Biofuels and SPVs power 30 percent growth

The Changchun Economic and Technological Development Zone has started the year on a great note, with a year-on-year increase of 30.3 percent in gross domestic product in January, of 2.49 billion yuan.

Sectors of biofuels and special purpose vehicles (SPVs) contributed significantly to the strong growth. The figure accounts for 7.66 percent of the 32.5 billion yuan goal set by the zone's authorities for this year.

The other two main economic indices of the zone - industrial output and incremental values - are expected to reach 80.6 billion and 23.1 billion yuan in 2008 respectively, according to the zone's development plan.

To achieve these ambitious goals, the authorities are focusing on big projects. For instance, a 1-million-ton chemical ethanol project invested in by DaChan Greatwall Group in a corn industry park has been listed as a key project, entitled to priority support from the local government.

Other examples include the Hebei Zhongxing Automobile Co Ltd's 200,000 sports utility vehicle (SUV) project and the Changchun-based Tempo Commercial Vehicle's SPV project.

Such projects are expected to play a leading role in spurring the growth of the local economy. The authorities have said they will provide special services to key companies in the zone to ensure their smooth functioning.

Of these companies, 61 have more than 100 million yuan in annual sales while the remaining 42 pay annual taxes exceeding 10 million yuan each.

Besides speeding up current projects, the authorities are also keen on securing new hi-tech investments with a significant market potential.

They are particularly keen on attracting company headquarters, research and development institutes, and purchase and sales centers.

The local government is also keen on projects that extend the industrial chain as such investments bring in high value-added .

According to the zone administrative committee, the actual use of foreign and domestic investment is projected to reach $880 million and 6.39 billion yuan this year respectively. Fixed-asset investment for the year is targeted at 20 billion yuan.

Technological innovation

Sharpening the technological edge and increasing the competitiveness of local companies remains one of the authorities' major concerns.

In the light of this, they plan to allocate special funds for hi-tech projects.

The zone is also trying to establish a national-level hi-tech career service center in a bid to help hi-tech start-ups.

Development of a core area of a national optoelectronic industry base in the zone is another initiative aimed at increasing the zone's technological competitiveness.

The authorities said they will encourage companies to pass ISO 14000 certification, develop proprietary technology and build up their own brands.

The zone realized 520 million yuan in exports last year, an annual increase of 60 percent.

Companies will be helped to restructure their export line-ups this year, shifting to such hi-tech products as corn bio-chemicals, SPVs, auto parts and new materials from primary products.

Revamping image

The zone authorities plan to invest 1.22 billion yuan in infrastructure construction this year, to improve the investment environment and revamp the image of the zone.

In addition to water, power, gas and heating facilities, a sewage treatment network, the extension of roads and the construction of an exhibition complex, the government will also improve the efficiency of administrative services such as financial services, information exchange, accounting and auditing, and human resource management.

The local government will also continue to expand insurance coverage and medical care to more people and extend the health service network to more residents this year.

Meanwhile, accelerating the urbanization of rural areas and strengthening the construction of a new socialist countryside is also on the cards.

(China Daily 03/05/2008 page17)