Steel processing plant opens in Quwo

Shanxi Tongcai Industry and Trade uses a production line import?ed from Italy to improve the level of automation in its new plant. HU QUNLI / FOR CHINA DAILY

A new steel processing plant built by Shanxi Tongcai Industry and Trade became operational on Aug 17, in the steel industrial park in Quwo county in Shanxi province, adding to the region's strength in advanced manufacturing.

The plant is designed to produce high-end steel alloy rods that can be used in a wide range of industries such as construction and equipment manufacturing, according to Yang Hong, an executive of the company in charge of the plant.

Featuring a high level of automation, efficiency and energy conservation, the executive said the plant is expected to create an annual output worth 2 billion yuan ($292 million) when it reaches its full capacity.

Tongcai is a private company specializing in the production and trade of steel products. It currently ranks fourth among all the private enterprises in Shanxi in terms of revenue and is among the top 500 private businesses in China, according to Yang.

The company's steel products have been used in many major infrastructure projects in China, including railways, airports and in the manufacturing sector.

"The plant is equipped with a production line imported from Italy, which has helped our company achieve a higher level of smart manufacturing," Yang said.

Developing an advanced manufacturing industry that features new technologies, equipment, business models and environmental friendliness forms a major part of the growth strategy in Quwo, according to the latest requirements of industrial upgrading in Shanxi, said Yang Baochun, Party secretary of the county.

To upgrade its industries and realize sustainable growth, the county's authorities have implemented a new industrial development plan that highlights environmental friendliness and smart technologies, Yang said, adding that local manufacturers have pledged to invest more than 10 billion yuan in the upgrade.

Another enterprise that is about to realize such an industrial transformation is Jinnan Steel Group.

The company's liquefied natural gas project, with a total investment of 3.98 billion yuan, was put into trial operation recently.

"It is China's first facility to produce LNG and ethylene glycol using exhaust gas from coking and steel making," said Zheng Jiaping, board chairman of Jinnan Steel.

He said the facility can generate 3.3 billion yuan in sales revenue and 1.3 billion yuan in net profit annually, as well as create new jobs for more than 300 people.

"It's also an environmentally friendly project featuring recycling of resources and higher energy efficiency. With the project, we estimated that carbon dioxide emissions can be reduced by 560,000 metric tons a year in our company," Zheng said.

Driven by its strong manufacturing industry, Quwo has seen steady growth in its economy this year.

Local statistics show that its GDP grew 8.4 percent year-on-year to 5.89 billion yuan in the first half of this year. And manufacturing industries contributed 7.8 percentage points of the growth, accounting for 92.4 percent of local GDP.

Guo Yanjie contributed to this story

By YUAN SHENGGAO