Gearing up for foreign markets

From precision instruments to trains, exports are now key Zhu Chengpei and Tang Zhihao report.

The lifts serving the workshop at equipment manufacturing company Dalian Guangyang Science and Technology Engineering Co (Gona) have two choices - ground floor and underground.

The underground button will take visitors to its 15,000-square-meter factory 14 meters below the surface.

"Production of precision instruments requires constant temperature and humidity. The underground workshop allows us to meet the requirements in an energy efficient and environmentally friendly way," said Yu Dehai, chairman of board of Gona.

In its underground workshop in the Dalian Development Area, Gona has developed world-leading machine tools with accuracy of 0.1 micrometer.

Gona exported its high-speed five-axis vertical machining centers to Germany in 2013, China's first self-developed machine tool to be exported to a developed country.

Gona is also a leading company in high-end numerical control, transmission and hydraulic systems.

"I hope Gona can become a competitor to some world-leading machine tool manufacturing companies in Japan and Germany," said Yu.

"Many companies are upgrading their manufacturing systems to adapt to the changing business environment.

"Dalian's equipment manufacturing industry is transforming to become smart, precise and environmentally friendly," said Li Yunsheng, deputy director of the Dalian Commission of Economy and Information.

In a new round of efforts to revitalize the northeast, Dalian plans to promote its equipment manufacturing industry and encourage companies in heavy machinery manufacturing, rail equipment and computerized machine tools to seek opportunities overseas.

"We shared the domestic market with foreign capital in exchange for technologies in the early stage of opening-up. Now local companies are expanding in overseas markets and some have opened factories in foreign countries. Dalian's equipment manufacturing industry is accelerating in 'going-out'," said Li.

"The going-out formats are also changing. Exports are not limited to products - they also include technology, brands, capital and services," he added

Dalian Huarui Heavy Industry Co has been a pioneer in global expansion. Its machinery for the metallurgical, ports, hoisting and bulk materials handling sectors not only dominates the Chinese market but also has strong penetration overseas.

Its key clients include mining giants Vale in Brazil and Roy Hill in Australia.

Shao Changnan, vice-president of DHHI, said the company has made 4 million tons of machinery for domestic and international clients. It is fully capable of fulfilling engineering, procurement and construction projects overseas, he said.

In 2014, DHHI's yielded $420 million in foreign exchange from exports, and its products were sold in 84 countries and regions including the United States, Australia, Brazil and South Africa.

Dalian Shipbuilding Industry Co has also achieved good results overseas.

It is the first Chinese shipbuilding company ranked in the top five in the world.

DSIC has strong development and manufacturing capacities to build both small fishing ships and 300,000-ton oil tankers.

DSIC has deep penetration in building bulk, container and LNG ships as well as offshore platform construction.

Yao Yongke, general manager with DSIC Shipbuilding Industry Offshore Co, said the company's semi- jack-up, semi-submersible and self-developed jack-up rigs used in offshore platforms are sold in the US, the United Kingdom, Norway and Mexico.

In 2014, DSIC's sea project company exceeded 9 billion yuan ($1.45 billion) in revenue, 80 percent of it from foreign buyers.

Dalian Locomotive and Rolling Stock Co started its overseas expansion in 1993 when the company exported the first batch of locomotives to Myanmar.

In 2014, DLRS exported diesel locomotives worth nearly $1 billion to South Africa, the largest locomotive export deal in China's history.

DLRS has now expanded its line of products and services to better meet market demands.

It offers operational services, overseas repairs and technology transfer to foreign markets.

To support companies seeking opportunities overseas, government departments are paying attention to providing conveniences to local businesses. The Liaoning Entry-Exit Inspection and Quarantine Bureau is planning to a build machine tools, ships, bearing and locomotive products demonstration area to give more guidance about export standards and requirements to support local companies.

Contact the writer at zhuchengpei@chinadaily.com.cn and tangzhihao@chinadaily.com.cn

(China Daily 03/26/2015 page6)