Smart factories power China's green industrial transformation

Inside an intelligent manufacturing base of Offshore Oil Engineering Co., Ltd. (COOEC) in Tianjin, the scene is far removed from that of a traditional factory.

Three massive automated welding machines silently go about their work, emitting sparks but no smoke, with no workers in sight.

Instead, automated guided vehicles (AGVs) and gantry cranes quietly shuttle materials to designated locations. Only a few figures holding controllers among the steel plates and pipes indicate that humans are still steering the operation.

Seated in front of two computer screens, 38-year-old Li Guochao adjusts parameters on digital work orders, operating the machines remotely with a click of the mouse. "The smart factory makes everything more efficient and cleaner," he said.

For Li, the move from a noisy, smog-filled outdoor workspace to a cool, comfortable indoor station felt like a "miracle." However, his experience is just one part of a broader transformation underway at the 575,000-square-meter base, which houses four intelligent workshops and is spearheading a green revolution.

China's manufacturing sector has long been criticized for its reputation as an energy-intensive, polluting, and resource-intensive industry. But since 2012, the country has been actively shifting toward new development models, with green growth at the forefront.

In the years since, companies like COOEC have embraced energy conservation and emissions reduction as essential components of high-quality development.

At its fully operational Tianjin base, COOEC has introduced more than 600 pieces of advanced, energy-efficient, and intelligent equipment. Powered by big data and artificial intelligence, these tools enable automated cutting, grinding, assembly and welding in the prefabrication process.

Plate cutting is now 90 percent automated, and 70 percent of deck panel welding is done automatically, boosting overall productivity by more than 20 percent compared to traditional methods.

The base also developed China's first integrated intelligent manufacturing management platform for offshore oil and gas equipment. The streamlined production process helps reduce steel usage by 10 percent.

"We hope these smart manufacturing efforts will support high-quality development in the traditionally heavy marine equipment sector," said Wang Jinyuan, deputy general manager of COOEC's Tianjin Intelligent Manufacturing Company.

The push aligns with China's national goals. According to the 14th five-year plan for energy conservation and emission reduction, released by the State Council in 2022, energy consumption per unit of GDP is set to decrease by 13.5 percent by 2025. To meet these targets, manufacturers are turning to digital technology to restructure their production.

China's booming digital economy has given manufacturers the confidence to make the leap. The country is now home to more than 30,000 basic-level smart factories, 1,200 advanced-level facilities, and over 230 at the excellence level, covering over 80 percent of major manufacturing industries. The accelerating integration of digital and real economies is driving quality and efficiency.

In 2023, China made new quality productive forces a national priority, with intelligent, high-end, and green manufacturing forming the backbone of this transformation.

At the COOEC Tianjin base, this shift is visible at every stage of the production chain, from energy to manufacturing to storage.

In the smart storage center, deputy manager Wang Xiaoli of the procurement logistics unit taps her phone. Dozens of windows swing open, and the hum of air conditioners fades. "The system detected that outdoor temperature and lighting were optimal, so it recommended shutting off air conditioners to save power," she said.

According to the Ministry of Industry and Information Technology, China had cultivated 6,430 green factories as of January 2024. Since 2012, energy consumption and carbon emissions per unit of GDP have fallen by over 26 percent and 35 percent, respectively, making China one of the world's fastest improvers in energy efficiency.

With the results of the green transformation becoming increasingly evident, China has set a new goal that by 2030, green development will underpin new industrialization, with green factory output accounting for over 40 percent of total manufacturing output.

To that end, COOEC is expanding its solar generation capacity. Building on its 1.1 million kWh annual output from rooftop photovoltaics, a second phase is underway. Once connected by the end of this year, the plant will generate 2.6 million kWh annually, covering 25 percent of its electricity needs.

"As of the end of 2024, more than 140 of our suppliers had earned green certification," said Tang Lijun, deputy general manager of the COOEC procurement shared center. The company now incorporates green metrics into supplier rankings and has completed over 11,500 green evaluations by 2024.

"Our aim is to raise awareness and encourage suppliers to pursue green transformation and certification," Tang said.