Logging ban clears future path

Streamlined efforts

Heilongjiang's new industries range from ecotourism and organic food to medicinal products and wood art, according to a government report.

Since 2016, Qiqihar, an old industrial base, has been promoting reform of State-owned enterprises and accelerating modernization efforts. Major State-owned enterprises, including China First Heavy Industries and CRRC Qiqihar Rolling Stock, have taken steps forward.

During a visit to the city in September, President Xi Jinping said equipment manufacturing is a pillar of the nation, as well as a significant component of the real economy.

He encouraged manufacturing companies to make greater efforts to step up innovation, develop new technologies and products and further explore global markets.

China First Heavy Industries said it recorded an excellent financial performance last year, with turnover of 10.51 billion yuan, an increase of 2.53 percent on 2017, and profit of 128.71 million yuan, a 52.89 percent increase.

Liu Mingzhong, chairman of the company, said they had reduced deficits during the year as the company's turnover hit a record high.

In 2016, the company put in place new production and operating methods and placed a greater focus on marketing.

It also restructured its staff with an emphasis on cutting the management level.

"Once there were nearly 10,000 staff members in the company, with various types of managers accounting for as much as 14.6 percent of the staff (members)," Liu said. "The rigid management system resulted in low efficiency and a low passion for work."

The company reduced the number of management departments from 19 to 13, and canceled 69 lower-level departments.

A total of 140 of 320 mid-level managers was encouraged to take early retirement, change jobs or move on.

Zhou Jinbo, a former assistant to the company's finance director, was one of those forced to take a lesser position. He now works in the finance department of a subordinate company, but understands China First Heavy Industries had to make changes.

He said the competition for positions "was open and fair and followed a strict process".

CRRC Qiqihar Rolling Stock, a freight train producer has achieved success by exploring global markets and better serving the Belt and Road Initiative.

The company was set up last year through a restructuring of the former transportation equipment arm of CRRC based in Qiqihar, and four wholly-owned locomotive and wind power branches in Liaoning, Hebei and Shandong provinces, and the Inner Mongolia autonomous region.

The restructured company has registered capital of 6.7 billion yuan and employs 20,300 people.

Its core business is the production of freight trains, which are exported to more than 30 countries including Australia, New Zealand, the United States and Brazil.

Besides the train production, CRRC Qiqihar has exported more than 50,000 heavy-duty mining vehicles. It also produces machinery for container transportation, environmental protection and intelligent machines.