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Factories Go Vertical: China Boosts Output on Same Land
25 Jun
Summary
- Manufacturers are encouraged to increase output by building vertically.
- China links new construction land quotas to revitalizing inefficient land.
- Policy shift moves away from low-density expansion toward intensive land use.
China's Ministry of Natural Resources is championing a policy shift encouraging manufacturers to build vertically, a strategy termed "industry going upstairs." This approach allows factories to increase output from their existing footprints by reinforcing floors to support heavy industrial equipment at higher levels.
This national initiative, dating back to 2013, aims to revitalize inefficient land use. By consolidating underused plots and constructing upward, companies like Maanshan Shangdian Electrical Co. have more than doubled their usable floor space on the same land area.
The ministry supports this with measures like linking new construction land quotas to performance in revitalizing idle land. These efforts have resulted in significant progress, with pilot cities launching numerous redevelopment projects.
Overall, land consumption per unit of GDP has decreased, and vast amounts of idle land have been returned to productive use. This marks a decisive move from low-density peripheral expansion to more intensive urban land utilization, crucial for economic upgrading and farmland protection.
