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Named the “Best CEO of Public Companies” by Forbes China, Zhang Yuqiang strives to live up to his title.
Named the “Best CEO of Public Companies” by Forbes China, Zhang Yuqiang strives to live up to his title. Under his direction, Jushi Group has become one of the largest fiberglass manufacturers in the world, netting over 4.01 billion Yuan (approximately 600 million USD) in sales revenue last year and an average market growth rate of nearly 40 percent.
What are your largest industry markets?
Currently our largest markets are in infrastructure and building, especially within China.
Where is the most potential for composites growth?
I believe there is still a lot of untapped potential in new forms of energy, such as wind energy. But I also see a lot of opportunity in environmental protection applications. Things that will protect natural resources like water and forests.
Why aren’t more manufacturers making their products out of fiberglass?
The largest setback for the use of composites over steel is customer ideas. It is important for us to advocate composites to our customers. We have a responsibility to discuss it with our customers, to help them understand the benefits. I think new engineers are using composites, but we need to keep advocating their use and education of it.
Under your direction, how has Jushi evolved?
Jushi began in 1958 and until 2000 we had a limited production capacity of 200 thousand metric tons of fiberglass produced annually. Now, however, we produce 2 million tons per year.
I think it is an easy thing to grow fast, but not better. I constantly ask myself, “What is the best way to grow the company better—and of course faster.” Jushi provides training in technical and management so that the plant can run better with better people in it.
To what do you attribute Jushi’s growth?
I attribute our growth to a few things. First, China’s adaption to an open trade forum 30 years ago. From this we were able to take advantage of the global economic growth. Also, our relocation from a .13 square km facility to a new area occupying .8 square km. In our old facility the work had bottlenecked and we needed that extra room to grow. After Jushi relocated, we were quickly able to fill the large new space with more workers and product to accommodate customer demand. Lastly, I believe we have grown and prospered because of our improvements in networking within the industry, especially internationally.
How has Jushi improved its industry networking?
The first key is to build trust with the customer. The fastest way to do that is to have available and effective customer service. We are able to do that by having people in the country where our customers are, who are on hand to help them when needed.
We also began our International Conference fifteen years ago as a way to create a new communications channel with our customers. It provides a place where we can meet customers face to face, resolve issues and make new deals. Initially it was small and intimate, with 42 domestic and seven foreign guests. Now, we have over 1,000 people from over 70 countries.
How will Jushi evolve in the next five years?
We entered the wind energy market in 2004 and I believe that within the near future 80 percent of our total production will be in wind energy. I also believe there is a large growth potential in the automotive industry, especially within China, as more and more people purchase vehicles.
I see us continuing to grow both globally and within Asia. We have begun to set up plants outside of China and we will continue to look into mergers and acquisitions.
What’s driving that adoption?
We strive to have a young, energetic R&D staff. Each year all R&D staff enters a competition to develop new technology and products. At the end of the year, each project is evaluated and people are awarded accordingly. In the end, the bottom five percent are eliminated, which creates competition and infuses our staff with new ideas.
I also make sure our technical team is consistently moving forward, maintaining quality of the past but challenging themselves for the future.
How has Jushi been affected by the slow economy?
The economy affected our export rate, but all our fundamentals are still good. We have had a good GDP growth within China and our customers are slowly starting to bounce back as well. For example, the auto industry is taking advantage of the “Cash for Clunkers,” but we wonder how long that will really last? In China there is a similar stimulation policy, where everyone who buys a new car receives a five to 10 percent refund.
What would help the composites industry expand its presence?
It is also important to push the government to make products out of composites. Take material and show it to them, show them what it can do. Also, lobby in parliament so they understand how composites can save money and the environment. Only then will they adjust rules and regulations that inhibit the use of composites.
How long have you been in the industry?
I have been in the composites industry for 37 years.
What is the most difficult thing about being a multinational corporation?
The most difficult challenge is to constantly challenge myself. For Jushi to be a sustainable leader requires team work. I always ask myself, “What is the best way to build up a team, to stimulate people in their jobs?” If I’m a good leader, a good team will follow; however, if I’m not than it is best for the community that I leave.
I had an idea a while back to meet in a more informal way with all management at Jushi. I only have one meeting a month with top management. All the rest are over food. Each morning we eat breakfast together in order to collaborate ideas and efforts before we begin the work day. It provides a good atmosphere full of casual talk.
What contributed most to being named best CEO by Forbes?
I’m not sure. I wasn’t expecting it. I am just doing what I love. I try to be a good model for my team. I must behave correctly before I can give orders for others to do them. When I see workers who are not good, more often it is because the CEO isn’t.
What are some of your greatest accomplishments as Jushi’s CEO?
I am excited by the achievements we have met in environmental protection. We were able to achieve zero emissions (gas, waste water and solid waste). Jushi is also constantly striving to improve combustion technology to save energy even during our largest development period, where we now have five of the largest production lines in the world. Lastly, I take pride in the continued growth due to customer satisfaction. After all, I’m looking for the praise of my customers, not the mayor of the city.
What is the most valuable characteristic in running a successful company?
Optimism. If I am pessimistic, everything will go bad. There will always be concerns, but I use them to push me to be better, not overwhelm me.
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