China adds 5 more lighthouse factories, with CATL, Midea and others making the list!

Written by Duoyu

On October 11, the World Economic Forum announced that 11 new factories have joined its global lighthouse network, of which 4 have been selected as "sustainable development lighthouse factories". Among the newly added lighthouse factory list, 5 Chinese factories have made the list, namely CATL (Yibin, China), Haier (Qingdao, China), Midea (Shunde, China), Sany Heavy Industry (Changsha, China), and Western Digital (Shanghai, China).

As of now, there are 114 lighthouse factories in the world, 42 of which are in China, accounting for more than one-third of the total.

Lighthouse, known as "the most advanced factory in the world", is a demonstrator of "digital manufacturing" and "Globalization 4.0" jointly selected by the Davos World Economic Forum and McKinsey Consulting Company, representing the highest level of intelligent manufacturing and digitalization in the global manufacturing industry today.

According to Gaogong Robot, the entry threshold for lighthouse factories is extremely high. To be included, one must meet comprehensive evaluations in three dimensions: first, a clear strategy; second, employee capabilities; and third, governance level.

To some extent, these three evaluation dimensions actually indicate the future transformation direction of Chinese factories. Whether traditional manufacturing can achieve large-scale digital transformation and implement professional governance has become a matter of life and death for Chinese factories in the face of the global economic recession crisis.

Enno de Boer, global director partner and global leader of digital manufacturing at McKinsey, pointed out: "It is very difficult to make a factory realize digital development. Some small factories are highly differentiated, and their facilities and working methods are very outdated. This is the key factor that many companies cannot successfully achieve digital transformation. They believe that they cannot expand on a large scale, so they are unwilling to try again. Because these companies cannot withstand the impact of the next recession."

The difficulty of digital transformation in traditional manufacturing also reflects the intrinsic value of "lighthouse factories". From the five Chinese factories shortlisted this time, we can not only get a glimpse of this "intrinsic value", but also see the rising power of China's manufacturing industry.

▌CATL (Yibin, China)

Following the Ningde base, Sichuan Times became the second production base of CATL to be rated as a lighthouse factory. Currently, there are only two lighthouse factories in the global lithium battery industry, both from CATL. At present, battery delivery is about to enter the TWh era, which poses challenges to the company's energy management, manufacturing methods, manufacturing processes, and manufacturing safety.

Sichuan Times uses digital intelligent control technology to achieve full transparency and traceability of the production process through the perception, monitoring and verification of all process parameters, and makes extensive use of AI technology to achieve closed-loop control management.

According to the World Economic Forum, in order to meet the expectations of substantial business growth and quality improvement and achieve sustainable development, CATL has established a large green factory in Yibin City. Based on the Lighthouse Digital Plan of CATL headquarters, the factory further applies artificial intelligence, Internet of Things and flexible automation technologies, increasing production line speed by 17%, reducing production losses by 14% and achieving zero carbon emissions.

▌Haier (Qingdao, China)

Based on the support of COSMOPlat digital technology and the application of mass customization model, Qingdao Haier Refrigerator Interconnected Factory was successfully listed as the newly added "Lighthouse Factory". So far, Haier Smart Home has 5 "Lighthouse Factories", covering 4 major industries: refrigerator, washing, air conditioning and heating, namely Qingdao Haier Central Air Conditioning Interconnected Factory, Shenyang Haier Refrigerator Interconnected Factory, Tianjin Haier Washing Machine Interconnected Factory, Zhengzhou Haier Water Heater Interconnected Factory, Zhengzhou Haier Water Heater Interconnected Factory Industry, and the newly selected Qingdao Haier Refrigerator Interconnected Factory.

Note: The picture is taken from Haier's official website

This also makes Haier the only company in the refrigerator industry with two "lighthouse factories".

Facing the growing demand for customized design, fast delivery and high quality, Qingdao Haier Refrigerator Interconnect Factory has accelerated R&D, upgraded manufacturing processes and logistics scheduling models with the help of big data, digital twins and advanced visual inspection technologies. The order response cycle has been shortened by 35%, production efficiency has been increased by 35%, and quality performance has been improved by 36%.

▌Midea (Shunde, China)

Midea is also a frequent visitor to lighthouse factories. With the help of the MideaQing platform, it owns Midea Air Conditioner Nansha Factory, Midea Microwave Oven Shunde Factory, Midea Washing Machine Factory in Hefei, Midea Refrigerator Jingzhou Factory and the newly selected Midea Shunde Factory, successfully owning 5 lighthouse factories.

The Midea Kitchen Heat Shunde factory selected this time is the world's largest dishwasher production base. The factory has an annual output of 6 million units, and its products are sold to 145 countries and regions around the world.

To meet the demand for delivering high-quality products in a shorter lead time, Midea's Shunde factory applied artificial intelligence, digital twins and other Fourth Industrial Revolution technologies in the end-to-end value chain, reducing unit production costs by 24%, delivery time by 41%, R&D time by 30%, and defect rate by 51%.

▌Sany Heavy Industry (Changsha, China)

Sany Heavy Industry Changsha Factory No. 18 was selected as a lighthouse factory in the global manufacturing field. This is the second lighthouse factory in the global heavy industry that has been certified after Sany Heavy Industry's Beijing pile driver factory. At the same time, it is also the second lighthouse factory in Changsha after Bosch Changsha, and the second lighthouse factory in Hunan.

Note: The picture is taken from Sany Heavy Industry’s official account

The reason why it was selected as a "Lighthouse Factory" is that the "smartness" of Sany Heavy Industry's Changsha No. 18 Factory is worth mentioning. In order to cope with the cyclical fluctuations of the heavy industry market, the challenges of multi-variety small batches (263 categories) and heavy parts production, Sany Heavy Industry's Changsha Factory fully utilized flexible automated production, artificial intelligence and large-scale IIoT to establish a digital and flexible heavy equipment manufacturing system. Ultimately, the factory's production capacity was expanded by 123%, productivity increased by 98%, and unit manufacturing costs were reduced by 29%.

▌Western Digital (Shanghai, China)

This time, Western Digital's Shanghai semiconductor back-end factory was successfully selected as a lighthouse factory in the global manufacturing field. It is also the third "Lighthouse Factory" it has won after Western Digital's Penang, Malaysia and Prachinburi Province factories in Thailand in 2021.

In response to the 250% annual growth rate, the short 18-month technology transformation cycle and labor challenges, Western Digital's Shanghai semiconductor backend factory implemented a variety of Fourth Industrial Revolution technologies, such as automated product design systems, machine learning-based virtual wafer testing and intelligent planning systems. The factory shortened product launch time by 40%, reduced product costs by 62%, and increased productivity by 221%.

Against the backdrop of the global recession crisis, rising energy prices and supply chain disruptions, intelligent transformation and digital transformation have become a "must-answer question" for the survival of the manufacturing industry. A number of advanced companies, especially the "lighthouse factories" composed mainly of outstanding Chinese manufacturing companies, are pioneering the use of emerging technologies to promote the Fourth Industrial Revolution and become pioneers and demonstrators of large-scale digitalization of the industry.

As more and more Chinese factories are shortlisted for the global lighthouse factory list, the resilience and momentum of Chinese manufacturing are gradually emerging.