Special Supplement: The Keda Group recipe for success

Liu Shuangmin, 57, is the president of Dongying Keda Group, an enterprise with an annual production value of over 8 billion yuan. The prosperous group started out as a small-sized engineering team established by Liu more than 20 years ago in Dongying, East China's Shandong Province.

"Only when you have chosen the right road to go, can you get rapid development," said Liu.

In 2006, Keda Group gained an operational income of 7.89 billion yuan ($1.06 billion) - a profit of 555 million yuan ($74.37 million) - and earned $255 million in foreign exchange through exports. By the end of September 2007, the group's total import and export volume added up to $2.58 billion, with exports contributing $1.86 billion.

Keda ranked first on the list of Dongying's export enterprises for six consecutive years and is placed at 273rd position among the top 500 Chinese import and export companies.

Dreams realized

With a staff of over 10,000, the group currently possesses assets worth more than 4 billion yuan ($536 million). As Liu Shuangmin leads Keda Group toward speedy growth, he is also consistently realizing his own dreams.

In 1984, he set up an earthwork team in Dawang Community, Dongying. At that time, they suffered from lack of techniques, equipment, and capital.

Liu made up his mind to buy advanced vibrating road rollers from Germany in 1989. Thanks to these advanced equipments, Keda won all the first prizes in six contests for building national highway projects.

The year 1993 saw shareholding reform at Keda. Thus, a modern company system was established, laying the foundation for greater growth.

In 1994, when the upsurge of expressway construction just began, Liu led his team onto this stage, opening a healthy and high-speed road to development. All of the highway projects undertaken by Keda are prized for their good quality.

Keda also took the lead in going abroad and in 1993, it constructed highways in Vladivostok, Russia, which won fame among its foreign customers.

Liu next extended Keda's business into some new industries. Dongying Keying Laser Electronics Company, the joint venture invested by Keda and Sanyo, was built in August 2000. It is the biggest foreign trade manufacturing company built in Dongying.

Keying helped Keda Group make constant breakthroughs in its export income.

In 2000, Keda Group took charge of raising funds, attracting investment, and the construction and operation of Dongying Yellow River Bridge. The total investment for the project was 860 million yuan ($115 million).

Dongying Yellow River Highway Bridge Company was set up in 2001 by Keda Group and the Highway Bureau of the Traffic Department of Shandong Province, each holding 50 percent shares. The bridge, which was put into use in August 2005, is an important transportation pivot in the Jiaodong Peninsula, the Yellow River Delta, and the Beijing-Tianjin-Tangshan area.

Training incentives

In order to speed up the pace of the group's development, Liu selected more than 600 employees to study advanced techniques in South Korea and Japan. Further, a new policy of competing for managerial posts has been in effect since the year 2000.

"Every single post from monitor to manager is selected by competition. The purpose is to provide a broader stage for self-development for all talented employees", said Liu.

Keda Group successfully went public in Shanghai on April 26, 2004 - a move that boosted the development of the company.

Public welfare

Keda and Liu Shuangmin both enjoy a good reputation in society because of their commitment to public welfare, with more than 10 million yuan ($1.34 million) being donated so far to construct schools, hospitals and roads.

Liu's hard work and perseverance have won him and Keda Group a great many honors. Keda Group won the "National May Day Labor Award" and was also crowned "National Excellent Construction Enterprise" in the past years.

Liu himself was honored as the Model Worker of Shandong Province and National Excellent Private Enterprise. In May 2005, he was awarded the May Day Medal by the All-China Federation of Trade Unions.

(China Daily 11/09/2007 page19)