Shanxi rings in changes across industrial hubs

By Yuan Shenggao (China Daily)

Updated: 2023-03-03

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A digitally controlled rolling machine is used to produce large-sized flanges at a plant in Dingxiang. [Photo by Zhang Jinlan for China Daily]

Provincial people's congress sets forth plan to promote unique expertise of manufacturing areas

The Shanxi county of Dingxiang, a flange production base with a nationwide reputation, is expected to enjoy greater industry growth, thanks to the province's recent strategy to develop characteristic towns.

Dingxiang is now home to nearly 200 flange manufacturers of flanges – ribs rims for strength, for guiding, or for attachment to another object. The companies are capable of producing more than 2,000 varieties of flanges used in a range of fields like petrochemicals, power generation, aerospace and astronautics.

The county's output of flange products now accounts for about 30 percent of the national total. It currently supplies 60 percent of wind power generator flanges in the country. Its export of cast-iron flanges takes up about 70 percent of such exports nationwide.

In September 2022, the provincial government announced its first batch of 10 provincial-level characteristic towns and Dingxiang was on the list.

Building towns with characteristic industries is a new strategy in Shanxi, which aims to create new economic engines that accelerate high-quality industrial growth.

During the annual session of the Shanxi Provincial People's Congress, held from Jan 12 to 16, provincial authorities reiterated the importance of growing characteristic towns and showed their support, according to Zhao Yajing, Party secretary of Dingxiang and also a delegate to the congress.

Zhao said that the government work report, which was delivered by newly elected Shanxi Governor Jin Xiangjun at the congress, proposed developing characteristic towns and cities that specialize in famed products, noting that it "should be an opportunity for local enterprises to grow".

The official said Shanxi's plan to foster characteristic industrial towns will help to increase the influence of Dingxiang's flanges in both domestic and international markets.

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Dingxiang county is a flange production base with a reputation that stretches nationwide. [Photo provided to China Daily]

Shortly after Dingxiang made the list, the county government announced an action plan for the flange industry's growth and released implementation measures.

The plan said Dingxiang is expected to grow an industrial cluster of flange production and related advanced manufacturing with an annual output worth more than 100 billion yuan ($14.46 billion) in the future.

Local statistics show that the output value of Dingxiang's flange industry was 14.2 billion yuan in 2022, and the combined sales revenue of local manufacturers stood at 13.9 billion yuan.

To realize this ambitious plan, Zhao and other county officials said that industrial upgrades driven by innovation and expansion by developing an extended industrial chain are crucial.

Dingxiang has now taken the national lead in terms of the number of advanced manufacturing equipment. Its local manufacturers now boast 754 large casting machines, 7,308 modern machining tools and 5,762 sets of advanced manufacture-aiding equipment that include robots, testing devices and intelligent image identifying systems.

But local entrepreneurs are expecting more to come in their equipment and technology upgrades, especially with the use of digitalized, network-connected, intelligent and automated operations.

Local flange manufacturer Tianbao Group, for instance, is promoting a full-scenario application of digital technologies.

"Digital technologies are now used in almost all operational links including research and development, production, logistics and financial management," said Liu Xiaotao, an executive of the company. "Digitalization has ensured greater efficiency and precision and promoted our core competence."

He cited the company's newly installed digitally controlled rolling machine for making large flange rings.

"With this new machine, plus a 10,000-metric-ton hydraulic press, we are now capable of making super-large flange rings for wind power generators, with a diameter of 10 meters," Liu said. "This is a sharp contrast with our previous variety of 5 meters."

Dingxiang is also forging a complete industrial chain, which includes upstream steelmaking and casting and the downstream new energy sector, to enhance the flange manufacturing industry.

Casting products manufacturer Baolong Technology, for instance, is an upstream supplier for the flange industry.

"Casting enterprises are a crucial link in the entire industrial chain," said Yang Song, a senior executive of Baolong." We are playing a part to further extend the chain by cooperating with upper-stream entities like steelmakers and research institutions, aiming to supply high-quality casting components to flange manufacturers."

A range of projects in the industrial chain have been launched or are under construction in Dingxiang.

In 2022, the Dingxiang Development Zone, a major site for the flange industry, secured seven large projects, with a combined investment totaling 2.77 billion yuan. Also, there are another 20 projects under construction with investment totaling 6.23 billion yuan.

A special steel products manufacturing facility funded by local Qingrui New Material Technology is among the projects.

"It took us less than half a year to finish the procedures of identifying the investment location, negotiation, agreement signing, business registration, land acquisition and commencement of construction," said Wang Jun, a senior executive of Qingrui. "This is because of the highly efficient services provided by the local officials."

Construction for the first phase of the project has been completed and workers of the company are now busy installing and testing equipment for production.

The first phase includes two production lines for special steel products tailored for local flange manufacturers.

"The two lines are capable of producing 180,000 tons products, worth 2 billion yuan, a year," Wang said.

To boost the core competence of the flange industry, Dingxiang's authorities are seeking collaborations with 20-plus research institutions and industrial associations, according to county officials.

Zheng Na contributed to this story.