Mechanical Equipment Industrial Cluster

With a long history and fundamental changes in product structure through years of development, the mechanical industry in our city have owned a series of special industries such as NC manufacturing installation for sheet metals(pressing machine), environmental protection machine and toolmaking.

1. Analysis of existing circumstance for mechanical equipment industry in Yangzhou City

At the end of 2003, there was 239 enterprises engaged in mechanical equipment production with a certain scale, and their Gross Industrial Output Values at Current Prices were RMB 9.4 billion.

1). NC manufacturing installation for sheet metals (pressing machine)

The pressing machines production enterprises in our city mainly concentrate on Hanjiang District and Jiangdu District ， and Hanjiang District is the most characteristic production base. There are 60 enterprises altogether, and their Gross Industrial Output Values at Current Prices in 2003 were RMB 2 billion and their profit payments and tax turnover were RMB 0.17 billion

Hanjiang has enjoyed the good fame of the base for pressing machine production for a long time. With a relatively concentrated industrial arrangement, the traditional industry of Hanjiang District, equipment manufacturing of sheet metals, has formed an enterprise cluster with complementary advantages and concerted supporting facilities after years of incubation and development. The main products include NC turret extrusion press, NC exact laser cutting machine, NC hydraulic press brake, NC hydraulic press guillotine shear, NC boards' soft processing line and air conditioning fin metal-forming line. There are more than 50 manufacturing enterprises with large or small scales, and 96 patented products in the district. Their sales revenues were RMB 1.56 billion in 2003, accounting for about 8% of the market share of the whole country and about 30% of the province. With the owned intellectual properties, the high and new technological products such as NC exact laser cutting machine, YKC air conditioning fin metal-forming line and Series FT/HT/RD/VT NC turret extrusion press accounted for above 40% of the market share. In recent years, the production value of the whole industry had increased in a velocity of more than 50% per year, and parts of the leading enterprises had developed in a velocity of 200% per year. In January 2004, with the authorization of national Science and technology Department, it became State “Torch Plan” Hanjiang Industrial Base for NC Sheet Metals Manufacturing. Up to now, the characteristic industrial cluster of sheet metal equipment manufacturing in Hanjiang District has a certain influence through the country and a considerable status in the whole province. The core enterprises of the industrial cluster include Yangli Group, Jinfangyuan Group, etc.

Jiangsu Yangli Group is mainly engaged in the research and development of stamping press machine, bender press machine and shearing press machine. The output of machine tools is over 15000 per year. The production and sale scale in three consecutive years was ranked top in dieing machine industry throughout the country and it became one member of 500 China General Mechanical Manufacturing Enterprises. All products of the Group can be assembled with stamping press equipments such as uncoiling, leveling and automatic feed equipments, thus formed individual machine automatic production line, and these products also can be assembled with manipulators to form multimachine automatic online. Jiangsu Fuli NC Machine Tool Co., Ltd., the sub-company of the Group, is mainly engaged in the research and development of NC machine tool, and its main products are Series MP NC turret extrusion press, Series MS8 NC guillotine shear, Series MB8 NC bender. Jiangsu Guoli Dieing Machine Co., Ltd., the sub-company of the Group, is mainly engaged in the research and production of conventional type and economical type NC shearing machine and bender, and its main products are hydraulic pendulum plate shears, economical type NC hydraulic press brake, etc.

Yangzhou Dieing Machine Co., Ltd. has ten Series products with almost 100 specifications, and its main products are fine press with high performance, high speed press, dieing machine automatic complete equipment and Series YKC air conditioning fin metal-forming line with advanced technology accounting for more than 50% of the market share. Its production value in 2003 was ranked in the 6 th place among the fellow trade. Yangzhou Jiemai Dieing Machine Co., Ltd., a jointly funded company with Jinan Casting and Dieing Machine Research Institute, is mainly engaged in the production of closed type, simple point or colon sheet metal manufactured press under 1000T for general or special purpose, hydraulic press under 2500T and automatic production line.

The main products of Jiangsu Jinfangyuan NC Machine Tool Co., Ltd. are Series NC turret extrusion press, NC exact laser cutting machine, generating line working machine, NC laser-extrusion press compound machine, APSS NC punching shear compound line, FMC—120 NC automobile's carling soft manufacturing and FMS boards manufacturing soft production line. The integrated technology of the products reaches the advanced level of similar products at the late of 20 th century and the present age, and its many products haven't been seen throughout the country.

The leading enterprises engaged in the production of dieing machine in Jiangdu city are Yawei Machine Tool Factory and Jiangdu Kaiping Factory. The Gross Industrial Output Values at Current Prices of the two factories in 2003 were RMB 0.37 billion. Jiangdu Fangzheng Kaiping Factory is a enterprise specially engaged in the rolling plate leveling, and Jiangsu Yawei Machine Tool Group Company is mainly engaged in the production of plate finish and rolling plate finish folding and shearing machine tool, and its production technology and productive capacity have been ranked high among the similar ones in the trade all through the ages. Jiangsu Yawei Aibote Dieing Machine Tool Co., Ltd., a jointly funded company with Switzerland SMS Company world widely famous for its production of dieing machine tool, mainly engaged in the production of plate finish machine with high grade such as NC bender, NC guillotine shears and NC extrusion press. Jiangsu Yawei SELEMA Metal Forming Machinery Co., Ltd., a jointly funded company with Italy SELEMA Company, mainly engaged in the production of rolling plate manufacturing machinery such as NC uncoiling leveling shear line and strip coiling line.

2) Environmental protection equipment

Environmental protection equipment manufacturing is an industry with characteristics in Jiangdu city. Up to now, there are 32 production enterprises (4 enterprises with more than RMB 30 million funds) with fixed assets of RMB 198 million and 2396 employees. Its Gross Industrial Output Value in 2003 was RMB 431 million and its profit payments and tax turnover were RMB 37.8 million. The main products include disposal equipments for sewage, exhaust gas, noise and solid waste and medicaments of 4 categories and over 300 varieties. Ⅰ . Water treatment equipment. Key enterprises are Tianyu Group, Chenglu Compnay, Jiangdu Water Treatment Equipment Factory, etc. their main products and annual capacities are as follows: 2271 mud scrapers, 388 gas floating devices, 335 fibrous filters, 1568 sewage disposal equipments, 40080 aeration devices, 300 oil-water separators, 150 ion exchangers, and 5000 Series products such as cast iron anchor gates and grille turntables. Jiangdu Yulong Surface Treatment Project Co., Ltd. is mainly engaged in the production of water treatment medicament with annual capacity of 3700T JD high efficient coagulant. Ⅱ . Waste gas treatment equipment. The main production enterprises include Jiangdu Xingke Environmental Protection Equipment Factory, Jiangdu Gaohong Environmental Protection Equipment Project Company, Jiangdu Xinghua Environmental Protection Engineering Technology Co., Ltd. and Jiangdu East China Environmental Protection Equipment Factory. Ⅲ . Solid waste treatment equipment. The annual capacity is 50 equipments. The main production enterprises are Jiangdu Tianyuan Environmental Protection Engineering Co., Ltd. and Jiangdu Gaohong Environmental Protection Equipment Engineering Company. Ⅳ . Noise treatment equipment. The main production enterprise is Jiangdu Shuangxian Muffler Factory with annual capacity of 3000 coolers.

Yangzhou Tianyu Environmental Protection Group Co., Ltd. is a joint-stock enterprise mainly engaged in water supply, drainage and sewage treatment equipments with integration of research, design, manufacturing and engineering. There are 6 sub-companies and proprietary enterprises in the Group with total assets of RMB 95.81 and over 800 employees. Gross Industrial Output Value at Current Prices in 2003 was RMB 168 million and profit payments and tax turnover are RMB 9.23 million. The products are adopted by most of the domestic market and foreign courtiers and regions such as Burma , Nepal , Taiwan , Pakistan and Mauritius .

Yangzhou Chenglu Environmental Engineering Co., Ltd. is an integrated water treatment engineering company with an integration of technological research, design and manufacture, installation and debugging, project construction, after-sale service and project operation. Subordinate units include Application Research Institute, Purifying Equipment Factory ， Installation Engineering Company and Shandong Boxing County Sewage Treatment Co., Ltd. (BOT project). The company has advanced and mature treatment technology and associated equipments with superior performance for oil, petrifaction, metallurgy and electricity industrial waste water, urban sewage and hospital sewage. With 13 patented products and 4 products filling the blank in China , 15 products of the company has been awarded credit certificate and recommendation certificate by relevant leading departments such as State Environmental Protection Administration (SEPA) of China and China Petroleum and Petrifaction Group. The products have been adopted widely by many national major projects and trades and foreign countries such as U.S. , Kazakstan and Syria .

3) Electric Tool

The electric tool industry in Yangzhou city began with the 1990s, and makes a great progress at the beginning of the 21 st century. By the end of 2003, there are more than 190 enterprises for electric tool production with production value of nearly RMB 1.4 billion and over 10000 employees.

Nowadays, the electric tool industry cluster in Xiejia, Gaoyou has formed a certain scale. There are 185 production enterprises and 25 circulation enterprises with nearly 10000 employees in the cluster. The main products of three categories (electric tool, garden instrument and pneumatic tool) are Series induction machine, series dynamo, steel magnet dynamo, household bench drill, carpenters band saw, wood lathe, bench grinder, finisher belt grinder, cutting machine, meat flenser, lig saw, circular saw, oblique fracture saw, gad tongs, grass machine, compressor and thicknessing machine. Up to now, the annual capacity is 1500 machines. In 2003, there were 10 million produced electric tools of all kinds and sales amount of about RMB 1.2 billion.

Jiangsu Jinfeida Electric Tool Co., Ltd., a core enterprise, is manufacturer specialized in the production of electric tool, and one of bases for the export of national electromechanical products. It is ranked in the 62 nd place among the Top 100 village-and-town enterprises in the machinery industry of China and ranked in the 250 th place among the 1000 largest-scaled exporting village-and-town enterprises of China . Gross Industrial Output Value at Current Prices in 2003 was RMB 650 million. With total assets of RMB 221 million and fixed assets of over RMB 70 million, the company has 17 fabrication lines for electric tool, 9 production lines for spray paint and 380 large and medium sized equipments of all kinds. With 2300 employees, 308 personnel in all specific technical fields as well as the output and export quantum of nearly 5 million products, the company sells 100% of its products to more than 40 counties and regions such as U.S. , Britain and Australia . With a high reputation in the international market, its amount of self-management of export is over US $ 30 million. It is called A Little Giant in the electric tool industry of domestic market with the sales volume of bench drill accounting for 40% of that of the country. Taking the technological innovation as the guiding principle and based itself upon domestic market, the company establishes its electric tool development center in Australia in order to make sure that it can continuously exploit new products leading the international market in scientific and technological contents and designs. The leading products have passed the safety certification of US UL, Germany GS, Canada CSA and EC CE/EMC.

4) Feed and grain machinery

Jiangsu Muyang Group is a provincial-level enterprise and one member of top 100 enterprises of feed industry of China engaged in the research, manufacturer, project design, installation and service of feed machinery, storage machinery, grain machinery, axunge machinery and environmental protection machinery products. With total assets of RMB 420 million, sales revenue of RMB 487 million and profit payments and tax turnover of RMB 28.69 million in 2003, it has made great achievement in 2003 with Gross Industrial Output Value at Current Prices of RMB 449 million. It has researched and developed feed and grain machinery products with superior performance and over 100 series and 500 varieties. It has undertaken many feed complete projects, storage projects and grain projects with the help of famous enterprises at home and abroad such as Tongwei Group and Hope Group. Its many complete equipments and projects have been exported to Egypt , Malaysia , Indonesia , Singapore , Philippines , Australia , Syria , etc.

5) Construction machinery

In February, 2003, Guangxi Liugong Group took the method of holding stock first, entirely purchasing later to purchase Yangzhou Construction Machinery Co., Ltd., and thus Yangzhou Liugong Construction Machinery Co., Ltd. was established with registered capital of RMB 50 million and 450 employees. The main products are concrete trailer pump, concrete building block equipment, truck mixer and concrete mixer. Its Gross Industrial Output Value at Current Prices was RMB 51.32 million in 2003.

2. Analysis on the advantages of mechanical equipment industry development of Yangzhou city

As far as the geographical environment is concerned, located in the Yangtse River delta and the interjunction area of Nanjing and Shanghai economic zone, Yangzhou enjoys a unique geographical advantage; Yangzhou takes the lead in Jiangsu province by accomplishing the construction of highway around the city, and makes it possible for highway transportation from a county to another. With the traffic opening of Ning-Qi railway and the establishment of Runyang Bridge, Yangzhou has formed a great traffic structure with highway and railway network extended in all directions, thus enjoyed a nice traffic advantage; with relatively perfect infrastructure of electricity, tap water, sewage treatment, telecommunication and harbor, Yangzhou enjoys resources superiority. As far as the development of mechanical equipment industry is concerned, Yangzhou enjoys the following advantages:

1) Policy Advantage. In January, 2004, Hanjiang District had been formally named as State “Torch Plan” Hanjiang Industrial Base for NC Sheet Metals Manufacturing by national Science and technology Department, which would no doubt greatly promote its development of metal forming machinery industry and industry upgrading in the future. With the increasingly emphasis on environmental protection, our city's enterprises engaged in environmental protection equipments and projects have great business opportunities.

2) Cooperation Advantage. It is time for the development of commercial concrete machinery. Guangxi Liugong Group purchased Yangzhou Construction Machinery Co., Ltd., and then Yangzhou Liugong Construction Machinery Co., Ltd. was founded. The newly founded company will no doubt seize the opportunity and create resplendence again

3) Solid industry basis and nice and complete set of industry advantage. With years of incubation and development, a series of high and new technological products (such as NC turret extrusion press, NC exact laser cutting machine, NC hydraulic press brake, NC hydraulic press guillotine shear, NC boards' soft processing line and air conditioning fin metal-forming line ) have preliminarily formed an obvious industrial characteristic. Jiangsu Yawei Group has taken the lead in the fields of folding and shearing machine production and rolling plate processing machinery all through the ages. Jiangdu has formed a certain industrial characteristic in the fields of environmental protection equipment production such as water treatment, waste gas, solid waste and noise treatment equipments. Jinfeida Industry Park is well-known for its electric tool industry. Jiangsu Muyang Group has accumulated rich experiences in feed project, storage project and grain project.

4) Rich human resources. With a long history and solid basis, the mechanical industry in our city has strong strength in the development, design and production of mechanical equipments and a lot of Industrial workers with rich experiences and skills. Meanwhile, there are 36 colleges and universities and 137 scientific institutions in Yangzhou and adjacent regions, colleges and universities dense regions in China , with solid scientific and technological strength. The quality of work force in Yangzhou is rather high, and its price is relatively low.

3. Development strategy of Yangzhou mechanical equipment industrial cluster

1) Principle for industrial development

Take the market as the orientation and technical innovation as dynamic force in accordance with national policies for industrial technology; combine regional resources advantages and strengthen professional park construction based on the available basic conditions and advantages comparison of mechanical equipment industry in our city; concentrate on the development of products with characteristics such as NC sheet metal manufacturing equipment, environmental protection equipment and electric tool. Strengthen the invitation of business and capital attraction, and continuously adjust and optimize the structure of products in order to improve scientific and technological contents, promote the concentration of industries and raise the survival and developing abilities and competitive power of enterprises and regional economy.

2) Developing objective of industry

With the efforts of 5 to 10 years, the production base of NC sheet metal manufacturing equipment, environmental protection equipment and electric tool will be preliminarily established. The product value at Current Prices of mechanical equipments in the city will be RMB 30 billion in 2010. The technical innovation abilities of enterprises will be increased obviously, technical levels of production and equipment levels of the whole industry will be promoted continuously, and the production of main products will be concentrated at a higher level.

3) Industry distribution

Based on the formed regional characteristic industry, Hanjiang District will emphasize on the development of NC sheet metal manufacturing equipment base and feed and grain machinery industry of Muyang Group; Jiangdu will center on the development of environmental protection industry of Tianyu and Chenglu and NC machine tool industry of Jiangsu Yawei and Jiangdu Kaiping; Gaoyou will emphasize on the construction of Jinfeida Electric Tool Park.

4. Key points of development for Yangzhou mechanical equipment industrial cluster

Aim at the market demands and follow the developing direction of mechanical equipment industry at home and abroad based on the available technology and products advantages. continuously adjust and optimize the structure of products in order to improve scientific and technological contents, strengthen the invitation of business and capital attraction and raise the survival and developing abilities and competitive power of enterprises and regional economy,

1) NC sheet metal manufacturing equipment. Take Yangli Group, Jinfangyuan Group, Yawei Group as the leading enterprises, and take the urban development zone, Hanjiang development zone and Jiangdu development zone as the bases. Emphasize on the production of NC turret extrusion press, NC exact laser cutting machine, NC hydraulic press brake, NC hydraulic press guillotine shear, NC boards' soft processing line and air conditioning fin metal-forming line. Within 5 years, Yangli Group will strive for being a center for the development, distribution and production of dieing machine tool with first class level in China . With the estimate annual sales of RMB 1.2 billion per year in 2005, it will become the largest plate equipment manufacturing base with an integration of press, guillotine shears, bender and plate soft stamping production line, and become one member of Top 10 press companies in the world. In the coming 5 to 10 years, it will emphasize on the development of Yangli high and new technological industrial park and NC machine tool of Jinfangyuan Group with newly increased investment cost of RMB 0.3 billion and sales revenue of RMB 0.8 billion.

2) Environmental protection equipment. With Yangzhou Tianyu Group and Chenglu Group as the leading enterprises and Jiangdu development zone as the base, it will emphasize on the production of equipments for waste water, waste gas, noise and solid waste treatment. In the coming 5 to 10 years, it will focus on the hull painting environmental protection project of Qionghua Company and emphasize on the production of new type environmental protection equipment of Tianyu Group, sewage treatment equipment and oil-water separator of Chenglu Company and draining treatment equipment of Hualun Company with newly increased investment cost of RMB 60 million and sales revenue of RMB 0.2 billion.

3) Electric tool. With Jiangsu Jinfeida Electric Tool Co., Ltd. and Yangzhou Jinli Electric Tool Co., Ltd. as the leading enterprises, Jinfeida Industrial Park will be built into an electric tool city, and Xiejia town will be built into an electric tool town. In the coming 5 to 10 years, it will focus on the production expansion projects of exporting electric tools and garden instruments of Jinfeida Company, industrial tool of Hongyue Machinery Co., Ltd. and electric tool of Jinli Electric Tool Co., Ltd. and Yangzhou Electric Tool Factory. The upper-and-lower chain of industry concentrating on the production of electric tool will formed with newly increased investment cost of RMB 0.6 billion and sales revenue of RMB 2.5 billion.

4) Feed and grain machinery. With Jiangsu Muyang Group as the leading enterprise and Hanjiang Industrial Park as the base, it will emphasize on the production of feed project, storage project and grain project machinery products. In the coming 5 to 10 years, it will focus on the bulking machinery and detachable type steel silo project of Muyang Group with newly increased investment cost of RMB 0.2 billion and sales revenue of RMB 0.4 billion.

5) Construction Machinery. With Yangzhou Liugong Construction Machinery Co., Ltd. and Jiangdu Liugong Construction Machinery Co., Ltd. as the leading enterprises, it will focus on the production of concrete machinery and excavators. In the coming 5 to 10 years, it will emphasize on the production expansion projects of concrete machinery and excavators with newly increased investment cost of RMB 0.15 billion and sales revenue of RMB 0.3 billion.

5. Countermeasures for the development of Yangzhou mechanical equipment industrial cluster

1) Take the opportunity to rise up, and develop and expand mechanical equipment industry.

Nowadays, it is the favorable time for the development of dieing machine tool, environmental protection equipment and commercial concrete machinery. We will take the opportunity, Hanjiang was named as State “Torch Plan” Hanjiang Industrial Base for NC Sheet Metals Manufacturing by national Science and technology Department, to rise up, quicken the steps for the adjustment of products structure, and strengthen the construction of the development, distribution and production centers for dieing machine tool. We will also seize the favorable opportunity to develop commercial concrete machinery, strengthen the cooperation with Liugong Group, and create the resplendence again in our machinery industry.

2) Press the construction of Professional Park forward and promote the industrial concentration and function upgrading.

As the basis for the industrial development, parks can effectively promote industrial concentration as long as their industrial directions are confirmed according to local industrial basis and industrial characteristics. Therefore, we will further strengthen the existing industrial concentration function of the parks while maintaining the mutual competition and appropriate division of work in order to avoid excessive industrial duplication. We will also continuously optimize the management mode of parks to take the lead in forming a new management style and business establishing environment in accordance with international demands and the rules of industrial development.

3) Strengthen the invitation of business and capital attraction, and enlarge and strengthen industrial chain

By seizing the opportunity of the international industrial and capital transfer and making full use of the advantages of nice industrial environment, potential markets and work force with high qualities in the region along the river, we will intensify the advertisement for local characteristic industries and complementary surroundings, Strengthen the invitation of foreign business and capital attraction, and enlarge and strengthen industrial chain. We will also actively implement the strategy of opening to the outside, encourage and support superior enterprises to open to the outside, and take the lead in taking part in international cooperation and competition. Superior enterprises should establish production bases and research institutions at abroad, enlarge the realm, approaches and methods in economic and technical cooperation, and implement the strategy of boosting local enterprises to develop in foreign countries by making full use of technologies in international market and human resources to enhance their competitiveness in the international market.

4) Strengthen the technical innovation abilities of enterprises and enhance the core competence of industries.