Ma­jor SOEs urged to pool their re­sources

China Daily (USA) - - BUSINESS - By LYUCHANG and FANGWENYU Con­tact the writ­ers through lvchang@chi­nadaily.com.cn

Eight of China’s ma­jor State-owned en­ter­prises are be­ing en­cour­aged by the na­tional as­sets watch­dog to jointly work on key industrial projects amid a mas­sive na­tional push for re­form in the State sec­tor.

The com­pa­nies — Avi­a­tion In­dus­try Corp of China, China Na­tional Machin­ery In­dus­try Corp (Si­no­mach), China Poly Group Corp, China First Heavy In­dus­tries, China North In­dus­tries Group Corp, China South In­dus­tries Group Corp, China Re­form Hold­ings Corp Inc, and China Nu­clear Engi­neer­ing Con­struc­tion Corp — signed re­struc­tur­ing con­tracts on Tues­day.

AVIC will trans­fer its real es­tate busi­ness to the Bei­jing­based Poly Group, while other com­pa­nies will co­op­er­ate in ar­eas in­clud­ing nu­clear tech­nolo­gies and high-tem­per­a­ture machin­ery pro­duc­tion.

CNEC will jointly de­velop the in­dus­tri­al­iza­tion of fourth-gen­er­a­tion nu­clear tech­nol­ogy— a high-tem­per­a­ture gas-cooled re­ac­tor— with China FirstHeavy In­dus­tries.

Si­no­mach, which has the world’s largest forg­ing press equip­ment that can pro­duce up to 80,000 met­ric tons, is seek­ing deeper co­op­er­a­tion in the field of high­end forg­ing die projects with AVIC, said Zhang Fam­ing, di­rec­tor of man­age­ment de­part­ment at China Na­tional Heavy Machin­ery Corp, a sub­sidiary of Si­no­mach.

The re­struc­tur­ing came as China is in a striv­ing to pro­mote SOE re­form, and boost ef­fi­ciency and pro­duc­tiv­ity in the State sec­tor.

“Industrial reshuf­fling and re­source stream­lin­ing among State-owned en­ter­prises are ab­so­lutely nec­es­sary for struc­tural ad­just­ment and growth mode trans­for­ma­tion,” said Xiao Yaqing, head of the State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tionCom­mis­sion.

Huang Qun­hui, di­rec­tor of the in­sti­tute of industrial eco­nomics at the Chi­nese Academy of So­cial Sciences, said there had been some im­prove­ments in SOEs’ per­for­mance in the first half of this year, de­spite the slug­gish econ­omy, as mea­sures to cut over­ca­pac­ity are put in place. Zhong Nan this story. con­trib­uted to

Xiao Yaqing, head of the Sta­te­owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion

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