A major industrial transformation is taking shape in east China’s Shandong Province, where a former steel production base has been converted into a high-tech aerospace manufacturing facility now producing satellites and supporting rocket testing operations.
At the Jinan Satellite Assembly, Integration and Testing Base, advanced equipment such as 20-tonne vibration test stands and anechoic chambers now operate on the site that once belonged to the Jigang Group, one of China’s major steel producers.
According to company officials, the first satellite was successfully rolled off the production line earlier this year. The facility has already secured orders for 12 satellites and is planning to manufacture at least 20 additional units in 2026. The production line is designed for an annual capacity of around 100 satellites, each weighing up to 500 kilograms, covering full-cycle manufacturing and testing for communication and remote sensing missions.
Jigang Group, founded in 1958, was once among China’s top steelmakers, producing over 12 million tonnes of steel annually at its peak and serving as a major base for medium and heavy plate production.
However, amid national efforts to address industrial overcapacity and advance supply-side structural reforms, the company shut down its core steel operations and began a strategic shift toward emerging industries.
The transformation accelerated in 2019 after Shandong Province and the Chinese Academy of Sciences signed a cooperation agreement aimed at developing new growth drivers. Through this initiative, Jigang partnered with the Aerospace Information Research Institute under the Chinese Academy of Sciences, repositioning itself within the aerospace sector.
Company general manager Xu Qiang said the shift reflects China’s broader push toward “new quality productive forces,” a policy focus on high-tech and innovation-driven industries.
“The aerospace industry represents a major direction for future development, with significant market potential,” Xu said.
Beyond satellite assembly, the group has also repurposed its industrial assets, converting around 5,700 mu (approximately 380 hectares) of land and 810,000 square metres of factory space into aerospace production and testing facilities.
The workforce transition has also been central to the restructuring. More than 3,000 workers have been retrained, with former steel plant welders now certified in space-grade welding techniques and maintenance staff reassigned to satellite assembly roles.
In parallel, Jigang has developed a 168-mu rocket test base equipped with liquid rocket engine and propulsion system testing stands, including 20-tonne, 100-tonne, and 600-tonne capacity systems.
These facilities are currently supporting aerospace companies such as Deep Blue Aerospace and CAS Space.
Officials in Shandong said the transformation aligns with broader regional industrial upgrading efforts. Over the past five years, the province has developed more than 35,000 high-tech enterprises, with high-tech industries now accounting for over half of total industrial output.
The case of Jigang is being viewed as a notable example of China’s attempt to repurpose traditional heavy industry into advanced manufacturing hubs, reflecting wider structural changes in the country’s industrial economy.