Northeast SOEs raring to prove their mettle

Centrally administered State-owned enterprises in China's northeastern region will build a modern industrial ecosystem to compete with rivals at home and abroad, corporate executives and market watchers said, as the country seeks to intensify and advance the reform of such companies.

The government has put in place a series of policy measures aimed at supporting SOEs to foster innovation and enhance their self-reliance and technological prowess.

The State-owned Assets Supervision and Administration Commission of the State Council said in July that the government would strengthen policy support to address the pressing concerns of SOEs and sharpen their competitive edge.

During a visit to China First Heavy Industries Group Corp Ltd in Qiqihar, Heilongjiang province, in early September, Zhang Yuzhuo, chairman of SASAC, called on SOEs in Northeast China to deepen collaboration with industrial and supply chains, nurture and fortify key industries, and rejuvenate the old industrial base in the region with renewed vitality.

Dalian Shipbuilding Industry Co Ltd, a subsidiary of State-owned China State Shipbuilding Corp Ltd, will deliver six 15,000 twenty-foot equivalent units container vessels to French shipper CMA CGM in 2025. The Dalian, Liaoning province-based company will apply its latest shipbuilding technologies and life cycle solutions to these vessels, which will use methanol-fueled auxiliary engines to further cut carbon emissions.

Li Xinxin, deputy chief designer of Dalian Shipbuilding Industry's design and research institute, said many shipowners are accelerating the retirement of older, high-emission vessels in favor of new, advanced ships to comply with International Maritime Organization regulations aimed at reducing global shipping emissions.

Thus, dual-fuel engines and engines that utilize liquefied natural gas or liquefied petroleum gas have gained significant traction among global shipowners, he said.

The State-owned shipbuilder also delivered the hull and living quarters of the Bacalhau — the world's first M350 floating, production, storage and offloading vessel — to its client Equinor ASA, a Norwegian energy company, in May in Dalian, marking a breakthrough for the Chinese shipbuilding industry.

The FPSO integrates the functions of crude oil production, storage and export. It is similar to an offshore oil and gas processing plant, making it a mainstream production facility for global offshore oil and gas development.

The vessel is the world's first large offshore project designed in adherence to the latest rules and regulations of the Det Norske Veritas, said Pan Yongquan, vice-manager of the large project team of marine industrial products at Dalian Shipbuilding Industry. The DNV is an international certification and classification body that specializes in technical assessment, advisory and risk management.

CRRC Changchun Railway Vehicles Co Ltd, a Jilin province-based subsidiary of Beijing-headquartered CRRC Corp Ltd, China's largest rolling stock manufacturer by sales revenue, unveiled the world's first hydrogen-powered urban train in Shanghai in May.

The company manufactures various types of trains, from light rail to electric multiple units, for foreign clients in countries including Colombia, Brazil and Saudi Arabia.

Its latest four-carriage train is designed for a maximum speed of 160 kilometers per hour and achieves a driving range of 600 kilometers through a hydrogen-powered system. The integration of 5G vehicle-to-ground communication technology and big data analytics ensures that the train is safe to operate.

"We will continue to make breakthroughs in cutting-edge products, such as a new generation of unmanned subway trains, low-floor light rail trains and locomotives that use a combination of hydrogen fuel and lithium batteries to win more global orders in the next step, especially in emerging markets and signatory economies of the Regional Comprehensive Economic Partnership agreement," said Jiang Baiyang, the company's chief designer.

Highlighting the region's rich resources and solid industrial foundations, Zhang Fei, vice-president at the Haikou, Hainan province-based China Institute for Reform and Development, said opening-up will play a key role in the comprehensive revitalization of Northeast China.

"It would be practical to expedite the cultivation of new economic growth drivers in Northeast China, with innovation leading the way in industry structure adjustment and optimization," Zhang said.

It is also equally important to vigorously develop strategic emerging industries, comprehensively promote the digital economy and foster green economic growth in the region, Zhang added.

Eager to produce more high value-added products, Ansteel Group Corp Ltd, another Liaoning province-based centrally administered SOE, released a self-developed 690-megapascal cryogenic steel for chemical carriers' storage tank in March in Dalian.

The high-end steel is designed to be used for the construction of two high-end chemical carriers with the largest carrying capacity of 7,500 cubic meters each, according to a statement released by the group.