Shanghai ties Qingdao for China lead in WEF "lighthouse factories"

by YANGSHU Hongji

Shanghai now counts seven factories recognized as "lighthouse factories" by the World Economic Forum (WEF), tying Qingdao for the most in China and reflecting the city's role in advanced manufacturing. The latest addition, Haier's laundry equipment plant, was named to the WEF's Sept. 16 list, which covered 12 sites across seven countries.

The WEF program, launched in 2018 with McKinsey, identifies factories worldwide that excel in applying digital, automated and low-carbon technologies to raise efficiency and cut emissions. There are now 201 such sites globally, serving as benchmarks for what WEF calls "smart manufacturing."

Since 2021, under China's current five-year economic plan, Shanghai has added five lighthouse plants and more than 1,000 pilot projects, with investment in smart factory upgrades totaling 828 million yuan (about US$114 million) in 2025. Officials say these factories have lifted productivity by about 50%, cut operating costs by nearly 30% and reduced energy use per unit of output by 13.8%.

Schneider Electric's Putuo plant, recognized as a lighthouse in 2024, runs at 74% automation with over 100 robots and 10 AGVs handling logistics and line adjustments. It also applies AR and generative AI to equipment repair, cutting training time by half and repair time by 30%. Schneider says output per worker has risen more than 80%, delivery times fell by two-thirds, and new products now launch in as little as six months.

Shanghai's biotech sector is also making strides. XtalPi, a start-up applying quantum physics, AI and robotics, has built the world's largest AI-driven robotic lab cluster in Pudong. With over 300 units running around the clock, it helps drugmakers accelerate and refine molecule screening. The company has signed nearly US$6 billion in AI drug discovery deals, including with 16 of the world's top 20 pharma groups.

For Shanghai, lighthouse factories have become a symbol of its manufacturing transformation, combining AI, 5G and robotics to position the city for the next stage of industrial growth.