Yaocun Town in Linzhou City is home to over 180 auto parts companies, employing more than 15,000 people. With an annual casting capacity of 300,000 tons and an output value of nearly 2 billion yuan, it has long been one of the largest auto parts production bases in China. However, for many years, the industry was stuck at the low end of the supply chain, producing low-tech, low-value products that were heavy, inefficient, and outdated.
To address this challenge, the town has focused on industrial restructuring, emphasizing technological upgrades and independent innovation. Over the past few years, the auto parts sector has made significant progress, with 45% of enterprises moving away from crude manufacturing toward higher-value assembly processes. This shift has helped the industry move from producing individual components to developing complete systems, marking a major transformation in its industrial structure.
Several key projects have played a crucial role in this transformation. For example, Shijiahe Enterprise Group invested 50 million yuan in new front and rear axle and transmission assembly projects, which now produce over 20,000 units annually, contributing 200 million yuan in new value. Meanwhile, Xiandian Machinery Foundry Co., Ltd. partnered with the Chinese Academy of Sciences and the China Academy of Machinery Science to establish the Linzhou Experimental Base. They invested 20 million yuan in developing advanced EPC casting technology and new materials like Aube. The resulting high-performance ADI-made automobile gears saw profits and taxes increase fivefold, quickly capturing market share.
Additionally, 80 auto parts companies, including Xinyuan and Dongfeng, launched new high-tech projects, leading to profit and tax increases of over 300%. These developments have driven rapid growth and positioned the town for future success.
According to recent statistics, 40% of the town's tax revenue, 20% of total industrial output, and 35% of industrial added value were directly generated through the restructuring of the auto parts industry. In 2006, the town planned to continue investing in structural adjustments, guiding the remaining over 100 auto parts companies toward more advanced and sustainable development paths. This ongoing transformation is expected to provide strong support for the town’s continued economic growth and industrial upgrading.
SWA100 Anatase Titanium Dioxide
Wuxi Qijun New Material Co., LTD , https://www.tio2supplier.com