Jigang Group Co., Ltd., a state-owned enterprise established in 1958, has transformed over eight years from steel production to satellite manufacturing, evolving from a traditional steelmaker into a key player in the aerospace industry. This shift exemplifies Jinan's push toward innovation-driven development. According to Xu Qiang, the group's deputy Party secretary and general manager, the transition was not merely an industrial replacement but a strategic move to channel existing capacity into new productive forces.
In 2017, Jigang Group voluntarily shut down 6.5 million tons of steel production capacity and smoothly reassigned nearly 20,000 employees, marking an end to its nearly six-decade-long steel era. At a recent press conference in Jinan on March 26, four entrepreneurs and experts from the aerospace and low-altitude economy sectors shared insights into their efforts to deepen industrial upgrades in this emerging field.
Jigang Group has now identified aerospace as its primary business, building an industrial chain that includes rockets, satellites, and drones. The company has successfully launched two satellites, Jigang-1 and Jigang-2, into orbit and established Shandong's first flexible, intelligent satellite assembly line with an annual capacity of 100 satellites. The first phase of this facility began operations in October 2025.
Additionally, 3,400 skilled workers—including electricians, welders, and assemblers—have been systematically retrained to transition from steelmaking to aerospace component manufacturing, upgrading their professional capabilities.
Statistics show that Jinan is now home to 195 companies in the aerospace and low-altitude economy sectors, with 80 key projects underway. The city is accelerating the formation of a closed-loop industrial chain covering payloads, assembly, and applications. Low-altitude economy applications continue to expand, with 74 specific use cases developed across production operations, public services, logistics, and cultural and sports consumption.
This industrial growth is supported by municipal policies. Jinan has established a dedicated office for aerospace and low-altitude economy development and introduced measures such as the "Jinan Low-Altitude Economy Development Promotion Measures" and several supporting policies to provide clear guidance for enterprises.
For many companies, the new sector represents fresh opportunities. Hu Bin, general manager of Jinan Low-Altitude Economy Development Group Co., Ltd., noted that developing the low-altitude economy has enabled the company to upgrade from a specialized operator to a comprehensive service provider. The firm has built an all-element operational platform and a digital flight management system, enabling streamlined low-altitude flight services.
Hu also highlighted that Jinan has set up an industry fund exceeding 10 billion yuan to support project construction, R&D, and industrial chain expansion, effectively addressing challenges such as high initial investment and long development cycles.
At Qilu Aerospace Information Research Institute, a research team with an average age of 33 is driving innovation. As a branch of the Chinese Academy of Sciences' Aerospace Information Research Institute, it has established six research centers focusing on commercial aerospace, low-altitude economy, and network information systems.
Yi Hong, chief specialist for low-altitude projects at the institute, explained that from the outset, the team has aligned its R&D in advanced radar, photoelectric technology, and sensors with Jinan's industrial needs, ensuring research relevance and practical impact. The city's well-developed industrial infrastructure has helped accelerate the transition from laboratory to market. By the end of 2025, the institute held 132 invention patents and 101 software copyrights, significantly boosting its成果转化效率。
Shandong Boyuan Shixun Information Technology Co., Ltd., founded 12 years ago with just one person and one office, has progressed from trading imaging equipment to integrating drone systems, and finally to becoming a full-stack service provider in the low-altitude economy with independent R&D capabilities.
Zhai Hu, the company's chairman, summarized Jinan's supportive environment as "strong policies, warm funding, and swift services." In 2025, the company received 2 million yuan in R&D funding after being selected for the Shandong Provincial Sci-Tech SME Innovation Capability Enhancement Project. Additional support, such as R&D tax deductions and high-tech enterprise tax incentives, has freed up more resources for technological breakthroughs.
From the humming machinery in satellite assembly bases to the quiet operations of drone patrols and the real-time data updates on low-altitude flight platforms, Jinan's vision of becoming a "city in the sky" is steadily turning into reality. Through concrete projects, technological advances, and dedicated efforts, Jinan is sailing toward a broader future, powered by project-driven industrial upgrades.