Firmly clenched fists can cut through gold! The Qixian Initiative: A New Path for the Development of the Jinzhong Carbon Industry
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Industry News
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2025/11/17
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In the “landscape” of China’s aluminum-cathode industry, Jinzhong plays a pivotal role. Since the late 1950s, over the past six decades, Jinzhong City—with its more than 60 carbon product manufacturing enterprises—has captured over 75% of the global electrolytic aluminum industry’s market share, establishing itself as a major carbon production base in China. However, issues such as industrial homogeneity, fragmented competition, and the paradox of being large yet weak have become increasingly prominent, hindering the further growth and development of the industry. Particularly under the overarching context of peaking carbon emissions and achieving carbon neutrality, and facing an increasingly saturated market demand, carbon enterprises in Qixian County, after thorough investigation and careful analysis of the situation, have taken the lead in the city to break with convention and overcome longstanding bottlenecks. They are pioneering a new approach by shifting from “going it alone” to “joining forces,” actively exploring models of enterprise clustering within industrial parks and establishing industry alliances. They are making tireless efforts to blaze a new trail for the development of the city’s carbon industry.
In the domestic aluminum-cathode industry’s “landscape,” Jinzhong plays a pivotal role. Since the late 1950s, for over 60 years, Jinzhong City—with its more than 60 carbon product manufacturing enterprises—has captured over 75% of the global electrolytic aluminum industry’s market share, establishing itself as a major carbon production base in China.
However, issues such as industrial homogenization, fragmented competition, and the paradox of being large yet weak have become increasingly prominent, thereby hindering the further growth and development of the industry. Particularly against the backdrop of peaking carbon emissions and achieving carbon neutrality, and in the face of an increasingly saturated market, Qixian’s carbon enterprises—after thorough investigation and careful analysis of the situation—have taken the lead in the city by breaking with conventional practices and overcoming longstanding bottlenecks. They are now striving to shift from “going it alone” to “joining forces,” actively exploring a development model that involves clustering enterprises within industrial parks and establishing industry alliances. Through these persistent efforts, they are blazing a new trail for the development of the city’s carbon industry.
Build industrial parks to achieve resource sharing and coordinated development.
The workshop was black, the factory buildings were black—even the air within the plant grounds had taken on a dark hue. On July 23, during an interview in Qixian County, the reporter personally experienced the “black impression” left by traditional carbon enterprises at the former site of Shanxi Danyuan Carbon Co., Ltd.
Here, carbon products of various specifications—ranging from as little as a dozen kilograms to as much as 1,600 kilograms—are neatly stacked in the workshop, awaiting shipment. Yet these carbon materials, which appear dark and heavy, are indispensable basic materials for the development of the national economy and will continue to play an irreplaceable and crucial role in industrial development for the long term. Moreover, the raw materials used in carbon product manufacturing are waste residues generated during the production processes of the petrochemical and coal chemical industries—making this a prime example of a circular economy industry that represents the secondary utilization of energy resources. Consequently, the carbon industry is a burgeoning, ever-expanding sunrise sector with increasingly broad applications.
“Currently, most of the production conditions in our city’s carbon industry are like this: outdated technology and equipment, uneven product quality, and persistent issues such as overcapacity and a supply-demand imbalance.” Liu Dong, General Manager of Shanxi Danyuan Carbon Co., Ltd., has spent more than a decade working alongside the carbon industry through its production and development. He maintains a calm and objective grasp of the industry’s current situation and an insightful analysis of its existing challenges.
He believes that although Jincheng carbon products still hold a significant share of the market, the common challenges facing the industry cannot be overlooked. These challenges include outdated technology and equipment across the entire industry, low levels of automation and intelligence, and considerable room for improvement in product processing accuracy and quality stability. Although companies have invested heavily in upgrading and retrofitting their environmental protection equipment, overall industry standards remain relatively low. Under the ongoing and intensifying pressure to improve environmental performance, enterprises are facing tremendous survival pressures. Moreover, products from different companies are highly similar, making it difficult to achieve differentiated production; homogeneous competition is prominent, and collaboration among enterprises within the industrial chain is weak—indeed, many companies are operating almost entirely on their own.
Right now, breaking the deadlock and achieving industrial upgrading through technological innovation and product transformation—by developing and producing high-value-added, high-end products—has become an urgent priority.
Build industrial parks to achieve resource sharing and coordinated development.
With the roar of machinery and the rotation of tower cranes, under the blazing sun, the 20,000-ton graphite (quality) cathode production line relocation project of Shanxi Danyuan Carbon Co., Ltd., located in the Qixian Development Zone’s Carbon Industry Park, is rapidly advancing. According to the project leader, the calcination workshop and impregnation workshop are now officially operational and in production. The main steel structures of the forming workshop and machining workshop have been completed, and work is currently underway on pipeline connections and electrical installations. Construction of the graphitization machining and roasting workshops is also being expedited, with completion expected by October of this year. At that time, Danyuan Company will have achieved a comprehensive upgrade of its entire equipment fleet.
The 20,000-ton graphite (carbon) anode production line relocation project of Shanxi Danyuan Carbon Co., Ltd. is part of the Qixian Carbon Industry Park. This million-ton carbon industry park project, covering an area of 1,480 mu, has a total investment of 4.5 billion yuan. By integrating resources, intensifying factor utilization, and clustering production capacity, the park will bring together carbon product enterprises in Qixian County, leverage Qixian’s strengths in the carbon industry, and scale up and strengthen the new carbon materials industry. This will foster industrial clusters, amplify agglomeration effects, enhance the industry’s supporting capabilities and competitiveness, and facilitate the upgrading and transformation of traditional industries. Liu Dong, General Manager of Shanxi Danyuan Carbon Co., Ltd., said that as the first enterprise to enter the park, Danyuan Carbon will achieve technological upgrades, equipment upgrades, environmental improvements, and enhanced safety through its relocation. After the new project comes into operation, the company’s graphite product output can increase fivefold compared to its previous level, with significant improvements in product yield and quality. Moreover, energy consumption per unit of product will be reduced by more than 50%. At the same time, the company’s R&D capabilities and production processes will be markedly enhanced following its relocation. Currently, the company is collaborating with universities such as North China University and Taiyuan University of Technology on industry-academia-research partnerships, adopting new production line technologies and equipment to facilitate the transition of high-end carbon materials—such as capacitive carbon and high-purity graphite purified at high temperatures—from laboratory-scale research to large-scale commercial production. Attracting carbon enterprises from within the county to join the park and consolidating resources clearly demonstrates the park’s advantages. “The park regards cultivating and perfecting the carbon industry chain as its guiding principle,” said a relevant official from the Qixian Development Zone. “We are actively establishing mechanisms for deepening industrial chain integration and development, promoting mutual complementarity and division of labor among enterprises and projects along the extended industrial chain, and creating a development pattern characterized by interconnection, mutual support, and synergistic growth.” The official further explained that by reengineering industrial processes, enhancing manufacturing capabilities, deepening processing levels, and increasing industrial added value, enterprises will significantly improve their ability to allocate, control, and absorb the costs of industrial factors. Elevating the level of industrial collaboration and supporting systems will encourage enterprises and industries to develop in complementary, differentiated, and mutually reinforcing ways, thereby boosting their market adaptability, responsiveness, and competitiveness. Through concentrated industrial layouts and clustered development, enterprises will streamline their core operations while separating auxiliary functions, establishing a circular economic development model that forms closed-loop chains. This approach will effectively protect the environment and promote the conservation, comprehensive utilization, and recycling of resources. The construction of the carbon industry park undoubtedly holds profound implications and great strategic significance for the healthy development of the carbon industry cluster.
Establish industry alliances to achieve collaborative development.
In an era when the principle of “1+1>2” is increasingly being validated, establishing industry alliances is becoming an increasingly popular approach for companies to join forces and achieve synergistic growth. This organizational structure has been recognized and widely adopted by the business community.
As market competition intensifies—especially as China’s economy enters a “new normal” and major global economies show weak recovery—enterprises are facing ever-increasing developmental pressures. Although the carbon industry in Jinzhong City enjoys high recognition both nationally and globally and serves as a centralized procurement hub for carbon products used in aluminum production, for a long time, individual enterprises have been operating independently, failing to create cluster effects or leverage industrial advantages.
“Whether it’s the procurement of raw materials or bidding in sales markets, it’s difficult to establish a dominant competitive edge, leaving enterprises lacking bargaining power and vulnerable to being fragmented and undermined by suppliers and purchasing entities. More often than not, this leads to ‘internal conflicts and mutual undermining.’” Liu Dong suggests that the Jinzhong City Industry Alliance should be established as soon as possible. By leveraging the complementary strengths of various enterprises, the alliance can foster cluster-based collaborative development and enhance each enterprise’s ability to withstand risks. As an entrepreneur who has been on the road for years—Liu Dong, who moved from Danjiangkou in Hubei Province to Qixian County over a decade ago—deeply understands the challenges faced by small and medium-sized enterprises in their survival and growth. After careful deliberation, he has meticulously drafted a “Proposal on Establishing the Jinzhong Carbon Industry Alliance,” which he plans to submit to the relevant government departments. He explains that the purpose of establishing the alliance is to strengthen mutual trust among enterprises, enable complementary sharing of resources, information, and technological achievements, address common challenges faced by businesses, minimize production and innovation costs, boost economic efficiency, and help key enterprises in the industry grow stronger and bigger. Our reporter learned that, as a service-oriented organization within the industry, the Industry Alliance serves as a vital link between enterprises, the government, and society. The alliance will regularly organize specialized training sessions and knowledge-sharing events covering policies, technology, finance, and market trends; hold industry salons, seminars on industrial technology roadmaps, high-level forums on industrial development, promotion events for technological achievements, and experience exchange meetings, thereby creating channels for in-depth industry exchanges and promoting multi-level, wide-ranging, and comprehensive cooperation among all elements of the carbon industry chain. The Industry Alliance will actively connect with various trade shows, assist member enterprises in expanding their markets, enhance their market influence and core competitiveness, and drive the Jinzhong carbon industry toward branding and high-end, sophisticated development. In addition, the Industry Alliance will also attract venture capital and other financial institutions, tailor-made financing solutions for enterprises, and actively establish industry development funds to provide robust support for enterprises engaged in independent innovation and those with growth potential.
“Unity generates strength, solidarity gives birth to hope, and collaboration creates win-win outcomes.” Liu Dong’s suggestion has been met with response and recognition from carbon enterprises in Jinzhong. They are reaching a consensus based on the positioning and plan of the industry alliance, gradually establishing alliances in product development, market expansion, R&D, branding, and capital. This will help them build a mutually beneficial, collaborative, and win-win development model, thereby promoting the high-quality development of the carbon industry in Jinzhong City.
Keywords:
Jiasheng
Carbon
Create wealth, benefit society.
Shanxi Jiasheng Carbon Technology Co., Ltd.
Company address:
Room 1009, Building A, Hong’an Shiji Building, Jinyang Street, Xiaodian District, Taiyuan City, Shanxi Province