Company Emerges Stronger in the Wake of Disaster

Dongfang Steam Turbine Works' new workshop.

On May 12, 2008, an 8.0-magnitude earthquake hit southwest China's Sichuan Province, killing almost 70,000 people and severely damaging local economy. Of the major state-owned plants in the quake zone, Dongfang Steam Turbine Works endured the biggest losses. The earthquake killed more than 300 of its employees and 1,000 suffered injuries. Direct economic losses totaled 5 billion yuan (US$764 million).

In the aftermath, Dongfang found itself nearly crippled but nonetheless was determined to fulfill customer orders with whatever equipment was salvageable. The rebuilding of the plant attracted attention from state leaders and significant support from other state-owned enterprises. Chinese President Hu Jintao and Premier Wen Jiabao made several visits. Baosteel, a steel producer headquartered in Shanghai, provided all the steel materials used in the construction of the new facilities.

It was during this rebuilding period that company leadership realized that the devastation from the earthquake had provided an opportunity to shift the focus to products used for clean energy, such as wind and solar. It previously had produced traditional power generators, but now Dongfang would transform itself and make wind power the backbone of its business.

By March 2009, after a round-the-clock effort, Dongfang managed to deliver several batches of wind power generators and seawater desalination products on time. It was a huge moral victory.

By 2010, its winder power generator output surpassed its thermal power output and possessed more than 30 percent of the total market shares in China and new energy products accounted for more than 60 percent of the company's total.

In the solar power field, it secured two major contracts in 2010, one joint contract to develop a 50MW solar power station and another to build a 1MW photovoltaic power station.

According to plant manager Zhang Wenfeng, in the next five years, Dongfang will focus on the low-carbon economy and tap the potentials of the systematic engineering market.

The old axiom "what doesn't kill you makes you stronger" may very well apply to Dongfang. It has risen from the earthquake's destruction and made itself stronger. Its future looks bright.