Heavy equip­ment pow­er­ing Fujian

Govt now has even big­ger plans for largest sec­tor

China Daily (Hong Kong) - - FUJIAN SPECIAL - By ZHUAN TI zhuanti@chi­nadaily.com.cn

Fujian’s equip­ment man­u­fac­tur­ing in­dus­try is ex­pected to have even greater po­ten­tial for growth with the im­ple­men­ta­tion of a State-backed re­gional de­vel­op­ment pro­gram, ac­cord­ing to the gov­ern­ment of the south­east­ern prov­ince.

Among all lo­cal pil­lar in­dus­tries, heavy equip­ment man­u­fac­tur­ing has been Fujian’s largest and fastest grow­ing sec­tor for many years.

In 2012 it pro­duced prod­ucts val­ued at 115.5 bil­lion yuan ($19 bil­lion), an in­crease of 10.4 per­cent from 2011, ac­cord­ing to the pro­vin­cial gov­ern­ment.

It said the prov­ince is strong in con­struc­tion ma­chin­ery, ship­build­ing, elec­tron­ics, en­vi­ron­men­tal pro­tec­tion equip­ment and air­craft main­te­nance as well as au­to­mo­biles.

In re­cent years the cen­tral and pro­vin­cial gov­ern­ments have re­leased a num­ber of new pref­er­en­tial poli­cies for Fujian’s de­vel­op­ment, fur­ther driv­ing the growth in the man­u­fac­tur­ing sec­tor.

The most im­por­tant of the in­cen­tives is for­ma­tion of the Haixi Eco­nomic Zone. Ap­proved by the State Coun­cil in 2009, it is now a State-level pro­gram de­signed to de­velop Fujian and its neigh­bor­ing prov­inces into a pi­lot re­gion for busi­ness co­op­er­a­tion with Tai­wan.

Pro­vin­cial gov­ern­ment of­fi­cials said an im­por­tant com­po­nent of the Haixi pro­gram is a strong man­u­fac­tur­ing in­dus­try for ad­vanced equip­ment that will be fur­ther fu­eled by funds and tech­nolo­gies from Tai­wan and other parts of the world.

In ad­di­tion, it said the boom­ing in­fra­struc­ture con­struc­tion from the de­vel­op­ment pro­gram it­self — roads, ports, rail­ways and en­ergy sup­ply — is gen­er­at­ing huge de­mand for var­i­ous kinds of equip­ment.

So the gov­ern­ment is en­cour­ag­ing lo­cal producers to ex­pand ca­pac­ity for mak­ing port ma­chin­ery, heavy- duty ex­ca­va­tors, con­crete mix­ers, road sur­fac­ing equip­ment, tun­nel bor­ing ma­chines and rail trans­porta­tion equip­ment.

To meet the in­creas­ing lo­cal de­mand for en­ergy, the gov­ern­ment said it also en­cour­ages the de­vel­op­ment and pro­duc­tion of gen­er­at­ing equip­ment for wind, tide and so­lar power, as well as smart grid and other in­tel­li­gent, ef­fi­cient power trans­mis­sion equip­ment.

The Haixi pro­gram also high­lights sus­tain­able de­vel­op­ment em­pha­siz­ing en­vi­ron­men­tal friend­li­ness and re­source con­ser­va­tion.

The gov­ern­ment said man­u­fac­tur­ing of equip­ment re­lat­ing to solid and liq­uid waste dis­posal, sewage treat­ment and biomass en­ergy de­vel­op­ment, as well as ma­chin­ery for cul­ti­va­tion and wa­ter-sav­ing ir­ri­ga­tion, will have great growth po­ten­tial in the years to come.

Home to op­er­a­tions by in­ter­na­tional and do­mes­tic au­tomak­ers Daim­ler, Soueast and King Long, Fujian is al­ready a strong prov­ince in the au­to­mo­tive in­dus­try.

The pro­vin­cial gov­ern­ment said it will con­tinue to sup­port the in­dus­try’s de­vel­op­ment through in­tro­duc­ing strate­gic in­vestors and as­sist­ing in in­dus­trial con­sol­i­da­tion.

The gov­ern­ment is urg­ing lo­cal com­pa­nies to de­velop and pro­duce more small cars and new-en­ergy buses to meet re­quire­ments for en­ergy con­ser­va­tion and emis­sion re­duc­tion.

To raise the level of lo­cal­iza­tion in the auto in­dus­try, the gov­ern­ment has planned sev­eral in­dus­trial parks that will help form a com­plete in­dus­trial chain rang­ing from small parts to key com­po­nents like en­gines and trans­mis­sions.

Fujian is al­ready a tra­di­tional ship­build­ing hub and the gov­ern­ment said the in­dus­try will be­come stronger due to the grow­ing trade ties and peo­pleto-peo­ple ex­changes be­tween the Chi­nese main­land and Tai­wan.

It said the ship­build­ing in­dus­try will be fur­ther up­graded with ad­vanced tech­niques and mod­ern tech­nolo­gies like IT and dig­i­tal tech­nol­ogy.

Lo­cal man­u­fac­tur­ers make con­ven­tional bulk cargo ves­sels, con­tainer ves­sels and pas­sen­ger ships, and are now try­ing to get a big­ger mar­ket share in lux­ury yachts, cruis­ers, rol­lon, roll-off ships, su­per-large con­tainer ves­sels and off­shore drilling plat­forms, ac­cord­ing to the gov­ern­ment.

Lonk­ing Hold­ings Co in Longyan is one of the top three heavy ma­chin­ery man­u­fac­tur­ers in China.

Work­ers as­sem­ble cars at Soueast Mo­tor, a lead­ing au­tomaker in Fujian.

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