Announcement of the Hunan Provincial People's Government on the Issue of Implementing Hunan Province's Plan to Reinvigorate the Equipment Manufacturing Industry (2009-2011)

　　　　　　　　　　　　　　 No. 16 [2009] Issued by the Hunan Provincial People's Government
To the municipal and prefectural governments, commissions, department, bureaus and offices concerned:
Hereinafter issued is the Implementation Plan of Hunan Province on Reinvigorating the Equipment Manufacturing Industry (2009-2011), please carry it out based on the local conditions. 
　　　　　　　　　　　　　　　　 By the Hunan Provincial People's Government
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 June 3, 2009

The Implementation Plan of Hunan Province for Reinvigorating the Equipment Manufacturing Industry (2009-2011)

The implementation plan is formulated in response to the state's Plan to Adjust and Reinvigorate the Equipment Manufacturing Industry and the Plan to Adjust and Reinvigorate the Shipping Industry.

I. Current situation of development
The equipment manufacturing industry with its relatively comprehensive, large scale and advantageous industry system has topped the industrial sector in terms of the total output across the province. In recent years, the industry has undergone rapid expansion and achieved continuous enhancement of competitiveness in its key sectors, the gradual improvement of industry concentration & the uplift of innovation capability step by step. But there still exist many outstanding problems such that the overall scale of the industry is not large enough and the R &D of key spare parts is relatively lagging behind.　 

II. Development thoughts, basic principles and main targets

1 Development thoughts
Guided by the demands of the domestic & international markets and the state's industry policies,  every attempt will be made to enlarge the industry by relying on the construction of key projects at the state level and provincial level. A group of professional supporting enterprises will be fostered, and large enterprises & groups will be built up with backbone enterprises as the mainstay. Efforts will be stepped up to accelerate self innovation and bring in the advanced technologies and excellent professionals at home and abroad to develop a group of high-end products and forge international equipment manufacturing bases.

2. Basic principles
In order to achieve the development goal, the province has set up several principles, including the integration of the growth of advantageous industries into fostering emerging industries, the advancement of complete systems into and the improvement of the basic supporting level, the development of large groups into backing up the enterprises with distinctive features, and technological renovation into the innovation of organization structures.

3.Main targets
(1) Total output goal : The annual income of 380 billion yuan from the main business by 2011, an average annual growth of 30% and an annual output value of over one trillion yuan among industries across the province.　
(2) Structure goal: More than two enterprises with sales income of 50 billion yuan per year together with four to five enterprises with the annual sales income of 10 billion yuan by 2011. The proportion of the emerging equipment industry will be increased to 15%.　 
(3) Innovation goal: The investment into the R&D of key enterprises will account for more than 6% of the sales revenue while the ratio of products with independent intellectual property rights are expected to rise to 60% with the matching rate of important equipment growing to over 50%.　　 
(4) Market goal:  The market share of construction machinery is expected to jump to more than 30% with the steady rise of rail transport equipment and power transmission & transformation equipment in the domestic market. 
 (5) Brand goal: Make the existing renowned brands stronger and more powerful and develop another ten plus prestigious brands.

III. Focus of development
1. Accelerate the development of three varieties of advantageous equipment including engineering machinery equipment, rail transport equipment and complete sets of power transmission and transformation.　
2. Foster and strengthen R&D in the fields of new energies, environmental protection & energy conservancy, aerospace, shipping, numerical control, and electronic information.
3. Renovate and upgrade 4 kinds of special equipment, that is, general petrochemical equipment, metallurgy & mining equipment, agricultural machinery equipment and machinery equipment in industries of chemical engineering, textile and light industry.
4. Concentrate on the development of supporting equipment
5. Build up six industry clusters.
6. Strengthen self-renovation.

IV.  Policies and measures
1. Put the policies rolled out by the state and the province into full effect.
2. Carry out the overseas and domestic strategic cooperation.
3. Enhance the supports of technological advancement and renovation.
4. Accelerate the construction of specialized parks and bases.
5. Train professional personnel of the equipment industry.
6. Give full play to the industry associations and intermediary organizations.