For more than a century, Knorr-Bremse has kept rail networks moving. In China, a renewed focus on innovation under company President Eric Bi is redefining how the global rail leader competes in one of the world’s most demanding markets. Eric Bi President , Knorr-Bremse Rail Vehicle Systems China Words - Michael Wayne Images - All over the world, road and rail networks keep supply chains moving. But there comes a time when even trains and trucks have to stop. When that happens, it’s a safe bet you can thank Knorr-Bremse, the world’s leading manufacturer of rail and trucking brake systems. And it goes further. Knorr-Bremse components range from doors to air-conditioning units and electronic management systems for rail vehicles in 30 countries. For the company, it’s the fruit of 120 years of service. For Eric Bi, President of Knorr-Bremse Rail Vehicle Systems China, it has been a decade-long journey through an arm of the business that’s doing some of the most exciting work in the Knorr-Bremse Group. "When I joined in 2015 as HVAC Managing Director, sales were up and everyone was happy," he tells The CEO Magazine. "But the next year, sales dropped and we went from paradise to a very difficult time." "It was a three-point plan: improve the quality issues, streamline the organization and focus on how to appeal to the Chinese market." Getting to experience both sides so early on presented the rail engineering graduate with an interesting challenge. "I had to think about how to develop a business strategy for this company," he recalls. "As far as I could see, it was a three-point plan: improve the quality issues, streamline the organization and focus on how to appeal to the Chinese market specifically." Changing direction Prior to Bi’s arrival, Knorr-Bremse’s focus had been on high-speed trains. His new strategy changed this track entirely. "If you only rely on high-speed trains, you’ll run into difficulties when the volume decreases," he says. "Instead, I built four pillars: metro vehicles, high-speed trains, export for global markets and rail services – including overhaul and spares – covering the whole life cycle. "I could see that the install base was growing significantly, so if we invested our resources early, we’d be ready for that growth. Like a desk, if you have four pillars, you’ll be stable." In collaboration with Changzhou Jiejiegau Specializing in providing comprehensive solutions for rail transit sheet metal manufacturing and professional surface treatment processes. Specializing in providing comprehensive solutions for rail transit sheet metal manufacturing and professional surface treatment processes. Read More Below The strategy worked. Immediately, sales picked up and by 2017 had grown to new heights. "But the challenge when you invest in several platforms is you have a much greater R&D expenditure," he notes. Bi began working to swing the pendulum back by cutting unnecessary costs. "We spoke with our customers to work out which functions of our products they valued and which weren’t as useful; that way we could trim the fat," he says. "We’re in a much better place for it, and now my focus is on the future of Knorr-Bremse." Focusing on China According to Bi, the key to the future is innovation. Knorr-Bremse has partnered with Shanghai Jiaotong University and other higher learning institutes to improve its R&D and innovation, especially amid the global demand for greener transportation. "We’ve already developed a new filter system that significantly reduces power consumption in heating, ventilation and air conditioning (HVAC) systems, already implemented in select Chinese metro projects," he reveals. "HVAC is so important to comfort; if it doesn’t work, the passengers will let you know about it, especially in the summer. So our challenge is to improve energy efficiency, cut costs and deliver the same passenger experience, all with the Knorr-Bremse level of quality." "We want to use our strengths to make big inroads in the Chinese market. This country is an innovation center." As a result of his success in his initial role as Managing Director, Bi was promoted to President and became a member of the China board in 2021. Suddenly, his scope was expanded. "We want to move the China business in the right way with a clear focus on this market," he explains. "So now it’s strategy 2.0: improving office efficiency and field service engineer integration, improving customer service and boosting engineering efforts and Chinese localization, all in a sustainable way. "A strategy is key – without a strategy, you won’t get anywhere." "Changsha Danfinswe Electrical Company (DFS) and Knorr-Bremse Commercial Vehicle Systems (KB) have collaborated and collaborated for more than 12 years. DFS has become a core partner of KB in air conditioning electrical systems. This partnership is setting the direction for global technological innovation in rail transit vehicle air-conditioning systems." – Zhang Yong, General Manager, Changsha Danfinswe Electrical Company Advertisement With his first decade done and dusted, Bi says the next one will be entirely consumed by China Strategy 2.0. "We’re not just defending our market position. We want to use our strengths to make big inroads in the Chinese market," he points out. "This country is an innovation center, so we need to have local engineering. China’s supply chain is enormous and cost-effective; we need to make ours a part of it." Steering innovation Knorr-Bremse is also working to extend the life of the trains it augments. "You can no longer say that in 20 or 30 years, any given train will be scrap," Bi says. "You need to extend their life with new technology, and that’s an opportunity for us." That means partnering with local innovators and suppliers such as electrical manufacturer Changsha Danfinswe Electrical Company and railway sheet metal expert Changzhou Jiejiegao Electronic Technology. "If we can get the innovation and supply chain elements right in China, that will have great ramifications for the global business," he adds. "If you want to stay in business as long as Knorr-Bremse, you have to build the technology, reliable products and the trust." It’s a critical time with so many targets to hit, but with the right team around him and the right technology at his disposal, Bi believes the spoils are there for the taking. "The reason we’re so successful in China is because we’re always thinking about how we can create value for our partners, suppliers and customers," he says. "They need a reason to need our systems and we give them that, so thus we build the trust. If you want to stay in business as long as Knorr-Bremse, you have to build the technology, reliable products and trust." Leadership gears As President, Bi has shifted his management style to place greater emphasis on team building and motivation. "People have very clear strengths and weaknesses, and it’s up to me to work out where they’ll do their best work," he explains. "Nobody’s perfect and it’s hard to get the best out of people when they’re under pressure. You need to look after people because the company isn’t their whole life." Bi takes the time to speak with his team and learn what’s happening in their lives. Shared activities also go a long way to building a firm bond. "This keeps the team engaged and happy, and that’s when they’re at their best." As Knorr‑Bremse accelerates into its next era, Bi’s leadership and strategy ensures the company remains a global force shaping the future of rail. In collaboration with Changzhou Jiejiegau Specializing in providing comprehensive solutions for rail transit sheet metal manufacturing and professional surface treatment processes. Specializing in providing comprehensive solutions for rail transit sheet metal manufacturing and professional surface treatment processes. Read More
