Once known as a steel giant, Jinan Iron and Steel Group (Jigang) is now reshaping itself into a key player in China’s booming commercial aerospace sector. The group has unveiled plans to build a heavy-lift rocket headquarters and assembly base in the Jinan Lingang Economic Development Zone — a move that places Jinan among the few Chinese cities equipped with both satellite assembly and rocket assembly capabilities.
The project, undertaken in partnership with Beijing-based Tianbing Technology, will cover more than 50,000 square meters, featuring a rocket general assembly and testing plant, a power station, and a component manufacturing facility. Once operational, the base is expected to produce up to 25 rockets annually, including models for satellite launches and intercontinental transport.
From Steel to Space: Industrial Upgrade with National Significance
Founded in 2019, Tianbing Technology made history in April 2023 with the successful maiden flight of its Tianlong-2 liquid-propellant launch vehicle, becoming the world’s first private company to achieve a successful liquid rocket debut. Partnering with Jigang — a company that has pivoted away from its traditional steel-making roots — represents what industry experts describe as a fusion of legacy industrial strength with emerging aerospace innovation.
This shift is not an isolated effort. Jinan has already attracted Deep Blue Aerospace, which established its Changqing testing base at the former Jigang site. That facility now houses some of China’s most advanced rocket engine test stands, including a 600-ton-thrust propulsion system test platform. In April, Jigang also signed cooperation agreements with companies such as Xi’an Lingkong Electronics and Galaxy Power Aerospace, expanding its role in manufacturing key rocket components including storage tanks, fuselage segments, and payload fairings.
“Jinan is now one of the national leaders in the commercial rocket sector,” said Yang Xingcai, senior official with Jinan’s Development and Reform Commission, during the recent Belt and Road innovation forum. “We have successfully built a complete industrial chain from propulsion testing and engine manufacturing to rocket assembly, inspection, and supporting services.”
Location Advantage: Why Jinan Was Chosen
Industry insiders highlight that the choice of Jinan is no coincidence. The city enjoys a unique “four-port” advantage — rail, air, water, and road connectivity — which is crucial for transporting large aerospace equipment.
“With the Xiaoqing River now navigable, rockets assembled in Jinan can be shipped directly to the Oriental Spaceport in Yantai’s Haiyang for sea launches,” explained Kang Yonglai, chairman of Tianbing Technology.
Indeed, Shandong is rapidly emerging as a national hub for commercial space. The Oriental Spaceport in Haiyang has already conducted 15 offshore launch missions, sending 89 satellites into orbit. Plans are underway to add launch sites in Rizhao, Weihai, and Lianli Island, forming what experts call a “launch cluster” capable of meeting 70% of satellite orbital demands. Jinan’s new assembly base will complement these facilities by serving as the manufacturing backbone for heavy liquid-fueled rockets, while Haiyang specializes in solid-fueled launch vehicles.
Satellite and Rocket “Dual Manufacturing”
Earlier this year, Jinan’s satellite assembly base received approval from the National Development and Reform Commission. Once completed, it will be capable of producing 100 satellites annually in the 500-kilogram class. This milestone makes Jinan one of the few Chinese cities with the dual capability of assembling both satellites and rockets.
The broader aerospace information industry has been elevated to Jinan’s No. 1 strategic industrial priority. In the first half of 2025 alone, the sector generated 13.38 billion yuan in revenue, with 148 enterprises in operation, 57 of them above designated scale. The city has also planned satellite constellations totaling 368 units, with 26 already launched, covering communication, navigation, and Earth observation.
Supporting this ecosystem is the National Aerospace Information Industry Alliance, co-founded with the Chinese Academy of Sciences, which now counts 159 member institutions. A 30.8-billion-yuan “2+N” industry fund, along with 13 supportive policies, ensures steady financing and regulatory backing.
Adding to the momentum, China’s first university dedicated to aerospace information — Aerospace Information University — is nearing completion in Jinan, with its initial facilities already undergoing acceptance checks.
Toward a Shandong Space Industry Corridor
Looking ahead, Shandong Province aims to integrate Jinan’s manufacturing base with Yantai’s spaceport, creating a full-chain ecosystem from research and testing to assembly and launch. Officials believe this synergy will make Shandong a core growth pole of China’s commercial space sector, accelerating the nation’s march into the era of large-scale space commercialization.
As Jinan’s transformation continues, the city is steadily fulfilling its ambition to become a national aerospace innovation highland. From steel mills to rocket factories, its “path to the stars” is no longer just a metaphor — it is becoming a reality.