JIANGMEN, Guangdong Province: The Pearl River Delta city of Jiangmen in South China's Guangdong Province is endeavouring to develop its electrical and mechanical industry into a pillar industry.

The municipal government has been securing capital investment to build up the sector.

As one of the nation's key hometowns for overseas Chinese, Jiangmen has "every advantage" to benefit from closer economic and technological co-operation with overseas Chinese business people, said Lu Depei, vice-mayor of Jiangmen.

There are 3.76 million overseas Chinese of Jiangmen origin in 107 countries and regions globally, including Hong Kong, Macao and Taiwan.

In addition to their donation of some 6 billion yuan (US$722.89 million), overseas Chinese have set up more than 2,300 enterprises in the city, with total investment of more than US$3.60 billion.

Lu said that the city expects more investors to play an active role in the restructuring, technological research and development (R&D) and marketing of the electrical and mechanical industry.

The municipal government's plan to seek opportunities for economic and trade co-operation with overseas Chinese business people will centre on a carnival and tourism festival for overseas Chinese in October, he said.

It also hosted the China (Jiangmen) Economic and Technological Investment Seminar and Electrical and Mechanical Product Trade Fair late last month.

"Such an event helped Jiangmen lure the maximum capital input for a sustained development of the industry, while helping the city's electrical and mechanical products to further crack both domestic and global markets," Lu said.

The city secured US$1.4 billion in investment for 103 projects at the three-day event, 90 of which are to be invested in by foreign business people, with the remaining 23 drawing investment from domestic private business people.

The event also attracted hundreds of foreign buyers who were in the province to visit the 95th Chinese Export Commodities Fair in Guangzhou, which ended on April 30.

"The contractual investment sought at the event was beyond expectation," he said. "The municipal government will beef up efforts to seek more investment at home and abroad."

Lu said that the municipal government is targeting the world's top 500 enterprises for co-operative opportunities, while encouraging overseas Chinese business people of Jiangmen origin, as well as domestic business people to increase participation in the city's electrical and mechanical industry.

Of the world's top 500 enterprises, Mitsubishi Heavy Industries, Matsushita, Swiss ABB and Emerson have invested in the city's electrical and mechanical industry. The companies are involved in the R&D and production of air-conditioners, capacitors, containers, and low-voltage switches.

The rich natural resources in Jiangmen, especially plentiful land supply, the comparatively solid industrial foundation and an ever-improving investment climate will make it possible for investments to pay off well, he said.

Jiangmen has more than 28,000 industrial enterprises in 33 categories. The city is capable of design, R&D and production of more than 5,000 product varieties.

Lu said that Jiangmen will concentrate its electrical and mechanical industry around motorcycles and related components, printers, stainless steel products for daily use, and household appliances, in a bid to fortify the city's position as China's leading industrial base for these products.

Jiangmen has 11 motorcycle assembly enterprises as well as 100-odd motorcycle component enterprises.

The city yielded 1.18 million motorcycles in 2003, accounting for 8.05 per cent of the total in China, official statistics indicate.

The city's 135 hardware and toilet equipment enterprises realized a gross industrial output value of 1.13 billion yuan (US$136.14 million) last year; the 500-odd stainless steel enterprises, 6.12 billion yuan (US$736.87 million); and the 500-odd tap enterprises, 1.33 billion yuan (US$160.36 million).

(Business Weekly 05/04/2004 page11)