Top bullion producer has plans for other golden opportunities

Already the national leader in gold bullion production, Yantai plans to further expand its range of manufacturing industries through an emphasis on science and technology.

"Manufacturing has become the fastest-growing pillar industry of the city," said Mayor Zhang Jiangting. "By 2010, annual sales revenues from the industry will break the 500 billion yuan mark ."

Located in east China's Shandong province, Yantai faces Japan and South Korea across the Yellow Sea and East China Sea.

Zhang said the city is growing into a premier locale providing manufacturing services to its two north Asian neighbors, as well as Western countries, because of its geographical location, industrial foundation and human resources.

By promoting technology and self-innovation, Yantai has aided the development of its manufacturing industries, especially the core sectors of machinery, electronics, food processing and production of gold bullion extracted from the province.

The city is home to provincial-level software and State-level IT parks. The Yantai Development Zone is growing into an importing exporting base for cars, heavy machinery, machine tools, electronics, computers and spare parts. By the end of the year, exports from the zone are expected to reach a combined value of $15 billion, compared to $10 billion last year.

It is China's biggest processor of exported wine, juice and vegetables - most destined for Japan and South Korea - that generate more than $4 billion in revenues yearly.

As China's largest smelter of gold bullion, Yantai is now making efforts to become the jewelry distribution center of northern China. Sales of gold and jewelry products are projected to reach 60 billion yuan by 2010.

Relying on city's port and the natural resources, the local government has attracted new industries as well, including petroleum chemicals, metallurgy and bio-pharmaceuticals.

By 2010, the annual production of cars is projected to reach 670,000 units, along with 30 million mobile phones and 20,000 pieces of heavy machinery.

Annual shipbuilding capacity is expected to expand to 1.5 million tons. Sales revenue from computers will surpass 80 billion yuan over the next three years, according to development plans.

Over 800 companies are expected to have operations in six key sectors by 2010.

More than 40 multinationals, including GM, Doosan, Daewoo, LG, Mistubishi and Honda, have factories in Yantai's development zone that make products for export. The city plans to attract more foreign investment for machinery manufacturing, electronics, shipbuilding and telecom equipment production.

Yantai plans to cultivate 50 company technical centers with competitive innovation ability, so that by 2010, the city is expected to be among the strongest in the nation in science and technology.

(China Daily 03/06/2008 page15)