Shandong's economic renewal gets hand from high-tech zone

A technician with Shengrui Transmission examines a front-drive 8-gear auto transmission unit produced by the company. Photos Provided to China Daily

The innovations being introduced by companies in Weifang Hi-Tech Industrial Development Zone are playing a big role in Shandong's effort to replace old economic development drivers with new ones.

Consider Weichai Group, a Global Fortune 500-listed company that has long been promoting independent innovation to achieve long-term growth. It developed the first in-cylinder direct injection natural gas engine with strong power in China. It also developed the first electronic control system in China.

"We are developing an engine that can reduce vehicles' emission to nearly zero," said Guo Shenggang, deputy chief designer of Weichai Power.

Weichai's leaders are proud of the technologies the company has introduced, as well as its emphasis on research and development. There are some 2,500 R&D personnel in engines alone, and one of Weichai's engines, the LandKing, won the second prize in the 2012 National Science and Technology Progress Awards. Weichai's powertrain system won the grand prize from the National Science and Technology Progress Award last year.

Weichai is also responsible for building a key national laboratory to enhance the reliability of internal combustion engines.

Tan Xuguang, chairman of the board of Weichai, said the company's innovation drive is not limited to a product or production process. Rather, it is developing a new business model, which can be applied to upstream spare parts suppliers as well as to automobile and machinery makers.

GoerTek, a pioneer in micro-loudspeaker, microphone and voice receiver production, is reporting rapid growth in the development of virtual reality and smart wearable equipment.

Xu Dapeng, marketing director of GoerTek, said the company now produces about 70 percent of the world's mid- to high-end virtual reality headsets.

"Though the growth of the smartphone market slowed down in recent years, the market for hardware used in smart products has just begun to boom," Xu said, adding that the company plans to achieve better growth in coming years by exploring opportunities in smart earphones, furniture and wearable technology.

Apart from Weichai and GoerTek, the zone also has many other leading businesses such as Shengrui Transmission Corporation - developer of the world's first front-engine, front-drive 8-gear auto transmission - Foton Shandong Multifunction Plant and Weifang Special Steel.

Officials from the zone said that those leading players' efforts in promoting technology development, developing brand awareness and expanding markets are key elements in the zone's economic transformation.