Heavy equipment powering Fujian
Govt now has even bigger plans for largest sector
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.