The transportation equipment manufacturing industry in Longkou City began in the 1960s, mainly manufacturing auto parts. At that time, most of the enterprises such as Huangxian Internal Combustion Engine Parts Factory, Huangxian Oil Pump Factory, Huangxian Universal Joint Factory, and Huangxian Air Pump Factory were converted from county and commune agricultural machinery repair factories. By 1978, there were 8 production enterprises above the level of the community in the county, with 2,300 employees, an annual output of 2.406 million auto and trailer parts, and an output value of 34.09 million yuan. After the Third Plenary Session of the Eleventh Central Committee, the auto parts manufacturing industry developed rapidly. In 1990, there were 24 major production enterprises in the city, with 5,500 employees and an industrial output value of 130 million yuan. After entering the 21st century, a complete production system with a relatively complete range of categories and a relatively reasonable structure has been formed, becoming one of the pillar industries of Longkou City. There are more than 290 kinds of auto parts produced, and the main products are oil pump nozzles, oil pipes, automobile three-pump, brake discs, brake hubs, brake shoes, tires, wheels, batteries, window regulators, charging cables, drive shafts, windshields, fans and clutches. These manufacturers mainly supply and support more than 40 domestic OEMs such as FAW and Second Automobile, and some products have entered the international market. A group of backbone enterprises with strong competitiveness have been formed, and the number of enterprises above designated size has grown to more than 50. Among them, 13 enterprises such as Longji, Long Pump, Kangda, Xingmin Wheel, Haimeng Machinery, Xinglong Tire, and Xuxin Machinery have sales revenues of more than 100 million yuan, and have driven the development of a number of related supporting small production plants. In 2010, there were 51 auto parts enterprises above designated size in the city, with sales revenues of 23.5 billion yuan.
The purpose of cultivating and developing the automobile and auto parts industry is to further expand and strengthen this industry based on the original enterprises, promote its optimization of structure, transformation and upgrading, make it a new pattern of industrial development with strong competitiveness, and build Longkou City into an important national automobile and auto parts production and processing base.

1. Development strategy
1) Implement key breakthroughs. Based on the existing industrial foundation advantages, vigorously implement the strategy of vehicle manufacturing driven and professional supporting, and form a pattern of synchronous development of parts and vehicles, and vehicles leading the development of parts. Through foreign investment grafting, strong alliances, mergers and reorganizations, etc., break through the constraints of technology, capital, market, management and other factors, accelerate the docking with domestic and foreign advantageous automobile companies, promote a number of vehicle manufacturers to strategically reorganize and deploy production, establish new production bases or branches, and expand and strengthen the core industrial chain.
2) Promote structural adjustment. According to the principles of intensive and cluster development, use market mechanisms and macro-control measures to adjust and optimize industrial functional zoning, reasonably allocate resources, encourage enterprise mergers and reorganizations, develop large enterprise groups, strengthen industrial parks, enhance industrial supporting capabilities, lengthen the industrial chain, increase industrial concentration, and achieve industrial structure optimization and upgrading.
3) Strengthen technological innovation. In accordance with the principle of “consolidating the low-end and developing the high-end”, we will accelerate the technological innovation of key components such as automobile engines, suspension systems, brake systems, bus control, safety systems and electronic control, improve the proportion of systematization, modularization and integration of products and the level of quality standards, and form a supporting system that strongly supports the development of the city’s vehicle industry, has comprehensive supporting capabilities, and is integrated into the global automotive industry chain.
2. Development goals
1) Industry scale: During the year, enterprises above designated size in the automobile and automobile parts industry will achieve a main business income of 29 billion yuan. By 2015, enterprises above designated size in this industry will achieve a main business income of 60 billion yuan, with an average annual growth of 21%.
2) Complete vehicle production: The large wheel loader project will be partially put into production this year, with an output of 500 vehicles, exceeding 5,000 vehicles within three years and exceeding 10,000 vehicles within five years; the special engineering vehicle will be partially put into production this year, with an output of 300 vehicles, exceeding 3,000 vehicles within three years and exceeding 5,000 vehicles within five years; strive to industrialize the lightweight automobile project as soon as possible and achieve mass production within this year, with an output exceeding 5,000 vehicles within three years and exceeding 10,000 vehicles within five years.
3) Parts production: Cultivate a group of automotive parts product clusters with specialized production, serialized products, systematic supporting, modularized supply and diversified markets. The production and assembly capabilities of automotive oil pump systems, brake systems, transmission systems, suspension systems, bus control systems and key components have been significantly enhanced, and the output has steadily increased. During the year, 1.8 million oil pumps, 1 million tons of brake discs (hubs), 500,000 tires, 5.6 million kVA batteries, 500,000 fan clutches, and 40 million vehicle tools will be produced, with an average annual increase of more than 20%; 3-5 regional high-end parts production and processing supporting bases will be built within 5 years, and the local supporting rate of key parts will reach more than 80%. By 2015, the main business income of parts product cluster enterprises will exceed 80 billion yuan.
4) Technological innovation level: The technological research and development capabilities of the automobile and automobile parts industry will be greatly improved. Strive to create 5-8 leading enterprises in the domestic automobile parts market within 3-5 years, cultivate 15 provincial-level famous brand products, and develop 20 enterprise technology centers at or above the Yantai level. By 2015, the total R&D investment of enterprises will account for more than 6% of the sales revenue of the industry.
3. Development focus
1) Gravity breakthrough vehicle production
Lightweight automobiles. Relying on the Conglin Automobile Lightweight Industrial Park, we will vigorously develop aluminum alloy lightweight vehicles such as aluminum multifunctional wing-opening vans, all-aluminum barge-type semi-trailers, all-aluminum low-bed semi-trailers, van transport semi-trailers, and military special vehicles, expand the scale of the industry, increase market share, and build the largest lightweight automobile production base in China. Within 3-5 years, we will complete an investment of more than 500 million yuan, build a plant of 100,000 square meters, and purchase special production equipment worth 300 million yuan. By 2015, lightweight automobiles will achieve a main business income of 1 billion yuan and a profit and tax of 200 million yuan.
Special vehicles. Relying on companies such as Ruinuo Heavy Industries, we will accelerate technological innovation, focus on developing engineering vehicles that meet the requirements of large-scale infrastructure construction and operations, and build a product pattern with concentrated production, outstanding characteristics, advanced technology, and a wide range of uses.
Motorcycles. Relying on companies such as Huawei Machinery and Luojia Parts, we will actively build a motorcycle characteristic industrial park to further expand the scale of the industry and market share. By 2015, we will strive to achieve a main business income of 1 billion yuan and a profit and tax of more than 100 million yuan in the motorcycle industry.
New energy vehicles. Carefully study and make full use of Shandong Province’s relevant policies to support the development of new energy vehicles, and actively introduce 1-2 strong new energy vehicle quality enterprises around key components such as electric vehicle motors, batteries, and electronic control parts, and key products such as high-performance engineering plastics for automobiles. Support local enterprises to cooperate with relevant scientific research departments and colleges and universities to develop electric vehicle energy storage, conversion and drive, control modules or power maintenance, mail transportation, garbage removal and other special electric vehicle production.
2) Focus on cultivating four major product clusters
Focus on large-scale auto parts enterprises to accelerate the cultivation of four major product clusters: brake system components (disc hubs), diesel fuel injection systems and oil pipes, steel wheel hub tires, and interior plastic rubber stampings.
Brake system components (disc hubs) cluster. Focus on the development of automobile brake system assemblies by relying on enterprises such as Longi, Haimeng, Guanglin, Aoda Auto Parts, Qizheng Auto Parts, and Jinzheng Machinery.
Diesel fuel injection system and oil pipe cluster. Focusing on Long Pump, Kangda, Longkou Oil Pipe, Power Oil Pipe and other enterprises, we strive to promote the industrial development of diesel engine National IV emission fuel system, electronic VE pump, electronic combination pump, high-pressure common rail system and high and low pressure oil pipe series products, and achieve breakthroughs in the development and production of small-displacement diesel engines.
Steel rims, wheels and tires cluster. Focusing on Xingmin Steel Rims, Xingyu Auto Parts, Xuxin Machinery, Xinglong Tires and other enterprises, we strive to develop car steel rims, car wheels, tires and other products, and achieve breakthroughs in the development of high-strength light wheels and aluminum wheels.
Interior plastic rubber stamping parts cluster. Focusing on Tongli Home Appliances, Fujia Battery, Flywheel Auto Parts, Zhongyu Machinery and other enterprises, we strive to develop injection molding parts, interior parts, batteries, fan clutches, high-temperature hot pressing parts, rubber seals and other auto parts products.
3) Adjust and optimize the three major industrial bases
Adjust and optimize the functional zoning of the automobile industry in the development zone, high-tech zone, and Zhuyou Industrial Zone, increase the intensity of industrial planning and supporting facilities construction, guide various types of automobile parts production enterprises to gather and develop, and drive the formation of distinctive automobile parts industry production bases. Within 5 years, strive to achieve a production concentration of more than 70% in the three major bases, and realize that the main business income and profits and taxes account for more than 80% of the total amount of the industry.
Production base in the development zone. Give full play to the port advantage, accelerate the construction of the automobile industrial park, improve the industrial chain, and support the development of complete vehicles. Encourage parts production enterprises in the zone to improve the quality of foreign investment, implement mergers and acquisitions, grafting and transformation, and form a parts production base that strongly supports the development of the complete vehicle industry and effectively participates in domestic and foreign market competition. Establish a professional logistics park for automobile parts, improve logistics supporting facilities, and form a relatively complete export-oriented industrial chain.
Production base in the high-tech zone. Taking the opportunity of the eastward expansion of the park, increase the intensity of basic supporting facilities construction, and actively build a platform for the acceptance of the automobile parts industry. In the eastward expansion area, a 5,000-acre complete vehicle and high-end automobile parts industry concentration area is planned, with a start-up area of 1,500 acres in the first phase. Accelerate the introduction of high-end automobile industry projects with engine parts, pump bodies, motors, interior decoration products, etc. as the core, with high industrial correlation and strong supporting capabilities, and form an automobile manufacturing industry chain from design and development, mold making, parts production to vehicle assembly.
Zhuyou Industrial Zone Production Base. With Conglin lightweight automobiles, aluminum profile body modules and parts processing and manufacturing, and Huawei Machinery motorcycle vehicle production as the leader, establish an automobile industrial park, and accelerate the construction of supporting facilities such as water, electricity, roads, communications, and natural gas in the zone, promote industrial cooperation, steadily improve production capacity, and gradually expand the market share of high-end automobile products.