Multinationals see area as a hotspot

by China Daily
Updated: 2006-06-08 06:06

After visiting the scenic spot of the West Lake, people have another place to visit in Hangzhou, an important tourism city in East China's Zhejiang Province.

It is the Hangzhou Economic and Technological Development Area (HEDA), which was founded in 1993 as a State-level development zone under the approval of the State Council.

Located on the north bank of the lower reaches of the Qiantang River, which runs across the city, the zone has developed into an area with a balanced development among industry, education, culture and ecology. It now occupies an area of 34 square kilometres after 13 years of growth.

With respect to industrial development, the zone realized a gross industrial output value of about 72.6 billion yuan (US$9.1 billion) last year, with foreign export volume reaching US$3.93 billion.

The zone has seen more than 700 enterprises established during the past 13 years, of which 436 have been invested by foreign enterprises.

In 2004, it was listed by the Ministry of Commerce as one of the top 10 national-level development zones in terms of comprehensive economic strength.

In recent years, a number of renowned multinational companies, including Mary Kay, Matsushita, and Coca-Cola, have moved their production bases to the zone.

On April 26, the China National Cereals, Oils and Foodstuffs Corp Packaging Co Ltd, one of China's leading packaging companies, set up its core production base in the zone, making it the 48th top global 500 enterprise to have investment in the zone.

The new plant covers an area of 11 hectares with US$30 million in registered capital. Its operations include packaging container production, technological development, and information communication services.

In March, Mary Kay (China) Cosmetics Co Ltd invested 100 million yuan (US$12.5 million) to build Asia's largest cosmetic production centre in the zone.

At present, the zone has more than 70 enterprises each with an annual production value of more than 100 million yuan (US$12.5 million), of which two have an annual production value reaching over 10 billion yuan (US$1.25 billion).

Toshiba built a laptop computer production centre in Xiasha New Town in the zone early this year. The centre is designed to produce 2.4 million laptops annually.

In addition, Matsushita has invested a total of US$240 million to build an industrial park within the zone.

Following larger investments, the zone has formed four pillar industries, including electronic information, biological medicines, machinery, and food and beverages over the past 13 years.

The Ministry of Information Industry listed it as the national computer and Internet industrial park last year for its rapid development in the IT (information technology) industry over the past few years.

In another development, China Jiliang University, China's only university qualified to offer Bachelor and Master degrees in the sectors of quality supervision, inspection and quarantine, and the US-based ZiLOG, jointly set up the ZiLOG-China Jiliang University Joint MCU Educational Lab in March.

The lab, together with another 15 higher education institutes, is expected to provide strong technical research support and train more skilled professionals for the zone.

More than 30,000 students graduate from these 15 universities each year, most of whom are willing to work in the high-tech and scientific enterprises in the zone.

SME becomes driving force

In addition, the zone now boasts a great number of small and medium-sized enterprises, which focus on the high-tech industry.

At present, the industrial output value from the high-tech sector accounts for more than half of the total in the zone.

In 2003, a training programme was launched for employees who work in the zone to improve their working skills and knowledge of technology.

There are now about 5,000 workers receiving the training annually.

(China Daily 06/08/2006 page11)