SANY Heavy Industry Ranks High on List of Most Innovative Companies

On August 13, Fortune China released its list of “Most Innovative Chinese Companies 2012,” with TENCENT Holdings Ltd. ranking first place. SANY Heavy Industry, which comes third place, is the best from China’s construction machinery industry.

16 among the 25 companies on the list were new entries. Fortune China said, “Only 9 companies from last year’s ranking remain on the list. This change shows that innovation calls for continuous efforts and attention. And any lax will lead to a company's falling behind.”

As a fine example of continuous innovation from the construction machinery industry, SANY Heavy Industry rises from No. 13 last year to No. 3 this year. According to Mr. Xiang Wenbo, president of SANY Heavy Industry, innovation and comprehensive competitiveness is the key reason behind SANY’s rise to the No. 1 in China and No.6 construction machinery manufacturer in the world in a short period of 18 years. He holds that innovation should not be measured by profits. It's hard to calculate how much it costs, and there is no ready-made template to produce it. However, the combination of management innovation, technology innovation and service innovation will collectively form a company's overall competitiveness and profit-making capability. Reportedly, SANY’s investment on R&D accounts for 5%~7% of its sales, while the number is less than 4% for some well-known construction machinery companies in the world.