Recently, the Reform Office of the State-owned Assets Supervision and Administration Commission (SASAC) issued the 82nd edition of the State-Owned Enterprise Reform and Enhancement Action Brief 2024. CRRC Zhuzhou Electric Locomotive Company’s reform case titled “Strengthening Core Functions and Mission, Shaping Core Advantages, Accelerating the Construction of a World-Class Specialized Electromechanical Enterprise” was featured in the “Double Hundred Action” special edition.
In addition, CRRC Zhuzhou Electric Locomotive Company (CRRC Zhuzhou) was recognized as a “Double Hundred Enterprise Benchmark” in the 2023 Special Assessment of the SASAC’s “Science and Technology Reform Action” and “Double Hundred Action.” This is the second consecutive year that the company has received this prestigious recognition, following its first award in 2022. The selection of the company’s reform case as a representative example, along with its continued role as a “Double Hundred Action” benchmark, reflects high praise for its comprehensive reform efforts and serves as strong encouragement for the company to lead the way in reform and innovation.
CRRC Zhuzhou, a wholly-owned subsidiary of China CRRC Group engaged in high-end electromechanical equipment R&D and manufacturing, was selected as one of the first “Double Hundred Enterprises” in 2018. The company has actively studied and implemented President Xi Jinping’s important thoughts on the reform and development of state-owned enterprises and the Party’s construction. It has continuously optimized its industrial layout, strengthened innovation-driven development, and enhanced its core capabilities, boosting its competitive edge.
The case highlights the company’s strategic reforms in areas such as business layout, technological innovation, and governance mechanisms.
Accelerating High-Level Industrial Layout
Targeting its position as a “low-carbon energy pioneer,” the company has actively integrated into national strategies like building a strong manufacturing nation, a strong transportation nation, and achieving the “dual carbon” goals. Focusing on the three core areas of “rail transit + clean energy + industrial drive,” the company has solidified its leading position in rail transit equipment and vigorously developed green low-carbon industries, including wind power generation, permanent magnet electric drives, and new energy transformers. The company has cultivated several industry-leading “specialized, refined, distinctive, and innovative” enterprises, such as Hunan CRRC Shangqu Electric Power Co., Ltd.
Active Industrial Transformation and Upgrading
CRRC Zhuzhou has made significant strides in the high-end, intelligent, and green transformation of its production capabilities. The company has established five advanced intelligent production lines, including a state-of-the-art smart assembly line for rail transportation traction motors, and built an internationally leading digital factory for traction motors. As a result of its innovative efforts, the company was recognized as a demonstration factory for intelligent manufacturing by the Ministry of Industry and Information Technology.
In response to the ongoing transformation in the wind power industry, CRRC Zhuzhou has rapidly built its technological leadership, production capabilities, and process support capabilities around medium-speed permanent magnets and doubly-fed products. The company now stands as the largest producer of wind power generators in China, covering a full 1-25 MW power range and adapting its products for diverse environmental conditions, including desert and offshore wind farms.
Optimizing Industrial Resource Allocation for Growth
CRRC Zhuzhou has continuously increased its investment in the rail transportation sector, emerging industries, digital innovation, and technology leadership. The company has prioritized technological leadership by pioneering disruptive and foundational research to lead industry transformation.
Innovation Ecosystem Strengthened through Mechanism Reform
The company has accelerated the establishment of innovation platforms and developed market-leading products, such as the CR450 technology innovation program for traction equipment. CRRC has also introduced a “challenge and competition” mechanism for core projects in areas such as technology and process engineering, reinforcing its commitment to continuous technological advancement.
Incentivizing Innovation through Incremental Incentives
Driven by value creation, CRRC has introduced incremental salary-based incentives and established separate funding channels for emerging industries. These measures have significantly enhanced scientific talent remuneration to further support the company’s innovation-driven growth strategy.
Differentiated Management to Drive Market Vitality
To optimize resource allocation and boost innovation, CRRC has adopted differentiated management models tailored to the distinct characteristics of its four business domains: operational, strategic, financial, and special. These models emphasize key performance indicators such as profitability for mature industries, market expansion for growth sectors, and platform development for emerging business lines.
Enhanced Accountability through Transparent Contract Management
For its subsidiaries outside the rail transportation sector, CRRC has implemented a “one company, one strategy” approach, setting challenging performance targets for management teams and ensuring clear accountability through a transparent contract management system.
Empowering Entrepreneurial Teams with Autonomy
By establishing innovation-driven platforms such as the Fluid Equipment Division, CRRC has successfully attracted high-level talent and advanced “technology incubation” initiatives. The company has also refined its team management model, granting substantial autonomy in key areas such as talent selection and performance incentives, enabling rapid development of next-generation maglev and air-floating wind turbines.
Looking ahead, CRRC Zhuzhou Electric will continue to leverage its reform achievements, focusing on industrial breakthroughs and technological innovation to drive growth. The company will intensify its commitment to market-oriented operational mechanisms, deepen institutional reforms, and further build its core competitiveness, all while striving to contribute to the establishment of a world-class electromechanical enterprise.
