Yang Xianghong: "Hardware" (equipment) versus "Software" (management) – The insi

Mar 13, 2026 PipesB2B Marketplace
From March 18th to 28th, a group of entrepreneurs visited several prominent German chemical companies for observation and learning. We also attended two chemical exhibitions: the world's largest and biennial Nuremberg Coatings Exhibition, and the Ger

From March 18th to 28th, a group of entrepreneurs visited several prominent German chemical companies for observation and learning. We also attended two chemical exhibitions: the world's largest and biennial Nuremberg Coatings Exhibition, and the German Building Coatings Exhibition, which is exclusively for German companies.

During the visit, we had the opportunity to tour and exchange with the largest chemical industrial park in Cologne, Germany. During the two-plus-hour visit and exchange, we were deeply impressed by the operating and management practices of these long-established local companies. Coupled with the recent, highly publicized "3.21 chemical plant" incident in China, we realized that the gap between us is significant, particularly in terms of safety and operational standards.

Located in Cologne, the largest chemical industrial park in Germany, the coating equipment of local companies appears to be less advanced and outdated compared to their own factories built in China, even lagging behind many state-owned and private enterprises in China. However, there are several factors to note: over the past thirty years, there have been no safety incidents or fatalities in this industrial park.

German paint manufacturers have a deeply ingrained commitment to safety and environmental protection. For example, they use eight hundred tons of water from the Rhine River per hour. This means they must process and re-discharge the same volume of water back into the Rhine River. They are proud to tell us that the water quality entering and exiting the Rhine River must be consistent, a standard that many Chinese companies have not yet achieved. Although their wastewater treatment facilities may not be as advanced as those in China.

We were surprised to find that their facilities were not as advanced as those of many domestic companies. However, the excellent quality of their products and the stringent safety and environmental standards they had established deeply impressed our team. We were informed that the European Union's standards are known worldwide for their strictness, and that they were adhering to the most stringent standards in all of Europe, which is a remarkable achievement. Furthermore, regardless of which location within the park experienced a fire, their fire department was able to arrive on the scene within two minutes. We were puzzled by this and asked the Vice President how they achieved this. His answer was concise:

First, all new employees must undergo approximately three years of vocational training and pass the assessment before becoming a formally employed employee. This training is a top priority for all German companies. To ensure that you fully understand the importance of safety and environmental protection, and that you have truly mastered the skills required for your specific job role, you will be authorized to work independently. Employees who are unfamiliar with and do not understand their operational roles should not be expected to demonstrate a high level of safety performance, as this is not possible.

Second, employees in Germany have a high level of awareness and loyalty to the company. Their parents, grandparents, and even great-grandparents have worked at the company, so they view it as their home and a vital part of their lives. With such a dedicated and loyal workforce, every aspect of the company is carefully managed and maintained.

The final sentence was particularly shocking because the products they were manufacturing were made in Germany. The "Made in Germany" label signifies high quality, stable quality, and the most stringent safety standards, which are difficult to achieve. I believe that Chinese companies lack not hardware, but rather a deeply ingrained commitment to safety. This requires a comprehensive and holistic approach, with all employees, including even the janitors, receiving thorough and consistent training and maintaining meticulous records. If employees are not diligent and do not have a sufficient understanding of safety, then any factory, no matter how well managed, will inevitably experience problems. Our government's regulations are already stringent, but why are there still so many safety incidents? This is because our employees have not received the fundamental safety training necessary to ensure their well-being. This is a deeply concerning issue, and if it is not addressed at its root, Chinese chemical companies will continue to face safety challenges.

It's important to note that this chemical industrial park houses leading manufacturers of polycarbonate produced via the phosgene process, as well as globally renowned isocyanates producers. The production processes and controls for these products are highly hazardous, requiring stringent hardware and safety management. However, from a visual inspection, their facilities are significantly inferior to those of similar factories in China, and even compared to the modern Chinese factories built in recent years by state-owned enterprises and large private companies. Despite this, there have been no safety incidents. This raises an important question.

Our team of entrepreneurs unanimously agree that a strong safety culture should be ingrained in every employee. This includes comprehensive and thorough vocational training and safety production management training. An employee who understands the entire production process will be able to identify potential hazards, know which areas are off-limits, and understand which areas require special attention.

Regarding their fire response team, we were informed that their firefighters have received highly specialized training in handling chemical hazards, and they would never use water to extinguish fires in a chemical factory due to a common illness. Each firefighter is an expert in handling chemical hazard incidents, and they know how to handle the chemical hazards and raw materials produced in the park. This is something we should also learn from!

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