Why well-known domestic and foreign CNC machine companies compete to settle in Yongchuan

In recent years, the Yongchuan District Government has released the "Opinions on Accelerating the Development of Intelligent Manufacturing Equipment Industrial Clusters Driven by High-end CNC Machine Tools," aiming to position Yongchuan as a regional hub for high-end CNC machine tool development, production, sales, and services. The goal is to build an intelligent manufacturing equipment industry cluster with a scale of 20 billion yuan by 2020. Chen Jianguo, director of the Phoenix Valley Industrial Park Management Committee, expressed confidence that this initiative will elevate the smart manufacturing equipment industry to a new level. Yongchuan's efforts to develop a high-end CNC machine tool industry are expected to gain significant momentum. As the smart equipment industry accelerates its growth, the market and technology in Yongchuan have shifted from quantity to quality. Leveraging its early start in the smart equipment sector, strategic location, and strong vocational education resources, Yongchuan has focused on integrating resources and enhancing industry depth. In December 2016, the Taizheng Intelligent Equipment Manufacturing Industrial Park, backed by the leading domestic machine tool company Taizheng Machine Tool Equipment Alliance, officially opened. It now hosts 11 CNC machine tool companies and 12 supporting enterprises. In July 2016, German machine tool giant EMAG Group established EMAG Chongqing Machinery Co., Ltd. In August of last year, Suzhou Xineng Precision Machinery Co., Ltd., a leader in honing equipment and tools, signed an agreement to set up operations in Yongchuan, planning to build high-end CNC machine tools and automated production lines. Additionally, Germany’s Liebherr Group, ranked fourth globally, established a production base in Yongchuan for gear processing and automation, planning to produce over 100 units of the world’s most advanced gear processing machines annually. In the first half of the year, Yongchuan produced 601 sets of CNC machine tools, accounting for 50.3% of the city's total output, marking the initial formation of the CNC machine tool industry in the region. Why are so many well-known domestic and international CNC machine tool companies choosing to locate in Yongchuan? According to Chen Jianguo, the rapid growth of the manufacturing industry has been a key driver behind the expansion of the machine tool industry in Yongchuan. CNC machine tools serve as the “workhorse” of the equipment manufacturing sector. With the fast development of industries such as automotive, electronics, and equipment manufacturing in Chongqing and surrounding areas, there has been a growing need for companies to relocate closer to these markets. EMAG, which started operations in July 2016, initially aimed for 30 million yuan in sales for 2017 but exceeded expectations, reaching nearly 300 million yuan. The factory, once expected to be underutilized, is now operating at full capacity. Liebherr, a global leader in gear processing machines, chose Yongchuan after a year-long market analysis. Its decision was based on the district’s strategic location between Chongqing and Chengdu, as well as its early establishment of a smart equipment industry and professional support teams for high-end CNC machine tools. The Fifth Municipal Party Committee’s Third Plenary Session included the “Intelligent Leading Innovation-Driven Development Strategic Action Plan” among its eight key strategies, offering a crucial opportunity for the growth of high-end CNC machine tool industries in Yongchuan. As a result, the “Opinions” were issued, outlining five development measures and 12 supporting policies, covering infrastructure, service systems, tax incentives, logistics subsidies, and employment support. Chen Jianguo emphasized that with these policies in place, Yongchuan is confident in accelerating the development of the high-end CNC machine tool industry, driving industrial transformation, and establishing itself as a key modern manufacturing base in the city.

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