Yankuang Group, the largest State-owned coal company in Shandong province, is attempting to shift from old growth drivers to new ones. [Photo provided to chinadaily.com.cn]

Provincial State-owned enterprises should take an active role in replacing old growth drivers with new ones in order to accelerate the industrial transformation and upgrading of Shandong, said Li Wei, general manager of Yankuang Group, at the third session of the 13th Shandong Provincial People's Congress held in Jinan on Jan 18.

East China's Shandong province is home to a large number of State-owned assets and enterprises, playing an essential role in the promotion of the province's economic and social development. Provincial State-owned enterprises should seize upon major opportunities brought about by multiple national strategies and actively contribute to the development of a comprehensive pilot area in an effort to improve the competitiveness of State-owned enterprises, according to Li.

Li added that over the years, Yankuang Group has gone to great lengths to accelerate the shift from old growth drivers to new ones, and has adhered to an innovation-driven development model, achieving remarkable progress in industrial transformation and upgrading. 

Yankuang Group introduces an automatic welding production line, improving accuracy and quality. [Photo provided to chinadaily.com.cn]

Last year, Yankuang Group generated 280 billion yuan ($40.82 billion) in operating revenue and posted 12.5 billion yuan in total profits, and had 327 billion yuan in total assets by the end of the year. The group ranked 318th among Global 500 companies last year, 81 spots higher than the previous year and its highest position ever on the list.

Li noted that since last year, the group has sped up the transformation and upgrading of its three leading industries and accelerated the conversion of new and old kinetic energy, putting the group at the forefront of the province in artificial intelligence and digital transformation.

According to Li, the group has drafted a three-year action plan (2019-21) for promoting intelligent mining and has built 12 smart coal faces and two demonstration sites for intelligent mines. In addition, strategic emerging industries fostered by the group have maintained rapid growth, and primary construction of the research and development center for new energy resources has already been completed.

Additionally, the group has been steadily promoting internationalization, and its Australia branch is expected to see nearly 3 billion yuan in profits in 2019.

Li said that in the future, Yankuang Group plans to enhance global cooperation and introduce more advanced technology to optimize its industrial structure and achieve high-quality development.