Recently, the students of Huazhi International Entrepreneur Program visited a small town in southern Germany. There are no high-rise buildings of internet companies or dazzling exhibition halls of tech giants here. However, on this land, there is a company that has been keeping a low profile for nearly a century.

The product it produces is not even considered "sexy". It's not a mobile phone, a car, or artificial intelligence. Instead, it's a "bulky metal thing" that many people have in mind - a chainsaw.

However, it is precisely such a seemingly traditional tool that has conquered the global market.

Today, STIHL's products are sold in over 160 countries and regions, making it one of the leading companies in the global power tool industry. In 2026, STIHL will celebrate its 100th anniversary, and it remains a family-owned business, occupying an important position in the German manufacturing landscape.

During the visit, many students unanimously raised a question: How can a family-owned chain saw company, which hasn't gone public for 100 years, become a global champion?

Follow us and explore Steele together to find the answer.

01. "Heavy and bulky iron things" that change the world

The name "Steele" may be unfamiliar to many people, but in professional fields, it is an unavoidable presence.

In 1926, Andreas Stihl, a German engineer, founded this company. At that time, global forestry still relied heavily on manual tools.

Lumberjacks need to use a large amount of traditional equipment to complete their work, which is not only inefficient but also extremely labor-intensive. Andreas Steele saw that there are also opportunities for technological innovation in this seemingly ordinary industry.

So, he began to develop more efficient power tools. From the first chain saw to the later brush cutter, hedge trimmer, and electric tools, Steyr has continuously upgraded its products based on the needs of professional users.

It didn't enter a popular industry, but established its own kingdom in a niche field. Now, Steyr has developed into a global enterprise.

According to the sharing guest, Steyr currently operates in over 160 countries and regions worldwide, employs more than 20,000 people, and achieves annual sales in the billions of euros. It is not only one of the most representative family businesses in Germany, but is also considered a significant representative of Germany's "hidden champions" enterprises.

Interestingly, Steele's development path is completely different from many entrepreneurial stories today. It doesn't go public, doesn't raise funds, and doesn't chase trends. It simply focuses on one direction: making professional tools more reliable.

This is also the most typical characteristic of German manufacturing. Many German companies are not the most marketing-savvy ones in their industries. In fact, many ordinary consumers do not even know their names. However, in the industrial chain and professional markets, they have a strong say.

Because they have spent decades or even centuries to make a niche field irreplaceable by others. Steyr is just like that. It sells not only chain saws, but also the trust of professional users in quality, and this trust also connects the Chinese market.

STIHL's connection with the Chinese market dates back to 1931, when some of its products entered the northeastern forest region.

The real foundation was laid after the establishment of the Qingdao factory in 2005. The shrub cutters and hedge shears produced by this factory not only meet domestic demand but are also exported to Europe and America.

In December 2025, STIHL announced the establishment of a global electric machinery research and development center in Taicang, Suzhou, focusing on the research and development of automated lawn mowing robots and new energy tools. This marks the deepening of its layout in China from manufacturing to research and development innovation.

From manufacturing to research and development innovation, it is deepening its China market strategy. This reflects a trend: China has become not only a global manufacturing base but also an important participant in global innovation. For a century-old German company, the importance of the Chinese market is upgrading from a "manufacturing base" to an "innovation partner".

02. How can Steyr navigate through cycles without going public for 100 years?

Many companies aspire to become century-old enterprises, but few actually achieve this goal. This is because they always face various temptations during their development process.

When the market is good, we hope to expand rapidly;

When capital is hot, they hope to raise funds quickly;

When competition is fierce, we hope to find new growth stories.

But Mr Steele chose a different path: not to go public.

From today's perspective, this seems like an unusual choice. After all, being listed means more funds, greater exposure, and faster development. But for many German family businesses, not being listed does not mean conservatism.

On the contrary, it implies that the enterprise possesses a longer time horizon. It is not required to explain its performance to the capital market every quarter, nor does it have to sacrifice long-term investment for short-term profits.

Enterprises can develop at their own pace. They can invest in research and development, cultivate talents, and embrace strategies that may take years to yield results. This is also a significant reason why many family-owned enterprises in Germany have been able to persist for a long time.

In Germany, a large number of businesses are owned or controlled by families. The biggest characteristic of these businesses is not necessarily the fastest growth, but rather their longer lifespan. They are not focused on the next quarter's figures, but rather whether the next generation of businesses can maintain their competitiveness. The development of Stehr is a typical case.

The family controls the long-term direction of the enterprise, while combining it with modern enterprise management systems, allowing the enterprise to maintain stable values while also adapting to market changes. This is also a problem that many family businesses need to address: how to ensure the inheritance of the enterprise, rather than simply passing it down?

Many enterprises achieve success in their first generation of entrepreneurship by relying on the personal abilities of the founder. However, the real challenge lies in maintaining competitive advantage when the enterprise enters its second or third generation?

Steel's experience tells us that inheritance is not about copying the past, but about constantly evolving while maintaining core values. What truly persists in a century-old enterprise is never a single product, but a set of business logic.

03. The industrial philosophy behind a chainsaw: striving to make the product the best it can be

If family governance determines how far Steele can go, then product capability determines how long it can stand.

During the visit, the entrepreneurial students observed not only the production equipment and manufacturing processes, but also the mindset behind the German manufacturing philosophy.

Many companies understand manufacturing, focusing on cost, efficiency, and output. But Steele focuses on how to make a product still trustworthy decades later.

A chainsaw may seem simple, but in reality, it involves multiple technical fields such as power systems, material technology, safety design, and ergonomics.

To ordinary consumers, a tool is merely a commodity. However, for professional users, it impacts work efficiency, safety, and long-term benefits. Therefore, Steyr has long adhered to continuously optimizing its products.

From gasoline-powered tools to the current layout of electrified and intelligent products, Steyr has continuously promoted technological upgrades. It has not remained stagnant in its past successful experiences.

Because it knows that past champions, if they stop innovating, will also be eliminated by the times. This is also something many Chinese enterprises should learn from. In the past few decades, the greatest advantage of Chinese manufacturing has been its scale and efficiency. We can produce quickly and replicate quickly.

But in the future competition of manufacturing industry, it requires more than just "making things". It requires:

Why should customers choose you?

Why is your product irreplaceable?

Why can your brand transcend cycles?

The answer given by Steele is long-term accumulation.

To excel in a niche product and accumulate a century of industry experience is the true way to build a manufacturing moat.

04. What can Chinese enterprises learn from German small towns to expand into the global market?

Today, Chinese enterprises are experiencing a new stage. In the past, many enterprises relied on demographic dividends, cost advantages, and market size to grow rapidly.

However, as global competition intensifies, the challenges faced by businesses are evolving. Growth is becoming increasingly difficult, and competition is becoming more intense. Relying solely on price advantage is no longer sufficient to establish long-term barriers. This is why more and more entrepreneurs are turning to Huazhi to study and learn overseas.

What enterprises truly need in the future is:

From manufacturing products to creating value.

From pursuing scale to building capabilities.

From short-term growth to long-term operation.

The trip to Steyr was well worth the cost. What Steyr has given us is not just the experience of German manufacturing, but also a business philosophy.

Firstly, enterprises need to find their own long-term competitive fields.

Instead of chasing every opportunity, Steyr has been deeply involved in the field of power tools for nearly a century.

Secondly, enterprises need to build capabilities that are difficult to replicate. Genuine competitive advantage does not stem from temporary leadership, but from long-term accumulation.

Thirdly, enterprises need to re-understand the value of "slowness". In the business world, speed is important, but speed addresses growth issues, while time addresses competition issues.

Thirdly, enterprises need to re-understand the value of "slowness". In the business world, speed is important, but speed addresses growth issues, while time addresses competition issues.

The answer provided by Steele may be hidden in the word "slow". Slow down to polish products, slow down to accumulate technology, and slow down to build trust.

While all enterprises are chasing the trend, it chooses to excel in one thing. But being slow does not mean stagnation. True long-termism has never been about rejecting change; rather, it is about holding on to what will not become outdated in a changing world.

The Chinese entrepreneurial students who visited Steyr's headquarters this time saw not only a German manufacturing enterprise, but also a business wisdom that transcends cycles: the true competitive advantage of an enterprise lies not in how many resources it possesses today, but in whether it still has reasons for customers to choose it decades later.

This may be the secret behind the enduring success of German manufacturing over the past century, and it is also a necessary lesson for Chinese enterprises aiming for long-term development today.