Linzhou Auto Parts Base Depends on Innovation Adjustment and Development
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 has long been one of the country's largest auto parts production bases. However, for many years, the industry was 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 from a "large" town into a "strong" one in the auto parts sector, Yaocun has focused on industrial restructuring, emphasizing independent innovation and technological upgrades. As a result, nearly 45% of local auto parts enterprises have moved beyond basic manufacturing, shifting from producing crude, heavy, and low-value components toward more advanced assembly and high-tech production. This marks significant progress in the town’s industrial transformation.
Among the numerous new and technology-driven projects, Shijiahe Enterprise Group invested 50 million yuan in a front and rear axle and transmission assembly project. The facility now produces over 20,000 units annually, generating 200 million yuan in new value. 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. They invested 20 million yuan to develop advanced EPC casting processes and new materials like Aube. Once these products were launched, profits and taxes from ADI-made car gears surged fivefold, helping them quickly capture market share.
Additionally, 80 auto parts companies, including Xinyuan and Dongfeng, have implemented new high-tech projects, resulting in profit and tax increases of more than three times, achieving rapid growth and development.
According to statistics, 40% of the town's tax revenue, 20% of total industrial output, and 35% of industrial added value are directly attributed to the restructuring of the auto parts industry. In 2006, the town planned to continue its efforts in industrial adjustment, guiding the remaining over 100 auto parts companies toward sustainable and high-quality development, providing strong support for the town’s economic growth.
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