Tianjin Investment Newsletter: June 24, 2008Thursday, July 24, 2008 0:19
FDI UTILIZATION CONTINUES TO GROW IN TEDA
In this May 10 new foreign enterprises were approved and 15 existing ones increased their investment in TEDA with new foreign investment, contracted overseas investment and actually funded investment adding up to 793 million, 316 million and 212 million US dollars respectively. Another 67 domestic-funded enterprises were registered with a total registered capital of 4.005 billion yuan.
So far this year, TEDA has approved 52 new foreign enterprises and saw 87 existing ones increased their investment. Its accumulative investment hit 3.329 billion, contracted overseas investment 2.004 billion (up by 24.09% y-o-y), and actually-funded investment 920 million US dollars (up 16.46% y-o-y).
Among the new foreign-funded enterprises approved in May, two have invested over 10 million US dollars respectively and another two are invested by multinationals. New comers such as Vitalink Coating (Tianjin) Co., Ltd. and Reichhold Macromolecule (Tianjin) best represents the emerging industries of TEDA while the reinvestment and expansion of star enterprises such as Tianjin FAW Toyota Co., Ltd., Tencent Digital (Tianjin) Co., Ltd., and Tianjin Suanhuan Lucky New Material Co., Ltd. have further fueled up the economic growth of the Tianjin Binhai New Area. (Tr. by Zhang Shanshan)
ACS LAUNCHES ITS 1ST OVERSEAS SOFTWARE R&D CENTER IN TEDA
Recently, the solely US-owned Affiliated Computer Services (Tianjin) Co., Ltd. held a ribbon-cutting ceremony for its first overseas R&D center and new office complex at the Software Mansion of Tianjin University Science & Technology Park, TEDA.
ACS is the leading provider of fully diversified and end-to-end business process outsourcing (BPO) and information technology (IT) solutions to commercial and government clients worldwide. With more than 60,000 employees and a blue-chip client list, ACS delivers comprehensive solutions for all segments of BPO and IT services. The company started China operation in 2003 and plans to expand the headcount of its local team from 127 to 200 by the end of 2008. (Tr. by Zhang Shanshan)
PHARMARON SETTLES DOWN IN TEDA
Following WuXi Pharma Tech, another leading pharmaceutical CRO settled in the TBNA. On June 20, Pharmaron of Hong Kong signed a letter of intent of investment with the Administrative Commission of TEDA, with an aim to set up a solely owned R&D service company in West Zone of TEDA.
Pharmaron is one of the top three Chinese pharmaceutical CROs. By the end of 2007, Pharmaron had 500 specialists working on the research of organic synthesis and maintained broad business exchanges with other celebrated domestic pharmaceutical plants. With a total investment of 25 million dollars and registered capital of 10 million dollars, the new company set up by Pharmaron in TEDA will specialize in providing outsourcing services related to the R&D of chemical compound of new medicine. Covering a land of 50,000 m2, the new company will only serve big foreign pharmaceutical companies and have an annual turnover of 200 million yuan. After the completion of the project, the new company will have 2,000 people in its R&D team in Tianjin and be listed in the Nasdaq Stock Market of the U.S. within next three years, becoming a new source of growth in TEDA’s pharmaceutical sector.
Pharmaceutical service outsourcing is one of the important areas encouraged by TEDA. At present, as many leading pharmaceutical companies like WuXi Pharma Tech, Asymchem Laboratories, etc. settled down in TEDA one after another, TEDA has become one of the most important pharmaceutical service outsourcing bases in China. (Tr. by Chen Yu)
INTERNATIONAL ECONOMIC & FINANCIAL ARBITRATION CENTER UNVEILED IN TEDA
Recently, the China International Economic and Trade Arbitration Commission (CIETAC) unveiled its Tianjin International Economic and Financial Arbitration Center in TEDA. On the same day, the 1st Meeting of the Steering Committee of the Tianjin Center and the CIETAC Tianjin Arbitrators’ Conference were also held.
Last year, the CIETAC signed a cooperative agreement with China Banking Association (CBA) as a major measure to improve arbitration quality through combining arbitration services with industry. The new Tianjin Financial Arbitration Center at the Tianjin Binhai New Area (TBNA) is a successful cooperation between arbitration services, industry and regional economy and will definitely promote financial arbitration services towards further depth.
As China’s earliest and largest professional commercial arbitral body, the CIETAC is a global leader of the industry. The Tianjin International Economic and Financial Arbitration Center, a non-governmental and non-profit professional legal service provider with independent right of arbitration, is subject to the direct jurisdiction of the CIETAC. The establishment of the Tianjin Center will be conducive to the building of a modern financial service system which is commensurate with Tianjin’s role as an economic center of North China. It will also be helpful for the betterment of the investment environment of the TBNA and the Bohai Rim as a whole. (Tr. by Zhang Shanshan)
CHINA’S BIGGEST WIND SYSTEM MANUFACTURING CENTER EMERGES IN TEDA
Recently Vestas held an earth breaking ceremony for its controller plant in TEDA West, the third time for the Danish giant in this industrial wonderland of North China. Since September, 2005, Vestas Wind Systems (China) Co., Ltd. has successively built and launched its blade plant, nacelle plant and generator plant. The new controller facility will make it possible for TEDA West to supply complete wind systems. So far, Vestas and TEDA have jointly hammered out China’s biggest wind system manufacturing base.
Ulrik Christensen, the Danish general manager of the controller plant, said that the establishment of the new facility is part of a long-term investment to meet the massive growth within the wind turbine industry and plays an important role in Vestas’global production footprint. The 15,000-square-meter new facility will focus on the production of control panels to supply the big Vestas family. (Tr. by Zhang Shanshan)
TEDA JOINS HANDS WITH AEON CO., LTD. AND THE LARGEST JAPANESE RETAILER COMES TO THE TBNA
Recently TEDA Group Co., Ltd. of Tianjin and Beijing AEON Co., Ltd., a solely owned subsidiary of Japan-based AEON Co., Ltd. in Beijing, held a ceremony to celebrate the signing of their cooperation agreement. With the generous support of the Administrative Commission of TEDA, the largest Japanese retailer officially settled down in the kernel area of the TBNA. The two sides will build a large shopping center, AEON Shopping Center, in TEDA Promenades. The center will contain facilities for shopping, catering and recreation.
Designed by Parsons, a famous American engineering management company, TEDA Promenades has a planning area of 1.16 million m2 and a construction area of 1.2 million m2. Featured by aquatic sceneries, TEDA Promenades is like an international theme park. TEDA Promenades combines such seven functions as exhibitions and conventions, sports and body building, shopping, entertainment, scenery, hotels and offices, and high-end residential buildings.
AEON Shopping Center is a sub-project of TEDA Promenades. With a total construction area of 105,000 m2, the center is designed according to the demands of AEON and will be managed by AEON. As another large shopping center of AEON after the one in Beijing, it contains a JUSCO supermarket, a high-end department store, a cinema, franchised stores, catering and recreation facilities and other supportive ones, and 2,500 parking places for motor vehicles. The project plans to commence its construction in July of 2008 and open its business in the first half of 2010.
Founded in 1926, AEON Co., Ltd. ranked No. 152 among Fortune Global 500 corporations in 2007 and is the 17th largest retailer group in the world. Boasting 168 groups and nearly 10,000 outlets worldwide, it operates in various ways, such as department stores, food supermarkets, convenience stores, etc. Meanwhile, it owns service companies specialized in business development, banking, finance, etc. At present, AEON enjoy the first position in terms of sales and space for sales operations in Japan. (Tr. by Chen Yu)
FIBERWEB COMMENCED PRODUCTION IN ITS SECOND STAGE PROJECT
The second stage airlaid material project of the UK-based Fiberweb Group started its production on June 20 in TEDA. The project boasts the largest airlaid paper production line in China.
Fiberweb Group is the world’s largest non-woven fabric producer. It set up Fiberweb (China) Airlaid Company Limited in TEDA in 1999 and added investment to build up its second stage production line. With a total investment of over 82 million dollars and an annual output of 26,000 ton of airlaid products, it has become the largest non-woven fabric production base in the Asia-Pacific region. (Tr. by Chen Yu)
ROHM TEDA EXPANDS OVERSEAS PRODUCTION BASE
The Japan-based Rohm Semiconductor (Tianjin) Co., Ltd. recently announced it plans to launch a LSIC package project in its Tianjin factory and realize a 20-million-unit capacity within this year, upgrading Tianjin into its overseas comprehensive production center.
Set up its Tianjin company in Xiqing Development Zone in 1993, Rohm expanded its local capacity via reinvestment and moved into TEDA Micro-electronics Industrial Park in 2000. The Rohm Semiconductor (China) Co., Ltd. was set up with a total investment of 240 million dollars in 2005 and registered a sales of 3.16 billion dollars in 2007. Its products are widely supplied to digital camera, digital video camera, mobile phone, computer, auto electronics and home appliance producers. (TR. by Zhang Shanshan)
R&D center of Hyundai Hi-Tech Electronic (Tianjin) Co., Ltd. of south korea Settles in THE Microelectronics Industrial Park of TEDA
Recently Hyundai Hi-Tech Electronic (Tianjin) Co., Ltd. signed an agreement with Corporation of Microelectronics Industrial Park. The company officially settled down in the Microelectronics Industrial Park and set up a R&D center of high-grade auto electronics products.
Hyundai Hi-Tech Electronic?Tianjin?Co., Ltd. was solely founded by Autonet Co., Ltd. of South Korean Hyundai Motor Company, with a total investment of 18 million dollars. It specializes on the production of such high-end auto electronics products as auto stereo systems, in-car navigation systems, AV systems, SRS control systems, etc. It supplies accessories not only for its major clients such as Beijing-based Hyundai Motor and Yancheng-based KIA Motors but GM, DaimlerChrysler, and Ford. The company grew rapidly in recent years. Its sales stood at 160 million dollars in 2007 and will reach 300 million dollars in 2008, and is expected to reach 800 million dollars in 2010.
To provide technical support for its global production, Hyundai Hi-Tech Electronic?Tianjin?Co., Ltd. set up a R&D institution in the Microelectronics Industrial Park. Based on the existing 18 million dollars of investment, the company added anther 3.5 million dollars of investment for the continuous R&D and rapid commercialization of auto stereo systems, electronics and information systems, auto electronics and related parts and components. Meanwhile, the company emphasizes that quality management should be applied in all processes of the company, such as planning, R&D of products, procurement of raw material, production, sales, A/S, etc. The company concentrates on the R&D of in-car AV systems, auto SRS control systems, and the most advanced integrated driver information systems. Two year later the R&D center will be split from the company and develop into a legal person and independent R&D institution. By then, it will become the largest R&D center of Autonet outside South Korea, with a total investment of 10 million dollars and 200 employees. (Tr. by Chen Yu)
TEDA LAUNCHES THE 1ST DISTRICT DIGITAL URBAN MANAGEMENT SYSTEM OF TIANJIN
Recently, the first digital urban management system of Tianjin debuted in TEDA. With the system, TEDA will be able to upgrade its urban management capacity in a sustained way.
With the rapid economic and social progresses of TEDA and the TBNA, a well-functional urban management system became a necessity. Having recognized digital urban management technologies as a key to uplifting efficiency and after thorough research and discussion, the TEDA Administrative Commission decided to earmark 12 million yuan to build a digital urban management system, which was named one of the 12 Objectives on TEDA’s 2008 agenda. For that purpose, the General Office and Urban Management Bureau of TEDA have jointly set up a project team. After six months of feasibility study, the project entered bidding process in April, 2008. It is learned that it will be carried out in two phases. The first phase, which was wrapped up recently and passed the expert review organized by the Ministry of Construction on 21 of June, is mainly about base module building as required by the MOC. The second phase, which is scheduled to be finished by the end of this September, is to apply these modules to TEDA’s reality.
Based on the existing information network and data, TEDA digital urban management system will offer a consistent platform which breaks down the entire region into many 10,000-square-meter units to implement city grid management in public utilities, landscaping, etc. Grassroots supervisors, urban management centers and various supervisory agencies in TEDA can all get access to the platform through the Internet. Its business process includes information gathering, case registration, task assignment, task disposal, feedback, case verification and case resolution. Once completed, the scientific urban management system, effective evaluation system, inclusive urban management framework, and one-stop service model will surely dramatically improve local urban management capacity. (Tr. by Zhang Shanshan)