Cao Dewang, the king of glass: I won because I started from scratch
"I must remain excellent, otherwise it will cause shame, not only to the judges, but also to the whole China." Cao Dewang's acceptance speech moved the worldOn June 9, the 2009 Ernst & Young Global Enterprise Award was officially announced. At the award ceremony held in Monte Carlo, Morocco, caodewang, chairman of Fuyao Glass Group from Fujian, China, defeated the crowd and stood out from 43 winners of the Ernst & Young Entrepreneur Award National and regional awards. This is the first time that Chinese entrepreneurs have won this award
Cao Dewang said, "the reason why I can win is because I started from scratch."
start from scratch
Cao Dewang established Fuyao Group in 1987, specializing in the production of automotive safety glass and industrial technology glass. In 1993, Fuyao Group was listed on the Shanghai Stock Exchange, becoming the first listed company in the same industry in China. Fuyao Group has more than 10000 employees. At present, it has established auto glass production bases in Fuqing, Changchun, Chongqing, Shanghai, Guangzhou and Beijing, and has formed a complete set of production and marketing network system in China. Fuyao Group also set up the European Commission's food contact materials, enzymes, condiments and processing aids group (CEF) conclusion organization in the United States, Japan, South Korea, Australia, Russia and Germany, with a revenue of more than 5.7 billion yuan in 2008
is all this starting from scratch, from scratch? It sounds a little unbelievable
caodewang started from selling tobacco on the street when he was 16 years old. He also worked in the people's Commune and earned only more than 10 cents a day. "Those days were too tired. My mother would sit at the head of the bed and cry before waking me up every day." Later, he also worked as a cook and sold fruits. Cao Dewang did not hide his difficult and embarrassed pastIn 1976, caodewang began to work as a purchaser in Fuqing Gaoshan shaped glass factory. In 1983, the factory gradually suffered losses, and the local government was unable to turn losses into profits, so Cao Dewang was asked to contract the factory, and the factory made profits in just one year
according to Weng Zuying, the current general manager of Fuyao bus glass, Cao Dewang was determined to produce his own piece of glass for China in the early days of contracting Gaoshan special-shaped glass factory. At that time, Gaoshan factory had poor equipment and backward technology. When debugging the tempered glass in front of the large curvature, repeated debugging failed. After knowing the situation, Cao Dewang came to the workshop. When the residual temperature of the furnace was still very high, he took the lead in leaning over and half into the furnace to find the cause until he found the cause and reached a conclusion. His hard work, dedication, dedication and courage have silently touched the hearts of employees
in the era of Gaoshan shaped glass factory, Cao once went to the railway station on business. A man carrying several pieces of glass shouted to the crowd, "get out of the way, be careful, you can't afford to break it." Cao was very surprised, "I'm a glass maker. Why didn't I know that glass is so valuable?" After inquiring, I learned that the passer-by had brought imported car glass, which cost hundreds of yuan per piece. Moreover, due to the import, the cycle is very long, and customers generally have to wait a long time to get glasses. "Why can't we make car glass?" In an instant, a light flashed across Cao Dewang's eyes
leading layout is the key for Cao Dewang to win. In 1995, when the Chinese car market was only 320000 cars a year, Fuyao had begun to send samples to apply for factory certification; In 1999, when its peers began to rush into the Chinese market, Fuyao had been successfully exported to the United States ahead of others; By 2005, when the annual sales of Chinese cars had climbed to 280, Fuyao began to mass produce automotive glass material float glass (a new type of flat glass), completing the integration of the industrial chain
20 years later, Cao Dewang has become the king of automotive glass in China. Fuyao Glass, which he operates, has grown rapidly in recent years. It is not only the first listed enterprise in Fujian, but also China's largest and the world's fourth largest automotive glass company, accounting for more than 60% of the Chinese market. The world's top eight automobile manufacturers are Fuyao's customers
new thinking during the depression
the 30-year Reform in China has created a number of vigorous "Chinese benchmark enterprises". On them, they have accumulated the business management wisdom with the most Chinese characteristics, and have been able to stand out in this round of economic crisis. Fuyao is such an enterprise full of Chinese wisdom. Being able to win this award in the once-in-a-century crisis makes Fuyao and Cao Dewang covered with a mysterious and dazzling light
in 2008, the export sales of Fuyao Glass reached 2. $400million. The import market share of China's automotive glass decreased from almost 100% in 1985 to nearly 0% in 2008. In the first quarter of this year, Fuyao's auto glass exports bucked the trend and increased by 43%. Various financial indicators operated well, and the order volume in the second quarter was also significantly increased. Caodewang set a timetable for himself to strive to build the company into the world's largest automotive glass supplier within five years
in a face-to-face interview, caodewang explained in detail the economic crisis in his eyes to the Shanghai Securities News. He said that Fuyao was a beneficiary rather than a victim of the economic crisis
in his view, automobile is an industry with obvious scale effect. "Like the large automobile enterprises in the United States and Japan, ordinary lithium titanate batteries are prone to flatulence, and the annual output is always one or two million. Now the financial crisis is coming, my highly automated international colleagues have reduced the output by half, and the production capacity is largely empty, so it is difficult to achieve profits."
at the same time, Fuyao Glass has a certain advantage over foreign competitors in terms of production cost and technical characteristics because of the small batch and multi variety production mode. Some large automobile manufacturers have transferred the production business of supporting automotive glass to Fuyao Glass. Rotate the oil delivery valve and add force at a fixed speed
"we make auto glass accessories for Chinese independent brands. There are many new cars of Chinese independent brands, and the output is not high. It meets the production needs of more than 100000, and Fuyao can make money. With this cost advantage, Fuyao has survived in different countries."
more importantly, Fuyao predicted the financial crisis earlier than others. "As early as the end of 2007, we were ready for the winter."
according to his memory, before the crisis broke out in 2007, he prepared to "spend the winter" and ask for benefits from the internal management of the enterprise. "I invited the Korean KSA association to enter the factory for lean training in June 2007. At that time, the goal was to reduce the total cost of production by 20% within three years. From June to September was the leading stage of the project, and it failed at that time. We realized that the root cause of the failure was the lack of corresponding assessment mechanism. Later, it was restarted in October, which was very successful. At the same time, we constantly mobilized employees to be prepared in the fourth quarter of 2007, and winter came 。”
in addition, Fuyao began to "slim down" to cope with the crisis: in 2008, Fuyao stopped production of four float glass production lines. At present, caodewang said that he was planning to sell two production lines in Hainan
he said that the financial crisis did have an impact on Fuyao Glass, but the impact was small. On the contrary, it also brought opportunities to the company
caodewang, who dropped out of school at the age of 14, has a keen sense to prove that this is different from ordinary people. There is also an unknown side. He often gets up before dawn to play golf. "I don't have any friends in business and economics. I don't play with them because it's boring; I'm very straightforward. I offended many people before, but later I became more careful, but I still won't bow to anyone; I haven't sent a box of moon cakes to any officials and banks."
he has no friends with economists, and he prefers to think independently. "The three topics I like to talk about most are fashion, transcendence and innovation. For example, the appreciation of the RMB, import and export trade tax rates, intensified trade frictions and other topics have always been my concern."
the harvest season is not yet here.
in mid February 2009, caodewang, chairman of Fuyao Glass Group, who ranked 53rd in the "2008 Forbes China rich list", announced that he planned to use 70% of the shares of Fuyao Glass held by the Cao family (about 700million shares) to establish a charitable foundation named after his father caoheren. Recently, the board of directors of Fuyao Group announced that the number of donated shares was changed to 5 because the original donation plan would trigger a comprehensive takeover offer. 900million shares, 58% of the Fuyao shares held by Cao Dewang. 8%。 If the project is finally reached, caodewang will become the most generous philanthropic billionaire in China
in the era of panic caused by the financial crisis, Cao Dewang, who played the "charity card", was questionable
caodewang told, "The financial crisis is the same name in China and the United States, but it is a different cause. The United States is due to excessive consumption, and China is due to over 30 years of opening-up and insufficient reform, resulting in distribution problems, and the polarization is too severe. Now our small and medium-sized enterprises can't export, and no one buys them at home, not because the Chinese people don't need it, but because the people who need it don't have money. I hope to tell enterprises through donation Colleagues in the industry can't only rely on the government to save themselves, but also rely on enterprises to save themselves. The problem in China is the lack of consumer groups. Our work is easy to do when we consume. Saving others is saving ourselves. "
Cao Dewang's practice of establishing a charity foundation has aroused waves in the society. However, he believes that there will be more and more entrepreneurs like him in the future, "entrepreneurs are still on the way."
he said, "ancient China did a lot of philanthropy, and after the founding of new China, wealth experienced a process of redistribution. Deng Xiaoping's southern tour speech has only been more than 10 years, and our entrepreneurs and rich are still on the road, which requires a process. I believe there will be more and more in the future, and now it is not the harvest season."
Cao Dewang's outlook on wealth is very open-minded. "For me, everything outside of money is empty. Where are the property of the four families, Jiang song, Kong Chen? Things outside of me are gone."
the storm of donation and charity will always pass. In the final analysis, it is his lifelong responsibility to do a good job of Fuyao Glass. "I regard Fuyao as my son, grandson and my own life. Fuyao is China's Fuyao. The brand 'Fuyao' represents China's automotive glass to compete with international giants in the world. Its survival and development are important not only for me, but also for the country, society and shareholders."
- Cao Dewang in the eyes of the industry
Greg Ericksen, vice chairman of Ernst & Young Global Strategy and growth enterprise services:
Cao Dewang was born in a poor family in rural China. He lived in poverty since childhood, and really started from scratch and went to success step by step. He also represents a new generation of entrepreneurs who have risen in emerging markets and jumped onto the world stage
SUN Deji, chairman and chief partner of Ernst & Young China:
in 2008, more than 10000 entrepreneurs worldwide competed for the Ernst & Young Entrepreneur Award, of which 43 winners of national/regional awards directly competed for the Global Entrepreneur Award. In such fierce competition, Cao Dewang can stand out, which shows that the judges appreciate his outstanding achievements very much. Caodewang's enterprise finally became one of the global leaders, and we admire his leadership, dedication and determination.
Copyright © 2011 JIN SHI