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Aug 01,2013

Jinlong Electric Motor: The Block Economy Shows Clear Acceleration Amidst Market Headwinds

□ Reporter Zhu Lingqiao and Li Jiewen / Photos by the reporters The international financial crisis has had profound and lasting impacts—even now, both domestic and overseas market demands are still being slowly released. Meanwhile, as trade barriers in Europe and the U.S. continue to rise, many export-oriented enterprises in Taizhou have begun shifting their focus back to the domestic market. Jinqing Town in Luqiao District is a thriving industrial hub with an economy heavily reliant on exports. However, recent multi-day field investigations conducted by our reporter reveal that, despite the challenging global market conditions, Jinqing’s economy—once built entirely on exports—is now showing clear signs of accelerated growth. Data shows that in the first half of this year, Jinqing Town’s industrial output continued the positive momentum from the previous quarter. The town’s total industrial output value above designated size reached 2.984 billion yuan in the first six months, representing a year-on-year increase of 3.8%. Among the 63 large-scale enterprises, several stood out: notably, 17 leading companies—including Jinlong and Anlu—each generating over 100 million yuan in output, collectively contributing 2.06 billion yuan to the town’s total, a remarkable 8.7% rise compared to the same period last year. With overseas sales facing setbacks, the domestic market has emerged as a new growth driver for these businesses. Since the beginning of this year, shifting from export-oriented operations to domestic sales has become a hot topic among many Jinqing-based enterprises. In Jinqing, the metalworking and machinery sectors have long been dominant industries, with an exceptionally high dependence on foreign markets—over half of the town’s 71 self-operated export companies specialize in metalworking and machinery products. Unfortunately, in recent years, this sector has clearly shown signs of decline. Zhejiang Jinlong Machinery & Electrical Co., Ltd., the industry leader in Jinqing’s machinery sector, achieved an impressive output value of 360 million yuan in the first half of the year, marking significant growth compared to the same period last year. According to Ye Jinwu, Chairman of the company, this robust expansion is largely attributed to the firm’s proactive adjustment of its production and sales mix, balancing domestic and international markets more effectively. “Last year, Jinlong Machinery & Electrical’s export share soared to 95%, but by the first half of this year, we’ve already reduced that figure to 70%, while boosting our domestic sales to 30%,” Ye explained. He added that the surge in domestic demand was the primary factor behind the company’s strong performance in the first half, and he anticipates even stronger growth in the second half, with annual output expected to climb by 20% to 25%. “Given the heightened risks in the global market, fine-tuning our sales strategy—by prioritizing both domestic and international channels—has helped stabilize our customer base and significantly strengthened our ability to withstand external uncertainties,” Ye noted. Looking ahead, he expressed optimism that the company will gradually overcome the longstanding issue of “flowers blooming inside the wall yet fragrant beyond.”