Sichuan machinery industry has outstanding advantages in the “1+8” Project and the automobile industry, in which, there have been a good many of enterprises competitive in China and even in the world. The so-called “1+8” Project refers to one R&D production base and 8 key products chains (that is Deyang Manufacturing Base for Major Technical Equipment, large generating equipment, heavy machinery represented by complete set of large metallurgic & chemical equipment, complete set of large equipment for engineering construction, locomotive and rolling stock, complete set of petroleum and natural gas equipment, complete set of large environmental protection equipment, complete set of aviation and air traffic control system equipment, and numerical control technology and equipment. The data from Sichuan Province Economic & Trade Commission indicates that, in 2004, the sales revenue totally achieved by enterprises of the “1+8” Project was 25.808 billion yuan, posting an increase of 42.2%; the industrial added value was 6.703 billion yuan, representing an increase of 45.7%; the pre-tax profit was 2.319 billion yuan, seeing an increase of 68.3%, of which, the after-tax profit was 1.597 billion yuan, with an increase of 133%.

1) Deyang Manufacturing Base for Major Technical Equipment

As one of the three key manufacturing bases for major technical equipment in China, Deyang’s development has been highly valued and strongly supported by the Chinese Government. The Deyang Manufacturing Base for Major Technical Equipment is characterized by high industrial conglomeration and obvious industrial cluster effect. On the Base, there are more than 200 enterprises in the equipment manufacturing industry (mainly including generating equipment, metallurgical equipment, numerical control technology and equipment, complete set of electrical equipment and complete set of petrochemical equipment), of which large-scale enterprises are 143. The Base has become the most centralized area in Chinese major technical equipment manufacturing industry at present, where the large backbone enterprises in the major technical equipment manufacturing industry, represented by China National ErZhong Group Co., Dongfang Electrical Machinery Co., Ltd. and Dongfang Steam Turbine Works, help promote the rapid development of over 200 supporting enterprises. In 2004, the industrial added value achieved by large-scale equipment manufacturing enterprises on the Deyang Manufacturing Base for Major Technical Equipment was totally 4.506 billion yuan, sales revenue was totally 14.311 billion yuan and pre-tax profit was 1.66 billion yuan.

On the Deyang Manufacturing Base for Major Technical Equipment, the technical equipment manufacturing industry for heavy machinery, represented by special purpose equipment for metallurgical industry, mining equipment, heavy forging equipment and large castings and forgings, tops the list of all the domestic counterparts in terms of the grade, technical level and equipment grade, etc. of product. For example, the Baosteel 5m rolling mill crowned “the King of Rolling Mill in China” has been developed. Furthermore, the manufacturing industry of technical equipment for power generation, represented by steam turbine, water turbine, generator and motor, is fairly competitive in China. The water-turbine generator sets, the turbo units, the castings and forgings for power station, the large continuous casting and rolling equipment and the oil field drilling and production equipment totally produced by Deyang account for 1/3, 1/4, 1/2, 1/3 and 1/4 respectively of the total output of China.

2) 8 key products chains

Large generating equipment

The current manufacturing capability for thermal power equipment and hydraulic power equipment is 10 million kW in Sichuan. The turbo units and water-turbine generator sets totally produced by Sichuan account for 1/4 and 1/3 respectively of China’s total output. The manufacturing capability for thermal power equipment, represented by thermal power units of 0.3 million kW and 0.6 million kW, has been up to 7 million kW, and the cumulative output takes 1/4 of the China’s total output. The manufacturing capability for hydraulic power equipment, represented by Ertan Hydraulic power Station (0.55 million kW) and the Three Gorges Hydraulic Power Station (0.7 million kW) has reached 3 million kW. Major enterprises include Dongfang Electrical Machinery Co., Ltd., Dongfang Steam Turbine Works and Dongfang Turbine Works subordinated to Dongfang Electric Corporation. Dongfang Electric Corporation’s large generating equipment was listed in top three of Chinese large generating equipment enterprises, its hydraulic power equipment was named the China’s first and its thermal power equipment came in second. In addition, its development and production capacity in nuclear plants also takes a lead in China. In 2004, Dongfang Electric Corporation has had the ability to produce 600,000kW set in batch, which has made a leap from production of subcritical set to batch production of super-critical set.

Heavy machinery represented by complete set of large metallurgic & chemical equipment

Sichuan boasts of the ability to manufacture large smelting equipment, casting & forging equipment and heat treatment equipment. It has developed compact down coiling machine for steel strip of continuous casting and rolling CSP, and triaxial and three-offset rolling-cut double side shear, both with independent intellectual property rights. Its manufacturing ability in some marine castings and forgings takes the leading position in China. For example, its marine castings and forgings have obtained the approval of classification societies of 8 countries, and its pressure vessels have been certified by ASME code. Main enterprises includes China National ErZhong Group Co., Dongfang Boiler Co., Ltd., Southwest Chemical Machinery Co., Ltd. and Sichuan Chemical Machinery Co., Ltd, etc.. China National ErZhong Group Co. ranks among the first in China in terms of technical level, equipment level and weight level of large metallurgical equipment, and castings and forgings. Its large continuous casting and rolling equipment makes up about 33% of China’s market, heavy forging equipment about 16.3%, smelting equipment about 7%, castings and forgings for power station about 45% and large marine castings and forgings about 15%.

Complete set of large equipment for engineering construction

Sichuan also has the ability to develop, design and manufacture large-size engineering construction equipment. Its engineering machinery headed by large loaders, large-and small-sized hydraulic excavator, large hydraulic crane and large pillar crane stand on the important place in China, particularly, the 145t wholly hydraulic excavators and its serial products, developed by Sichuan Bonny Heavy Machinery Co., Ltd., are products with unique design. Major Enterprises include Chengdu Kobelco Construction Machinery Co., Ltd., Sichuan Changjiang Engineering Crane Co., Ltd., Sichuan Bonny Heavy Machinery Co., Ltd. and Sichuan Construction Machinery (Group) Co., Ltd..

Locomotive and rolling stock

Sichuan has taken the leading position in China in terms of technical level of internal combustion locomotives, electric locomotives and trucks. Sichuan locomotive manufacturing enterprises have strong research and development capacity, which have offered Shanghai magnetically levitated train with world-class special-purpose track girders for commercial purpose. Major enterprises cover CSR Ziyang Locomotive Works, CSR Meishan Rolling Stock Works and CSR Chengdu Locomotive & Rolling Stock Works. Thanks to the high research institutes (e.g. Southwest Jiaotong University and the Second Survey & Design Institute of China Railways) and solid industrial foundation in this field, the locomotive and rolling stock in Sichuan is very competitive in China’s market.

Complete set of petroleum and natural gas equipment

This product chain is characterized by better ability in supplying complete range of products and sound foundation of research and development. The electrical drive drilling rigs made by Chuanyou Guanghan Honghua Co., Ltd. and large-diameter pipeline ball valve made by Zigong High Pressure Valve Co., Ltd. have attained international advanced technical level. The drilling rig manufacturing and supporting products, drill bits and bradenhead equipment at this product chain possess strong competitive advantages in the market, some of which have had access to international market. Major enterprises include CPE Southwest Company, Southwest Petroleum University, China National Erzhong Machinery Group and Chengdu Mechanical Works of Sichuan Petroleum Administration, etc..

Complete set of large environmental protection equipment

This product chain is beginning to take shape and has huge potential for development. More than 30 technologies and devices in Sichuan have been approved by the State Environmental Protection Administration as the national important practical environmental protection techniques, which enjoy obvious advantages in engineering design and manufacture of large wastewater treatment, and urban wastewater treatment equipment. Major enterprises and units include Dongfang Electric Corporation and China Academy of Engineering Physics, etc..

Complete set of aviation and air traffic control system equipment

This product chain has sound technical foundation and a certain advantage in process equipment, taking the leading position in China in the research and manufacture of radar equipment and air traffic control system. Major enterprises include Jinjiang Electric System Engineering Co., Ltd. and Jiuzhou Electric Group and Wisesoft Co., Ltd..

Numerical control technology and equipment

The numeric control worm milling & machining centre production line, combined machine tools, numeric control milling machines, 5-axis NC machining centers and NC gear hobbers manufactured in Sichuan have attained domestic advanced level. The main products include horizontal machining centers, flexible machining units, small NC combined machine tools, small precision NC machine tools, vertical machining centers and NC milling machines, etc.. Major enterprises include Sichuan Air Separation Plant (Group) Co., Ltd. whose production capacity of large air-separation equipment is placed second in China, and Atlantic Welding Consumables Co., Ltd. whose product market share ranks among the first in China. Other key enterprises include Chengdu Ningjiang Machine Tool Co., Ltd. and Changzheng Machine Tool Co., Ltd., etc..

3) Automobile industry

Automobile industry is the biggest one in Sichuan machinery manufacturing industry, as well as the key development industry in Sichuan. The data from Sichuan Province Economic & Trade Commission shows that, in 2004, there were 31 enterprises for complete vehicles manufacturing and 146 enterprises for parts and components manufacturing, which achieved the sales revenue of 18.3 billion yuan, the industrial added value of 5.7 billion yuan, the total pre-tax profits of about 1.3 billion yuan including the after-tax profit over 0.6 billion yuan. The main products include medium and high-grade wagons, go-anywhere vehicles, trucks, interurban bus and a great variety of automobile parts and components. In 2004, the output of complete vehicle in the whole automobile industry was 102,500, including 85,000 trucks and 10,000 buses. The light buses, trucks, recreational vehicles and special vehicles possess some technological advantage in China. In respect of parts and components, gasoline engines, minitype vehicle rear axles, intercoolers, medium-sized diesel engines, auto shock absorbers, automotors and auto models are in the leading technology position in China.