Dynamic area increasingly popular with multinational companies

By Yuan Shenggao | China Daily | Updated: 2018-11-05 07:14

The Zhangjiang National Innovation Demonstration Zone in Shanghai has become a gathering place for multinational companies keen to capture growing opportunities in the Chinese market.

Statistics from the demonstration zone show that there were 380 research and development centers and headquarters built by multinational companies, as of the end of 2017. The zone has welcomed companies such as the US industrial system developer General Electric and medical technology developer Medtronic.

For such companies, the outstanding business environment is one of the key factors behind the decision to set up shop in Zhangjiang.

"Shanghai is the commercial center of China with well-established infrastructure, top talented people and (a) sound business environment," said Yoke Loon Lim, president for Dow Greater China. "Zhangjiang Hi-tech Park is the pioneer in attracting domestic and foreign investment for high-value innovations and R&D."

The Shanghai Dow Center, the business and innovation hub for Dow Chemical in Asia-Pacific, situated in Zhangjiang Hi-tech Park, is Dow's largest integrated R&D center outside the United States. Opened in 2009, the center covers more than 100,000 square meters and houses more than 600 highly skilled scientists, according to the company.

In recent years, China has grown into Dow' s largest international market with double digit annual growth in terms of sales volume, according to the company.

"We have strong confidence in the China market," Lim said.

More infrastructure is being built by companies in Zhangjiang to better support their development in China.

Swiss pharmaceutical giant Roche, for example, will open its new innovation center in the zone next year.

The project, which started construction in 2016, with a total investment of 860 million yuan ($123.36 million), will be the company's third-largest strategic center after those in Switzerland and the United States. The new building will provide 220 modular work areas. The idea behind the center is to facilitate communications and further strengthen teamwork among research staff, according to the company.

The center will become a critical part of the global infectious, immunology and inflammation diseases discovery area, according to Hong Chow, general manager of Roche Pharma China.

Established in Zhangjiang in 1994, Roche was one of the first multinational enterprises in Zhangjiang Hi-tech Park. After more than 20 years' development, Roche's Zhangjiang site has been developed into a powerhouse with a full pharmaceutical value chain spanning from early stage research to development, manufacturing and commercialization of novel medicines in China, according to the company.

Meanwhile, German pharmaceuticals company Boehringer Ingelheim boosted its investment in May, by launching the expanded Asian Veterinary Research & Development Center in the zone. The new R&D center had a total investment of 19 million euros ($21.54 million), covering a total area of 3,300 square meters.

The company, one of the first to implement the contract manufacturing organization model in China, launched a biopharmaceuticals manufacturing site in the Zhangjiang zone last year.

The site, with its design, construction and operation system following top global standards, is the fourth biopharmaceuticals production site run by Boehringer Ingelheim after Biberach facility in Germany, Vienna site in Austria and the Fremont facility in the US.