Yaocun Town, located 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 nearing 2 billion yuan, it stands as one of the largest auto parts production bases in the country. However, for many years, the industry has been characterized by low technological content, minimal added value, and a position at the lower end of the supply chain.
To break free from this situation and transform the town into a more advanced auto parts hub, Yaocun has focused on industrial restructuring in recent years. Through independent innovation and technological upgrades, the town has made significant progress. Over 45% of local auto parts companies have moved away from producing basic, low-value products that were once seen as “stiff, dull, and heavy.†The shift has led to a transition from simple component manufacturing to more integrated assembly processes, marking a major step forward in the industrial structure.
Among the numerous new and upgraded projects, the Shijiahe Enterprise Group invested 50 million yuan in a new front and rear axle and transmission assembly project. This initiative has boosted annual output to over 20,000 units, generating a new production value of 200 million yuan. Meanwhile, Xiandian Machinery Foundry Co., Ltd. partnered with the Changchun Science and Technology Exchange Center of the Chinese Academy of Sciences and the China Academy of Machinery Science to establish the Linzhou Experimental Base. By investing 20 million yuan, they developed advanced EPC casting technology and new materials like Aube. Once these products hit the market, profits and taxes from ADI-made car gears increased fivefold, allowing them to quickly capture market share.
Additionally, over 80 auto parts companies, including Xinyuan and Dongfeng, have implemented new high-tech projects, leading to profit and tax growth of more than three times. These developments have enabled the town to achieve a leap in its economic performance.
According to 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 its efforts in industrial adjustment, guiding the remaining more than 100 auto parts companies toward structural transformation. This initiative aims to provide strong support for sustained economic growth and long-term development.
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