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Provincial economy rides high on big projects
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2007/10/26 10:11
(Beijing - China) |
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Kumho Tyres (Changchun) Co Ltd, the biggest South Korean-invested project in Northeast China's Jilin Province, with a total investment value of $156 million, completed initial-stage construction in late July and was put into operation recently.
A string of big projects, including a 350-million-yuan new production facility invested by FAW-Koyo Steering Appliance Co Ltd, a 1-million ethanol production operation invested by Dachan Group and an 800,000-sq m real estate development project by a Hong Kong-invested joint venture, have also begun construction this year.
Advancing the key projects - expected to serve as a driving engine for the growth of the provincial economy - is listed as a priority by the provincial government.
This year, designated as "Industrial Project Year" of the province, is witnessing authorities step up efforts for industrial restructuring and upgrading in a bid to build Jilin into a new industry base.
Big projects play a significant role in the process of revitalizing Jilin Province - a traditional industrial base - and building a harmonious society, said Han Changbin, governor of the province.
Actual foreign investment in Jilin reached $1.1 billion in the first half of this year, increasing 32 percent year-on-year.
Driven by the investment boom, fixed-assets investment of the province in the first quarter of this year registered a 48.3-percent increase, one of the highest in the country.
On the other hand, the income of locals has also increased substantially.
Figures from the provincial government show that in the first three months, urban per capita disposable income in Jilin was 2,892.72 yuan, a 23 percent year-on-year increase, growing 15.7 percentage points.
Per capita cash income of rural residents reached 1,604.49 yuan during the same period, a 23.6 percent year-on-year increase, rising 19.1 percentage points.
Development goals
According to a provincial development plan, industrial incremental value of State-owned enterprises and private-invested companies with an annual sales revenue exceeding 5 million yuan each is expected to rise by 15 percent this year.
Net profit of the industrial sector is projected to exceed 20 billion yuan.
To realize this goal, authorities will help extend industrial chains of automobiles and petrochemicals, build up leading farm product brands, develop the pharmaceuticals, photoelectron information, energy, metallurgy, construction materials and textiles sectors, and advance construction of specialized industrial zones like the Auto Industry Park and the Corn Industry Park in Changchun, capital of the province.
Meanwhile, infrastructure construction of energy, transportation, and hydraulic engineering projects is another focus of the provincial government, Governor Han said.
A main 500-kilovolt grid and two power stations are under construction and inter-city water control projects have started.
While the 1,500 km new expressways planned for becoming operational during the 11th Five-Year period (2006-10) are in construction phase, preparatory work for building new airports in Tonghua and Baicheng is progressing.
Support to big projects, seen as a driving force behind the projected economic growth, is thus listed high on the agenda of the provincial government.
A great number of investment projects signed during the past three sessions of Jilin China Northeast Asia Investment and Trade Expo, an annual international event held in Changchun, have already been put into operation or are under construction.
At the same time, authorities will also intensify their efforts to attract more quality investment projects, focused on pillar sectors, modern agriculture, infrastructure facilities and welfare services, Han noted.
The number of big projects secured by the province is projected to reach 500 this year.
Resource optimization
When attracting investment projects, local authorities attach importance to industrial chain extension.
For instance, FAW Group, a top Chinese automaker headquartered in Changchun, with 32 subsidiaries and 17 stock-holding companies, invested in establishing the Auto Industry Development Zone with the Changchun municipal government in 2005.
The development zone is designed to promote optimal use and distribution of available industrial resources and thus further the province's pillar industry of automobile and auto parts.
So far, 24 auto-related projects in the zone have started construction, with annual output value totaling 5.76 billion yuan.
Investment projects have also injected vigor into the old industrial base.
Jilin, a city that has the same name as the province, used to be known for its chemical industrial strength. However, energy scarcity had once hampered the city's growth.
As corn has been developed as a kind of raw material for ethanol production, the chemical city found a way out.
With a rich corn resource in the province, the city is shifting its focus to become an ecological energy chemical base.
Jilin Fuel Alcohol Co Ltd, one of the biggest ethanol providers in the country, has a current annual output capacity of 400,000-ton fuel ethanol.
The figure is expected to increase as the company plans to expand production in the near future.
With such big chemical production facilities operating in the city, dealing with a huge amount of carbon dioxide emitted from the chemical factories is likely to become a public concern.
Local authorities have already taken the issue into consideration when drawing up plans to attract investors.
A gas company is currently being built near Jilin Fuel Alcohol Co Ltd.
The gas company will use the emission from the chemical companies as raw material for its annual output of 200,000-ton liquid carbon dioxide for food use and 200,000-ton degradable plastic.
Baicheng, a western city in the province, has secured 1.1 billion yuan investment for building a big irrigation area.
As one of the six key hydraulic projects of the province, the irrigation area construction started in May 2006 and will benefit 140,000 farmers in nine towns and 53 villages and is expected to create jobs for 40,000 rural residents.
Once the area construction is completed, Baicheng is expected to become a key base of rice farming, artificial grassland and livestock and poultry.
Welfare benefit
Among the big projects, a series of public facilities have caught the special attention of the public.
The facilities include: new residential buildings for tens of thousands of low-income locals; a polluted water treatment project to improve the eco-environment along Songhua River; a drinking water safety project that ensures that 66,400 rural residents will drink clean water at the end of this year; and a modern garden-like school with a total of more than 200,000 sq m for about 2,000 orphans and physically disabled children.
The infrastructure construction that has started this year also covers tourism facilities, revamping of schools, hospital renovation and building a technological and cultural complex.
According to the provincial government, 272 projects with more than 30 million yuan investment value each and 20.3 billion yuan in total are closely related to public welfare.
Total investment value of this year in public works increased 77 percent year-on-year.
(China Daily)
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