Shaoguan: Focusing on the Development of Auto Parts Industry

Shaoguan is located at the junction of Guangdong, Hunan and Jiangxi provinces, and is the production base of heavy industry in South China. The first car in Guangdong Province was made here. The development of its industry began in the period of the country’s policy of promoting the development of industry mainly for defense and industrial construction from the 60s to 80s, and is now transforming into a new stage under the national policy of high-quality development. Nowadays, as the province has rolled out its policy of "Action Plan for the Development of Strategic Pillar Industry in Automobile Production", Shaoguan is deeply promoting the development of industrial chain in auto parts industry with innovation and new creation, aiming to open up a new "track" for its high-quality development.

 

Guan-Shao Industrial Park, South China Advanced Equipment Park and many other industrial parks have formed a solid platform for the city’s endeavor to build a production base for the whole industrial chain of new energy auto parts.

 

Tomorrow, Shaoguan, the heavy industry base in Guangdong, will hold a business promotion conference in Hangzhou--the "paradise on earth", to showcase its innovative practices and successful cases in the field of auto parts production to enterprises from the Yangtze River Delta. With the eagerness to understand Shaoguan’s practices and strategies in auto parts industry development, the reporter took the lead in investigating the industrial chain of auto parts production in Shaoguan.

 

The "natural" fertile soil for the auto parts industry

In the 1960s, Shaoguan became an important production base of steel, machinery and non-ferrous metal in South China. With the hard work of countless industrial workers in Shaoguan, the city has marked its important role in the history of industrial development in Guangdong Province. Since then, Shaoguan has gradually developed industries such as automotive precision castings and forgings, automotive wheel bearings, automotive gears, and transmission assemblies, creating a number of raw material suppliers and standard auto parts suppliers in the automotive industrial chain.

Shaoguan Marunix Electronics Co., Ltd. mainly produces high-precision, high-speed transmission connectors for automobiles. The picture shows the company's production workshop.

 

After years of development, Shaoguan's automobile industry is currently mainly divided into two categories: auto parts production and special vehicle manufacturers, with a total of 15 companies. Gearbox, gear and clutch parts produced by Hongda Gear, automotive wheel bearings produced by Southeast Bearing, automotive wiring harnesses and automotive coaxial wiring harnesses produced by Marunix Electronics, and micromotors produced by Standard Motors have been directly supplied to OEMs. At present, the auto parts products produced by enterprises in Shaoguan have acquired some competitiveness in the market.

In the production workshop of Shaoguan Southeast Bearing Co., Ltd., employees are inspecting finished products.

 

In view of the state-supported development of the new energy vehicle industry, Shaoguan Renhua Circular Economy Industrial Park focuses on the industrial chain of "non-ferrous metal deep processing - energy storage battery - new energy battery materials - power battery recycling - green re-manufacturing", specializing in creating new energy battery materials. Today, 7 enterprises, such as Guangdong Weima and Guangdong Shengxiang, which produce lithium battery materials have settled at the park .

 

High-quality, considerate and diversified supporting services

The automobile industry involves a wide range of industrial production and a long industrial chain, and the production of many auto parts is inseparable from electroplating, electrophoresis, phosphating, anodizing and other supporting services. Shaoguan focuses on the needs of enterprises and builds a surface treatment center in the South China Equipment Park, with an annual surface treatment area of up to 10 million square meters. At present, the first and second phases of the project have completed all construction work.

Multi-functional standard workshop in South China Equipment Park.

 

The project leader of Dongshao Company introduced that as an important supporting project of the equipment park, the project provides surface treatment supporting services for auto parts, mechanical hydraulic parts, various fasteners and other parts involved in the manufacturing industry, including zinc galvanizing, nickel plating, chrome plating, zinc-nickel alloy plating, etc.

 

Apart from the construction of supporting facilities, and related supporting services were also provided to help enterprises that had invested in Shaoguan. Party committees of Shaoguan and government departments at all levels in Shaoguan have firmly upheld the concept of "Enterprise First", learned from the advanced experience of the governments of Guangdong-Hong Kong-Macao Greater Bay Area, vigorously carried out the service reform of "Team up with Enterprises to Solve Problems", implemented the first asking responsibility system and encouraged government staff to do their best to do things well for enterprises.Shaoguan Municipality also focuses on the guarantee of support regarding land reservation for investment, capital support, water and electricity , energy consumption, environmental impact assessment, human resources and etc., It also strives to carry out the work of revitalizing idle and inefficient land, land requisition and demolition, land collection and storage, etc., and implements fast track system for the approval of construction of new projects, so as to further promote the development of Shaoguan's industry.

 

Strong policy support from both the provincial and municipal governments

In recent years, Guangdong Province and Shaoguan City have issued a series of policies to support the development of Shaoguan's auto parts industry, bringing about positive changes in its industrial scale and product quality.

BYD forklift production workshop.

 

In September last year, the "Implementation Plan on Construction of Industrial Chain of Auto Parts Industry " was issued, which clearly stated that it is necessary to plan and build the second- and third-level supplier industrial parks of auto parts in Shaoguan and support the construction of an auto parts industrial park in Shaoguan.

 

In addition to policies specifically targeting to support the auto parts industry, the provincial party committee and the provincial government also attach great importance to the industrial development of Shaoguan, and have successively issued several policies on supporting the development of Shaoguan. Such as “Opinions on promoting Shaoguan’s development as a national old industrial city and its transformation and upgradin as a resource-based city”“Opinions on promoting the high-quality development of the northern ecological development zone" and "Policies and measures on promoting the orderly transfer of industries with Pearl river delta cities and promoting coordinated regional development".

 

Platforms have been built to support the development of the whole industrial chain

In Shaoguan Hongda Gear Co., Ltd., you can always find hundreds of machines are operating at high speed, with machine roaring sound filling the air. In the Guang-Shao Industrial Park, the production workshops of auto parts companies such as BYD Industry and Shaozhu Group are also busy with production.

Hongda Gear Co., Ltd.produces parts and components such as automotive transmissions, gears and clutches.

 

With the introduction of many enterprises of the automotive industry chain, Shaoguan actively drives auto parts enterprises to form industrial chain clusters in various counties (cities and districts), and strives to build Guan-Shao Industrial Park, South China Advanced Equipment Park, Xinfeng Industrial Park, Lechang Industrial Park, Renhua Industrial Park into high-quality platforms to facilitate the development of enterprises.