Zone shifting province to right gear for upgrades
High-tech industry in Weifang leads the way to transform area
Weifang Hi-Tech Industrial Development Zone in East China’s Shandong province has become a key player in supporting regional industrial upgrading and transformation, according to officials.
On Jan 8, Weichai Power, a Global Fortune 500-listed company in the zone, won the first prize at the 2018 National Science and Technology Progress Awards for its breakthroughs in commercial vehicle powertrain development and applications.
Powertrain is the core part of an automobile — the engine, transmission and axle. Its performance will affect commercial vehicles’ power output, energy efficiency, emissions and reliability. China’s commercial vehicle development was constrained because there was a lack of a platform for engine, transmission and axle producers to coordinate an integrated solution.
In 2005, Weichai made its first acquisition by purchasing Zhuzhou Torch Spark Plug Co in Hunan province. The deal allowed Weichai to obtain a controlling stake in Shaanxi Fast Gear, Shaanxi Heavy-duty Motor Company and Hande Axle.
It then successfully developed an industrial chain that combined the development of engines, transmissions and axles under one roof.
“The integration changed our traditional understanding on vehicle development,” said Li Guoxiang, a professor from School of Energy and Power Engineering at Shandong University.
Then in 2018, Weichai reported breakthroughs in power output, emissions control, system reliability and professional development and production, according to experts.
Weichai has become an iconic company in supporting the zone’s efforts to replace old economic growth engine with new ones. It independently developed the first high speed engine in China, named LandKing. It also developed the first electronic control system in China.
Tan Xuguang, chairman of Weichai, said the company’s independent innovation leads to its pioneering work in industrial chain development.
GoerTek, a company focusing on micro-loudspeaker, microphone and voice receiver production in the zone, also strives to explore emerging opportunities in a rapidly changing market. The company’s management revealed that GoerTek will gear up its development in virtual reality and smart equipment in upcoming years.
Apart from Weichai and GoerTek, the zone also has many other leading businesses such as Shengrui Transmission Corporation — developer of the world’s first front-engine, front-drive eight-gear auto transmission — Foton Shandong Multifunction Plant and Weifang Special Steel.
Officials from the zone government noted that those big companies continuously invest in new technology, brand development and marketing, which inject growth power into the zone.
If leading companies increased awareness of the zone, then small and medium-sized enterprises are forming a development foundation for the local economy, according to the local authority.
Hoaco Automation Technology, a precision equipment manufacturer in the zone, has reported breakthroughs in die cutting machine development and production.
Ding Chunhui, deputy general manager of Hoaco, said that the company’s die cutting machines are used in electronic and medical device production.
Ding said the company has applied many patented technologies that can help users cut costs and reduce their workforce size, as well as improving efficiency and accuracy.
Ding said Hoaco has a market share in China of more than 50 percent. It is also able to provide integrated services covering equipment production, technology support and after sales needs.
In recent years, the zone government has tried to improve the business innovation environment. It carried out a business cultivation plan named “Invisible Champion”, which aimed to increase the number of high-growth companies to 33 in 2018, up from 15 in 2017.
In the first nine months of 2018, statistics from the zone show that Shandong Tianrui Heavy Industry reported their overall year-on-year industrial output value increased 44.9 percent; Shandong Yinlun Heat Exchange System reported an increase of 23.7 percent; and Shandong Novoshine Optoelectronics reported an increase of 57.4 percent.
The zone also encourages companies to strengthen communications with leading academic institutes to enhance business innovation ability.
“We will continue to increase research and development investment and strengthen ties with leading institutes to maintain our leading position in the industry,” said Chen Guangliang, deputy general manager of Shandong Supermaly Generating Equipment.
By the end of 2018, 23 high-tech businesses in the region have been recognized as “gazelle enterprises”, a term used to describe small and medium-sized enterprises with high-profile growth by the local government. Among these, seven were also recognized as gazelle enterprises by the central authority. Those businesses, which feature high-growth and have strong development potential, will obtain more support from the local government and financial institutions, according to local authorities.
In addition, residents’ satisfaction with their living environment in the zone is also a top priority of the local government. The zone made huge investments on shantytown upgrades over the past few years so residents can enjoy high-quality lives.
Liang Xingyu’s family, who once lived in a shantytown, obtained three new properties through upgrade projects. Each new property covered more than 130 square meters. Before the relocation, four generations of Liang’s family had to live in an old 100 sq m property in a shantytown.
Last year, relocation plans of all 91 communities in the zone’s shantytown were completed. The relocated residents are expected to move into new properties soon.
“The new property construction is progressing rapidly. Our concern on uncertainty is getting less,” said Wang Bin, a local resident who is waiting to move into a new home.
Last year, the zone initiated a series of urban upgrade projects so residents could enjoy better city life. Meanwhile, new schools and kindergartens were built to offer better education to children. A new senior people day care center was built and people aged 80 and older were offered free flu vaccines.
In 2018, government service departments also upgraded work procedures so residents can enjoy more conveniences in daily life.
Looking ahead, the zone’s government will continue to enhance service quality to better support local businesses and residents, according to the zone.