Industrial production in Qingdao is on track for fast growth in the first quarter of this year, according to statistics from the city's economic informatization committee.

The total output value of large-scaled industrial enterprises in the coastal city registered a year-on-year increase of 8 percent in the first three months.

Zhang Xinqi, mayor of Qingdao, said industrial production is the foundation of the city's economy and Qingdao will continue to facilitate the stable growth of manufacturing while advancing technology upgrades.

"We must focus on developing advanced industries with cutting-edge technologies and high-end manufacturing so Qingdao can achieve sustained growth amidst China's economic transformation," he said.

Qingdao has formed 10 industrial chains with output values of more than 100 billion yuan ($16 billion) each.

Together, they contributed about three-quarters of the city's total output value.

Rail transit equipment, electronic information, automobiles, machinery equipment and home appliances have seen rapid growth in production.

The food, rubber and clothing industries also saw steady growth.

The shipping industry is on its way to recovery but petrochemicals saw a decline in output due to safety technology upgrades and the relocation of plants.

The city's industrial electricity consumption, an important indicator of production level, steadily increased during the first three months, especially in March, according to the committee.

The city government has put 457 projects involving industrial transformation on its agenda of this year. Total planned investment is 190.8 billion yuan.

There are 293 projects in traditional sectors and 164 projects in emerging industries.

A number of textile companies are moving their factories to Southeast Asia and developing their Qingdao head offices into design centers.

The city's home appliance and machinery companies have also ramped up efforts to boost their R&D capabilities.

Other efforts for industry upgrades include expanding global sales channels and enhancing marketing and branding, and extending industrial chains.

In the first quarter, 59 large companies in the city carried out technological upgrades, 16 more than the same period last year.

The mayor said the investment in emerging industries is a key focus for the city to transform its industrial structure.

With a combined investment of 15.56 billion yuan, the city's high-end equipment manufacturing industry is accelerating, and includes an unmanned tire production base invested in by Double Stars, an electronic car production line and a shale gas exploration equipment project.

A total of 4.32 billion yuan will be invested in new materials projects, including high polymer materials and optical fibers and cables.

Qingdao's biomedicine investment is expected to reach 11.2 billion yuan including marine bio-pharmaceuticals and marine microorganisms.

There are also new investments in the power industry, such as automobile batteries and wind power, as well as environmental protection projects such as water treatment and energy efficient heaters.

The government has signed deals with three banks, which agreed to provide no less than 20 billion yuan of loan within five years to support the technological transformation of local companies. Companies can apply for the funds.

The city government has mapped out a plan to build Qingdao into a "smart city".

The goal is to widely apply information technology to all aspects of the city's development. This will include a "smart community" to optimize home services and "smart transportation" to help direct traffic and avoid congestion.

The city has sped up the development of its software industry, which brought in 21.5 billion yuan in the first three months of this year, 31.5 percent up from that of a year earlier.

A software industrial park with a planned area of 10 million square meters is also under construction.

xiechuanjiao@chinadaily.com.cn

(China Daily 05/18/2014 page12)