With over 60 years of focus on the development of engine 'heart' crankshafts, Desheng's 'smart manufacturing' has integrated into the international stage.

German BMW, American Harley, Japanese Honda, Italian Piaggio... These renowned international high-end motorcycle brands share a common engine crankshaft supplier - Qingdao Desheng Machinery Manufacturing Co., Ltd. The crankshaft is equivalent to the 'heart' of the engine. For over 60 years, Desheng has focused on the research and manufacturing of engine crankshafts. By concentrating on one field and perfecting its products, Desheng is an 'invisible champion' among enterprises. As Shandong's economy enters a stage of high-quality development, how do these 'invisible champion' companies shine? Desheng provides an excellent example.

Desheng's factory workshop uses intelligent production lines, with rows of robots busy at work.

Transformation and upgrading

'Ideas determine the way out'

When Sun Peizhang took over this company, due to various historical reasons, Desheng, once a pride of Pingdu's manufacturing industry, had reached an extremely difficult moment.

Desheng's history can be traced back to 1957 and was transformed from a state-owned enterprise to a private enterprise in 2005. In May 1999, Sun Peizhang was appointed as the factory director and party secretary of Desheng. The three major challenges of 'overstaffing', 'difficult production operations', and 'huge bank loans' were pressing down on Desheng. 'In my first year in charge, there were more than 1,300 employees; over 200 were still producing very low-end products like bicycle pedals. At that time, the motorcycle engine crankshafts produced were also quite low-end.' Sun Peizhang believed that if this situation continued, Desheng would undoubtedly perish.

In 2000, which was his second year in office, Sun Peizhang began extensive reforms. The first step was to eliminate bicycle pedal production and transfer all personnel to motorcycle engine crankshaft production while phasing out backward capacity. At the same time, he streamlined personnel; older employees were offered early retirement with a salary of 70%, and measures were taken to stimulate production operations to give Desheng a temporary breathing space.

Sun Peizhang had a complete set of ideas for Desheng's reform. In 2001, he officially proposed comprehensive adjustments in three major structures: market, product, and variety for Desheng. Simply put, it meant expanding from domestic sales to exports; from single motorcycle crankshafts to various types of shafts; from low-end shafts to high-end shafts.

Such adjustments could not be achieved overnight; they have run through nearly two decades of development for Desheng thereafter. Sun Peizhang believes that today marks the successful conclusion of these three structural adjustments as the company's products, markets, equipment, talent pool and management level have all seen qualitative improvements.

A comparison can attest to Desheng's achievements: In 2001 exports generated zero revenue; by 2018 it reached $15 million; previously only able to produce motorcycle crankshafts now covers fourteen categories including motorcycles, off-road vehicles, drones, marine outboard engines, agricultural machinery, construction machinery and original machinery. Moreover, Desheng now only produces precision high-end shafts.

'Ideas determine the way out; it took us eighteen years for Desheng not only to emerge from difficulties but also to reach the forefront of the industry.' Sun Peizhang attributes today's success at Desheng to foresight and proactive reform awareness. 'We need both ideas and early action. We now advocate for new-old energy conversion and transformation upgrading in enterprises; it can be said that Desheng's transformation began eighteen years ago and has now completed its first phase tasks.'