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Yaocun Town, Linzhou City has more than 180 auto parts companies, employs 15,000 people, has an annual casting capacity of 300,000 tons, and an annual output value of nearly 2 billion yuan. It is one of the country's largest auto parts bases. However, for a long time, the product has low technological content and low added value, and it has been at the low end of the industrial chain. In order to change this status quo and realize the transformation of large towns of auto parts into towns with strong auto parts, in recent years, the town has focused on the structural adjustment of the auto parts industry, relies on independent innovation, and actively renewal of technology. At present, 45% of auto parts enterprises have gradually emerged from the industry. The status quo of production of "coarse, stupid, heavy" primary products has led to the gradual development of auto parts production from parts to assembly, and major steps have been taken in industrial restructuring.
Among more than 80 projects in the new and technological transformation projects, the Shijiahe Enterprise Group invested 50 million yuan in new front and rear axle and transmission assembly projects. The annual output exceeded 20,000 units, and the new production value was 200 million yuan. 20 million yuan; Xiandian Machinery Foundry Co., Ltd. established the Linzhou Experimental Base in cooperation with the Changchun Science and Technology Exchange Center of the Chinese Academy of Sciences and the China Academy of Machinery Science, and invested 20 million yuan to jointly develop the domestic advanced EPC casting process and the new material Aube. After the products were put into production, the profits and taxes of the ADI-made automobile gears and other products increased by 5 times and they quickly occupied the market. In addition, 80 auto parts companies such as Xinyuan and Dongfeng have passed new high-tech projects and their profits and taxes have also increased by more than 3 times, achieving leapfrog development.
According to statistics, 40% of the tax revenues in the town, 20% of the total industrial output value, and 35% of the industrial added value were all directly created through the restructuring of the auto parts industry. In 2006, the town plans to continue to make more efforts to adjust and further guide the remaining more than 100 auto parts companies to embark on the road of structural adjustment to provide strong support for the rapid economic development.