BEIJING - The machinery industry in China is expected to see mild growth this year as structural reform offers hope to the overcapacity sector.

The value-added output is expected to rise 5.5 percent year on year, said Wang Ruixiang, president of the China Machinery Industry Federation (CMIF), on Thursday.

The CMIF will promote the upgrade of the industry, boost innovation and enhance competitiveness through structural reform in 2016 as well as putting intelligent manufacturing as top priority, said Wang .

China's machine industry grew at an annual rate of more than 25 percent in the decade from 2001, when the country's economic engine maintained strong momentum. But the profitable sector has begun to suffer from serious overcapacity since 2011 as demand weakened and inventories piled up, weighed on by an overall economic slowdown.

In 2015, the value-added output of the machinery industry increased 5.5 percent year on year, down from the 10 percent growth rate seen in 2014, CMIF data showed.