Since the beginning of this year, the transformation of old into new kinetic energy in the industrial sector in Shandong province has been proceeding smoothly with remarkable results.

The transformation stemmed from the gradual lessening of low-end backward production capacity in the market.

The rapid expansion of high-polluting and high-energy-consuming industries has been curbed. In the first quarter of 2018, the added value of those industries above designated size increased by 4.3 percent year-on-year, which was 2.3 percentage points lower than the same period of last year. The output of high energy-consuming products such as caustic soda, cement, crude steel and electrolytic aluminum decreased by 1.3 percent, 18.5 percent 4.6 percent and 10.4 percent year-on-year respectively.

The upgrading and transformation of traditional kinetic energy extends downstream along the industrial chain. In the first quarter, the added value of the steel deep processing industry was 5.3 times that of the smelting industry. In the nonferrous industry, the added value of the aluminum deep processing industry was 1.1 times that of the smelting industry.

Traditional products are characterized by high quality. Smart TVs account for 83.3 percent of color televisions. Ion-exchange membrane caustic soda accounts for 74.8 percent of caustic soda production. Radial tires account for 82.4 percent of rubber tires.

In addition, traditional industries have accelerated greening. In the water production and supply industry, the added value of the sewage treatment and recycling industry has increased by 13.3 percent. In the special equipment manufacturing industry, the added value of the environmental, postal, social public services and other special equipment manufacturing industries has increased by 17.5 percent. In the electrical machinery and equipment manufacturing industry, the added value of solar apparatus manufacturing increased by 18.5 percent.

The development of emerging kinetic energy is in good shape. In the first quarter, the added value of high-tech industries above designated size increased by 7.7 percent year-on-year, 2.5 percentage points higher than that of industries above designated size. The value-added of high-end equipment manufacturing such as communications system equipment manufacturing, smart consumer equipment manufacturing and special instrumentation manufacturing increased by 28.7 percent, 9.7 percent and 15.8 percent respectively.

Upgrading of emerging consumption products has increased. In the first quarter, the province’s output of dairy products increased by 12.3 percent, nutrition and health food products increased by 42.9 percent and new energy vehicles increased by 1.6 times. The contribution rate of consumer goods manufacturing to industrial growth has increased by 3.8 percentage year-on-year.

In addition, new companies have demonstrated new vitality. A total of 3,804 companies in the province have grown from below the scale to above-scale industrial enterprises. The overall development trend has performed well. In the first quarter, their output value increased by 74.1 percent year-on-year, which was 64.6 percent higher than that of industries above designated size. The sales value increased by 73.7 percent, which was 64.7 percent higher than that of industries above designated size. Smaller sized industries are important sources of industrial growth in the province.