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 a production value nearing 2 billion yuan, it has become one of the largest auto parts manufacturing bases in the country. However, for many years, the industry was dominated by low-technology products with minimal added value, placing it at the lower end of the supply chain.
To address this challenge and transform Yaocun from a large auto parts town into a strong one, the local government and businesses have focused on industrial restructuring. By emphasizing independent innovation and technological upgrades, the town has made significant progress. Currently, 45% of the auto parts enterprises have successfully transitioned away from producing basic, low-value components. The shift has moved production from crude, heavy, and simple parts toward more advanced assembly processes, marking major strides in industrial upgrading.
Among the numerous new and tech-driven projects, the Shijiahe Enterprise Group invested 50 million yuan in a front and rear axle and transmission assembly project. This initiative 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 cutting-edge EPC casting technology and new materials like Aube. Once these products were launched, profits and taxes from ADI-made car gears increased fivefold, helping them quickly gain market share.
Additionally, over 80 auto parts companies, including Xinyuan and Dongfeng, have implemented high-tech projects, leading to profit and tax growth of more than 300%, achieving remarkable 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 plans to continue investing in industrial adjustment, guiding the remaining over 100 auto parts companies toward structural improvements. This effort aims to provide strong support for sustained economic growth and long-term development.
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