State-owned enterprises (SOEs) have now resumed construction and production operations in China's Hubei province, the epicenter of the country's coronavirus epidemic. With the dramatic reduction in new cases and the effectiveness of the government's epidemic control and prevention measure, business in China's central region has now returned to relative normalcy.
One of the region's largest SOEs, the China First Metallurgical Group, officially restarted its operations last week. The subsidiary of the China Metallurgical Group Corp was even able to complete two liquefied petroleum gas (LPG) storage tankers, which it has shipped to Malaysia from its Yangluo manufacturing base in Wuhan this week. The tankers will be used for Port Kelang's energy project.
The centrally-administered SOE is also moving forward with the construction of steel frames for several residential and commercial building projects in Shenzhen and Zhuhai. The company is accelerating its work on a bridge project in Xi'an, the capital of China's northwestern Shaanxi province.
China First Metallurgical Group Co. president, Wang Cheng, mentioned in a statement that the impact of the delays caused by the coronavirus is only for the short-term. He added that they have now shifted some of their material preparations and equipment manufacturing to other plants outside Hubei to ensure that all their work in on schedule.
The China Communications 2nd Navigational Bureau, another centrally-administered SOE, has restarted its road construction project in the Huangpi district of Wuhan. The 32-kilometer road project has a total investment of $272 million, with the company expecting completion within 24 months.
Apart from the road project, the subsidiary of China Communications Construction Co will also be accelerating its work on other infrastructure projects to support the country's recovery. This will include projects such as building traffic, water supply, drainage, landscaping, and lighting infrastructure; new projects that it expects to be fully operational by 2021.
SOEs in the tourism, civil aviation, retail, and hotel businesses were the most heavily hit during the epidemic earlier in the year. These SOEs are now slowly resuming business, starting with those located in lower-risk areas. Projects conducted by these SOEs are being resumed depending on their business types and risk levels.
Since the spread of the epidemic, some SOEs have been continually operations, particularly those whose services are vital to the country's efforts to control the pandemic. China Post Group Corp had conducted nonstop services in Hubei province and continues to do so to support the fight against the viral outbreak. The SOE was instrumental in the continued delivery of vital medical equipment and personnel to heavily hit areas, using its resources to aid in the country's logistical efforts.