Taiyuan City

The largest coal mining center in China, Taiyuan is rich in mineral resources such as coal, iron and gypsum. The city’s main industries include coal mining and dressing, petrochemicals, electronics, equipment manufacturing, chemicals, and transportation equipment manufacturing. Metallurgy, Taiyuan’s largest industry, has made up around a third of the industrial sector in recent years. The city is also home to several large corporations: Taiyuan Iron and Steel Company (TISCO), the largest stainless steel producing plant in Asia, Shanxi Heavy Machinery Factory, and Fenxi Machinery Factory, the latter two being major manufacturers for the People's Liberation Army and Navy.

In 2009, Taiyuan faced poor economic performance a decline in coal output; this downturn was attributed to the closure or merger of small mines with state-owned producers, following a disaster in Gujiao county under the administration of Taiyuan city. Along with the fact that the city’s metallurgical and power sectors supply China’s domestic needs in boom periods, recent events have shown that the city is vulnerable in a downturn and must diversify its economic activity.