China North Industries Group (NORINCO (G))
Add: No.46 Sanlihelu, Beijing China 100821
By the end of 2012, NORINCO GROUP’s total asset was close to 290 billion yuan, while the employees totaled 279,600. In 2013, the operating income and the profits of NORINCO GROUP reached 381.2 billion yuan and 10.05 billion yuan respectively. NORINCO GROUP ranked 161th in the list of 2013 Fortune Global 500. There were 46 member units under NORINCO GROUP altogether mainly distributed in several provinces, autonomous regions and municipalities in China, including Beijing, Shaanxi, Gansu, Shanxi, Hebei, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Shandong, Henan, Hunan, Hubei and so on. There are dozens of overseas branches established all over the world.
It is worth emphasizing that the factories are subordinate to NORINCO(G), not NORINCO. NORINCO(G) has departments which manage its subordinate factories. NORINCO, now, as before, is an import-export trading company which markets products of NORINCO(G) factories. This kind of structure is found in all the defense corporations directly subordinate to the State Council
The China North Industries Group Corporation (CNGC) main business is supplying products for the Chinese military. It also develops high technology civilian use machinery, chemicals, construction machinery, and other products.
China North Industries Group Corporation is a state-owned extremely large group established by the State Council as an organization whose investment is authorized by the state government,it operates in the way of a state-holding corporation and is managed by the central government.CNGC has underneath 131 owned or holding enterprises,companies and research institutions,such as China North Industries Corporation(NORINCO),the Inner Mongolian No.1 Machine-building Group Corporation and the North Industries Group Finance Corporation etc. It Had 456,000 employees and a registered capital of 25.4 billion RMB.
CNGC persists in the fundamental principle of basing on the defense engagement and actively dedicating all its efforts to China`s national defense modernization.With the approval of the government,CNGC undertakes the mission to conduct the research and development,and the manufacturing of various defense products as tanks.armored vehicles,artillery guns and shells,missiles,bombs,explosives,fuzes and pyrotechnics , propellants,optical products,electronic and photoelectronic products,information and control products,night vision equipment,antichemical devices,and simulation and training equipment etc. It also undertakes research and development of high-tech defense equipment in the fields of precision strike,amphibious operation,indepth neutralization, air defence,antimissile,information and night vision,high-efficient destroy and damage, for the land,navy and air forces as well as for the strategic rocket force.
CNGC firmly implements the principle of combined development of military and civilian businesses and the strategy of vitalizing the country by developing science and education. It dedicates all its strength to the peaceful utilization of defense technologies, to the development of high and new technlolgies and products urgently needed by the national economy and the people`s livelihood,and to the promotion of modernization of the national economy.CNGC possesses civilian product and technology capabilities that cover the three main national economy fields of machinery,chemical and electro-optics industries, and enjoys strong and abundant power in the development of heavy vehicles,engineering machinery,driving transmissions,special chemicals,engineering explosions,construction materials,information and control, and materials engineering etc.
CNGC firmly sticks to pursuing the fundamental national policy of opening to the outside world and dedicationg all its efforts to promoting the international cooperations and exchanges in the military-to-civilian transformation. It had already established sound cooperative relationship with various large companies in the world in the military-to-civilian transformation field,and set up more than 80 overseas economic and trade offices and branches in over 30 countries and regions.
Facing the world and the future, CNGC takes the science and technology advancement and the future new ideas bringing forth as its basic philosophy. It is willing to carry out comprehensive economical and technical cooperations and exchanges with friends of the world, to promote the cause of peace, progress and prosperity of the human society,and to create a more bright future with common efforts.
On May 9, 2003, the US government imposed sanctions on China North Industries Corporation (NORINCO) and its subsidiaries, alleging that it had "materially contributed" to Iran's program to develop missiles capable of delivering weapons of mass destruction (WMD).
Yin Jiaxu, Norinco's vice president and a Chongqing Municipality delegate to the 11th National People's Congress, said on March 8, 2012 in Beijing that Norinco will continue to push forward the modernization of China's defense system, as per instructed in Premier Wen Jiabao's 2012 government work report delivered Monday. In the report, Wen called for further military modernization and the access to first-class weaponry essential for the People's Liberation Army's (PLA) capabilities. "National defense is the backbone of a country's integrity," said Yin. He said Norinco has always maintained the commitment of supporting China's defense industry and efforts to safeguard the country.
However, Yin said the spending increase will "first of all raise servicemen's living standards" and "making necessary supplement to the military's combat capabilities." He said China's military power still lags behind that of some Western countries. In 2011, China's military expenditures represented 1.3 percent of the country's GDP, compared to over 2 percent for both the U.S. and the U.K. "Norinco's business revenue reached 300 billion yuan (US$47.54 billion) in 2011, and we expect the figure to rise to 500 billion (US$79.23 billion) during the 12th Five-Year Plan (2011-15)," said Yin, referencing expansions to the country's emphasis on national defense.
China planned to increase its defense budget to 670 billion yuan (US$106.4 billion) in 2012, an 11.5 percent rise year-on-year. The increased budget will also help to upgrade China's weapon system so as to "cope with information warfare and potential future regional warfare," said Yin, adding that designing and manufacturing sophisticated weapons is a top priority task for China as well as Norinco. He said because China has vast territories, and maintaining an effective defensive force is essential to "safeguard China's economy." Despite the rate of increase in its military spending in double digits, Yin said the base number is still small, so the "increase wasn't substantial, and doesn't need excessive interpretation."
In addition to military equipments, Norinco also produces products for civilians. As is with most weapons manufacturers, peacetime overcapacity one of Norinco's major concerns. "The peaceful use of military technology has been one of Norinco's major dedications," Yin said. "Especially during peacetime," because despite its unique, ordnance manufacturer isn't exempted of market competition.
Contrary to popular belief, ordnance makers in China still must bid for government contracts, said Yin. He explained that China does not publish information in this regard due to confidentiality implications. "But companies need to obtain system certification before they can join the biddings. It's similar to the U.S. practices." The bidding system will only help ensure technology advancement, said Yin, who has noted in certain fields, China's military technology is "neck to neck" with the world's best.
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