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Four Focuses

Electromechanical Manufacturing

   Electromechanical industry is traditionally advantageous industry of Nanchang. In recent years, Nanchang City one after another introduces foreign electromechanical enterprises like Worldbest Kama, TECO Electric & Machinery, etc., which injects fresh blood for the development of Nanchang electromechanical industry, and local enterprises also constantly develop and enlarge through their own efforts. In 2007, there are more than nearly 200 electromechanical enterprises above scale and over 40,000 employed persons, the total assets reached RMB 12 billion yuan, sales revenue nearly RMB10 billion yuan. Thereinto, power machinery manufacturing cluster is gradually formed such as Jiangxi TECO Electric & Machinery, Tsinghua Tellhow, Switzerland ABB, KAMA Nanchai, Huayuan Electric & Machinery, Jiangxi Boiler, Silver River Jiangbian, GETRAG and other enterprises and their supporting enterprises. For taking full advantage of industrial cluster, Nanchang electromechanical industry has targeted at home appliances, power machinery and its related supporting products, which are the two largest electromechanical leading products of Nanchang’s key support and great development. With constant development and enlargement of leading enterprises like “AUX”, “KAMA”, “GETRAG”, etc., electromechanical industry will inaugurate new field, and the extension space of industrial chain will be constantly enlarged.
   According to the average increase speed of Chinese electromechanical industry in previous 20 years and the increase forecast of future five years, in combination with the index of “Eleventh Five-year Plan”of Nanchang industrial economy, Nanchang plans, through about 10 years’ efforts, to be constructed as the electromechanical industry base with bigger influence, modernization and scale in the world. Our city will realize the development target of electromechanical industry in two stages: 
   At the first stage, an electromechanical industry zone with perfect functions, special theme and advanced structure will be built after 2-3-year hard working and then become the manufacturing base of electromechanical industry of central China,and the annual sales amount will be RMB 15 billion yuan and the taxation and profit over RMB 0.5-1billion yuan; and
   At the second stage, over 85% of supporting facilities should be constructed to make Nanchang a major production and development base of electromechanical products in China with an annual sales amount of about RMB 50 billion yuan and the taxation and profit over RMB 2 billion yuan.
   The development advantages of the electromechanical industry include:
   Abutting advantage: The power machinery industry with an annual production of 0.35 million auto engines, 20 thousand ship diesel engines and 0.3 million auto transmissions is very strong in Nanchang City, so is the comprehensive design and manufacturing capacity of high-frequency motor, mid-frequency motor, double-frequency motor and high pressure motor, hydraulic generating equipment and wind generating equipment, power transformer and various intelligent power sets,etc.
   Industrial chain and supporting advantage: The main technique of power equipment is foundry, forging, machine and copper processing. From many domestic and foreign companies being successful in Nanchang City, it can show that the supporting capacity of foundry, forging, machine and copper processing to power equipment is very perfect, and meanwhile, the supporting processing capacity of bearing, standard parts, sealing element and gear of internal combustion engine are also perfect.
   Local market advantage: There are some domestic famous motor companies in the six-hour economic circle such as Aihui Jianghuai Motor, Wuhan Second Motor, and others. So, the needs of power equipment are very large. The annual sales income of JMC in 2006 is listed No. 239 of top 500 motor companies in China and No. 25 of China top 500 machinery companies.The production capacity of the complete vehicle is over 0.3 million per year.The annual production of Mahindra (China) Tractor Co., Ltd. is over 12,000 tractors. The annual production of Bailujia Bus is over 5,000 with production value over RMB 1.5 billion yuan and the sale quantity of is over 800 large and medium passengers in 2008 with the production value over RMB 0.5 billion yuan and the taxation of RMB 4 million yuan. The export of Bailujia Bus from Jan. to June, 2008 is over USD 13.7991 million. 
   Raw material advantage: Jiangxi Province is abundant in natural resources, especially for non-ferrous metals such as tungsten, copper and rare earths which has an absolute resource advantage than that of other provinces. The annual production of Jiangxi Copper Group is over 0.7 million tons in 2007 and the copper smelting is over 1 million tons in 2010. With the construction of copper plate project with 0.1 million tons per year and copper foil 2nd phase project, the fine processing of copper product will be over 0.6 million tons. Otherwise, Yingtan City in Jiangxi Province being only 100 km far from Nanchang City will be as China major copper and copper processing base.


Pharmacy and Food Industry

   Nanchang has more than 500 medical and food enterprises with relevant staff of 0.1 million, total assets of RMB 52 billion yuan and main business income of RMB 70 billion yuan.
   Under the leading of Jiangzhong Group, Huiren pharmacy, Wang’s Bee, Huangshanghuang, Sunshine Milk and other leading medical and food enterprises, Pepsi, CocaCola, Lijian pharmacy, Kelinnike, Wahaha, Sedrin Beer, Qingdao Beer and other famous enterprise settle in Nanchang one after another.
   The pharmacy industry has the following comparative development advantages: (i) Natural environment advantage. Nanchang, located at subtropical monsoon area, has humid and gentle climate, abundant rainfall,which is suitable for medicinal plants. (ii) Market system advantage. Based on rich Chinese medicinal materials resource, production and processing market system of Chinese medicinal materials has primarily formed in Jiangxi. Zhangshu City, 60 kilometers away from Nanchang, is famous ‘Chinese Medicine Capital’. Zhangshu Medicinal Materials Market is one of three large Chinese medicinal materials markets in China, and annual Medicinal Materials Fair attracts tens of thousands of merchants to talk about trades. The Market’s effect also radiates the whole country and even Southeast Asia. And (iii) Talent and technology advantages. Nanchang has a batch of medicine professional colleges, institutes and departments, e.g. Jiangxi University of Traditional Chinese Medicine, and Jiangxi Province has more than 10,000 medical specialty graduates yearly. Nanchang collects medical technology’s research and development resource of the whole Jiangxi Province, and there are also thousands of professional technicians engaging in the research and development of biomedicine and medical devices and equipments. There is also National Pharmaceutical Engineering Center for Solid Preparation in Chinese Herbal Medicine, Key Laboratory under Ministry of Education for Modern Chinese Traditional Medicine Preparation, 5 provincial-level research and development organs for biomedicine and 4 postdoctoral research stations in Nanchang. And Nanchang has achieved some breakthrough on quality evaluation of medicinal materials and preparation, development of Chinese medicine, new medicine and health products and research of drug’s new preparation.
   The food industry has the following development advantages: (i) Resource advantage. As large agricultural province, Jiangxi Province is endowed with plentiful agricultural and sideline products resource in which above 80% can be processed into food. In 2007, Jiangxi Province obtained satisfactory achievements including grain of 19.04 million tons, meat of 2.75 million tons, fruit of 2.06 million ton, aquatic products of 2.00 million tons, orange of 1.50 million tons, sugarcane of 1.00 million tons, poultry’s eggs of 0.60 million tons, edible fungi of 0.50 million tons, fresh milk of 0.182 million tons, off-take poultries of 428 million, off-take pigs of 26.05 million and off-take beef cattle of 1.52 million. (ii) Natural environment advantage. The climate characteristics and soil conditions of Nanchang and even Jiangxi is advantages for developing organic, green and characteristic agriculture. In the year of 2007, there are 916 green food varieties ranking the top in China and 415 organic food varieties ranking No. 1 in China for five years in succession. Nanchang and even the whole Jiangxi Province have abundant water resource. And the water quality of Nanchang ranks the top in China and even the world. And (iii) Talent and technology advantages. Jiangxi has a batch of food professional institutes and departments, and there are more than 10,000 food specialty graduates yearly. There are many famous domestic scientific research institutes such as Jiangxi Sino-German Joint Research Institute, Food Engineering School under Nanchang University, Food Science Department under Jiangxi Agricultural University, etc. in Nanchang. And Nanchang also gains many scientific research achievements.
   In the coming 3-5 years, Nanchang will still keep the medicine and medical devices industry’s present development situation that the manufacturing scale of existing disposable medical equipment and medical testing equipment and is respective No. 1 and No. 3 in China, the production scale of Chinese patent medicine is No. 3 in China and the health products quantity of Jiangxi Province is one-third of the nation’s totals. And Nanchang will actively develop biomedicine, chemical drug and interventional medical device, strengthen a batch of independent brands, and improve a batch of leading products,and create Nanchang a national important pharmacy and food industrial base.


Metallurgy and New Material Industry

   The Industry is a pillar industry in Nanchang City, There are nearly 100 large metallurgy and new material companies with main business income of nearly RMB 50 billion yuan, and profit and taxation of RMB 1.217 billion yuan. Alloy materials of tungsten, rare earth, zirconium and hafnium, electronic information and electric copper processing, auto spring steel, cold-drawn seamless steel tube used in electric energy and acrylamide are listed top place in China on scale, quality and marketing occupancy.
   The comparing advantages of the Industry are: 1) Resource advantage. Jiangxi Province being one of the largest metal resources in China is rich in nonferrous metals, rare earths, non-metallic resource and chemical minerals which supply a great advantage for the metallurgy and new material development. The tungsten metal occupies over 42.4% of total amount in China and the scheelite occupies over a half of total amount in China. The tantalum-niobium occupation reserve is over 60% and the heavy rare earths for industrial exploitation are over 60% in China. The copper resource is also abundant and now there are two super-large open copper mines and one large-scale underground mine. The retained reserve of copper mine ranks first place in China in which the fine copper mine is near 1/3 and the annual production of copper concentrate is over 0.7 million tons. The future reserve of the ionic rare earths may be over 9.4 million tons and the retained reserve is over 2.3 million tons occupying 40% and 35% respectively of ionic rare earths, its reserve is top one in China and also a key role in global rare earths industry. The konilite being a major rare material of silicon is very rich with an explored retained reserved of near 20 million tons and lists top one in China; 2) Technology advantage. The open exploration, copper-selecting technology and management standard of Jiangxi Copper Group is on the international top position, and its general smelting technology and management standard also reaches an international level at the same industry.Nanchang Institute for Non-ferrous Metallurgical Industries has a high reputation of non-ferrous metallurgical design and research. Jiangxi Bureau of Non-ferrous Geological Survey has a strong power on the non-ferrous metallurgical exploration; and 3) Electricity advantage. Nanchang is one of few cities unlimiting power consumption. Xinchang Power Factory (under construction) has an instantaneous capacity over 3.2 million KW and the first set will be built and put into use at end of 2009. Xinchang Power Station, other nuclear power stations and wind power stations in Jiangxi Province will put the electricity capacity to a new point after putting into use and then fully ensure the enterprise engaging in the production of metallurgy and new material.
   In recent years, China Minmetals Group, Shenzhen Fangda Group, Taiwan Asian Cement Company and other famous enterprises have settled down one by one. Based on the development trend of metallurgy and new material industry at home and abroad, the main business income of metallurgy and new material will reach RMB 100 billion yuan, the industrial value-added over RMB 20 billion yuan and the profit and taxation over RMB 8 billion yuan in 2010 integrating the development of metallurgy and new material industry. Nanchang City will become the largest production base of auto steel plate and spring, the major processing base of non-ferrous metals, and the major production base of rare-metal new materials, chemical new materials and new building materials.


Electronic Information Industry

   Electronic information industrial chain has been formed in Nanchang step by step, the Industry’s concentration has farther improvement, and its scale and centralized effect are also showing. In past years, the Industry always keeps high-speed increase situation, the amplitude exceeding 25%, e.g. the amplitude of electronic information industry’s increase value was 31.6% in 2007. The two electronic information manufacturing industries---Jiangxi Electronics Group Corporation and Tellhow Group Co, LTD were list in The 21st Nation Top 100 Electronic Information Enterprises in 2007.
   Electronic information industry in Nanchang takes ‘quickening development, enlarging scale, standing out characteristic, improving quality’ as development idea. During the first phase (1~3 years), the Industry focuses on developing investment-promoting affairs of automotive electronics and microelectronics industries, in which each industrial chain should introduce 2-4 large projects to realize the annual sales income breaking through RMB 16 billion yuan in 2009, RMB 25 billion yuan in 2010 and RMB 40 billion yuan in 2011; during the second (4~7 years), the Industry should further introduce 8-10 key projects to enrich product kind, perfect industrial chain, realize the annual sales income breaking through RMB 80 billion yuan in 2015 and to make Nanchang becoming the key industrial base of automotive electronics and microelectronics industries in China and the development base of industrial application software; and during the third phase (8~10 years), the Industry should build perfect industrial chain, develop product market, realize the annual sales income breaking through RMB 180 billion yuan and make Nanchang becoming the key industrial base with larger influence of automotive electronics and microelectronics industries in China and the development base of industrial application software.
   In recent years, there is a batch of international famous microelectronics enterprises e.g. Jingzhan Technology, Huatai Group, Fuchang Technology, Lianzhi Electron, etc. settled in Nanchang, which feeds into new power for developing and strengthening the microelectronics industry in Nanchang and forms correspondingly integrated industrial chain.
   There are also supporting industries to assist the development of electronic information industry in Nanchang. Taking copper materials deep processing of Jiangxi Copper Industrial Park as example, Nanchang has realized the localization of 90% mobile phone parts, i.e. from upstream copper resource deep processing such as special copper foil for microelectronics circuit board, enamelled wire, special cutting tools, etc., midstream products such as LED display, liquid camera, EMS memory, injection molding, parts, etc. and to downstream mobile terminal products. Jingzhan Technology, Fuchang Technology, Ningbo Huatai Group and Lianzhi Electron, relaying on independent core technology, have industrialization advantages in Nanchang, form complete industrial chain from research, development, design and manufacture to downstream end user, aim to found the ecological industry network taking microelectronics manufacture, product application and efficient use of resources.