“Three Red Blossoms Bloom in Lüliang” Series Report, Part 4: Industrial Prosperity | Xiaoyi: Transformation and Upgrading Strengthen the Foundation

In early summer, the Xiaoshui River ripples gently, with reeds swaying in the distance. The azure sky and white clouds are mirrored on its crystal-clear surface, while the tide of reform surges across the land of Shengxi. In the inaugural year of the 14th Five-Year Plan, Xiaoyi’s engine of innovation is bursting with vitality, propelling high-quality development with resolute strides.

Inside the premium coal shed of Xiaoyi Jinda Coal Chemical Technology Co., Ltd., piles of refined coal are conveyed in via conveyor belts and stored securely.

As a fully enclosed, arched fine-coal shed independently developed by the company, it measures 385 meters in length, 90 meters in width, and 38 meters in height, with a storage capacity of 210,000 tons of refined coal. “The shed boasts a high coal‑storage density, and during transportation it employs a PLC‑based automated coal‑blending control system along with a fully automatic scraper‑type reclaimer, enabling unmanned on‑site operations. This addresses challenges related to continuous coal handling and large‑scale operations, while significantly enhancing the accuracy and uniformity of coal blending,” explained Liu Mingliang, the company’s deputy general manager. He added that the shed has delivered notable results in dust suppression and coal conservation, reducing atmospheric particulate pollution and preventing coal dust from escaping. According to statistics, the shed saves an estimated 10,000 to 20,000 tons of coal annually.

The automation of the coal‑preparation system has played a crucial role in enabling the company to implement staggered procurement of premium coal. According to Liu Mingliang, during the winter of 2020 alone, the company proactively consolidated purchases of over 200,000 tons of premium coal when prices were low, reducing costs by more than RMB 20 million.

What enables Xiaoyi to achieve a shift in growth drivers and industrial upgrading? The answer is “transformation.”

Today, Xiaoyi has resolutely cut coking capacity by 4.51 million tons, phased out 71.7 million tons of coal‑washing and preparation capacity, and decommissioned 24,000 kilowatts of coal‑fired generating units. With the consolidation of coal‑mine capacity now gradually coming online, advanced‑technology facilities account for 87.5% of the total. The coking industry in Xiaoyi has taken the lead in Shanxi Province by fully transitioning to a new era of large, modern coke ovens. By restructuring and driving transformation, the real economy has demonstrated Xiaoyi’s bold determination and solid confidence as a pioneer.

Industry is the core driving force behind economic development. During the 13th Five-Year Plan period, Xiaoyi City’s GDP grew by 5.9%, its total fiscal revenue increased by 18.9%, and the per capita incomes of urban and rural residents rose by 30.8% and 38.5%, respectively. In each case, the city ranked first in Lüliang and among the top in Shanxi Province.

“We must make transformation the guiding principle for our economic work and all undertakings, fully implement the new development philosophy, and unswervingly advance the major task of high-quality, high-speed transformation and development—staying committed to our vision and seeing it through to the end,” stated Liang Zhiyong, a member of the Standing Committee of the Lüliang Municipal Party Committee and Secretary of the Xiaoyi Municipal Party Committee, with solemn resolve.

Relying on transformation, Xiaoyi’s traditional industries are moving toward the mid- to high-end.

The coal industry is adopting new technologies such as 5G and the Internet of Things, accelerating the intelligent transformation of coal mines, vigorously promoting the graded and cascaded conversion of low‑quality coal, and establishing a number of benchmark smart mines.

The coking industry should effectively implement the second phase of capacity reduction, accelerate the construction of projects currently under development, and concurrently carry out dry quenching and comprehensive utilization of coke oven gas projects.

In the chemical industry, we will strengthen the basic chemicals sector, accelerate the development of transformation projects such as hydrogen production from coke oven gas, coal tar processing, cyclohexanone production, and caprolactam manufacturing, and build a nationally influential high-end chemical production base…

“Intelligent robotic operations underground are a major highlight of our efforts to build a smart mine, and our goal is to create the nation’s first truly unmanned smart mine,” said Zheng Peng, Chairman of the Board of Pengfei Group, with full confidence.

Located in Xiaoyi City, Pengfei Group was founded in 1993 and operates across coal mining, premium coal production, and coke smelting. Since 2020, the group has been comprehensively advancing the development of 5G‑enabled smart coal‑chemical operations. On June 17 of that year, it partnered with China Unicom to officially establish the “5G+ Smart Coal‑Chemical Joint Laboratory.” As a flagship initiative of the joint laboratory, the smart mine project is currently under accelerated construction.

“Instructions from the surface, machinery at work underground.” At Pengfei Group’s 5G‑plus central dispatch and command management platform, operators simply click their mice in response to the real‑time data flashing across the monitoring screens, and torrents of black coal emerge from deep beneath the earth, heading straight for the surface. Cutting‑edge concepts, emerging technologies, and intelligent mining practices epitomize the vision of building smart mines. Moving forward, the group is actively collaborating with research institutes to develop advanced equipment—such as intelligent gas‑detection robots, gangue‑sorting robots, and drilling robots—helping coal‑mine operations ride the wave of “smart cloud” technology.

In Xiaoyi, the transformation and upgrading process continues to gain momentum, with the shift from old to new growth drivers accelerating.

As a traditional resource‑based enterprise in the region, Shanxi Jinhui Group has expanded into new materials and cutting‑edge technologies. Taking its own circumstances into account, it opted for biodegradable plastics and established Jinhui Zhaolong High‑Tech Co., Ltd. in 2012.

“Green is not only a development philosophy but also a proactive commitment. We view green innovation as the driving force behind our corporate growth, advancing the research and application of biodegradable technologies,” said Li Yajuan, Chairwoman of Jinhui Zhaolong. The company’s biodegradable plastics are suitable for producing a wide range of single-use film products, including shopping bags, trash bags, courier bags, agricultural mulch films, and food packaging. These products are readily broken down and metabolized, ultimately degrading completely into carbon dioxide and water.

To date, Jinhui Zhaolong has established an annual production capacity of 20,000 tons of biodegradable plastic raw materials and 10,000 tons of biodegradable plastic compounding materials. The company has become one of only six manufacturers worldwide to possess independently developed technologies for producing similar biodegradable plastics.

“We remain committed to placing innovation at the heart of our overall transformation and development strategy, formulating and implementing a series of major innovative initiatives that leverage our comparative advantages and drive broader progress, ensuring that innovative vitality flourishes and the wellspring of creativity flows freely,” said Yang Guang, Deputy Secretary of the Xiaoyi Municipal Party Committee and Mayor.

Shengxi Lake lies like a polished mirror across the city, while the Xiaoxi River flows gently like a ribbon. Steadfast in its commitment to innovation-driven development, Xiaoyi is forging ahead, riding the waves toward high-quality transformation and growth.