A relatively remote county-level city, adding a lot of international color because of the arrival of a global agricultural machinery giant.
On October 13th, CLAAS released a series of new products to distributors and partners from all over the country at its high-density base in Shandong, revealing that China's development is becoming more mature and confident. Arranged the 'German Oktoberfest', trying this kind of distinctive corporate culture exchange activities and pure German culture, and getting closer to the distance between users and partners.
During the period, Mr. Ludwig, President of Global Sales and Services, Mr. Ou Ding, President of Asia, Mr. Hanno Schmidt-Román, Director of Global Service and Accessories Sales and Marketing, and Mr. Lin Qionghua, General Manager and Chief Financial Officer of Kele Ms. Simon, Mr. Simon, Deputy General Manager and Sales Director of Kele, Mr. Tobias (Shandong Yang), Chief Commercial Officer of Shandong, and Mr. Zhang Jinwang, Chief Operating Officer of Shandong Branch, accepted the quality and supervision of agricultural machinery, China Agricultural Mechanization Information Network, agricultural machinery and agricultural machinery 360 network and other media joint interviews.
Reporter: In the past two years, China's agricultural machinery market has entered a period of deep adjustment. Does the development confidence of Kele's receipt in China be affected? Has the company made certain strategic adjustments? In addition, the company has received two companies in China. Beijing, Kele accepts Shandong) What are the countermeasures?
Kele Collection: Kele has been operating in the agricultural machinery industry for 130 years. Although the Chinese agricultural machinery market has shown a downward trend in the past two years, we are not only looking at the Kele, which has gone through the storms and the way. In just two years, it is a long-term development in China. Although the market capacity of agricultural machinery products including wheat harvesters in the past two years is smaller than before, the development trend of the whole agricultural machinery industry has not changed. For example, the agricultural machinery is coming. The trend towards low energy consumption and intelligence is becoming more and more important. The company is also working hard in this direction. The market is fluctuating. In the long-term perspective, the agricultural machinery market is still upward. In general, we still follow the established strategy and Focus on development continues.
The long-term development strategy of Kele in China will not change, but we will make some adjustments according to the specific conditions of short-term market fluctuations. For example, we will do some preparatory work according to the new emission standards of the country. In addition, the high-density factory in recent years. In the continuous research and development, the introduction of new products, including tractors and pasture machinery. Kele is building a global manufacturing network, Shandong is an important member and manufacturing base, it is conceivable that in the near future, Shandong Kele will be managed to a level. Manufacturers with the same level of manufacturing and product quality as their headquarters, produce parts and complete products for other overseas companies.
From this year's perspective, corn prices have rebounded but still lower than 2016. The corn harvest season has been affected by droughts and floods, and the agricultural machinery market has indeed been negatively affected. On the one hand, we will expand our products while upgrading existing products, such as corn machines, line spacing and width requirements. Different, on the other hand, the development of new products, such as the newly developed multi-grain multi-function grain direct harvester, this is actually a countermeasure.
Reporter: Kele received as an international agricultural giant. What is the recent business situation? How do you look at the development of global agricultural machinery? At present, some countries are building trade barriers. How do you consider this Krass?
Kele Collection: In the past fiscal year, the Group has grown by 4%, and we expect an annual growth of 3%-4%. The most important thing for our agricultural machinery industry is that farmers have money on hand, according to the survey of farmers in the past 4 months. Global peasant income has a certain growth, so we are optimistic about global development. We believe that overall, the global agricultural machinery market will grow steadily and will not jump.
The main market for the company is in Europe, and Italy is also growing as a major city in Europe. From a global perspective, we have production bases in countries other than Europe, the United States, India, etc. The impact of trade barriers on us. Not big, such as the impact of US soybean exports to China, which will promote the growth of soybean cultivation in South America. The market has risen and fallen, and the Kele Group can stabilize the market fluctuations. No one likes trade protectionism, but must have countermeasures. We have a factory in China that is very good for our career development.
Reporter: Kele is a high-tech representative of the agricultural machinery industry, but it is undeniable that the price is high. In the process of the company's products extending downwards, is the product technology bottom line? Klass is known for its high quality, and the products in China are To achieve the same level of quality in Europe or to insist on Chinese products to do some products?
Kele Collection: At present, Kele has received large-scale green machines for high-end customers such as farms. After the acquisition of Jinyi, Red Spring Rain targets customers with small scale in China. Today we launched a new machine Dominator 370, which is to make up for two major A gap product between class machines.
Taking our Dominator370 as an example, we always adhere to high-end technology and quality, and we also set the price that high-end users can afford. In terms of product parameters, we may set different grades, users can choose different options according to their needs, but all In terms of production, our products adhere to the same quality standards in the world, and the stability and reliability of products maintain the same quality level.
Reporter: The Ministry of Environmental Protection has stipulated the implementation of the national machinery industry in the agricultural machinery industry. Does Kole have certain preparations for this? How do you think about this issue?
Kele Collection: We have established a cross-border project team. From a technical point of view, there is no difficulty for us. In Europe, we have mature technology and experience in upgrading agricultural machinery emissions. We are confident that we will provide the market with the national requirements in a timely manner. Products. Compared with the four countries and two countries, the country's three upgrades will be greatly improved in terms of technical difficulty and manufacturing costs. Environmental upgrading is beneficial from the perspective of purifying the air, but it may also bring the industry to reshuffle. The cost will increase, the cost will increase by 10% or more than in the past. Who will bear this cost? The cost of environmental protection upgrade in Europe will eventually be paid by farmers, and the cost will increase by 10%-15%. But for Chinese farmers, whether it can accept There are doubts. Chinese manufacturers, distributors and users are very difficult to bear this cost in the short term. Everyone expects that there will be more users to buy the National III products before the implementation of the National IV.
Reporter: Kele received a dual brand strategy in China that currently adheres to CLAAS and Chunyu. What other feelings do you have for China International Agricultural Machinery Exhibition? What surprises are brought to you? New products will be brought to the country and will not be afraid of plagiarism?
Kele Collection: Kele's dual-brand operation in China is also in the process of learning. One is localized and the other is global. For different groups, stick to it and stick to it. Two brands have different customer groups. It is a fact, but there are also overlaps. Some users will buy a large green machine in the process of upgrading from small to large, and some will feel good after buying a large machine that is collected by Ke Le. When farming small plots, Come buy a small one.
China International Agricultural Machinery Exhibition is an influential exhibition. We will display upgraded products and new products. We are not afraid of others to learn. We rely on our own efforts to develop products that are close to the market and maintain our leading position.
Reporter: This year marks the 40th anniversary of China's reform and opening up. Kele has entered China since 2004 and has contributed to the development of China's agricultural machinery.
Kele Collection: Looking back on the 14-year development history in China, Kele has really developed in China for the past five years, and truly exerted its own advantages to promote the development of many agricultural fields in China, and also allowed domestic manufacturers to learn from it. Promote the development of the agricultural machinery industry. For example, our silage machine, our high-quality concept of pasture raising cattle, has driven the domestic dairy farming industry chain to focus on high-quality raw materials from the feed chain; such as our harvesting machinery, the past was confined to the northeast, after The development of the northwest market has also led to the advancement of joint grain harvesting technology. Our product technology is different, there are different harvesting techniques and methods, reducing the rate of food loss, and playing a positive role in the improvement of the concept of domestic manufacturers and farmers. The time to enter the Chinese market is relatively short, but a large number of Chinese employees and even dealers and customers have been trained. Their practical skills, from theory to maintenance, have been improved.