Helping enterprises move up industrial chain for growth

From financing to manufacturing, area's policies breathe life into new businesses, Tang Zhihao reports.

Weifang Hi-Tech Industrial Development Zone, one of the first national-level economic zones in China, helps businesses to move up the industrial chain to support regional economic growth.

The zone plans to promote 269 key development projects to provide more support to leading businesses in 2017.

Apart from promoting key projects' construction, industrial experts were also invited to give advice to help businesses set development goals.

Helping businesses

Businesses in the zone are encouraged to set clear development goals to support their long-term growth.

Zhao Fuquan, professor and director of the Automotive Research Institute at Tsinghua University, strongly supported the deal between privately owned automaker Geely and Swedish auto manufacturer Volvo in 2010. He visited Shengrui Transmission Co in March, the developer of the world's first front-engine, front-drive 8-gear auto transmission, also called the 8AT.

"I have heard about the 8AT. Shengrui successfully broke the monopoly of foreign transmission developers in China with the 8AT," Zhao said.

Zhao suggested Shengrui pay more attention to promoting industrial development plans rather than just talk about what has been done in the initial development stage and how difficult the processes were.

Shengrui, Weichai Power, GoerTek and Foton, which are four leading businesses in the zone in terms of technological development capacity and sales revenue, have set big goals and are now striding toward them.

Weichai, one of the key diesel engine developers in China, has developed a spare parts distribution center in the zone aimed at expanding along the industrial chain. It has set a goal to be a Fortune-500 listed company in the upcoming years.

GoerTek, a leading acoustics company in China, has successfully diversified its product portfolio by tapping into the smart wearables industry. The business plans to recruit more industrial experts to support its long-term development.

Andrew Bright, who was responsible for the initiation and execution of audio integration across Apple's iOS Mac OS and Apple Watch product lines, joined GoerTek in April 2015 and serves as general manager of GoerTek Europe.

Shengrui plans to continuously expand its market share in the world with its core technologies.

Foton will promote its engine and complete vehicle development, and seek expansion online. It has developed the Shandong internet automotive development base to support internet-based vehicle development.

Apart from the "big four", many smaller but high-growth businesses also set development goals and strive to turn dreams into reality.

HOACO Automation Technology, a precision equipment maker in the zone, plans to develop a smart die-cutting equipment base in the zone.

Tian Rouxin, assistant chairman of the board of the company, said that some of the world's most advanced technologies and machines have been installed in the base.

HOACO's die-cutting machines were used to produce raw materials for leading electronic product developers including Apple, Huawei and Oppo.

The zone has developed several facilities to support business growth. It has made substantial progress in the construction of several industrial parks, focusing on international power, photo-electricity, healthcare and virtual reality.

Supporting development

Businesses in the zone are encouraged to support the zone's industrial chain development to push related businesses' growth.

Shengrui started construction of its automotive industrial park in May last year to attract global transmission parts suppliers to the region.

The park, which will be completed this month, will be able to produce 400,000 sets of vehicle components annually, equal to 8 billion yuan ($1.16 billion) in industrial throughput.

"We will have lower production costs due to falling costs of inspection, cleaning and storage," said Sun Xiaoguang, secretary for the chairman of the board and head of the legal department at Shengrui.

Li Youguang, assistant general manager from Shandong Fuxiang Power, a parts supplier who moved into Shengrui's industrial park last year, said the company has seen significant growth in production capacity and scale.

The Xin'gang Industrial Park, designed to serve hightech and rising businesses in the zone, is under development. Weifang Special Steel Group and some power companies will move into the park upon completion.

Maintaining balance

Weifang Financial Town was established on March 7 in the zone to support the Weifang finance industry's development.

"It is a place for financial experts to turn their dreams for life and work into reality," said Yu Xinhua, chairman of the board of Weifang Financial Holding.

The town is one of 10 industrial parks in Weifang designed to facilitate the city's industrial upgrading and transformation.

Local authorities have vowed to design more preferential policies and develop a convenient and comfortable environment for businesses in the town.

The town will be a new milestone of Weifang and the development zone in supporting financial development.

Zhou Jinjiang contributed to this story.

Contact the writer at tangzhihao@chinadaily.com.cn

(China Daily 05/08/2017 page12)