Review of Chenzhou city’s improvement of industry in“12th five-year plan”

Industry is the foundation for the city’s development.

The tone of the industry is the ground color of the city.

Though Chenzhou city used to cover with green trees, its sky was full of smoke for the extensive exploitation of resources.

How to change the sky from black to blue? Chenzhou people kept dreaming it for a long time.

During the “12th five-year plan”, followed the leadership of Chenzhou Municipal Party Committee and Chenzhou Government, Chenzhou people tried best to reach “five changes” of industrial structure.

The ratio of industrial structure is the benchmarking of the region’s industrial development. 60:40 was the ratio of mining economy and non-mining economy for Chenzhou city’s fiscal revenue 20 years ago. In the end of “11th five-year plan”, the three-industry structure of Chenzhou city was 12.9:49.8:37.3, but till the end of “12th five-year plan”, the ratio became 9.7:56.8:33.5 and the added value of scale industry of the industrial park was up to 71.5%. It reached great-leap-forward development from “mine-overwhelmed” to multiple supports.

A corner of East District of Chenzhu city

Guiyang Huishan which was used to be a mine was transferred to a landscape

One enterprise of Jiahe Casting Industrial Park is busy with production

“The treatment of mine industry” is an inevitable job for Chenzhou city’s industrial transformation. From the beginning of “12th five-year plan”, Chenzhou city promoted the treatment and integration of mineral resources powerfully, especially for Lutang mines of Beihu district and others. The total amount of coal mines and non-coal mines were integrated to 165 and 125 from 576 and 747 ones respectively, and the mining rights were decreased to 577 from 1295. The order of mine industry was regulated successfully.

“The treatment of mine industry” is not just an issue concerned for closing the mines, but also concerned for people’s unhealthy wealthy ideas on “earning money quickly” by mine exploitation. During “the 12th five-year plan”, China Mineral and some other companies were settled down in Chenzhou city to lead the integration of mineral resources of the state-owned companies; Jingui Silver, Yuteng Chemical and some other local mineral processing companies were developed in Chenzhou city which helped to transfer its mineral economy from scattered companies to “big mines” and “big groups”. Till the end of “12th five-year plan”, the production capacity of Chenzhou non-ferrous metals was up to 45,000tons/year, which became the first industrial cluster with over 100billion yuan output volume. In 2014, the total industrial output volume of non-ferrous metals industry was amounted to 108million yuan, including 36.35billion yuan industrial added value which was accounted for 33% of the total scale industry of Chenzhou city. 28 enterprises as Yuteng Non-ferrous, and etc. were enrolled into top 50 non-ferrous enterprises of Hunan province. 4 enterprises as Yuteng Non-ferrous, Jingui Silver, Jinwang Bismuth and Huaxin Non-ferrous were enrolled into the top 10 list. 5 non-ferrous metals enterprises which are with over 3billion yuan annual output volume are available in the city.

The “five-one” high-end strategic system of non-ferrous metals as Hunan Non-ferrous Metals Price (Chenzhou) Index, Hunan South Rare and Precious Metals Exchange, and the State Graphite Quality Control Center were gradually established in Chenzhou city, which established the platform for the transformation of resources advantages and competitiveness advantages. Hunan Non-ferrous Metals Price (Chenzhou) Index was formulated successfully to release the indexes of 9 non-ferrous metals as wolfram, bismuth, stibium, and etc., which helped Chenzhou city to seek the global pricing rights of non-ferrous metals especially for strategic micro metals.

How to improve the “mine-whelmed” industrial system” after the treatment of mine industry? During “12th five-year plan”, Chenzhou city kept carrying out the transformation and upgrading of industry and the industrial structure was being improved better. From this January to October, the added value of scale industry was with an increase of 7.1%. The added value of mining industry was 8.1% lower than last years; manufacturing industry was up 10.35%; power, heat and water supply was 3.7% lower; high processing industry and high-tech industry was up 10.3% and 7.6%; and Hunan provincial and above level industrial parks was up 10.7%. In last five years, Chenzhou city’s electronics information, device manufacturing, biomedical, and some other strategic emerging industries were with great improvement. It was estimated that till the end of 2015, the added value of the industry would cover 18.2% of Chenzhou city’s GDP, up 8.9% compared with 2011.

With five-year efforts, the comprehensive power of Chenzhou city’s industry was upgraded outstandingly. Till the end of 2014, there were 5627 industrial enterprises available in Chenzhou city, including 1092 scale industrial enterprises. The total output value of scale industry was over 300billion yuan for the first time, up to 309.80billion yuan which was 2.16 times of 2010. The total added value of industry was amounted to 108.33billion yuan, ranking 3rd place of Hunan province which was 3 places in advance compared with 2010. The added value of industry was estimated to be up to 118billion yuan till the end of 2015. Chenzhou city was kept placing in the first phalanx of Hunan industrial economy. Currently,

Chenzhou city is the biggest production base of silver, bismuth, and micro crystal graphite of China, and is the biggest production base of pled and zinc and new dry process cement.
Only innovation can keep the long lasting vitality of the industrial development. During the 5 years, Chenzhou city kept promoting technical innovation to promote the development of high-tech industry with different methods, which were with great achievements. In 2014, the added value of high-tech industry and high processing industry was up 42.1% and 24.7% respectively. 242 high-tech enterprises were available in Chenzhou city with the output value of 120.13billion yuan, up 37.2%. 1031 patents were authorized to Chenzhou city, up 10%. Till the end of 2014, there are 71 technological platforms available in Chenzhou city, including 8 public innovation platforms, 52 technical innovation platforms, and 11 regional comprehensive service platforms of technical innovation.

Transformation is a systematic project which needs all social parties’ efforts, especially the assistance of non-public economy enterprises and small & medium-sized enterprises. During these 5 years, 13 county level public service platforms, 13 entrepreneurship bases, 18 bonding companies, 19 enterprise technology center, 20 small-loan companies and 40 comprehensive service platforms and professional technical service platforms were established in Chenzhou city, providing sound and convenient conditions to the development of small & medium-sized enterprises. At the meantime, it well implemented the reform of commercial registration to activate people’s passion on entrepreneurship.

Informatization and internet+ became the accelerator of the adjustment of industrial structure. During the 5 years, Chenzhou city enhanced the planning and policy guidance for informatization development. “Digital Chenzhou planning (2012-2015)”, “Implementation comments on accelerating informatization development”, “Outlines for Chenzhou city’s development of LED industry”, “Some comments on supporting the development of LED industry”, and some other favorable policies for the promotion of informatization development were issued by Chenzhou city. It also highly promoted the deepening integration of industrialization and informatization that it organized 300 industrial enterprises to carry out the integration. The integration index was up to 102.2 in 2014, ranking the second place of Hunan province. It also perfected the construction of information infrastructures.