Zone looks for more local firms to 'go global'

Weifang National High-Tech Industrial Development Zone is encouraging more local companies to extend their reach and "go global".

Sun Huanjin, publicity director of the zone, told China Daily that the zone's major economic pillars, including engine producer Weichai, automaker Foton and microphone producer Goer, see their future growth in overseas market.

"More local companies are setting out their global strategies and attracting international talents, technologies and capital into the zone, so our zone also set up an incubator in Silicon Valley last year," he said.

In late June, Weichai's German branch company KION announced plans to buy US logistics firm Dematic for $2.1 billion, the latest move in Weichai's global strategy.

The headline-making firm also made a bold move to buy the Italian yacht maker Ferretti in 2012 for 178 million euros ($196 million).

It has now grown into the only Chinese firm with the capacity to build cars, engines, yachts and parts.

According to Liu Haifeng, deputy general manager of Shandong Weichai Import& Export Corp, an arm of the group, the headquarters' exports grew by 10 percent during the first half of this year and Liu expressed his confidence that the firm would hit its exports target of $200 million to some 150 countries and regions in the world this year, which would exceed last year's figure of $160 million.

Liu attributed Weichai's growth to its research and development capacity based on the R&D center in the zone, adding that its global growth was largely due to the state-of-the-art lab based in the zone. "Our technologies boost our sales competence throughout the world," Liu said.

Foton, which established itself in the zone in 1996, has grown to become the country's largest commercial vehicle producer with brand value of 67.1 billion yuan.

The production base in the zone involved an investment of 20.8 billion yuan, and its vehicle production is expected to hit 1.3 million units in the next 10 years, which would be a considerable increase on the 96,800 units recorded by the end of last year. To date, Foton's multipurpose vehicles have been exported to more than 30 countries and regions including South Africa, Nigeria, Saudi Arabia, Australia and Iran.

The base looks to become Asia's largest MPV production center in the near future.

During a recent "Discover Weifang" media tour, Japanese and the ROK reporters were impressed by the fact that the average age of staff members on the assembly line is 28. Employees told reporters they are proud to work for an emerging company in such a dynamic zone.

"At the Weifang National High-Tech Industrial Development Zone, the most prominent feature is the younger generation and the rapid speed at which they work. For example, each of the workers on the Foton assembly line can finish their assembly work for each car within three minutes. Their vigor symbolizes the future of the zone," said Yun Eunsook, a reporter with the ROK's AJU News.

Goer, meanwhile, is considered a "low-key" company and is rarely mentioned in Chinese media, despite the fact that it produces world-leading microphones and 3-D glasses.

In 2015, the company's revenue hit 13.7 billion yuan, with assets of up to 19.2 billion yuan.

The company bought Danish loudspeaker maker Dynaudio for $50 million, the largest acquisition in the sector and it exports more 3-D glasses than any other company in China.

The above are a snapshot of the zone's global presence, they are far from the complete picture, Sun said.

To date, companies in the zone have set up more than 100 branches overseas, more than 100 enterprises' products have been exported and firms have registered 721 international trademarks.

Statistics indicate that the GDP of the zone hit 37 billion yuan last year, up 8.6 percent year-on-year and this year the figure is expected to grow.

Collins Alexander, a reporter with Inter Media Japan, said: "The Weifang National High-Tech Industrial Development Zone is clean, efficient and advanced. I believe it represents the future of China. Through the visit, I truly believe China's trade with the ROK and Japan will continue to grow."

Contact the writers at yangcheng@chinadaily.com.cn and wangqian2@chinadaily.com.cn

(China Daily 07/14/2016 page6)