Investment

Dongfang regains ground after quake

By Li Fangfang and Huang Zhiling (China Daily)
Updated: 2010-09-15 07:51

A Worker inspects a product at Dongfang Turbine Co. Cui Meng / China Daily

DEYANG, Sichuan - Dongfang Turbine Co Ltd has completely regained lost business and rebuilt operations at its relocated manufacturing base in Sichuan, just two years after a devastating temblor struck the area on May 12, 2008.

The quick recovery has also helped the country's largest turbine maker to upgrade its industrial structure in a more sustainable way.

"The after-quake recovery provided our company (the required) opportunity to boost restructuring during the high-speed reconstruction (process)," said Li Qin, spokeswoman of Dongfang Turbine.

"It's easier to transfer our production focus from thermal electric generation products to new energy power generation equipment with brand-new manufacturing facilities."

Dongfang Turbine's subsidiary in Hanwang town in Mianzhu city, built in 1966, was leveled by the 8.0-magnitude earthquake.

The reconstruction began in neighboring Deyang city just three months after the quake.

The disaster claimed the lives of 612 workers, injured 1,400 others and caused more than 5,000 families attached to it to lose their homes, a publication circulated within the company reported.

The direct economic loss for Dongfang from the quake was about 5 billion yuan ($735 million).

The new manufacturing base, with an area of 660,000 square meters for 20 workshops, started operations in May, 15 months ahead of the original reconstruction plan.

"The high speed of reconstruction projects in Sichuan benefited 19 companies," said Li. "Sufficient investment (of 4.5 billion yuan) via bank loans and self-financing also helped."

With the new facilities, the company plans to double output to 20 billion yuan this year.

"For next year, our target is 30 billion yuan," said Li.

She said the industrial upgrade helped boost output at Dongfang Turbine. "The challenges brought about by the quake and economic recession also provided opportunities to forge a more sustainable enterprise for the future."

Dongfang manufactures around 30 percent of the country's homemade turbines, a core component of power generation equipment.

"Through rebuilding, we want to optimize our manufacturing capability and develop in a sustainable way," she said.

"Before the earthquake, the core business of our old facilities in Hanwang was thermal electric generation products, accounting for almost 80 percent of our business," said Li. "However, with the rebuilt facilities, we have greatly boosted the portion of wind power generation equipment to around 50 percent and nuclear power generation products to 10 percent."

"This also is in line with the central government's appeal for transforming thermal electric generation to new energy power generation," said Li.

The company's manufacturing capacity for wind power generation equipment is about 2 million kilowatts. "We hope to increase our capacity for this segment to 5 million kilowatts in the near future," said Li.

Dongfang started to tap into the wind power generation market in 2005 through cooperation with Danish companies.

"Now we have already developed our own technologies for wind power generation equipment, making use of our newly built research and development center in our relocated base," said Li.

With more than 1,000 Dongfang workers disabled and hospitalized after the quake, Li said the new base also incorporates facilities for these victims to continue working.

"The high automation makes machines easy to operate. We don't want our former colleagues to feel they have become useless after the disaster," she said.

"And, we have delivered the keys to new apartments to more than 4,000 staff families since this March, ending their uncomfortable existence in makeshift homes," said Li.

The increasing demand for power has meant turbines too are in short supply. "We are confident that the company will witness a bright future what with the new manufacturing base boasting the biggest capacity and strongest production capability in the domestic electric industry," said Li.

China Daily