Analysis of Current Status of Industrial Enterprises in Jilin Province

[a] School of Economics and Management, Changchun University of Science and Technology, Changchun, China.

* Corresponding author.

Received 15 August 2012; accepted 25 November 2012

Abstract

This paper carried out dynamic analysis of industrial enterprises in Jilin Province, through the analysis suggests development strategy. It will provide a basis for decision-making and strong support for the harmonious development of Jilin Province.

Key words: Industrial enterprises; Jilin Province; Jilin Province development strategy

ZHENG Liwen (2012). Analysis of Current Status of Industrial Enterprises in Jilin Province. Management Science and Engineering, 6(4), -0. Available from: /index.php/mse/article/view/j.mse.1913035X20120604.ZT321

DOI: /10.3968/j.mse.1913035X20120604.ZT321

Industrial development in Jilin Province has unique history. After years of restructuring and transformation, it formed a distinct comparative advantage based on features, but there are some contradictions and problems which cannot be ignored. Jilin economic development is at a critical period. Given by the state policy of support and give full play to their strengths, to seize a rare period of strategic opportunities, speed up the adjustment, will be able to catch the new wave of industrialization. Faced with numerous and varied domestic and international environment, Jilin Province, to achieve sustained, rapid and coordinated development and social progress, must be more clear understanding and grasp of their own in order to better avoid weaknesses, while avoiding disadvantages.

1. BUSINESSES IN JILIN PROVINCE IS FACING A CRISIS OF SURVIVAL FOR THE SHORTAGE OF RESOURCES

The industry of Jilin Province mainly is extractive industries and raw materials industries, the industrial structure and resources integration of environmental of which degradation for the long-term extensive management. Extractive industries and raw materials industry is relatively less effective and has entered a recession, so the development of alternative industries becomes a top priority. Jilin Province from the 80’s, to change this situation, has put a lot of manpower, material and financial resources and achieved some success. However, due to various conditions, Jilin’s industrial transformation is still mainly based on passive adjustment, the recession of extractive industries and raw materials caused worsening economic and social problems.

1.1 The Sudden of Evolution of Resource-Based Cities Brings the Phenomenon of a False “High Industrialization” in Urban and Social Development, Affecting the Overall Promotion of Urban Functions

The concentration of massive human, material and capital resources into the lightning-rich region, and establish a resource-based development of large enterprises, and gradually formed the various forms of resource-based cities. The third industry and primary industry is relatively backward, showing the “high industrialization” of the illusion and infrastructures are behind. Therefore, the resource-based cities are difficult in the process of urbanization.

1.2 Urban Development Faced the Dilemma of Resource Depletion and Environmental Limited Capacity, Which Is a Direct Threat to the Safety of Urban Residents. Coal Mines in Jilin Most Are in a Recession, Which Brings Severe Shortage of Effective Resources

Most of the mine in Jilin Province is the development and construction in fifties and sixties years, and it has been mined for a long time, and coal production decreased year by year. Its maximum annual production varies from 15.56 million tons in 1990 to the current annual output of less than 800 tons. The quality of forest resources in Jilin Province declines substantial. Exploitable source is very limited. As to the end of 2005, it accounts for less than 20% of mature forest in the province and steep mountains are distributed, and the majority cannot be mined, resource-based cities in Jilin Province has lost most of the support of pillar industries. Harvesting of forest resources bring a large number of industrial and mining pollution and damage to the environment, especially in coal mining, petrochemical refining and processing, iron ore processing and mineral extraction. The impact of production and life are very serious. Emissions, waste, waste water seriously affect the quality of life of residents.

1.3 The Decline of Resource-Based Urban Industry Bring the Result of Lower Quality of Life for Urban Workers

The province has 15 counties (cities) which are in trouble due to coal and forest resources decreasing. The slow development of alternative industries experienced an economic decline of a large number of laid-off workers. And as the heavy industry city which is mainly raw materials industrial, Jilin has more serious problems. Jilin City in the industrial structure in 1999, the mining industry accounted for 6.4%, raw materials industry accounted for 83.1%, processing industry accounted for only 13.5%. Jilin City’s share of the declining industry of the province, from 26.9% in 1995, dropped to 15.9% in 2001, after improving in 2004, also accounts for only 23.1%.

2. THE KEY INDICATORS OF MAJOR INDUSTRIAL ENTERPRISES IN JILIN PROVINCE

2.1 Industry Structure and Analysis of Key Indicators of Major Industrial Enterprises

In 1997, three industrial structures are 25.4:39.8:34.8 in Jilin Province. Adjusted to 19.4:45.2:35.4 in 2008, down 6 percentage points the primary industry, secondary industry increased by 5.4 percentage points, the tertiary industry increased by 0.6 percentage points. 1996-2008, the province 3.74% average annual growth of primary industry, secondary industry 11.22%, and tertiary industry 11.44%, respectively, higher than the national average growth rate of 0.68 percent, 2.26 percentage points and 1.81 percentage points. Just as Table 1 shows:

Table 1

Jilin Province and?the National?Industrial?Growth Rate

Industry Jilin Nation

Primary Industry 3.9% 2.9%

Secondary industry 10.6% 8.8%

Industry 10.4% 9%

Construction 14.7% 6.5%

Tertiary Industry 9.9% 7.9%

postal 9.5% 10%

Wholesale and retail 10.7% 7.8%

GDP per capita 8.5% 6.7%

GDP 8.9% 7.6%

Source: “China Statistical Yearbook” (2008)

From Table 1 we can see that relying on the comparative advantages of the province’s industry, creating a competitive advantage and actively adjusting the industrial structure, the industrial structure of Jilin Province gradually become more reasonable, the industrial economy developed rapidly and the quality and efficiency are improved significantly. With the rapid growth of industrial production, economic efficiency was further improved. In 2008 the province’s industrial enterprises above designated size industrial added value of 99.43 billion Yuan as the highest level and with an increase of 18.6% at constant prices. Among them, the heavy industry added 79.66 billion Yuan, light industrial added value of 19.77 billion Yuan, an increase of 14.1%. Under the market-oriented, economic performance quality further improved. Annual sales revenue of 319.08 billion Yuan, it broke even the highest figure on record.

At present the province’s industry is still in some problems, some businesses have very serious losses. The 644 of province’s large industrial enterprises are in loss and the loss was 25.91%, lower than the previous year1.98 percentage points; losses amounted to 3.77 billion Yuan, up by 3.1 billion deficit.

2.2 Investment in Fixed Assets of Major Industrial Enterprises in Jilin Province

In 2008 total fixed asset investment was 117.164 billion Yuan, an increase of 21%, an increase of 1.5 percentage points over the previous year. Among them, the state-owned and other fixed assets investment is 103.28 billion Yuan, up 21.6%; urban and rural residents of the collective and individual investment is 13.883 billion Yuan, an increase of 16.1%.

Last year’s private investment is 55.416 billion Yuan, an increase of 27.1%, accounting for 47.3% in the proportion of investment in fixed assets. Foreign direct investment in the year of the contract amounts to $11,079,000,000, an increase of 1.3 times. Private investment and foreign investment rose from 49.9% to 56.8%, the contribution of the province’s investment growth rate is 89.7%.

Infrastructure construction projects throughout the year are 2147, of which 1744 are new projects, adding 16.975 billion Yuan in fixed assets; renovation projects are 1645, of which 1389 are new projects, adding 17.395 billion Yuan in fixed assets. Industry economy maintained sound development momentum.

2.3 Production and Consumption of Energy of Major Industrial Enterprises in Jilin Province

Take Jilin Province’s major industrial energy as an example, coal consumption in 2008 was 35,093,100 tons, of which the local production of 22,553,600 tons, accounting for 64% of consumption. Jilin Province in early 2008, the stock is only 3,290,800 tons, 2,892,400 tons for the year-end inventory; transferred 21,192,400 tons from other provinces, adjusting volume is 2,440,500 tons; import 10,200 tons, the export volume is 170,500 tons.

Crude oil consumption in 2008 was 8,851,500 tons, of which the local production of 6,805,900 tons, accounting for 77% of consumption. In early 2008, the stock is only 216,700 tons, 235,700 tons for the year-end inventory; transferred 4.1065 million tons from other provinces.

Electricity consumption in 2008 was 7.791 billion kWh, of which the local production of 4.01 billion kWh, representing 51% of consumption, transferring 12.253 billion kWh from other provinces, adjusting volume is 9.072 billion kWh.

This shows that Jilin Province as an old industrial base and a province known as the resource, although has many of the absolute number of energy output, but the amount of energy it consumes is far more than its output, a lot of energy relies on overseas supply. If enterprises do not take effective measures as soon as possible to increase the comprehensive utilization of energy conservation, the energy of Jilin Province will soon be exhausted. And most of the enterprises in Jilin Province are the resource-based enterprises, without resources there is no production, there will be no room for their survival, let alone development. Therefore, sustainable development of enterprises is not just the development Road but also the enterprise survival.

3. ANALYSIS OF JILIN PROVINCE INDUSTRIAL WASTE DISCHARGE AND TREATMENT

From the energy consumption structure, in Jilin Province high energy consumption, high pollution, high input, and low output of resource-based enterprises still account for a large proportion. National industrial energy consumption is 1.06 tons (standard coal), Jilin Province is 1.68 tons (coal equivalent), and output value of 58.5% is higher than the national energy consumption. Energy consumption of extractive industries in which output was 5.52 million tons (standard coal), electricity, gas, water supply industry was 24.62 tons, were 3.2 times and 12.8 times in the country. Energy consumption of manufacturing output in Jilin Province is 0.9 million tons (coal equivalent), 10% higher than the national.

To environmental pollution in the province, the most prominent is the result of industrial wastewater and domestic sewage pollution of surface water and groundwater. Over the years, changes in the total amount of wastewater discharge are not large. However, due to the adjustment of industrial structure, technological innovation, and increase wastewater treatment, water recycling rate has not increased. And because in recent 20 years the province has been in the rapid development of urbanization, and the increased population, which result in emissions of municipal sewage substantial increase. And because of urban centralized sewage treatment works lag, so the total discharge of sewage and pollutants emitted (such as COD) since the late 90s of last century is more than the total industrial waste water and surface water pollution.

In Jilin Province the manufacturing of waste emissions are in the upper reaches compared with other provinces. Regional manufacturing protection of environmental resources is stronger, but the scale of manufacturing industry is in the middle part in the country, damage to the environment has not yet reached its peak capacity, so the manufacturing sector performed well in the protection of environmental resources.

4. CORPORATE ENVIRONMENTAL SYSTEMS ANALYSIS IN JILIN PROVINCE

Environmental protection industry is the recent rapid development of high technology with a promising new sunrise industry. Vigorously develop the environmental protection industry has important practical significance, not only for controlling pollution and improving the ecological environment and promoting sustainable development of economic and social significance, but also for the current economic structure adjustment and industrial restructuring and upgrading.

After several years of active exploration and practice, environmental protection industry in Jilin Province has a certain size, including the formation of environmental equipment, environmental technology service, integrated environmental engineering and construction of new industries, and achieved good economic, social and environmental Benefits.

A basic system for the environmental protection industry has formed. It mainly was reflected in the environmental protection equipment, resource efficiency, environmental technical services. Jilin Province has formed its own system of products, with a certain scale and growing.

Environmental protection industry has improved the technical level to a certain extent. The province has practiced environmental protection practical technology for 46, especially in water pollution control, urban sewage treatment, garbage incineration power generation, boilers, sulfur dust, etc.. In the comprehensive utilization of resources, industrial waste fly ash and coal in particular, the comprehensive utilization of stone technology research has reached the international advanced level.

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