Supply-side reform key for SOEs

Technology upgrades promise rebirths and returning to profits

Kocel Machinery Company, a State-owned enterprise that had been struggling in the anemic foundry industry, is recovering amid a wave of economic reforms in China. After piloting an employee stock ownership plan and introducing 3D printing techniques, the 50-year-old manufacturer, located in Yinchuan in West China's Ningxia Hui autonomous region, has seen improved productivity and worker morale.

A computerized production system has cut the time needed for casting engine parts from over a month to just 10 hours. Precision machinery has narrowed sample errors to 0.3 mm from 1 mm. Workshops are no longer filled with powders and fumes.