1) Large overall scale

The machinery industry is the largest one in Sichuan industrial economy, and one of the four competitive industries that the Sichuan Government establishes in its development planning. In 2004, there were totally 1,274 large-scale enterprises in Sichuan machinery industry, with a total asset of 118.518 billion yuan. The overall scale is fairly large. During 2001-2004, the gross industrial output value, the sales revenue, the industrial added value and the profit achieved by the large-scale enterprises in Sichuan machinery industry were all increased to a large extent. (Refer to Table 1)

Table 1 Key Economic Indicators of Large-scale Enterprises in Sichuan Machinery Industry in 2001-2004

Unit: 100 million yuan, %

Source: Sichuan Province Economic & Trade Commission

The machinery industry plays an important role in Sichuan industry. In 2004, the sales revenue, the industrial added value and the profit achieved by large-scale enterprises in Sichuan machinery industry accounted for 18%, 16% and 17% respectively in Sichuan large-scale industrial enterprises.

2) omplete industrial categories

Sichuan machinery industry covers comparatively complete categories, mainly including metal product industry, ordinary machinery industry, special purpose equipment manufacturing industry, communication and transportation manufacturing industry, electric equipment and machinery manufacturing industry, and instruments, meters, cultural and official machinery manufacturing industry. In respect of industrial structure, the ordinary machinery industry, communication and transportation manufacturing industry, electric equipment and machinery manufacturing industry and special purpose equipment manufacturing industry hold a conspicuous position, whose sales revenues plus total pre-tax profits make up more than 90% of the industry total. (Refer to Table 2).

Table 2 Industrial Structure of Large-scale Enterprises in Sichuan Machinery Industry in 2004

Unit: 100 million yuan, %

Source: Sichuan Academy of Social Sciences

3) Forming industrial cluster with certain scale

The machinery industry in Sichuan is mainly distributed in 6 medium- and large-sized cities: Chengdu, Deyang, Zigong, Mianyang, Ziyang and Luzhou (please refer to Fig. 2). In the 6 cities, an industrial cluster with certain scale has come into being and the gross economic volume covers more than 80% of that of Sichuan. (Please refer to Table 3)

Table 3 Productivity Distribution of Machinery Industry in Sichuan

Source: Regain the Glory-Reconstruction on Sichuan Old Industrial Base, Sichuan Scientific and Technical Press, 2005.