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China claims most spots on World Economic Forum's latest "lighthouse" manufacturers list

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China claims most spots on World Economic Forum's latest "lighthouse" manufacturers list

2024-10-11 17:16 Last Updated At:10-12 01:37

China claimed most spots in the latest batch of global "lighthouse" manufacturers issued by the World Economic Forum (WEF), showing the country's significant progress in the green and high-tech transformation of its manufacturing sector.

The WEF, along with consulting firm McKinsey, launched the Global Lighthouse Network in 2018 to identify manufacturers that are actively pushing toward the "fourth industrial revolution" by pursuing high efficiency, intelligence and green technologies.

A total of 22 manufacturing enterprises from ten countries joined the network in the recently released list of additions. Of these, 13 are Chinese factories, marking a historic high.

As of now, the total number of lighthouse factories worldwide has risen to 172, of which 74, or 43 percent of the total are from China.

Several of the additions are industry-firsts for the network, including the list's first nuclear power firm, the first coal mining machinery manufacturer, and the first rail transit equipment manufacturer.

Three of the 22 new additions are "sustainability lighthouses", each of which are Chinese enterprises.

Through the application of technologies such as artificial intelligence (AI) and the Internet of Things (IoT), as well as process innovations, these firms have reduced direct or indirect carbon emissions by over 20 percent, leading the world.

Generative AI, machine learning and other digital technologies were the key words in selecting this batch of lighthouses, according to the WEF, which estimated that the newly enlisted manufacturers have enhanced production efficiency by an average of 50 percent.

Central China's SANY Renewable Energy, a global provider of comprehensive wind power solutions, made the list after implementing swaths of AI and intelligent automation solutions on its factory floors.

Facility managers can monitor the real-time operation and the production parameters at various links through a small tablet PC.

"From the tablet computer, we can see the parameters of each production unit, from temperature and humidity to torque, and to the grinding fineness of the blades. All the data are provided to us in a comprehensive way to enable us to conduct real-time monitoring and delicacy management," said Peng Haibing, a manager of a SANY factory.

Wind turbine blades directly affect the performance and reliability of a wind power generation unit, whose cost accounts for 20 to 30 percent of the total cost of the unit.

The company has built a digital platform featuring the latest AI technologies to control the whole production process.

"This is a pioneering technology in our industry, which turns the 80,000-square-meter physical factory into a virtual one, with data about the overall structure and all the details of the factory. It is a benchmark technology in the wind turbine blade manufacturing sector," Peng said.

Through robots and laser-guiding technologies, the factory has achieved automatic operation at various links, including the grinding of blade surfaces, painting, and materials distribution. This has reduced the product defect rate by 20 percent and shortened the delivery time by over 30 percent.

Since the Global Lighthouse Network was launched, it has released 12 waves of additions. China has often topped the list and has seen at least two of its manufacturers added in each wave.

China claims most spots on World Economic Forum's latest "lighthouse" manufacturers list

China claims most spots on World Economic Forum's latest "lighthouse" manufacturers list

The Shanghai Stock Exchange (SME) on Monday approved a plan by Semiconductor Manufacturing International Corporation (SMIC), the country's leading chipmaker, to acquire the remaining 49 percent stake in its subsidiary SMIC North for 40.6 billion yuan (about 5.98 billion U.S. dollars) through share issuance, marking the largest merger and acquisition deal since the inception of China's STAR Market.

The deal, approved by SME's merger and acquisition review committee, was the first case of a multi-listed red-chip company issuing shares to purchase assets on the STAR market, and it is also the largest merger and acquisition deal in the history of the domestic wafer foundry industry.

After the completion of the transaction, SMIC's stake in SMIC North will increase from 51 percent to 100 percent. The offering price is set at 74.2 yuan (10.9 U.S. dollars) per share.

"Stock acquisition is a mechanism that binds the interests of both parties and shares risks. It sends a very positive message to the outside world and saves cash. Cash is a very valuable asset for growth-oriented companies, which can use it for other places where cash is needed more badly," said Qian Jun, executive dean of the Fanhai International School of Finance (FISF) of Fudan University in Shanghai.

Experts said that the acquisition will help further improve the quality of SMIC's assets and enhance business synergy, as SMIC North is one of the most profitable single factories within the SMIC system.

"Through industry consolidation, higher-quality assets can be concentrated into the hands of listed companies that have operational and value creation capabilities," Qian said.

SMIC gains approval for acquisition of its Beijing fab

SMIC gains approval for acquisition of its Beijing fab

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