consumes more than 10,000 tons of coal per year. Because steam is used as a medium for drying, there must be a steam trap, and the water temperature of the steam trap is generally about 80 degrees. That is to say, the water drained from the steam trap is vaporized from a normal temperature to 100 degrees, and only a portion of 80 degrees or more is exerting a heating effect, and a coal consumption of 80 degrees Celsius or less is equivalent to a waste of white. To this end, we made up our mind to change the steam drying of the equipment to dry natural gas. The utilization rate of natural gas is over 94%. In recent years, Yuli invested nearly 20 million yuan, and the natural gas transformation of the three sand belt lines has been carried out. The unit energy consumption is not only lower than that of coal burning. It is especially important to greatly improve the environment around the company. For this reason, it is highly praised by the Tongcheng government and the surrounding people. In the past, Yuli Company had to discharge more than 1,500 tons of solvent gasoline and free formaldehyde into the air during the process of producing water-resistant sandpaper, which caused great pollution to the surrounding environment. Five years ago, we invested more than 6 million yuan and installed a water sandpaper gasoline recovery system. The annual recovery of gasoline is more than 800 tons, and the value of recycled gasoline is more than 5 million yuan. And spent more than 1.8 million yuan to install six sets of formaldehyde hydrolysis purification equipment, greatly improving the workshop environment, the exhaust gas after hydrolysis and purification fully meets the national standards for discharge.
Fourth, from OEM to OBM
In China today, OEM production is still one of the management methods of many enterprises. OEM production can bring immediate benefits to enterprises, but it will also bring potential risks to the long-term development of enterprises. OEM production When it comes, it’s coming, it’s fierce, but the OEM products are going away, and people are leaving the building. If the company relies entirely on OEM to maintain its business, when the OEM is withdrawn, it is when the company closes. As early as more than 20 years ago, Yuli paid special attention to the cultivation of independent brands. With the brand concept of “sharp sand belt and grinding the worldâ€, he carefully cast the Chinese famous brand “sharp card†in China's coated abrasive industry. . Now, except for a very small number of exported products in the OEM, more than 95% of the products of Yuli Company use their own brand “sharp cardsâ€.
5. From low-cost strategy to differential strategy
Coated abrasive products are a low-tech product with low barriers to entry. In the past ten years, China's coated abrasives production enterprises have mushroomed and the production scale has been expanding. New companies make full use of the local government's preferential policies and their own flexible mechanisms to reduce product prices to improve the competitiveness of products, which is bound to squeeze the original market space of other companies, making other companies feel more and more sad. In this case, the average company is forced to helpless, can only lose profits to protect the market, product prices, to pay back. You kill, I kill, vicious competition, both lose. In order to solve this problem, Yuli chose to take the path of a differentiated strategy and shift the focus of work from daily considerations to cost reduction to consider product innovation every day. When the cotton cloth belt market is squeezed, we make a blended fabric belt; when the blended fabric belt is squeezed, we make a full polyester cloth belt; now the full polyester cloth belt is also squeezed. We are going to do a stacked abrasive belt. When the ordinary sandpaper market is squeezed, we make diamond sandpaper. Domestic counterparts grab the market of Yuli, we will go to the market of foreigners. In doing so, although we lost some markets, the speed of development of the company has slowed down, but it still maintains the basic profitability of the company, guarantees the employees' due income, and avoids hurting peers due to low-price vicious competition. The feelings of a friend. In the development of varieties, we plan to combine the advantages of bonded abrasives and superhard abrasives with the advantages of coated abrasives, and develop a number of ultra-fine, cross-industry new abrasive tools to meet the urgent needs of the market.
6. Continue to try the development of diversified economy on the basis of expanding mainstream products.
For more than 30 years, we have been making high-profile advances in the research and development of mainstream products. At the same time, we have also tried in the industries of aquaculture, hotel, clothing, and wine. These attempts have not yielded much to the company itself, but have produced social value, played a role in the local economy, and accumulated some lessons. Next, we will continue to try the multi-economy road, and have invested 120 million to establish Yuli Real Estate Company. It also participated in the “Tongcheng County Natural Gas Company†jointly established by 49% of the shares with Hubei Natural Gas Company. Use multi-economy to enhance the viability of enterprises and provide development funds for leading products. Yuli has decided to invest 10 million yuan to build a fully functional and fully equipped laboratory of coated abrasive products in Fan Brand New City to lay the foundation for the existing product upgrade. Yuli is also preparing to invest 50 million yuan to build a scientific research base in Wuhan or Xianning. This base is equivalent to an industrial incubator in Yuli, closely following the national industrial policy, aiming at the frontier of science and technology in the field, recruiting domestic senior talents and conducting products. The preliminary research and development will prepare for the future industrial transformation of Yuli. Of course, this is just our wish.
Li Guilin , general manager of Hubei Yuli Company , turned the product from low added value to high added value
In the first two decades, Yuli's products are mainly made of ordinary sheet-like abrasive cloth sandpaper, sand cloth is more than seven yuan per square meter, water sand is only three yuan per square meter, wood sand is more than one yuan per square meter, and a net profit of sandpaper Only a few cents. By the end of the 1990s, Yu Li realized that it was difficult to make a greater development of the company with only one sandpaper. Therefore, Yu Li took great risks to China's first domestic base fabric processing line and the first belt manufacturing line. The price of the product rose from a few yuan to a few square meters and a square meter. The added value is also increased accordingly. Yuli is the glory of Yuli today because of this successful product upgrade. At present, Yuli realizes the potential risks of relying on a common abrasive belt. Because this ordinary belt is made more and more people, the added value of the products is getting lower and lower, and the market competition is getting more and more fierce. At the same time, the accuracy of the belt is not up to the requirements of some professional customers. 40% of China's high-grade abrasive belt market is still a foreign product, and the price is firm. After introducing the European equipment and technology in 2002, Yuli has improved and innovated to produce a mid-range belt suitable for the market. The added value of the belt product has once again increased. In the past, a car shipped tens of thousands of yuan, and now it has increased to several hundred thousand yuan. The next time the product was upgraded, Yu Li focused on the production of high-grade abrasive products such as abrasive abrasive belts and superabrasive belts. At the same time, according to market changes, it was decided to redesign an ultra-wide belt base processing line and manufacturing line with ultra-wide width, high artificial intelligence, energy saving and environmental protection. We know that the risks are great, there is no precedent for domestic counterparts, but we decided to fight.
Second, labor-intensive steering technology-intensive
Yuli has always been the corporate god in the hearts of the people of Tongcheng. In the last century, Yuli’s contribution to Tongcheng was not only taxation, but also a greater contribution than taxation. That is to arrange a large number of people to work. At the most, Yuli arranged for local people to employ 3,000 people. The people admire Yu Li from the bottom of their hearts and thank Yu Li. In the new century, Yu Li realized early that the labor dividend and cost factors will gradually fade away with the passage of time and the progress of society. Yuli has increased the investment in equipment technology reform. The basic principle is that no matter how big the equipment technology investment is, as long as it can replace the manual operation with mechanical operation, we will resolutely change it. For example, the automatic product packaging stacking line currently in use, investing more than 4 million yuan, saving nearly 20 people. There is also an ongoing automatic product quality binding line, with a planned investment of more than 10 million. If successful, it can save 200 people. Through nearly ten years of hard work, Yuli relies on technological progress. On the basis of increasing annual output value, our employment has decreased year by year, and the total number of employees has dropped from more than 3,000 in the past to more than 1,000 now. Labor time has been reduced from 365 days in the past to more than 200 days.
Third, from high energy consumption, high pollution to low energy consumption, low pollution
Yuli's equipment used to be dried by steam as a medium. It consumes more than 10,000 tons of coal per year. Because steam is used as a medium for drying, there must be a steam trap, and the water temperature of the steam trap is generally about 80 degrees. That is to say, the water drained from the steam trap is vaporized from a normal temperature to 100 degrees, and only a portion of 80 degrees or more is exerting a heating effect, and a coal consumption of 80 degrees Celsius or less is equivalent to a waste of white. To this end, we made up our mind to change the steam drying of the equipment to dry natural gas. The utilization rate of natural gas is over 94%. In recent years, Yuli invested nearly 20 million yuan, and the natural gas transformation of the three sand belt lines has been carried out. The unit energy consumption is not only lower than that of coal burning. It is especially important to greatly improve the environment around the company. For this reason, it is highly praised by the Tongcheng government and the surrounding people. In the past, Yuli Company had to discharge more than 1,500 tons of solvent gasoline and free formaldehyde into the air during the process of producing water-resistant sandpaper, which caused great pollution to the surrounding environment. Five years ago, we invested more than 6 million yuan and installed a water sandpaper gasoline recovery system. The annual recovery of gasoline is more than 800 tons, and the value of recycled gasoline is more than 5 million yuan. And spent more than 1.8 million yuan to install six sets of formaldehyde hydrolysis purification equipment, greatly improving the workshop environment, the exhaust gas after hydrolysis and purification fully meets the national standards for discharge.
Fourth, from OEM to OBM
In China today, OEM production is still one of the management methods of many enterprises. OEM production can bring immediate benefits to enterprises, but it will also bring potential risks to the long-term development of enterprises. OEM production When it comes, it’s coming, it’s fierce, but the OEM products are going away, and people are leaving the building. If the company relies entirely on OEM to maintain its business, when the OEM is withdrawn, it is when the company closes. As early as more than 20 years ago, Yuli paid special attention to the cultivation of independent brands. With the brand concept of “sharp sand belt and grinding the worldâ€, he carefully cast the Chinese famous brand “sharp card†in China's coated abrasive industry. . Now, except for a very small number of exported products in the OEM, more than 95% of the products of Yuli Company use their own brand “sharp cardsâ€.
5. From low-cost strategy to differential strategy
Coated abrasive products are a low-tech product with low barriers to entry. In the past ten years, China's coated abrasives production enterprises have mushroomed and the production scale has been expanding. New companies make full use of the local government's preferential policies and their own flexible mechanisms to reduce product prices to improve the competitiveness of products, which is bound to squeeze the original market space of other companies, making other companies feel more and more sad. In this case, the average company is forced to helpless, can only lose profits to protect the market, product prices, to pay back. You kill, I kill, vicious competition, both lose. In order to solve this problem, Yuli chose to take the path of a differentiated strategy and shift the focus of work from daily considerations to cost reduction to consider product innovation every day. When the cotton cloth belt market is squeezed, we make a blended fabric belt; when the blended fabric belt is squeezed, we make a full polyester cloth belt; now the full polyester cloth belt is also squeezed. We are going to do a stacked abrasive belt. When the ordinary sandpaper market is squeezed, we make diamond sandpaper. Domestic counterparts grab the market of Yuli, we will go to the market of foreigners. In doing so, although we lost some markets, the speed of development of the company has slowed down, but it still maintains the basic profitability of the company, guarantees the employees' due income, and avoids hurting peers due to low-price vicious competition. The feelings of a friend. In the development of varieties, we plan to combine the advantages of bonded abrasives and superhard abrasives with the advantages of coated abrasives, and develop a number of ultra-fine, cross-industry new abrasive tools to meet the urgent needs of the market.
6. Continue to try the development of diversified economy on the basis of expanding mainstream products.
For more than 30 years, we have been making high-profile advances in the research and development of mainstream products. At the same time, we have also tried in the industries of aquaculture, hotel, clothing, and wine. These attempts have not yielded much to the company itself, but have produced social value, played a role in the local economy, and accumulated some lessons. Next, we will continue to try the multi-economy road, and have invested 120 million to establish Yuli Real Estate Company. It also participated in the “Tongcheng County Natural Gas Company†jointly established by 49% of the shares with Hubei Natural Gas Company. Use multi-economy to enhance the viability of enterprises and provide development funds for leading products. Yuli has decided to invest 10 million yuan to build a fully functional and fully equipped laboratory of coated abrasive products in Fan Brand New City to lay the foundation for the existing product upgrade. Yuli is also preparing to invest 50 million yuan to build a scientific research base in Wuhan or Xianning. This base is equivalent to an industrial incubator in Yuli, closely following the national industrial policy, aiming at the frontier of science and technology in the field, recruiting domestic senior talents and conducting products. The preliminary research and development will prepare for the future industrial transformation of Yuli. Of course, this is just our wish.
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