Starting from the 1970s, the industry of Tengzhou city developed rapidly over the past several decades. Since china launches reform and opening up, we accelerate the strategic readjustment and upgrade of the industrial structure which is empowered by reforming and science and technology innovation. At present Tengzhou city boasts an industry with local economic features and mining, electric power and chemical as its pillar industries.

　　The total volume of the industry grows rapidly, taking a very important part in the city's economy. In year 2003, the city's GDP reached 17.065 billion RMB Yuan, 8.768 billion Yuan of which is realized by the second industry, 51.4% of the GDP. Also in 2003, medium and large industrial enterprises realized 3.493 billion Yuan of added value, 13.05 billion Yuan of sales income. The total exported goods last year are worth 840 million Yuan. Total profit and tax reached 1.84 billion Yuan, with tax holding more than 70% of the local government's revenue.

　　Tengzhou has complete industrial categories including more than 40 industries such as mining, electric power, building materials, textiles, mechanics, chemicals, standard components manufacture, stainless steel, electronics, cigarettes, paper making, robber, food and pharmaceutics industry with the energy industry enjoying strong competitiveness. Tengzhou is famous for its energy base and building material industry. As home to mining base, its coal reserve reaches 6 billion tons with mining capacity 1.81 million tons per year in real terms. Tengzhou is also home to cement industry in Shandong province, with annual capacity of more than 4.6 million tons. Tengzhou has a well-developed mechanics industry, with numerical machine tool, drilling and milling machine, rolling connection and analysis equipment manufacture as representatives. This industry's sales income reached 2.07 billion Yuan last year. Its development give a boost to the uprising of other industries such as mechanics processing, casting, panel beating, model and auxiliary equipment manufacturing. By the end of 2003, there are 110 companies engaging in machine tool in this city, with total production of 100 thousand machine tools of different types. Such a big scale gets Tengzhou to be crowned as “home to the milling and drilling machine” and to be famous as a small machine tool manufacturing base. Chemical industry, as this city's new industry, developed rapidly. Up to year 2003, there are 80 enterprises producing perfume and essence, with total production volume of 3 tons, taking 40% of the nation's total number. Tengzhou city also takes full advantage of its abundant coal resources to develop many products made from coal. Due to several reconstruction and expansion project, this city has an annual coke producing capacity of 1.75 million tons and coal tar producing capacity of 35 thousand tons. Meticulous chemical industry with coal as raw material expanded dramatically. In poultry and livestock processing, Ying Tai group and Chunteng Food Company are two leading companies. At present, all specialized companies in this section totally have a daily processing capacity of 100 thousand chickens and annual capacity of 1 million live pigs. Their products have a good market in Korea , Japan , Saudi Arabia and etc. Tengzhou is also abundant in its electric power. Its electric wire net can allow the supply the electric power of 1000 megawatts. This city's annual consumption of electricity reaches 2.335 million megawatts/hour, ranking the first place among the entire county-level city in Shandong province for many years. In yare 2003, Tengzhou's output of electricity plant reaches 6.1 billion kilowatt/hour, and this number will increase to 15 billion kilowatt/hour in 2005 and 30 billion kilowatt/hour in 2010. In addition, the Sanguodian Tengzhou electricity plant with planned gross installed power capacity of 2400 megawatts is on the way. In a brief, with natural resource and energy industry as its major part, Tengzhou's industry enjoys great potential in the future.

　　Local government of Tengzhou city attaches great importance to the industry, and proposes the strategy of revitalizing the city through development of industry. Through foreign investment and pooled funds and capitals from various channels, new projects were launched and the city's industry got strengthened. In 2003, 1.8 billion Yuan was invested in the technology reconstruction, including the expanded and newly-built project of 800 thousand tons of Shenglong company, the 400 thousand tons of which belongs to Ruida company, another of 400 thousand tons which belongs to Shiji Tongtai company, the second phase of the project of Xinyuan electricity plant, the second phase of the Dazong electric plant, the third and the fourth phase of the project of Yingtai Food Processing park, the second phase of the production line of float glass , the second phase of expansion project of standardized stainless components belonging to Tengda Company, Huneng company's cable manufacturing project and numerical controlled mechanics manufacturing project in Tongyue industrial park .

　　The establishment of innovation system is accelerated, leading to the enhancement of innovation capability of many companies. By the end of 2003, there have been 12 companies establishing province-level or city-level R&D center and 15 companies recognized as high and new technology companies with high and new tech products worth 1.22 billion Yuan. An accumulation of 1.88 billion Yuan was invested into 220 high and new tech programs with 130 innovation programs and 22 new products enlisted into province-level key innovation plan. Besides, there are 2 programs were listed as national torch development program. They are the anti-mouse, anti-ants, moist-proof cable program and the modified (nanometer) polyurethane waterproof coating material program. The Shihengda Company was also enlisted as a key company in high and new tech into the national torch program.

　　Companies of different ownership systems coexist and develop together with shareholding system as major part. By the end of 2003, there have been 243 large industrial companies keeping separate accounts. State-owned enterprises and corporate enterprises with state-owned entities realized added value of 296 million Yuan, 8.5% of the added value realized by all industrial enterprises of this city (state-owned enterprises taking up 1.6%). Collective enterprise realized added value of 800 million Yuan, 23% of the whole volume. Collective stock-holding companies realized 41 million Yuan, 1.2 % of the whole volume. Stock-holding companies realized added value of 1.59 billion Yuan, holding 45.5% of the whole volume. Foreign invested companies and companies belonging to businessmen from Hong Kong , Macao and Taiwan realized added value of 99 million Yuan, 2.8% of the whole volume. Among all the above-mentioned companies, those companies under the administration of municipal government realized industrial added value of 760 billion Yuan, 21.9 % of the whole volume; those companies under the administration of county government realized industrial added value of 2.73 billion Yuan, 78.1% of the total volume. Modern company property system and improved cooperate legal person management are adopted by many companies, which is under standardized operation in line with the market economy.

　　This city implements the strategy of famous brand promotion to improve the production technology and quality of the products. Many companies and factories attach parallel importance to market exploration and internal management, conduct product development with partners or on their own, and launch brand advertisement campaign to win their products good reputation in Shandong province. Up to the end of 2003, there have been more 40 companies approved of ISO9000 certificate, and 4 companies approved of ISO14000 certificate. This city's product structure is upgraded to new heights according to the implementation of famous brand strategy and the development and endorsement of a group of advanced new products.