Chinese President Xi Jinping, for the first time, presented concrete carbon emissions reduction targets 4th. This was interpreted as the opening shot for accelerating the green transition that China is pressing ahead with. ChosunBiz visits Yancheng in Jiangsu Province, a city that is realizing the symbiosis of "environmental protection" and "industrial development" under China's ecological civilization philosophy, to take a close look at its ecological restoration and industrial development on the ground. [Editor's note]
At about 4 p.m. 24th (local time), upon entering Kia's plant in Yancheng, Jiangsu (江苏) Province, China, a banner reading "World-class press MODEL plant (世界一流的冲压MODEL工厂)" caught the eye.
As if to prove it, two large press machines were relentlessly stamping out large steel sheets with a resounding roar. The machines stamp out one piece every 4 seconds—1,800 per hour—for car roofs, floors, hoods, doors, and more. Freshly pressed parts rolled out in a line on the conveyor belt connected to the press machines, and five workers at the end of the conveyor checked for defects before stacking the parts on racks.
At the welding line, workers were hardly visible. Massive yellow robotic arms on both sides of the aisle worked in teams, spitting hot sparks. When the door opened and a vehicle panel rode the rail into the production line and reached the row of robotic arms, four to five robots carried out their roles in perfect sync. Once a robot finished its task and stood at attention, the rail moved again to pass the panel to the next robot.
A site official said, "There are more than 800 robots introduced on the welding line. Robots perform 100% of the work," and added, "In the past, with manual welding, only 18 units could be produced per hour, but after introducing the automated system, output has jumped to 71 units per hour."
Panels that finished welding were sent to the assembly line via an overhead platform. Kia's assembly line is the most flexible advanced assembly line in China and can assemble eight different models at the same time. Reaching the general assembly line where all parts are finally put together, workers were finally visible. These workers handle precision assembly that is difficult for robots. Scenes of humans and robots collaborating with robotic assistance could also be seen.
Yancheng Plant No. 3, Kia's production base in China, was established as a joint investment with Dongfeng (东风) and Yueda (悦达). However, after parting ways with Dongfeng in Apr. 2022, the current name is "Yueda Kia." Plant No. 3 is the third plant built in China and began operations last year. It is the group's largest single production plant, producing 450,000 units annually. It mainly produces internal combustion engine vehicles such as the K3 and K5, while electric vehicles are produced at Plant No. 2, which has a dedicated line.
◇ Korean corporations move into the industrial complex… SK, Hyundai and others invest
The Kia plant is the core facility of the China-Korea Yancheng Industrial Park. The China-Korea Yancheng Industrial Park is the first Korea-China national-level industrial park officially approved by the China State Council, with automobiles, new energy, and electronic information industries as its three pillars. In addition to Kia, about 1,000 corporations including SK On and Hyundai Mobis have moved in. Cumulative investment exceeds $13 billion (about 18 trillion won).
Yancheng not only has an international airport but also a seaport with routes consolidation with Korea, and high-speed rail that quickly reaches major cities, making transportation convenient. While adjacent to Shanghai, a first-tier city, it has the advantage of easing corporations' operating burdens with relatively low land costs or rent and labor expenses.
Because of this, Yancheng is considered one of the cities with the highest concentration of Korean corporations in the Yangtze River Delta in eastern China. The number of Koreans residing there reaches 2,000. From Yancheng International Airport to downtown, Korean-language signs are posted everywhere. In some cases, only Hangul was written under Chinese characters without English.
Not only the city of Yancheng but also the Jiangsu provincial government is pushing the operation of industrial parks as a key project, supporting corporations in administrative procedures and project approvals. The Korea-China free trade agreement (FTA) and other measures are first pilot-applied here, with preferential policies for industrial park development continuously enacted, and related funds created to help raise financing.