Mechanical industry is the number one industry in Zhejiang Province. By the end of 2005, the number of enterprises above the designated scale has amounted to 13813, with a total asset of RMB 551.7 billion and a workforce of 2.127 million. In 2005, the mechanical industry achieved an annual output value of RMB 635.3 billion. Sales revenues created amounted to RMB 609.5 billion, accounting for 28% of the provincial total. Pre-tax profits reached RMB 55.9 billion and profits reached RMB 35.9 billion, accounting for 30% and 33% of the provincial totals respectively. The main indicators of Zhejiang's mechanical industry rank the 4th among 31 provinces, municipalities and autonomous regions in China.
After decades of strenuous efforts, Zhejiang’s mechanical industry has become its No. 1 industry with a full range of sectors and substantial advantages. In particular, since China’s economic reforms, the restructuring of the mechanical industry has been accelerated; as a result, the traditional industry has had a rapid improvement. A lot of superior mechanical products and mechanical products with distinctive features have appeared, some of which have reached or approached advanced international level and many of which are setting the pace in the domestic market.
1. Products with internationally advanced and domestically leading techniques include air separation equipment, special industrial steam turbines, electrostatic precipitator, pneumatic ash conveyors, waste heat boilers, surface grinding machines, vacuum apparatus, etc.
   2. Products that occupy 50% of the domestic market mainly include electrical energy meters, water meters, low voltage apparatus, Cubicle-type Substations, micro-motors (including electric tools), small and medium-size bearings, standard fasteners, industrial chains, universal joints, etc.
3. Products whose export value is leading domestically mainly include electric tools, bearings, universal joints, hand tools, industrial chains, marine gear boxes, tractors, hand chain hoists, low voltage apparatus, standard parts, etc.
4. Regional products with distinctive features mainly include: low voltage apparatus made in Yueqing, Wenzhou; auto parts made in Rui’an and Yuhuan; electric meters made in Hangzhou and Ningbo; enameled wires made in Huzhou; electric tools made in Yongkang, Jinhua; pumps and valves made in Wenling and Yongjia; industrial automation instruments made in Wenzhou, etc.

Key industry investment guidance of Zhejiang Province: mechanical industry
Key fields in the development of mechanical industry:
 1. Accelerate the development of automobiles, special-purpose vehicles (special vehicles), motorcycles, auto parts and shipbuilding industries. Prioritize the development of economy cars, and middle to high class buses. Enlarge and strengthen the production of auto parts, especially spare parts for cars and those with promising export prospect. Support the industrialization of special-purpose vehicles, special vehicles and electric automobiles. Accelerate the development of ships (yachts) with high-performance and high added-value, export-oriented shipbuilding and ship repairing, and the production of supporting products of ships.
2. Support the development of environment protection whole set facilities and mechanical whole set products, mainly including environment whole set facilities for the control and prevention of air and water pollution and for solid waste disposal; air separation whole set equipment such as new and large-scale air separation and ethylene cold boxes; electrical transmission and transformation whole set equipment such as intelligent transformer substations, non-crystal alloy transformers, various types of aluminum alloy wires and high/low voltage switchgears; air-cooling and ventilating whole set equipment, mechanical whole set equipment such as printing equipment, packing equipment, waste heat utilization equipment, vacuum application equipment; and whole set equipment which features mechanotronics and high efficiency energy saving.
3. Further develop basic and general mechanical products, mainly including basic machninary parts with special advantages such as new bearing series of high reliability, industrial chains, agricultural water pumps, low voltage apparatus, electrical energy meters, water meters, electric tools, miniature motors, automation instruments and meters, storage batteries, hydraulic parts, pneumatic parts, sealing parts; and basic machinery such as NC machine, tools etc.
4. Actively develop agricultural machinery serving farmers, countryside and agriculture, mainly including rice making machinery, horticultural machinery, deep and fine processing machinery for agricultural by-products, as well as other new types of agricultural machinery serving protected agriculture and high efficiency agriculture.
5. Continue to develop electromechanical products that will improve people’s living standards and life quality. Focus on the development of various new types of electromechanical devices for household, fitness and teaching purposes as well as high-performance elevators and escalators.