Zibo: Speeding up the development of ceramics industry

07 Aug 2015/CTW

In 2013, 100 million RMB have been granted by Zibo municipal government and its finance department to 20 industries including ceramics industry in the city to advocate innovation. 11 ceramics enterprises were selected to be the first beneficiaries. What’s more, the fund will gradually increase to 200 million RMB from 2014 to 2017 when the tenure of this government ends, thus at least 10 million for each industry. It was revealed that the coordinative innovation, differential development and structural upgrade of these 11 ceramics enterprises will bring constant improvement of ceramics industry in Zibo and help to realize the healthy and smooth growth of it. By 2017, these 11 enterprises would see total annual revenue of 12 billion RMB with more than 20 categories of high-end products. In addition, the government would pool 600 million RMB to set up a bonding company providing loans for all selected enterprises of the 20 industrial chains and discount for the loans in innovative projects. It has been well received by the ceramics industry since ceramic industrial chain is the key beneficiary. One insider said,“ This bonding company set up by the government can well a void the ripple effect by one falling company due to the previous act of underwriting for each other.”

Since 2009, Zibo government has double its eforts in eliminating and transforming backward production facilities and up to now, the number of ceramics enterprises has reduced to 159 from 243 by the end of the first quarter of 2010, production lines to 323 from 507, and output to 700 million ㎡ from the peak of 1200 million ㎡. As a result, the regional brand has been greatly enhanced while the upgrading and transforming of the industry accelerated.

According to an official, in face of the golden opportunity of the fund for 20 important industrial chains, the ceramics industry of Zibo city would gather a bunch of well innovative enterprises around the whole chain to gradually promote collective advantage and the added value of the products. “We will see more reduction of the current 159 companies in ceramics industry. We plan to give key support to 10 or 30 ceramics companies and attract enterprises in related sectors to form a healthy and stable industrial chain.”

Reporter Zhao Zuxi

This is the 3rd issue



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