An Industrial "Aircraft Carrier"

In the 1970s, people on business trips from Beijing to Guangzhou usually brought back gifts such as candies and pastries. At the beginning of China's reform and opening, these gifts changed to electronic wristwatches, palm video game players and small electric appliances. The China Export Commodities Fair, held in Guangzhou, is famous nationwide, yet Guangzhou is by no means a solely commercial city. With the rapid development of a number of advantageous enterprises, the city's industrial structure has been transformed. Its industrial system has been likened to an industrial "aircraft carrier" for its broad scope in both heavy and light industries.

The Burgeoning Guangzhou Honda

Over a decade ago, if someone drove a Peugeot from Guangzhou, where it was made, to Beijing, and parked it in the courtyard of his workplace, everyone would gaze at it in admiration, in the same way they would a bride. This was during the initial period of Guangzhou's auto industry. However, a decade later, consumer concepts and aesthetic tastes changed, the Peugeot soon lost its market share, and this manufacturing enterprise was in debt to the tune of 3 billion yuan.

In 1996, Guangzhou determined to revitalize its auto industry. After the French Peugeot retired from this joint venture, the original enterprise merged 66 enterprises to form the Guangzhou Auto Group, and in June 1998 established a new joint venture with Japan's Honda. This not only solved the problem of the 3 billion yuan debt left by Guangzhou Peugeot, but also provided jobs for the 2,400 employees from the original enterprise.

In 2000, Guangzhou Honda became famous among China's auto manufacturers. Its annual output reached 32,000, and its products were in great demand, thus working a miracle in the history of Chinese auto industry.

The Highly Efficient Zhujiang Steelworks

The Zhujiang Steelworks, a part of the Guanggang Group, is the only enterprise in South China producing hot-rolling sheet steel. With a staff of only 392, it is the smallest steelworks in the country, but is equipped with the most advanced technology in the world. Since commencing operations in August 1999, it has become the highest efficiency steel enterprise in South China, a good example in Guangzhou of the transformation of a traditional industry through new and high technologies.

As the steelworks is equipped with a continuous casting and rolling production line, its workshop occupies a very small area and therefore requires a smaller investment. Its production cycle is also relatively short, having the capacity to smelt 820,000 tons of steel annually, and produce 750,000 tons of sheet steel.

The establishment of this steelworks also illustrates another phenomenon. After the Zhujiang Steelworks was purchased by the Guanggang Group, with its old industrial foundation and strong technological force, the originally planned time required for renovation was shortened from 27 months to 24 months, and the amount of investment was reduced from 5.5 billion yuan to 4.5 billion yuan.

Zhujiang-brand Pianos Sell Well Throughout the World

In 1956, when the Zhujiang Piano Factory was founded, it was located in a narrow lane in Guangzhou, with about 100 employees, none of whom had specialist skills. That year, it produced only 13 pianos, compared to the annual piano output of the United States at 200,000. In 1984, the factory participated in the International Musical Instruments Exhibition held in Frankfurt, Germany. Zhujiang pianos paled into insignificance compared with the foreign pianos on display.

In 1987, the factory invited over a foreign specialist, paying for this expertise at the rate of 20,000 yuan per day. Since then, the quality of its products has improved greatly. Now the annual output of Zhujiang pianos has reached 80,000, ranking first in China and second worldwide. Its products are exported to 70 countries and regions, and it is planning to set up a piano factory in Britain.

Zhujiang Beer, a Household Brand Name

Over a decade ago, a Japanese traveler toured China by bicycle, starting from Beijing. On his return, he proudly displayed the wide variety of beer labels he had collected along the way, explaining that in Japan there are only a few beer brand names, but in China almost every area has its own beer. Zhujiang Beer is extremely popular with Cantonese consumers.

Despite having a good reputation, due to mismanagement the Zhujiang Brewery ran at a loss of hundreds of million yuan for some years. The local government organized forces to put the enterprise back on its feet, starting by improving its management. The change in purchase of the bottle cap alone saved the brewery ten million yuan annually. Since then, the Zhujiang Brewery has emerged from its difficulties.

Although its output is not the largest among its counterparts nationwide, its profits are the highest, totaling 220 million yuan in 2000. Zhujiang Brewery is China's first industrialized brewery producing draft beer. For many years it has applied new and high technology as a means of transforming its production lines, and has maintained an annual production increase of 200,000 tons.

The Zhujiang Brewery Group has taken the lead in introducing advanced technology and equipment from abroad since China's reform and opening. Within fierce market competition, it grasped the opportunity to upgrade its products, and its annual output has now reached 800,000 tons, making it one of China's top three brewery groups.

Rowa Color TVs, with Production Bases in Foreign Countries

Many years ago, when the annual sales of color TVs stagnated at 30 million, many feared that color TVs had become a "sunset industry." When more and more Chinese families began to buy their second or third color TV, it was plain to see that the color TV industry had again begun to flourish.

The Broadcasting Equipment Factory, which produced the Rowa color TV, was formerly a large state-owned enterprise on the brink of bankruptcy, running at a loss of 300 million yuan. Since the Rowa color TV brand name has a reputation for fine quality, the municipal government decided to step in and seek out cooperative partners for the operation. The enterprise was thus saved from bankruptcy and closure.

Rowa has chosen to "develop itself through science and technology." Besides investing more than 1 billion yuan in building electronic research and development institutes in the United States, Japan, and China's Huizhou, it has also established cooperative ties with world-renowned companies such as Sony, Matsushita, Toshiba, and Philips. In the past two years, Rowa has begun producing 38-inch large-screen TVs and other new products. As an established brand name, each year Rowa exports 2.7 million color TV sets to developed countries, mainly comprising those manufactured at its production bases in foreign countries.