In the spring of March, as grass begins to grow and the sky turns blue, Gao Jinquan is leading a nationwide entrepreneurial initiative. The industrial cluster area of Yucheng County is bustling with activity. Wang Liansheng, director of the Industrial Cluster Management Committee Office, told the reporter that there are too many enterprises in the industrial cluster to interview them all, so they focus on highlighting key players.
What's the highlight? Diamond micropowder and its processing. How significant is this "point"? When the reporter expressed some doubts, Wang Liansheng explained, “We are the best in China in terms of industry cluster development, industrial chain perfection, and product output and quality.â€
**History: Small Workshops Making Big Deals**
Gao Jinquan from Yucheng County said that the county began introducing diamond micropowder processing technology in the early 1980s. At that time, only two companies were involved in diamond micropowder production, both operating as family-run workshops. Hua Guangming, head of Xiangtai Abrasives Co., Ltd., recalled that the bosses of those two factories were former workers at the county’s wire drawing factory. “Without them, there would be no glory in the diamond industry today,†he said.
Over the years, these small family workshops expanded and evolved. In the early 1990s, several of these early pioneers broke away from the family-style model and established the first batch of diamond manufacturing enterprises in the county, which significantly accelerated the development of the local diamond industry.
Li Guoshan, a native of Licheng, became one of the typical representatives. “He not only worked hard in the city but also opened a company in Zhengzhou,†said Han Jinghe, deputy general manager of Yucheng County Xinyuanqi Hard Materials Co., Ltd.
Another major player in the county is Henan Huifeng Diamond Co., Ltd., known for its long-standing operations, advanced technology, and skilled workforce. Han Jinghe, who is familiar with the local diamond micro-powder enterprises, described it as an old-fashioned enterprise with strong foundations.
By 2005, the county had 50 diamond micropowder and product processing enterprises, producing 2 billion carats of diamond powder, 50,000 sets of diamond wheels, and 100,000 drill bits, with an output value of 1 billion yuan. This marked the successful completion of the initial capital accumulation, establishing Yucheng as the national hub for diamond micropowder processing and production.
In 2006, the county built an industrial park, increased investment, introduced preferential policies, and provided much-needed platforms for enterprises seeking growth.
According to reports, several diamond micropowder companies settled in the park, including Xinyuan Superhard Materials Co., Ltd., Yucheng County Zhongyuan Superhard Abrasives Co., Ltd., Yucheng County Zhongyu Superhard Materials Co., Ltd., Yucheng County Jinxin Abrasives Co., Ltd., and Yucheng County Hongxiang Superhard Materials Co., Ltd.
“These enterprises were among the first to enter the park and played a crucial role in its development,†said Wang Liansheng.
By 2009, the original industrial park was upgraded into an industrial agglomeration area, with more investment incentives, improved environmental conditions, and better services for enterprises. At this point, over 20 diamond micropowder companies had set up operations in the area, and the Yucheng County diamond micropowder and product processing base was officially established.
**Status: Vigorously Extending the Industrial Chain**
Before 2009, the county mainly focused on diamond micropowder processing, with no companies engaged in diamond production. In 2010, the County Party Committee and County Government established Power New Materials Group in the industrial cluster area to extend the diamond industry chain and further expand and strengthen the sector.
The project covered 215 mu (about 14.3 hectares), with a total investment of 1.5 billion yuan. It included a 4,500-square-meter comprehensive office building, a research and development center, and ten single-story standardized workshops covering 60,000 square meters.
“The project integrates diamond production, diamond micropowder processing, fine extraction, and diamond product manufacturing. It produces 1 billion carats of diamonds annually, along with 250,000 diamond grinding wheels and 400,000 drill bits, creating over 1,200 jobs,†said Gao Jinquan, deputy director of the county’s industrial cluster.
Power New Materials Group and Huifeng Diamond Co., Ltd. have become key platforms for the development of high-tech diamond products in the county, accelerating the restructuring of the superhard materials industry and extending the industrial chain.
In 2011, the county produced 4.5 billion carats of diamond powder, 460,000 diamond wheels, 780,000 drill bits, and 1.1 million other products, capturing over 80% of the national market share. A complete industrial chain from raw materials to synthetic diamonds, processing, and final products was formed, making Yucheng the most concentrated and complete diamond industry cluster in China.
According to statistics, more than 160 enterprises operate in the county, employing over 8,000 people. The industrial cluster has been recognized as the national superhard material base, the Henan high-tech characteristic industrial base, and the Henan Province’s demonstration park for special equipment manufacturing.
**Future: Implementing a Big Brand Strategy**
In 2011, the diamond industry in the county achieved an output value of 4.36 billion yuan, with profits of 523 million yuan and tax revenue of 47 million yuan. “This year, the annual output value of the diamond high-tech industry will reach 5 billion yuan,†said Gao Jinquan.
The transformation from a block economy to a cluster economy requires government guidance to promote dislocation and differentiated competition. “Taking the path of differentiation means taking the road of personalization,†Gao Jinquan said, encouraging powerful enterprises to introduce advanced equipment and technology to produce new types of diamond products, ensuring each company has unique offerings and further extending the industrial chain while increasing added value.
“Implementing a big brand strategy and creating a regional brand of ‘China·Superhard Materials’ is the future direction of the diamond industry,†Gao Jinquan emphasized. He believes that promoting regional and industrial brands, focusing on key enterprises and superior products, and guiding companies to continuously improve technology, quality, and marketing capabilities is essential for future development.
“Big brand strategy needs technical support, and the foundation is talent,†said Shao Zengming, head of Henan Power New Materials Group. He stressed that future competition lies in technology and human resources.
Under government support, the county has established a market-oriented, industry-university-research integrated system for transforming scientific and technological achievements in the diamond high-tech industry. It also encourages cooperation between universities, research institutes, and enterprises, setting up industry-university-research centers focused on product development and result transformation.
“The diamond industry in our county has attracted a group of high-tech talents and cooperated with institutions like Henan University of Technology and Northeastern Polytechnical University. We have increased R&D investment, and now the county has two technical research centers for diamond grinding materials and products in Henan Province, solving the problem of disconnect between research and production,†Gao Jinquan said.
He believes that only through such efforts can enterprises survive and thrive in market competition.
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