Brief Introduction of Zhejiang¨s Mechanical Industry 　　 　　

As the No. 1 industry in Zhejiang Province, mechanical industry had 13,813 large-scale enterprises at the end of 2005 with a total asset of RMB 551.7 billion and workforce of 2.127 million. It achieved an annual output of RMB 635.3 billion, sales revenues of RMB 609.5 billion, tax revenues of RMB 55.9 billion and profits of RMB 35.9 billion in 2005. Such sales revenues, tax revenues and profits account for 28%, 30% and 33% of the provincial totals respectively. Zhejiang's mechanical industry ranks the 4th among 31 provinces, municipalities and autonomous regions in China.
     　　After several tens of years of strenuous efforts, Zhejiang¨s mechanical industry has become its No. 1 industry with a full range of sectors and substantial advantages. In particular, the restructuring of the mechanical industry has been accelerated and this traditional industry upgraded ever since China¨s economic reforms. A lot of specialty mechanical products have appeared, some of which have or have nearly reached world-class standards and many of which are leading domestically.     　　1. Products with internationally advanced and domestically leading techniques include air separating equipment, special industrial steam turbine, electric deduster, pneumatic ash conveyor, waste heat boiler, face grinding machine, vacuum equipment, etc.
     　　2. Products that occupy 50% of the domestic market mainly include electric meters, water meters, LV electric appliances, cabinet-type substations, micromotors (including electric tools), small and medium-size bearings, standard fixtures, industrial chains, universal joints, etc.
    　　3. Products whose export value is leading domestically mainly include electric tools, bearings, universal joints, manual tools, industrial chains, marine gearboxes, tractors, manual hoists, LV electric appliances, standard parts, etc.
     　　4. Products featuring concentration of manufacturers mainly include: LV electric appliances of Leqing Wenzhou; auto parts of Rui¨an and Yuhuan; electric instruments and meters of Hangzhou and Ningbo; lacquered wires of Huzhou; electric tools of Yongkang Jinhua; pumps and valves of Wenling and Yongjia; industrial automation instruments of Wenzhou, etc.     Industry where investment is encouraged in Zhejiang Province: mechanical industry   　　Areas where development is encouraged
    　　1. Accelerate the development of automobile, special-purpose vehicle, motorcycle, auto parts and shipbuilding industries, particularly the products of low-cost sedans, high and medium-grade buses, auto parts and those that have a high potential of export. Support the development of special-purpose vehicles and electric bicycles; accelerate the development of high-performance and high-value ships (yachts), shipbuilding, ship repairing and supporting products of ships.
     　　2. Support the development of environment-friendly equipment complex and complete set of mechanical machinery, mainly including those for air and water pollution prevention and treatment and solid waste disposal; large-scale air separating equipment and ethylene cooling box; intelligent combinational substation, amorphous metal alloy transformer, various types of aluminum alloy wires and LV and HV switchgears; air-cooled ventilator sets, printing equipment, packing equipment, waste heat utilization equipment, vacuum equipment and other integrated mechanical equipment; the electromechanical equipment complex that features high efficiency and energy saving.
     　　3. Further develop basic and general industrial products, mainly including serial products of new-type and highly reliable bearings, industrial chains, agricultural water pumps, LV electric appliances, electric meters, water meters, electric tools, micromotors, automation instruments and meters, storage batteries, hydraulic parts, pneumatic parts, sealing members and other basic devices of special advantages; basic machinery of CNC machine tools, etc.
    　　4. Actively develop agricultural machinery, mainly including rice machinery, horticultural machinery, fine processing machinery of farming and accessory products as well as other new types of agricultural machinery.
     　　5. Continue to develop the electromechanical products that improve people¨s living standards and life quality. Focus on the development of various new types of electromechanically equipment for household, fitness and teaching purposes as well as high-performance elevators and escalators.