The economic aggregate of Jiangsu exceeds that of South Korea. Look at the structure of Jiangsu’s manufacturing industry!

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Original: Shenzhen ningnanshan source: ningnanshan

We all know that the economic aggregate of Guangdong Province in China has exceeded that of South Korea,

However, in 2021, the total economic output of Jiangsu Province of China also exceeded that of South Korea. The total economic output of South Korea in 2021 was close to US $1.8 trillion, while the total economic output of Jiangsu Province reached 11636.42 billion yuan for the whole year, reaching a new level of 11trillion yuan. According to the average exchange rate of RMB to US $6.4515 in 2021, it was US $1.804 trillion, almost the same as that of South Korea. It can be said that it narrowly beat South Korea.

This is, of course, the first time in Jiangsu’s history that its economic aggregate exceeded that of South Korea.

Jiangsu will not be the last province in China whose economic aggregate exceeds that of South Korea, followed by Zhejiang, Henan, Sichuan, Hubei and other provinces.

Today, let’s talk about the manufacturing industry in Jiangsu Province. Of course, we mainly focus on local manufacturing.

In our impression, there seems to be no well-known local manufacturing enterprises in Jiangsu Province,

Speaking of Guangdong, you can know BYD, Huawei, ZTE, Mindray, Dajiang, oppo, vivo and other enterprises,

Speaking of Shanghai, we know that there are Baosteel (Baowu group), Jiangnan Shipyard, SAIC and SMIC,

Speaking of Beijing, we know Xiaomi, BOE, BAIC, Lenovo, and, of course, a large number of central manufacturing enterprises, such as various space academies,

In Zhejiang, we also know that there are Haikang, Dahua, Geely Automobile, Zhejiang Naisi that appears from time to time in TV advertisements, and a large number of Zhejiang private small and medium-sized manufacturing enterprises that we do not know their names, but know that their exports are strong, such as Yiwu’s small commodity exports. It is said that we can judge who can be elected president of the United States by looking at Yiwu’s production of campaign supplies.

But it seems that it is difficult for us to remember the name of the local manufacturing industry in Jiangsu Province. As the largest private iron and steel enterprise in China, Jiangsu Shagang is one. But what about the others?

If we look at the local large-scale manufacturing enterprises in Jiangsu Province, it seems that they are mainly supported by heavy chemical industry,

Among the top 100 manufacturing enterprises in Jiangsu Province in 2021 (ranked by the Jiangsu Enterprise Confederation according to the revenue data in 2020), 11 local manufacturing enterprises in Jiangsu have revenue of more than 100billion yuan,

Among them, there are four iron and steel companies, namely, Jiangsu Shagang (ranking the second in the manufacturing industry of Jiangsu Province), Nanjing Iron and steel (ranking the fourth), Zhongtian iron and steel (ranking the fifth), and Jiangsu Yonggang (ranking the ninth),

There are two petrochemical companies, Jiangsu Hengli (the first in manufacturing industry in Jiangsu Province) and Shenghong group (the third in Jiangsu Province).

It is worth mentioning that the revenue of Jiangsu Hengli Group is in a leading position in Jiangsu Province, with a revenue of 695.336 billion yuan in 2020. The second place Jiangsu Shagang is only 266.786 billion yuan, that is, the first place is 700 billion yuan, while the second place is only more than 200 billion yuan.

Hengli is an enterprise in the whole industrial chain from crude oil to textile. They have a complete industrial chain of “crude oil aromatics, ethylene terephthalic acid (PTA), ethylene glycol polyester (PET) – Civil silk and industrial silk, engineering plastics, film textile”.

In the oil refining sector, Hengli 20million T / a refining and chemical integration project is a world-class large factory located in Changxing Island, Dalian. At the same time, in the petrochemical sector, the annual production capacity of the PTA project of Hengli (Changxing Island, Dalian) industrial park reaches 12million t.

In the polyester new material sector, Hengli Group has the world’s leading technical equipment, with an annual polymerization capacity of 6million tons. In the textile sector, Hengli Textile has more than 40000 production equipment, with a production capacity of more than 4billion meters / year. Its production bases are distributed in Suzhou, Suqian, Jiangsu, Luzhou, Sichuan, Guiyang, Guizhou and other places.

If you look at the top five local manufacturing enterprises in Jiangsu, the ranking is Hengli Group, Jiangsu Shagang, Shenghong holding, Nanjing Iron and steel, and Zhongtian iron and steel. The five largest manufacturing enterprises are petrochemical and steel related heavy chemical industries.

The advantages of heavy chemical industry in Jiangsu Province are also very prominent in the country, which can also be seen from the national inter provincial coal transportation. The figure below is from the Journal of geography. Liaoning Province was the largest coal transfer Province in China for a long time before the eighth five year plan from 1991 to 1995. Since the Ninth Five Year Plan (1996-2000), Jiangsu Province has become the largest coal transfer Province in China for the first time, It accounts for one eighth of the national inter provincial coal transfer in, and has maintained the status of the largest coal transfer Province in China during the Tenth Five Year Plan period from 2001 to 2005, and the national proportion has further increased to one seventh.

Heavy chemical industry needs to consume a large amount of coal, from which we can see the advantages of Jiangsu heavy chemical industry in the country.

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Of course, the textile industry in Jiangsu is also very strong. Both Hengli Group and Shenghong group have textile sectors, while Hailan group (the eighth largest group, which owns Hailan home) is also engaged in textile and clothing in the top ten manufacturing industries in Jiangsu Province. Besides the top ten, there are Hongdou, Bosideng and other enterprises in Jiangsu Province.

The annual revenue of Hailan group has also reached more than 100billion yuan.

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Among the top ten manufacturing enterprises in Jiangsu, Wuxi Industrial Development Group ranks sixth, with a revenue of 138016 billion yuan in 2020. This company is engaged in strategic industrial investment under the background of the government,

Its highlights include actively participating in the implementation of the Shanghai Huahong Wuxi base project with the largest single investment in Wuxi history and a total investment of US $10billion, the Tianjin Zhonghuan silicon wafer R & D and production project with a total investment of US $3billion and the South Korean SK Hynix M8 project with a total investment of about US $1.5 billion, deepening strategic cooperation with the national integrated circuit industry fund, and helping to build the “Wuxi plate” in China’s integrated circuit industry.

Of course, since the semiconductor industry in Jiangsu is mentioned, it can not be said that the headquarters of Changdian technology, China’s largest integrated circuit packaging and testing enterprise, is also in Wuxi, Jiangsu. Tongfu micro power, which ranked second in China’s integrated circuit packaging and testing enterprises according to the revenue in 2021 (last year), is also an enterprise in Jiangsu. However, the revenue of Changdian technology was only more than 20 billion in 2020, only ranking 47th among the local manufacturing enterprises in Jiangsu.

According to the financial report of Changdian technology for the first quarter of 2022. In 2022, the company made a good start, achieving an operating revenue of RMB 8.14 billion in the first quarter, a year-on-year increase of 21.2%; The company achieved a net profit of 860million yuan, with both revenue and net profit hitting a record high in the same period.

Jiangsu Province plays an important role in China’s semiconductor industry. In 2021, the highest output of integrated circuits in the country was Jiangsu Province, which has maintained the first position for many years. The reason is that there are IDM enterprises such as Hynix, IC OEM enterprises such as TSMC Nanjing, and IC packaging and testing enterprises such as Changdian technology and Tongfu microelectronics in Jiangsu, The chip will eventually be packaged in the packaging and testing factory.

Another highlight is the optical cable industry in Jiangsu. Hengtong optoelectronics and Zhongtian Technology rank seventh and fifteenth respectively. As a large enterprise with a revenue of more than 100 billion yuan, Hengtong has the largest intelligent optical fiber material factory in the world, and the global market share of optical fiber network exceeds 20%. It has undertaken more than 100 international ocean optical network projects in the world.

Hengtong has set up factories in Brazil, Egypt, India, Indonesia, Portugal and other regions abroad. The following figure shows its Brazilian factory.

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In addition, Jiangsu’s shipbuilding industry also has a good scale, but the leader of the shipbuilding industry can not enter the top ten in Jiangsu. There are two of China’s top ten shipyards in Jiangsu Province, namely new era shipbuilding and Yangtze River shipbuilding. For example, the annual shipbuilding capacity of Yangtze River shipbuilding reaches 7million deadweight tons.

The following figure shows the canteen of Jiangsu new era shipyard, which can accommodate 4500 people at most.

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The figure below shows the 208000 ton bulk carrier delivered by the shipyard.

Jiangsu’s photovoltaic industry also has a place in China and even the world. GCL group has an annual revenue of more than 100billion yuan, ranking 11th in Jiangsu’s manufacturing industry. Changzhou Trinasolar and atlas are also one of the largest photovoltaic enterprises in China.

GCL is the largest new energy manufacturing enterprise in China. It can complete the whole process of photovoltaic from silicon powder, silicon material, silicon wafer to modules and photovoltaic power stations. It can also produce electronic grade polysilicon and semiconductor large silicon wafer. In addition, it has the ability to integrate natural gas hydrogen production and solar hydrogen production.

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At the same time, Jiangsu’s medical devices and pharmaceuticals are also in the forefront in China. Hengrui pharmaceutical is the pharmaceutical enterprise with the highest R & D investment in China. Other enterprises include Yangtze River Pharmaceutical and Yuyue medical, among which Yuyue medical is one of the top ten enterprises in China’s medical devices.

In the field of home appliances and consumer electronics, local enterprises in Jiangsu also include Wuxi Little Swan, Suzhou Dongshan precision, Shengli precision, and Shenzhen Ruisheng optoelectronics, which have also set up factories in Changzhou as their main bases. Tencent precision has also purchased Wistron’s factory in Kunshan to do OEM for apple. Among them, Dongshan precision, Shengli precision, Ruisheng optoelectronics and Tencent precision are all enterprises in Apple’s supply chain. Of course, Suzhou jiavalue electronics is also an enterprise in Apple’s supply chain in Jiangsu, but its scale is relatively small.

Yadi electric two wheeled vehicle with the largest sales volume in the world is also located in Jiangsu Province, and it is also one of the top 100 manufacturing enterprises in Jiangsu Province,

In 2021, the global sales volume actually reached 13.86 million, but although the sales volume was more than 10 million, the revenue was only more than 20 billion yuan, that is, the average price was about 2000 yuan per vehicle, and it still needs to continue to move towards the high end. It can be seen that the capacity of the market is very important, either the unit price is high or the number is large,

Why do we always talk about smart phones? The same is more than 2000 yuan. The annual sales of smart phones in China can exceed 300million a year.

And a car can be sold for 100000 yuan, 200000 yuan, so the market is also very large.

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The above is that Jiangsu is a local enterprise. As we all know, Jiangsu is also very attractive to foreign investment. For example, a large number of Taiwan enterprises are gathered in Suzhou’s consumer electronics manufacturing base,

Among the top 100 export enterprises in China in 2020, there are five Taiwan enterprises in Suzhou,

They are Mingshuo computer (Suzhou) Co., Ltd., with an export value of US $12.47 billion, ranking ninth;

Shishuo Electronics (Kunshan) Co., Ltd., with USD 8.46 billion, ranked 14th;

Weixin Zitong (Kunshan) Co., Ltd., with USD 3.67 billion, ranked 36th;

Dafu computer (Changshu) Co., Ltd., with USD 2.78 billion, ranked 51st;

Suzhou Jiashida Diantong Co., Ltd. ranks 61st with USD 2.4 billion.

TSMC, which has always been a popular enterprise in domestic news, also has factories in Nanjing, and the Singapore China cooperation Industrial Park is also built in Suzhou. Jiangsu has also become the province that attracts the most Singapore capital investment in China.

The Suzhou Industrial Park in cooperation between China and Singapore can be said to be a model of global park construction, with a total import and export volume of US $100billion a year.

Suzhou Industrial Park is subordinate to Suzhou City, Jiangsu Province. It is located in the east of Suzhou city. It was established with the approval of the State Council in February 1994 and started in May of the same year. Its administrative area is 278 square kilometers (including 80 square kilometers of China Singapore cooperation zone). It is an important cooperation project between the governments of China and Singapore.

In 2021, the park will achieve a regional GDP of 333.03 billion yuan, a year-on-year increase of 10%; The total output value of industries above designated size was 634.55 billion yuan, an increase of 17.5%; The total import and export volume was USD 111.97 billion, an increase of 18.9%;

The total retail sales of consumer goods reached 110.27 billion yuan, an increase of 18%.

The park has practiced the concept of “the park is the scenic area, and the city is tourism”, and has been approved as the only national business tourism demonstration area in China.

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Therefore, in summary, Jiangsu Province has good strength in the fields of steel, petrochemical, textile and clothing, photovoltaic, shipbuilding, semiconductor, pharmaceutical and medical devices, electric two wheeled vehicles, small household appliances and consumer electronics manufacturing. However, foreign enterprises are mainly in the field of household appliances and consumer electronics, and the strength of heavy chemical industries such as steel and petrochemical is particularly prominent among local enterprises. In the semiconductor field, Jiangsu is the national leader in chip and package test scale. Hynix and Huahong both have large-scale factories in Wuxi. Changdian technology and Tongfu microelectronics are the top two package test enterprises in China. TSMC Nanjing is also one of the large-scale chip factories in China, and its manufacturing process is the most advanced level in Chinese Mainland.

It is worth mentioning that the manufacturing industry in Jiangsu Province ranks first (Hengli), second (Shagang), third (Shenghong), fifth (Zhongtian iron and steel), seventh (Hengtong), eighth (Hailan group), ninth (Jiangsu Yonggang), tenth (Yangzijiang pharmaceutical), and eleventh (GCL group)

That is to say, among the 11 large manufacturing groups with revenues exceeding 100 billion yuan in Jiangsu Province, 9 are private enterprises. Only Wuxi Industrial Development Group is the government background. In addition, Nanjing Iron and Steel Co., Ltd., which ranks fourth, is a state-owned enterprise restructuring, which can also be regarded as a private enterprise.

It can be seen that private enterprises occupy the main part of the heavy chemical industry in Jiangsu Province.

At the same time, the development of automobile industry in Jiangsu lags behind,

According to the figures of the National Bureau of statistics, in 2021, Jiangsu’s automobile output was only 775700, ranking 14th in China,

Not to mention comparing with Shanghai and Zhejiang, but also with the neighboring Shandong and Anhui provinces, lower than Shaanxi, Guangxi and Chongqing in the west, and lower than Jilin and Liaoning in the northeast. The output has not reached the top ten in China, which is obviously inconsistent with the status of Jiangsu. Guangdong, Shanghai, Jilin, Hubei and Chongqing rank among the top five in China. In addition, the automobile output of Guangxi, Anhui, Beijing, Hebei and Shandong has also exceeded 1million.

It may be surprising that Guangdong is the largest automobile manufacturing province in China. In 2021, its 3384600 vehicles will be the only province in China with an output of more than 3million vehicles, compared with 2million vehicles in Shanghai, Jilin and Hubei,

In fact, besides GAC, BYD and Wuzhoulong, FAW Volkswagen also has large factories in Foshan,

In May, 2019, FAW Volkswagen South China base ushered in the official production of the first 1.5 million finished vehicles, achieving the goal of 1.5 million. It took less than 6 years for the South China base to complete the expansion of production after the second phase construction. It took only 1 year and 4 months to complete 2million vehicles by September, 2020.

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The Foshan plant of BAIC Foton also has an annual design capacity of 240000 vehicles.

Similarly, there is the aviation industry in Jiangsu, where the major domestic aviation enterprises are not located,

COMAC is located in Shanghai, Shenyang, Chengdu, Hongdu in Jiangxi, Xi’an in Shaanxi, Hafei in Heilongjiang, while Boeing’s factories in China are located in Tianjin and Zhoushan, Zhejiang.

Of course, Jiangsu also has material enterprises such as aerospace Haiying in Zhenjiang to supply COMAC, but in general, it is not commensurate with its domestic status. However, from the perspective of national division of labor, Jiangsu does not need to do everything.

Before, I always thought that semiconductors and automobiles were the National Games, and aerospace and medical device pharmacy were the other two,

Compared with South Korea, the overall industrial distribution of Jiangsu Province is relatively comprehensive, but it is weak in the automotive industry,

In addition, there is a lack of strong local enterprises in consumer electronics (except semiconductors) and more reliance on foreign enterprises such as Taiwan capital.

It can also be seen from this article that at present, few industries in Jiangsu Province can surpass South Korea in terms of technology, but catch up with South Korea’s economic aggregate with its larger population size and size, as well as its advantages in facing the whole Chinese market. Therefore, there is further development in the follow-up, and there is room for South Korea’s economic advantages.

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