FROM MANUFACTURING TO INTELLIGENT MANUFACTURING

Super hybrid rice, the Tianhe-1 super- computer and super high-speed rail transport—these are the top three Hunan innovations that enjoy fame. The prov- ince’s other innovative achievements, from the fi rst machine in the world to excavate a full- section inclined tunnel in coal mines to the fi rst commercial science satellite in China, are based on intelligent manufacturing.

In May 2017, China’s fi rst large jetliner, the C919, successfully completed its maiden fl ight. Two months later, the main structure of the Hong Kong-Zhuhai-Macao Bridge, the world’s longest sea-crossing structure, was finished. Both include many “Hunan elements.”

In November 2017, the State Council, China’s cabinet, issued a circular, announcing that to implement the Made in China 2025 strategy, national demonstration zones would 34 BEIJING REVIEW MARCH 8, 2018 httpwww.bjreview.com be established across the country to come up with advanced manufacturing development models for the nation. Made in China 2025 is a 10-year national plan to comprehensively up- grade the country’s manufacturing industry.

A cluster of three cities in Hunan—the provincial capital Changsha, Zhuzhou and Xiangtan, as well as Hengyang, the second largest city in the province—have been listed as demonstration zones. Hunan is capitalizing on intelligent manufacturing for the transformation of its manufacturing in- dustry to make itself a strong manufacturing province.

Du Jiahao, Secretary of the Hunan Provincial Committee of the Communist Party of China, pointed out that the central province has already achieved innovations in engineering machinery, rail transport, elec- tronic information, bio-pharmaceuticals, new energy and new materials. These have laid a solid foundation for the development of the manufacturing industry, he said, adding that the time is ripe for the transformation from high-speed growth to high-quality develop- ment, a shift that President Xi Jinping has called for.

In the fi rst half of 2017, the added value of high and new technology industries in the province grew by 15.8 percent year on year, accounting for 19.1 percent of the provincial GDP.

With the rapid growth of intelligent manufacturing, Hunan boasts several indus- trial clusters valued above 100 billion yuan ($15.77 billion).

Hunan’s citrus industry is an example of in- novative transformation. Although the province is the largest producer of citrus fruits in China with a cultivation area of 400,000 hectares, large harvests used to bring little joy to farm- ers. The local industry’s capacity to process the fruits and sell them as value-added products was weak. As a result, the yields had to be sold quickly and farmers were hurt by low prices dur- ing bumper harvests.

Then the Hunan Agricultural Product Processing Institute came into the picture in the 1990s. It began working with the citrus-pro- cessing companies in the province to improve their capacity. Today the institute owns over 20 innovations and patents, which have boosted the citrus-processing industry’s capacity to pro- duce various products.

At present, the output value of Hunan’s citrus industry has reached 10 billion yuan ($1.58 billion). Every year, 300,000 tons of canned cit- rus fruits are produced with nearly half exported to Europe and the United States. Hunan’s out- put is helping China replace Spain as the world’s biggest producer of canned citrus fruits.

By harnessing innovation, more industries in Hunan are becoming “strong and new” in- stead of “large but old.”

China Construction Fifth Engineering Division Corp. Ltd. is another model of trans- formation. The transition from an engineering fi rm to a modern investment and construction group can be seen from a major tourism and entertainment project in Changsha, Xiangjiang Joy City. An abandoned mine pit, 100 meters deep, is becoming the largest indoor ice and snow amusement park in the world offering Alpine recreational activities like skiing, skat- ing and snow sliding. Together with the local government of Xiangjiang New District, the company has invested a total of 12 billion yuan ($1.89 billion) in the project, becoming one of its co-owners.

Chairman of the Board Zhou Yong said the housing construction, infrastructure con- struction and investment businesses of the company are promoting one another. While building Xiangjiang Joy City, the company has obtained several engineering patents.

New industries with immense potential, such as 3D printing and robotics, are growing in Hunan. Farsoon Technologies, headquartered in the Changsha National Hi-Tech Industrial Development Zone, is a leader in 3D print- ing, the sector regarded as key to the Third Industrial Revolution. Farsoon is working on in- novations in 3D printing devices, materials and applications.

China’s robot makers are also manufactur- ing increasingly smart machines. The Changsha Yuhua Economic Development Zone, a base of Hunan’s robot industry, plays host to 37 robot fi rms, such as Kuka and Chaint Robotics.

In September 2014, Changsha issued a three-year action plan for the development of the robot industry, which includes using robots to replace labor-intensive work by humans, and promoting intelligent manufacturing.

Soon after the State Council announced the Made in China 2025 plan in May 2015, Changsha came up with its three-year (2015- 18) action plan for intelligent manufacturing, issuing a series of supporting policies. According to the plan, by the end of 2018, key fi elds in the manufacturing industry will be remarkably more intelligent; in the pilot projects, operational costs, production time and the rejection rate of products will all be reduced by 30 percent.

Between October and November 2015, Changsha also issued a number of further poli- cies to ensure financial support, improve the product structure and develop new markets for intelligent manufacturing, establishing a whole- process development system for intelligent manufacturing.

All these policies demonstrate the local gov- ernment’s determination to develop intelligent manufacturing. Changsha has its eyes fi xed on cutting-edge technologies, focusing on innova- tion-driven development, high-end industries as well as information technology-based industri- alization to upgrade its manufacturing industry under the economic new normal.