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, manufacturing, sales, and service. The goal is to create an industrial cluster with a scale of 20 billion yuan by 2020, marking a significant step forward in smart manufacturing. Chen Jianguo, director of the Phoenix Valley Industrial Park Management Committee, expressed his enthusiasm, saying, “This will elevate our smart manufacturing equipment industry to a new level!” Yongchuan's efforts to build a high-end CNC machine tool industry are now gaining momentum. As the smart equipment sector continues to grow, the market and technology in Yongchuan have shifted from focusing on quantity to emphasizing quality. Leveraging its early start in the smart equipment industry, strategic location, and strong vocational education resources, Yongchuan has focused on integrating these strengths to develop a high-end CNC machine tool industry. In December 2016, the Taizheng Intelligent Equipment Manufacturing Industrial Park, backed by the domestic leader 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 leading company in honing equipment research and development, signed an agreement to settle in Yongchuan, planning to build high-end CNC machine tools and automated production lines. In October, 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. By the first half of this year, Yongchuan had produced 601 CNC machine tools, accounting for 50.3% of the city’s total output, signaling that the CNC machine tool industry is taking shape in the region. Why are so many top domestic and international CNC machine tool companies choosing to locate in Yongchuan? According to Chen Jianguo, the rapid growth of the manufacturing industry is the main driver behind Yongchuan’s booming machine tool sector. As the “working machine” of the equipment manufacturing industry, CNC machine tools are in high demand due to the expansion of industries like automotive, electronics, and equipment manufacturing in the region. Companies previously based in coastal areas are now seeking to move inland to be closer to the market. EMAG, which started operations in July 2016, initially aimed for sales of 30 million yuan in 2017 but exceeded expectations, achieving nearly 300 million yuan in sales. Its factory is already operating at full capacity, indicating strong demand. Liebherr, a global leader in gear processing machines, chose Yongchuan after a year-long market analysis, recognizing the region’s potential. Located between Chongqing and Chengdu, two major cities, Yongchuan has been proactive in developing the smart equipment industry in central and western China. It has also built a professional team to support the high-end CNC machine tool industry, positioning itself to seize opportunities in the growing smart manufacturing sector. The Fifth Municipal Party Committee’s Third Plenary Session included the “Intelligent Leading Innovation-Driven Development Strategic Action Plan” among the “Eight Strategic Action Plans,” providing a crucial opportunity for Yongchuan’s high-end CNC machine tool industry. This led to the release of the “Opinions on Accelerating the Development of Intelligent Manufacturing Equipment Industrial Clusters Driven by High-end CNC Machine Tools.” The “Opinions” outline five development strategies and 12 supporting policies, covering infrastructure, service systems, tax incentives, logistics subsidies, and employment support. With these measures, Chen Jianguo is confident that Yongchuan can accelerate the development of its high-end CNC machine tool industry, promote industrial upgrading, and establish itself as a key modern manufacturing base in the city.

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