The Liaoyang Economic and Information Technology Commission, Municipal State Taxation Bureau and Local Taxation Bureau have jointly organized a programme called “2013 Liaoyang City Key Enterprises Technology Innovation Project”, with the aim to promote innovation, strengthen competitive edge, and accelerate industry and product upgrades amongst enterprises in Liaoyang City. China Zhongwang’s “7075 Extrusion Billets for Aviation Use” was selected as one of the projects under the programme. 

 

The programme accepts entries from enterprises which possess strong proprietary R&D capabilities, with the ability to integrate academic findings and industry researches, and dedication to introduce new technological innovation. Also, the project must be market-oriented, aiming at product upgrades, creating new solutions for emerging industries, and solving critical technology issues. The technological level of the project awardees has to reach advanced level by domestic standards and offers apparent economic, social and environmental benefits. Enterprises selected in the “2013 Liaoyang City’s Key Enterprises Technology Innovation Project” are entitled to enjoy preferential policies, including the research and development expenses reduction before tax.

 

The inclusion of China Zhongwang’s “7075 Extrusion Billets for Aviation Use” as one of the innovation projects has a far-reaching significance to the Company’s domestic and overseas market expansion. The number of airplanes worldwide is expected to double by 2031, 35% of which will come from Asia. In the next two decades, China is expected to become the world's second largest aviation market. Demand for civil airplanes is expected to increase threefold from now. In addition, following the US Government’s implementation of anti-dumping and anti-countervailing duties on China’s aluminium extrusion products, China Zhongwang has been focusing on the development of 2, 4, 5 and 7 series which are hard alloy industrial aluminium extrusion products mainly used in aerospace and other high-end industries. At present, demand for industrial aluminium products from the U.S. and European markets is predominantly high-end innovative products. 

 

Technological innovation has been the core competitiveness of China Zhongwang products. Its “Enterprise Technology Center” established in 1998 is equipped with RMB100 million worth of advanced research equipment. The Center, which received the accreditation of “State Accredited Enterprise Technology Center” in 2012, is comprised of six professional research laboratories, 22 analysis research rooms, and five R&D teams. The Center launches hi-tech projects from continuous technological innovation and is committed to the research and development of high value-added products. Not only does it help strengthen the Company’s competitiveness, but it also injects vitality in the economic development of Liaoyang City.