On Dec 19, the Compal Group will launch the trial operation of its first plant in Shuangliu, Chengdu city. The plant will produce 5,000 notebook computers for the first batch, said Zhang Yongqing, executive vice-president of Compal Computer Industry Co Ltd, on Nov 13.

According to the plan, Compal Group will invest more than $500 million to construct the Chengdu base, which is to be completed in April 2012.

Zhang said Chengdu is more competitive than coastal areas in tapping the central and western China markets. The city is also the best production base in developing the European market. It saves two hours in flying time to deliver Compal goods from Chengdu to Europe rather than from Shanghai. More importantly, Chengdu is the largest railway transportation center in the central and western regions. Compal products, produced in Chengdu and delivered through the railway network via the Qingbai River and Alashankou, will arrive at Europe two to three weeks earlier than if ocean shipping was used.

Shen Qing, CEO of Asia Vital Components (AVC) Co Ltd, came to Chengdu on Nov 13 to invest $70 million for an AVC base in the city. As the world’s leading cooling institution solution supplier and closest partner of Compal, AVC holds 30 percent of the global market share in the sector.

Meanwhile, the fourth Chengdu International Digital Entertainment Week, the largest-scaled event of its kind in west China, will be unveiled in Chengdu. The organizing committee said the activity would attract the largest number of IT companies in the world to attend such digital entertainment week events. More than 200 senior executives will meet in Chengdu to brainstorm ideas. The participants include leaders of world top 500 companies and IT managers from Compal, Wistron and Lenovo.