A workshop of the Zhejiang pump industry Co, a subsidiary of Leo Group headquartered in Wenling of Taizhou. [Photo provided to chinadaily.com.cn]

Wenling, a county-level city in Taizhou is a national manufacturing hub for pumps and motors.

Official data shows that more than 60 percent of pumps in China are produced in Wenling. The city's output of pumps and motors accounts for roughly 25 percent of the city's total industrial output.

However, numerous businesses in the sector are struggling as demographics shift and production costs rise.

One such example is Zhejiang Pump Industry Co, a subsidiary of Leo Group.

According to Lin Renyong, executive director of the company, the company's factories used to be scattered and disorganized, which led to high labor and logistic costs.

In a bid to tackle the problem, the company relocated all its factories to an industrial area in the eastern part of the city.

"The shortage of industrial land resources restricts the further development of many enterprises, and the new industrial area has provided Leo with an opportunity to transform and upgrade," said Lin Jian, deputy head of the administrative committee of the industrial zone.

In addition to relocation, the company also invested roughly 200 million yuan to promote the digitalization of its factories in early 2015.

The move saw a 25 percent drop in operation costs but a 40 percent surge in resource utilization.

In addition, Leo also fostered a complete industrial chain in the park, which is crucial to the sustainable growth of a company, as it could ensure product quality and delivery time, according to Lin Renzong.

The company's efforts paid off. Official data show that the company's output reached 1.708 billion yuan in 2018, and the figure for the first half of this year is expected to reach 860 million yuan.

Leo's successful transformation has also spawned opportunities for other companies in the sector.

As one of its accessory suppliers, Wenling Dinghui Machinery Co has achieved rapid growth since its establishment in the park in 2016, with its output value rising from more than 20 million yuan to more than 70 million yuan.

According to Lin Jian, the city is planning to construct another industrial park in its eastern part.

He also pledged to attract more enterprises to the park by offering better services.

The annual output of the pump and motor sector in Taizhou has topped 40 billion yuan and is number one in the world when it comes to the production of small-sized pumps. The city is home to four A-share listed pump production companies out of seven nationwide, official data show.