{"id":5761,"date":"2026-05-22T21:00:01","date_gmt":"2026-05-22T21:00:01","guid":{"rendered":"https:\/\/youarepakistan.com.pk\/?p=5761"},"modified":"2026-05-22T21:00:01","modified_gmt":"2026-05-22T21:00:01","slug":"shared-factories-boost-efficiency-reduce-costs-in-urumqi-nw-chinas-xinjiang","status":"publish","type":"post","link":"https:\/\/youarepakistan.com.pk\/index.php\/2026\/05\/22\/shared-factories-boost-efficiency-reduce-costs-in-urumqi-nw-chinas-xinjiang\/","title":{"rendered":"Shared factories boost efficiency, reduce costs in Urumqi, NW China’s Xinjiang"},"content":{"rendered":"

By Li Yanan, People’s Daily<\/p>\n

At the\u00a0Lianghe High-end Manufacturing Technology Industrial Park\u00a0in the Urumqi Economic and Technological Development Zone (Toutunhe District) in Urumqi, northwest China’s Xinjiang Uygur Autonomous Region, steel plates move swiftly through intelligent production lines. Here, they are transformed into essential components for trucks and heavy machinery, such as cargo boxes and subframes.<\/p>\n

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Automated equipment is in operation at the stamping mold shared factory at the Lianghe High-end Manufacturing Technology Industrial Park in the Urumqi Economic and Technological Development Zone (Toutunhe District) in Urumqi, northwest China’s Xinjiang Uygur Autonomous Region. (Photo\/Guo Honglei)<\/figcaption><\/figure>\n

This facility operates differently from traditional factories. It utilizes a “shared manufacturing” model. In this setup, multiple companies consolidate their orders and share access to factory space, equipment, and production lines —\u00a0a strategy designed to boost efficiency and reduce costs.<\/p>\n

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A stacker-type laser-guided automatic guided vehicle has been put into use, enabling intelligent operations at the stamping mold shared factory at the Lianghe High-end Manufacturing Technology Industrial Park in the Urumqi Economic and Technological Development Zone (Toutunhe District) in Urumqi, northwest China’s Xinjiang Uygur Autonomous Region. (Photo\/Chen Yan)<\/figcaption><\/figure>\n

Recent years have seen strong demand in Xinjiang for trucks, dump trucks, and mining vehicles, alongside rapid growth in equipment exports.\u00a0However, the prevalent “small-batch, multi-variety” production model in the region’s equipment manufacturing sector has led to budget constraints and low equipment utilization for many businesses.<\/p>\n

To address these challenges, Xinjiang Dadao Industrial\u00a0Investment Co., Ltd.\u00a0partnered with\u00a0Urumqi Economic and Technological Development Zone Construction and Development State-owned Capital Investment & Operation (Group) Co., Ltd. to jointly invested in building the shared factory.<\/p>\n

“Xinjiang’s equipment manufacturing industry covers four major sectors: commercial vehicles, special-purpose vehicles, construction machinery, and agricultural\u00a0machinery, supported by ten key enterprises,” explained Yang Sen, Chairman of Xinjiang Dadao Industrial.\u00a0“Yet, high transportation costs and insufficient local parts supply have severely limited production capacity.”<\/p>\n

The shared factory for medium- and heavy-plate vehicle components officially began operations in October 2025. So far, it has secured orders worth 1.457 billion yuan\u00a0(about $215 million)\u00a0and established partnerships with eight vehicle manufacturers and two construction machinery companies across five Central Asian countries. Orders this year are expected to exceed 3.5 billion yuan.<\/p>\n

Previously, the\u00a0Xinjiang branch of Shaanxi Automobile Group mainly relied on either shipping vehicle parts to Xinjiang for assembly or transporting assembled vehicles to Xinjiang for domestic sales and transit exports. Logistics costs significantly squeezed profit margins.<\/p>\n

“Take heavy-duty truck cargo compartments as an example. By producing them through the shared factory, we can save several million yuan in transportation costs each year,”\u00a0said Yang Xiaolong, director of the operations center at the\u00a0Xinjiang branch of Shaanxi Automobile Group.<\/p>\n

Beyond reducing costs, the shared factory has improved production efficiency. The facility includes one laser cutting line, one plasma cutting line, three uncoiling and leveling lines, six welding lines, and 55 welding robots. Estimates suggest that independently building an intelligent production line would increase heavy-asset investment by about 60 percent, while pushing equipment payback periods beyond 15 years.<\/p>\n

“Through the shared model, more companies can operate with a lighter financial burden. We plan to build eight shared factories in total. The shared factory for medium- and heavy-plate vehicle components and the stamping mold shared factory are already in operation, while additional shared factories for machining, cotton picker spindle\u00a0manufacturing, and other processes are expected to come online this year. Together, they could generate an annual output value of more than 20 billion yuan,” said Yang Sen.<\/p>\n

Going forward, the company plans to work with enterprises through three cooperation models: order-based production, customized R&D and manufacturing, and collaborative development\u00a0based on shared big-data resources and digital models, Yang Sen added. These efforts are expected to raise the local sourcing rate in Xinjiang’s equipment manufacturing industry from less than 10 percent to 70 percent.<\/p>\n

Attracted by the shared-factory ecosystem, more than 30 vehicle and modified-vehicle manufacturers have already established operations in the Lianghe High-end Manufacturing Technology Industrial Park.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Li Yanan, People’s Daily At the\u00a0Lianghe High-end Manufacturing Technology Industrial Park\u00a0in the Urumqi Economic and Technological Development Zone (Toutunhe District) in Urumqi, northwest China’s Xinjiang Uygur Autonomous Region, steel plates move swiftly through intelligent production lines. Here, they are transformed into essential components for […]<\/p>\n","protected":false},"author":1,"featured_media":5764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[433],"tags":[],"class_list":["post-5761","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"yoast_head":"\nShared factories boost efficiency, reduce costs in Urumqi, NW China's Xinjiang - You Are Pakistan<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youarepakistan.com.pk\/index.php\/2026\/05\/22\/shared-factories-boost-efficiency-reduce-costs-in-urumqi-nw-chinas-xinjiang\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shared factories boost efficiency, reduce costs in Urumqi, NW China's Xinjiang - You Are Pakistan\" \/>\n<meta property=\"og:description\" content=\"By Li Yanan, People’s Daily At the\u00a0Lianghe High-end Manufacturing Technology Industrial Park\u00a0in the Urumqi Economic and Technological Development Zone (Toutunhe District) in Urumqi, northwest China’s Xinjiang Uygur Autonomous Region, steel plates move swiftly through intelligent production lines. 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