TEDA plans production powerhouse

The time has come for Tianjin's Binhai New Area (BNA) to streamline its industries and projects around the Bohai Bay region to generate more output.

That was the clear message from Ni Xiangyu, vice chairman of the Administrative Committee of Tianjin Economic-Technological Development Area (TEDA), one of core components of the BNA.

Established in 1984, TEDA had industrial output valued at more than 370 billion yuan last year.

"The Binhai New Area has gathered an unprecedented number and scale of industrial clusters, lead by petrochemicals, autos, electronics, steel, aerospace and aviation," Ni told China Business Weekly in an exclusive interview. "It is a rare case, even around the world."

Counting on the BNA's robust growth, TEDA is striving to break the benchmark of 2 trillion yuan in industrial output sometime in the next seven to eight years, which would lead to a gross domestic production (GDP) of 500 billion yuan by that time, Ni said.

He notes his blueprint is indeed ambitious, but solidly grounded.

Now powering ahead with eight pillar industries - electronics and information, autos and parts, equipment manufacturing, biopharmaceuticals, chemicals, food and beverage, aerospace, alternative energy and alternative materials - TEDA had an industrial output valued well over 347 billion yuan in 2008. Together the segments accounted for 93.2 percent of the total industrial output at TEDA last year.

"The eight industrial clusters are our top priorities for future development as they provide the bulk of economic muscle at TEDA, with other industries, such as modern services as supporting forces," Ni said.

A giant man who speaks fluent English and has an infectious smile, Ni is in charge of investment services and external exchanges at TEDA. He has been leading a globe-trotting team seeking to attract more investment and technical know-how to TEDA.

With a clear strategy in mind, Ni and his TEDA team continue to develop plans and contacts for more investment and industrial projects.

In May alone this year, TEDA unveiled six new development plans for five of its eight core segments.

Equipment manufacturing is projected to have an output value of 300 billion yuan by 2015, with 50 additional enterprises exceeding 1 billion yuan in annual output. TEDA is expected to be one of China's hubs for equipment manufacturing and research at that time.

By 2010, output of TEDA's electronic and information industry is projected to increase by 100 billion yuan over its 2005 figure to hit 230 billion yuan, accounting for 45 percent of TEDA's industrial output at that time. Revenues by 2015 are expected to double the figure of 2010 to reach in 460 billion yuan, according to TEDA's development plan.

Plans call for the TEDA's biopharmaceutical industry to generate a value of 15 billion by 2010, then grow rapidly to 50 billion yuan by 2015.

As a key component of alternative energy, wind power equipment made in the area is projected to generate 30 to 45 billion yuan in revenues by 2015.

TEDA's automotive industry will have future output valued at 250 billion yuan by 2015, according to the blueprint, accounting for about 23 percent of the area's overall industrial revenues.

TEDA was established with 33 sq km in Tianjin as part of the nation's opening-up policy. In 2003 it was extended westward over an additional 48 sq km. It also has three satellite developments - the Micro-Electronics Industrial Area, Yixian Scientific and Industrial Zone and a chemical industrial area.

The GDP of TEDA reached 106.6 billion yuan in 2008, a year-on-year growth of 23.1 percent. The added value of secondary industries was 86 billion yuan in 2008, accounting for 80.7 percent of TEDA's value created that year.

By the end of last year, TEDA was home to 4,618 foreign-funded companies that had invested a total of $47.4 billion.

Of them, 157 businesses and projects were backed by 76 Fortune 500 companies.

TEDA authorities said they have created a friendly investment environment by introducing modern management philosophies and top infrastructure.

As a pilot area in China's reform and opening up, TEDA has ranked at the top of a list from the Ministry of Commerce for its "comprehensive investment environment in China's State-level economic and technological development zones" for 10 consecutive years.

(China Daily 06/29/2009 page11)