On October 8th, the World Economic Forum (WEF) announced the latest batch of &#34;Lighthouse Factories&#34;. China Mengniu Dairy Company Limited (02319) successfully obtained the title of &#34;Lighthouse Factory&#34; for its fully intelligent super factory - the Mengniu Ningxia Factory, becoming the first lighthouse factory in the Chinese dairy industry. This not only demonstrates Mengniu's leading position in promoting industrial digital transformation with new quality productivity, but also vividly portrays its pioneering spirit in leading the Chinese dairy industry to seize the new global intelligent manufacturing high ground.
&#34;Lighthouse Factories&#34; are selected by the World Economic Forum and McKinsey &amp; Company as demonstrators of &#34;digital manufacturing&#34; and &#34;Globalization 4.0&#34;, known as the &#34;most advanced factories in the world&#34;, representing the highest level of intelligent manufacturing and digitization in the global manufacturing industry today. The World Economic Forum stated when releasing the list of &#34;Lighthouse Factories&#34;: &#34;The Mengniu Ningxia Factory has implemented more than 30 advanced Fourth Industrial Revolution use cases from intelligent decision-making to flexible automation. These use cases cover various processes such as milk processing, packaging, and inspection, reducing delivery cycles by 55% and lowering operating costs by 32%, greatly improving operational efficiency and product quality.&#34;
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<h2>Pioneering Spirit Seizing the New Global Intelligent Manufacturing High Ground</h2>
Located in the central part of the Ningxia Plain, on the east bank of the Yellow River, the Mengniu Ningxia Factory is Mengniu's first fully intelligent factory and currently the world's largest liquid milk single factory. From its design inception, the factory has been guided by the concept of &#34;efficient, intelligent, green, and sustainable&#34;. Since its operation, the Mengniu Ningxia Factory has become a focus of the industry with its advanced automation, digitization, intelligence, and sustainable practices.
Currently, the factory has achieved &#34;full intelligence&#34; through the creation of a &#34;green and smart&#34; factory that integrates 5G technology with vertical, efficient, intelligent, and sustainable practices. This has enabled full system, full chain, full process, and fully automatic &#34;full intelligence&#34;, not only more accurately understanding consumer needs and market trends, significantly improving production efficiency, but also ensuring strict quality control from source to end product, guaranteeing the nutrition and safety of every drop of dairy product. This has transformed the blueprint of intelligent-driven dairy new quality productivity into reality.
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&#34;This factory is the 'masterpiece' of Mengniu's comprehensive creation of new quality productivity, achieving a leap from visiting to productivity, to high-tech, high efficiency, high quality new quality productivity in the dairy industry,&#34; said Gao Fei, President of Mengniu. &#34;We have achieved the ultimate in dimensions such as labor, land, efficiency, and energy efficiency. For example, can we achieve a production value of 10 billion with 800 employees?
&#34;Is it possible with 400 people? To achieve the ultimate, 100 people are enough!&#34;
It is understood that thanks to the comprehensive application of digital technologies such as automation equipment, IoT technology, and big data analysis platforms, the Mengniu Ningxia factory can achieve the &#34;three 100s&#34;: namely 100 employees, create an annual production capacity of 1 million tons, and achieve an annual output value of 10 billion yuan. Compared to traditional factories, the per capita efficiency of the Mengniu Ningxia factory can be increased by 20 times, creating the highest annual labor efficiency ratio in the global dairy industry, showcasing a new future of intelligent manufacturing in China to the world.
<h2>Integrating Four Efficiencies to Create a New Legend of Intelligent and Efficient Dairy Industry</h2>
The high-speed paper packaging filling system fills 12 packs of milk per second on average, and a box of milk takes no more than 13 hours from the pasture to the packaging line; during the production process, more than 100 business points, thousands of action elements, 36 key control points, and 139 inspection items can all be digitally controlled online... These impressive numbers are the result of Mengniu Ningxia factory creating a new legend of intelligent and efficient dairy industry driven by digitalization.
&#34;We have digitized all business operations in the entire factory, making all data-driven operations, overturning traditional thinking, evolving from the 'factory manager commanding the factory' to the 'algorithm commanding the factory manager' mode,&#34; said Gao Fei.
It is introduced that the biggest breakthrough of the Mengniu Ningxia factory is the innovative proposal of the &#34;134556&#34; digital password, which achieves a deep integration of strategy, operation, and AI decision-making, setting a new benchmark for intelligent manufacturing of dairy products globally. Particularly worth mentioning is that the factory has achieved &#34;three thorough integrations&#34; through digital applications, namely integrating the entire industry chain from milk to the table, connecting all equipment interfaces within the factory, and integrating the entire system. This means that the production process of milk is not a discrete digital upgrade, but a thorough integration of the three &#34;full chains&#34; into &#34;full digitalization.&#34;
Based on the concept of &#34;three thorough integrations,&#34; the Mengniu Ningxia factory has achieved &#34;platform-based departmentalization,&#34; streamlining the traditional 9-department model with algorithm-driven decision-making and building &#34;six major platforms&#34;: intelligent procurement, intelligent energy, intelligent production, intelligent inspection, intelligent logistics, and intelligent park. These six major platforms cover various aspects such as production line security, daily office work, personnel flow, etc., promoting the efficient operation of the entire park through digital intelligent applications. Moreover, based on the logic of full digitalization and the new operating model, the factory's organizational structure has also been adjusted accordingly. Different from the &#34;pyramid-style&#34; control command model of traditional factories, the smart factory adopts network and platform-based management, empowering activation mode, forming a flexible operation mode of one person with multiple positions and random deployment.
Since its completion a year ago, the four major indicators of the Ningxia factory, &#34;space efficiency,&#34; &#34;labor efficiency,&#34; &#34;product efficiency,&#34; and &#34;energy efficiency,&#34; have performed excellently, truly achieving the &#34;integration of four efficiencies.&#34; Compared to traditional factories, the utilization rate of space in the Ningxia factory has increased by 37%, packaging efficiency has increased by 67%, and the efficiency per unit area has increased by 2.06 times;
In terms of labor efficiency, labor productivity has increased nearly 20 times, achieving a breakthrough of &#34;100 million per hundred people&#34;; in terms of product efficiency, product accuracy has increased by 55%, quality defects have decreased by 60%, and the efficiency of quality traceability has been reduced from 2 hours to 2 minutes; in terms of energy efficiency, the smart energy system optimizes the number of equipment, reduces abnormal losses, and achieves an overall 43% reduction in energy consumption.
In addition, the Ningxia factory has also applied cutting-edge technologies such as magnetic levitation, intelligent packaging control, and smart loading, and has taken the lead in creating a smart darkroom laboratory, establishing the dairy industry's first darkroom material warehouse, achieving a high degree of integration and automation in the production process. According to statistics, the Ningxia factory has obtained more than 154 patents and software copyrights, achieving breakthroughs in 1,270 technological innovations.
<h2>The Light of the Lighthouse Illuminates the New Future of the Entire Industry Chain's Digital Transformation</h2>
As a landmark achievement of Mengniu's digital transformation, the Ningxia factory's successful operation has driven a deep transformation in the layout of upstream industry resources, bringing profound impacts to the entire dairy industry chain: by connecting upstream, midstream, and downstream, the factory aggregates the advantageous resources of 39 partners from nine countries globally, realizing the digital upgrade of the entire industry chain; it not only improves its own operational efficiency and product quality but also drives regional economic development, promotes the return and cultivation of digital talents, and drives the integrated development of &#34;planting + breeding,&#34; bringing over 3,000 jobs to the local industry chain; setting an example for the dairy industry's digital transformation, its external technical product services can be commercially replicated.
While pursuing efficient production, Mengniu's Ningxia factory actively responds to the national call for green development. Through the application of smart energy systems, the factory has significantly reduced energy consumption and effectively controlled carbon emissions. Currently, the factory has been awarded the LEED Gold Certification for Energy and Environmental Design by the U.S. Green Building Council, becoming a model of green buildings. This green development model from source to end not only enhances the company's sustainable development capabilities but also sets an example for the industry's green development.
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In addition to the Ningxia factory's &#34;green&#34; practices, Mengniu has also built China's first &#34;zero-carbon factory&#34; with dual certifications at home and abroad, as well as 30 national-level green factories. By 2030, Mengniu aims to build 50 benchmark green factories and achieve 50% utilization of renewable clean energy. In the latest MSCI ESG rating, Mengniu maintains the highest &#34;AA&#34; industry rating, continuing to lead the sustainable development of China's dairy industry.
As a leading enterprise in China's dairy industry, Mengniu has always regarded promoting high-quality industry development as its mission and responsibility. The title of &#34;Lighthouse Factory&#34; awarded to the Mengniu Ningxia factory is not only a concentrated display of its own achievements in digital transformation but also a strong impetus for the high-quality development of China's dairy industry. In the future, Mengniu will continue to empower with digital intelligence, continuously build a world-class &#34;lighthouse group&#34; in the dairy industry, drive the transformation and upgrade of China's dairy industry with the light of digital intelligence, and inject new impetus into cultivating and developing new quality productivity and promoting high-quality industry development

CIADY

02319

Ningxia Fully Digitalized Factory under Mengniu Group was named "Lighthouse Factory" by the World Economic Forum, becoming the first factory in China's dairy industry to receive this title. The factory has implemented over 30 Industry 4.0 advanced use cases, significantly improving production efficiency, shortening delivery cycles, and reducing operating costs. With the concept of "efficient, intelligent, green, and sustainable", the factory is committed to promoting the digital transformation of the dairy industry to ensure product quality and safety

China's first in the dairy industry! Mengniu's fully intelligent factory in Ningxia was named WEF "Lighthouse Factory"