Original Title: Notice from the Department of Industry and Information Technology of Shandong Province, the Development and Reform Commission of Shandong Province, the Department of Science and Technology of Shandong Province, the Department of Finance of Shandong Province, the Department of Natural Resources of Shandong Province, the Department of Ecology and Environment of Shandong Province, the Department of Emergency Management of Shandong Province, the Market Supervision Administration of Shandong Province, the People’s Bank of China Shandong Branch, the State Taxation Administration Shandong Tax Bureau, the Shandong Regulatory Bureau of the National Financial Supervisory Administration, the Qingdao Regulatory Bureau of the National Financial Supervisory Administration, and the Shandong Communications Administration Regarding the Issuance ofthe "Implementation Plan for Promoting Equipment Renewal in the Industrial Sector of Shandong Province"
To thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council regarding the promotion of large-scale equipment renewal and the replacement of consumer goods with new ones, fully implement the requirements of the "Implementation Plan for Promoting Large-Scale Equipment Renewal and the Replacement of Consumer Goods with New Ones in Shandong Province" and the "Implementation Plan for Promoting Equipment Renewal in the Industrial Sector," effectively advance equipment renewal and technological transformation in the province’s industrial sector, and effectively leverage the role of these initiatives in stabilizing growth, expanding investment, and promoting transformation, the following implementation plan is formulated.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, coordinate efforts to expand domestic demand and deepen supply-side structural reforms, and focus on the implementation of the top-priority project for the industrial economy. By combining standard-setting with policy guidance, we will drive industrial enterprises across the province to accelerate equipment renewal and high-level technological upgrades, comprehensively elevate the level of development toward high-end, intelligent, green, and cluster-based industries, and provide strong support for fostering new productive forces, accelerating the advancement of new industrialization, and building a strong province in advanced manufacturing.

By 2025, the output value of the province’s high-tech industries will account for approximately 53% of the total output value of industrial enterprises above designated size; the digitalization level of the manufacturing sector will be significantly improved; the index of integrated development of informatization and industrialization will remain among the top in the country; and the proportion of production capacity in key industrial sectors that meets energy efficiency benchmark levels will reach 35%.

By 2027, the scale of equipment investment in the province’s industrial sector will increase by more than 28% compared to 2023,with the adoption rate of digital R&D and design tools and the CNC utilization rate for key processes in industrial enterprises above designated size exceeding 92% and 75%, respectively. Digital transformation will achieve near-universal coverage among industrial enterprises above designated size; all equipment in key industries that falls below energy efficiency benchmark levels will be fully upgraded; the energy efficiency of major energy-consuming equipment will generally meet energy-saving standards; intrinsic safety levels will be significantly improved; the promotion and application of innovative products will accelerate; and the proportion of advanced production capacity will increase markedly.

II. Key Tasks

(1) Deepen the Implementation of the High-End Leapfrog Initiative

1. Promote the replacement of outdated and inefficient equipment. Focus on industries where production equipment—such as machine tools, construction machinery, instruments and meters, agricultural machinery, and light industry and textiles—is generally at a medium-to-low level, and accelerate the phasing out of outdated and inefficient equipment as well as equipment that has exceeded its service life. Prioritize the replacement of machine tools in the machine tool industry that have been in service for over 10 years; hydraulic presses,bending machines, and production lines with outdated processes; precision manufacturing and CNC machining equipment in the instrumentation and metrology sector; flexible shearing, forming, welding, and manufacturing technologies and equipment in the agricultural machinery sector; high-speed and high-precision integrated equipment in the light industry; and cotton spinning, polyester filament, and dyeing and finishing equipment in the textile industry. (Lead Agency: Provincial Department of Industry and Information Technology)

2. Accelerate the adoption of high-end advanced equipment. Focus on industries where production equipment—such as new energy vehicles, rail transit equipment, photovoltaics, and power batteries—is generally at a medium-to-high level, and encourage enterprises to upgrade to a batch of advanced equipment characterized by high technology, high efficiency, and high reliability.Prioritize the upgrade of core equipment in the new energy vehicle sector, including high-efficiency radial riveting machines, large-scale integrated body die-casting machines, electric tightening machines, magnet insertion machines, lightweight upsetting and forming lines, dynamic balancing machines, and five-axis machining centers; in the rail transit sector, upgrade key equipment such as machining lathes, automated production lines, welding robots, wave soldering machines, and surface mount placement machines;In the photovoltaic industry, upgrade to advanced equipment such as large-heat-field monocrystalline furnaces, high-line-speed, short-pitch multi-wire saws, all-in-one coating equipment, and large-size multi-busbar module string welders; in the power battery industry, upgrade to equipment such as ultrasonic welders, laser welders, electrolyte filling machines, and capacity-sorting cabinets. (Lead Agency: Provincial Department of Industry and Information Technology)

3. Promote the upgrading of testing and inspection equipment. Focusing on key industries such as petrochemicals, machinery, electronics, and pharmaceuticals, accelerate the construction of testing and inspection service platforms. Centered on mid-to-late-stage validation processes—including design validation, test validation, and process validation—as well as inspection and testing procedures, upgrade a batch of advanced equipment to enhance engineering and industrialization capabilities. Prioritize upgrading advanced equipment such as model manufacturing equipment and experimental analysis instruments for the design validation phase; upgrade testing instruments for mechanical testing, optical testing, and environmental testing in the test validation phase;in the process validation phase, update specialized testing equipment for environmental adaptability testing, reliability testing, process validation testing, and safety compliance testing, as well as sample preparation and pilot production equipment for specialized sample preparation, material processing, electronic assembly, and mechanical processing; in the inspection and testing phase, update instruments and equipment for electronic measurement, non-destructive testing, and intelligent testing. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Market Supervision Administration)

(2) Deepen the Implementation of the Intelligent Transformation Initiative

4. Deepen digital empowerment and efficiency enhancement. Fully implement the Manufacturing Digital Transformation Upgrading Initiative, strengthen training on the popularization and improvement of enterprise digital transformation, and encourage enterprises to upgrade production equipment in support of digital transformation. Build national-level SME Digital Transformation Promotion Centers to high standards, continue the “10,000 Digital Specialists Entering Enterprises” initiative, create a platform for precise supply-demand matching, and establish a comprehensive digital service system spanning technological innovation, industrial incubation, and application promotion to lower the barriers to digital transformation for SMEs.Encourage conglomerates and industrial parks to accelerate the development of comprehensive, specialized, and distinctive industrial internet platforms based on practical needs such as internal resource integration, full product lifecycle management, and industrial and supply chain collaboration, thereby establishing networked manufacturing and service systems. Steadily advance the “Industry Empowerment Shandong” and “Industry Empowerment Hundred Scenes” initiatives to create approximately 100 exemplary digital transformation application scenarios.Using equipment as a foundation, we will promote the in-depth application of new technologies such as artificial intelligence, 5G, and edge computing in manufacturing processes, and cultivate a tiered group of “Digital Pioneer” enterprises. By 2025, we aim to have established more than 500 5G factories and fostered more than 300 key industrial internet platforms at the provincial level or above. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Communications Administration)

5. Enhance the Level of Smart Manufacturing. Focusing on key processes such as production operations, warehousing and logistics, and quality control, promote the upgrading and renovation of intelligent equipment—including CNC machine tools, industrial robots, additive manufacturing equipment, automatic inspection and assembly equipment, and automated processing units—as well as automated production lines.Prioritize the upgrade of intelligent integrated production lines and flexible production units tailored to specific scenarios in the equipment manufacturing sector; in the electronic information manufacturing sector, promote the integrated application of specialized intelligent manufacturing equipment and automated assembly lines for electronic products; in the raw materials manufacturing sector, accelerate the deployment and application of new intelligent equipment such as unmanned transport vehicles and intelligent inspection robots, and advance the intelligent transformation and upgrading of major process equipment for catalytic cracking, smelting, and other processes; in the consumer goods manufacturing sector, promote intelligent equipment suited for new models such as flexible production and personalized customization.Conduct multi-scenario, full-chain, and multi-level application demonstrations across scenarios, workshops, and factories; accelerate the cultivation of a group of benchmark smart manufacturing enterprises and smart factories; and strive to establish approximately 50 national-level smart factories by 2025. (Lead Agency: Provincial Department of Industry and Information Technology)

6. Improve digital infrastructure. Accelerate the large-scale deployment of new information infrastructure such as 5G, data centers, and deterministic networks; construct new networks such as gigabit optical networks with appropriate foresight; accelerate the construction of second-level nodes for identifier resolution; and enhance on-site sensing and data transmission capabilities.Implement the “Dual Gigabit” project, build high-quality external public networks, and promote 5G standalone networks in key regions and industries; encourage enterprises to upgrade and modernize their internal networks using advanced and applicable technologies, and explore typical application scenarios for “5G + Industrial Internet.” By 2025, we aim to construct and activate 270,000 5G base stations and achieve full coverage of gigabit optical networks in all cities. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Communications Administration)

(3) Deepen the Implementation of the Green Transformation Initiative

7. Strengthen Carbon Reduction Upgrades in Key Industries.We will earnestly implement the "Shandong Province Work Plan for Carbon Peaking in the Industrial Sector" and steadily advance green transformation in key industries such as steel, building materials, and non-ferrous metals. In the steel industry, we will accelerate the upgrading and renovation of restricted equipment such as blast furnaces and converters, while continuously consolidating the achievements of ultra-low emission retrofits and maintaining Grade A environmental performance ratings; in the cement industry, we will promote energy-saving technologies and equipment such as low-resistance cyclone preheaters, high-efficiency calcination, optimized kiln control, high-efficiency cooler grates, and high-efficiency energy-saving grinding;In the flat glass industry, promote the “one kiln, multiple lines” technology for float glass production; in the ceramics industry, promote dry powder preparation processes and equipment; in the non-ferrous metals industry, accelerate the upgrading and retrofitting of green, efficient, and environmentally friendly equipment such as high-efficiency and stable aluminum electrolysis, green and environmentally friendly copper smelting, and recycled metal smelting; in key light industrial sectors such as home appliances, accelerate the replacement of equipment with energy efficiency ratings of Class II or higher. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Development and Reform Commission, Provincial Department of Ecology and Environment)

8. Accelerate the application and promotion of green equipment. Regularly select energy-saving and carbon-reduction technologies and equipment that feature advanced energy efficiency levels, mature and reliable technology, good economic benefits, and significant potential for promotion. Dynamically update the catalog of advanced carbon-reduction technologies for the industrial sector and regularly organize exchange activities to promote carbon-reduction technologies and equipment.In accordance with the *Advanced, Energy-Saving, and Accessibility Levels for Key Energy-Consuming Products and Equipment (2024 Edition)*, promote the upgrading of key energy-consuming equipment such as boilers, motors, and transformers, and promote the application of energy-saving equipment meeting Level 2 or higher energy efficiency standards. Focusing on the green and low-carbon development needs of key industries such as cement, papermaking, and chemicals, accelerate the promotion of energy-saving and environmentally friendly magnetic levitation equipment. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Development and Reform Commission)

9. Vigorously promote green manufacturing. Accelerate the establishment of a green manufacturing system and actively foster green factories, green industrial parks, and enterprises with green supply chain management. Launch "Leader" initiatives for water efficiency and energy efficiency to guide enterprises in upgrading high-energy- and high-water-consuming equipment, and advance industrial water conservation and comprehensive wastewater utilization.Scale up the scrap steel recycling and processing industry; promote the industrialization of comprehensive utilization of emerging solid waste such as power batteries; accelerate the development of industries for the recycling and utilization of scrap copper, scrap aluminum, decommissioned photovoltaic modules, and wind turbine blades; and guide the large-scale, high-value utilization of bulk industrial solid waste such as red mud. By 2025, strive to have cumulatively cultivated 500 green factories and 50 green industrial parks at the provincial level or above. (Lead Agency: Provincial Department of Industry and Information Technology)

(IV) Deepen the Implementation of the Intrinsic Safety Enhancement Initiative

10. Promote the upgrading of key equipment in the chemical industry. Deepen the implementation of the province-wide special campaign for safety production rectification and improvement in the chemical industry and hazardous chemicals sector. Focus on the service life of core facilities, automation equipment, and measuring instruments. Promote the application of process technologies such as continuous production, micro-reaction, and supergravity reaction on a sector-by-sector basis, and accelerate the transformation toward “mechanization to replace workers, automation to reduce personnel, and intelligent systems to eliminate the need for personnel.”Prioritize the upgrading and renovation of key equipment such as coal gasifiers and synthesis towers in the coal chemical industry, electrolysis cells in the chlor-alkali industry, carbonation towers in the soda ash industry, and large-scale reactors in the fine chemical industry. Provide “one-company-one-plan” guidance for the formulation of renovation plans for aging facilities in the chemical industry to effectively mitigate safety risks associated with high process risks, high failure rates of rotating equipment, and leakage-prone static equipment. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Department of Emergency Management)

11. Promote safety upgrades in the civil explosives industry. Focus on critical processes such as industrial explosive and detonator production lines. Aiming to eliminate personnel from hazardous workstations, promote the application of advanced safety production technologies, equipment, and processes. Implement “robot substitution for human labor” at key risk locations to enhance the mechanization and automation levels of hazardous processes and equipment, thereby improving safety production safeguards.Priority will be given to upgrading and renovating fixed industrial explosive production lines, on-site explosive mixing production sites and vehicles, and detonator loading and assembly production lines. (Lead Agency: Provincial Department of Industry and Information Technology)

12. Strengthen the Application and Promotion of Safety Equipment. Targeting safety needs in key sectors such as hazardous chemicals, mining, and metal smelting, promote the research and development of advanced technical equipment to enhance the supply capacity of work safety technologies and products. Vigorously develop the emergency response industry, strengthen R&D of products and technologies in areas such as monitoring and early warning, prevention and protection, and response and rescue, collect typical case studies on the application and promotion of safety and emergency response equipment, and increase the promotion and application of emergency products and services in key application scenarios.(Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Department of Emergency Management)

(5) Deepen the Implementation of the High-Quality Equipment Supply Initiative

13. Intensify the promotion of advanced equipment. Leveraging the distinctive advantages of a major equipment manufacturing province, focus on core equipment such as high-end CNC machine tools, industrial robots, additive manufacturing, intelligent sensing and control, intelligent inspection and assembly, and intelligent logistics and warehousing. Regularly update the recommended catalog of advanced and applicable equipment, strengthen the promotion and application of high-quality equipment, and support equipment manufacturers, system solution providers, and industry users in jointly developing intelligent integrated equipment systems to create a range of industry-leading premium equipment and comprehensive solutions.(Lead Agency: Provincial Department of Industry and Information Technology)

14. Strengthen Equipment R&D and Innovation. Continuously enhance the revitalization of industrial foundations and the development of major technological equipment, driving technological breakthroughs and industrialization in fields such as smart manufacturing systems, intelligent robots, high-end medical equipment, and smart connected vehicles. Comprehensive policies, including insurance compensation and government procurement, will be utilized to facilitate the integration of innovative products into the supply chains of key industrial sectors, promoting more than 600 items annually of first-of-a-kind equipment, first-batch materials, and first-version software.Deeply implement the High-Quality Development Action for Key Manufacturing Industrial Chains to accelerate breakthroughs in a batch of “bottleneck” technologies and products in the equipment manufacturing sector. Establish a number of pilot production bases for the commercialization of scientific and technological achievements in the equipment manufacturing sector to provide pilot production and refinement services for research outcomes, effectively bridging the “last mile.” (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Department of Science and Technology)

15. Strengthen Equipment Quality and Branding. Deepen the “Three Initiatives” (expanding product varieties, improving quality, and creating brands), selecting and promoting approximately 40 “Good Products of Shandong” brand items and around 100 “Made in Shandong · Qilu Fine Products” annually in the manufacturing sector, and building a group of “Made in Shandong” brands with both domestic and international recognition and influence.Leverage the industrial product aggregation advantages of the “Shandong Manufacturing · Online Exhibition Hall” platform to vigorously carry out the “Networking Across the Nation” cloud-based procurement and sales matching activities. Select and promote a batch of high-quality equipment nationwide to support large-scale equipment upgrades across the country. (Lead Agencies: Provincial Department of Industry and Information Technology, Provincial Market Supervision Administration)

III. Support Measures

(1) Improve the Coordination and Promotion Mechanism. Fully leverage the coordinating role of the Provincial Leading Group for Building a Strong Manufacturing Province and the Provincial Industrial Operations Command Center. Hold quarterly on-site meetings on equipment renewal and technological transformation in the industrial sector to effectively strengthen supervision and promotion efforts.Establish an annual project database for equipment renewal and technological upgrading in the industrial sector. Strengthen the planning, reserve, and implementation of key projects. Provincial-level authorities will focus on tracking and advancing projects with investments of 100 million yuan or more; municipal-level authorities will focus on tracking and advancing projects with investments between 50 million and 100 million yuan; and county (city, district)-level authorities will focus on tracking and advancing projects with investments of less than 50 million yuan. (Lead Agency: Office of the Provincial Leading Group for Building a Strong Manufacturing Province)

(2) Strengthen the Leading Role of Industry Standards. Focusing on key industries and sectors, take the lead in or participate in the formulation and revision of a batch of standards related to energy conservation, carbon reduction, environmental protection, safety, and recycling.Implement the Standardization Initiative to Strengthen Key Industrial Chains, foster and develop joint enterprise standards, and encourage the formulation and implementation of advanced group standards. Optimize and upgrade energy-saving standards, improve and refine the pollutant emission standard system, accelerate the development of low-carbon technology standards, tackle standard-setting challenges in key sectors such as agricultural machinery, strengthen the development and implementation of safety and emergency response standards, and guide enterprises to update equipment and carry out technological upgrades in accordance with advanced standards. (Lead Agency: Provincial Market Supervision Administration)

(3) Increase fiscal and tax support. Effectively coordinate and utilize provincial-level special funds for industrial transformation and development, optimize and improve policies such as equipment purchase subsidies and interest subsidies for technical renovation projects, increase support for equipment renewal and technical renovation projects in the industrial sector, and actively recommend eligible key projects to secure funding support from central budgetary investments and other sources.Fully implement structural tax and fee reduction policies, with a focus on implementing accelerated depreciation and one-time deduction policies for fixed assets; tax incentives for the purchase of specialized equipment for energy and water conservation, environmental protection, and workplace safety; digital and intelligent transformation; as well as the additional VAT deduction policy for advanced manufacturing enterprises. (Lead Agencies: Provincial Department of Finance, Provincial Development and Reform Commission, Provincial Department of Industry and Information Technology, Provincial Tax Bureau)

(4) Strengthen financial support services. Make effective use of financial tools such as re-lending and financial leasing to guide financial institutions in strengthening support for equipment upgrades and technological transformation in the industrial sector. Improve the communication and cooperation mechanism among government, banks, and enterprises; compile an annual provincial directory of key industrial technological transformation projects; and encourage banking institutions to establish separate credit plans for enterprise equipment upgrade and technological transformation projects, providing dedicated credit quotas.Regularly organize industrial investment and financing conferences to guide banking institutions in precisely matching the needs of manufacturing enterprises, establish expedited loan approval channels, and expand the issuance of medium- and long-term loans and unsecured loans. (Lead Agencies: People’s Bank of China Shandong Branch, Shandong Regulatory Bureau of the National Financial Supervisory Administration, Qingdao Regulatory Bureau of the National Financial Supervisory Administration)

(5) Strengthen the Supply of Key Resources. Eligible equipment renewal and technological upgrading projects in the industrial sector will be prioritized for inclusion in the provincial key project database to enhance tracking, management, and services. Fully implement the “Ten Measures for Ensuring the Supply of Key Resources for High-Quality Industrial Economic Development,” improve the operational mechanisms of factor markets, and direct land, pollutant emission quotas, and energy resources toward equipment renewal and technological upgrading projects. (Lead Agencies: Provincial Development and Reform Commission, Provincial Department of Natural Resources, Provincial Department of Ecology and Environment)