Tianjin Investment Zones

Wednesday, June 6, 2007 4:59

Located just an hour and a half away from Beijing (in good traffic) or 1 hour by train, Tianjin has a population of 10 million residents, a long history of foreign investment, and its future is only looking better as the Binhai area attracts more investment.

Anchored not only in history, the Tianjin Economic Development area (anchored by Motorola) and the Tianjin port have been critical to the development in the area… and through their combination, Tianjin has over the last few years competed nearly head to head with Suzhou for the most desirable second tier city.

To continue this success, the government is pushing a number of new promotions within its numerous parks, two of which we would like to highlight:

Tianjin Economic Development Area (TEDA):

Like SIP in Suzhou, the Tianjin Economic Development Area is a zone that has been very successful at attracting numbers of foreign manufacturers, and their investment. To date, more than 4200 companies (40 Fortune 500) have invested more than 20 billion. While known more for high tech production facilities like the Motorola facility (one of China’s largest investments), there have also been significant investments made by PPG, Shell, and dozens of other chemical and plastic companies. Being so close to the Tianjin port, many of the companies located inside the park are there to import components and match with domestically sourced products for export.
Basic Stats: TEDA Motherzone is within 20 minutes of downtown, companies invested from 74 countries; GlaxoSmithKline, Inc, Nestle SA, ABB Group, Toyota Motor; Business license takes 5 working days at 1 stop shop; Transit time to Shanghai for container is 2-3days on truck; FActory labor costs between 1200 – 1600RMB/ month

Tianjin Lingang Development Zone:
Opened in 2005, the Lingang Development Zone has about 22km2 of land located nearby both TEDA and the Dagang chemical zone (50km from city center). As one of the newest zones, Lingang still has a lot of land available for purchase, and has a few existing structures available for rent. The largest projects have come from LG and state owned enterprises. It is an area, and its facilities, are geared more towards oil and gas rather than small manufacturing. Primary industries being targeted are: Petrochemical, Marine Chemical, and fine chemical
Basic Stats: Investments from 20+ companies: LG, Stolt-Nielsen, Air Liquide Business license takes 10-14 days, and environmental impact can take up to 4 months; 220KVA power plant (1), 110KVA power plant (1); 4 fire fighting stations w/ special equipment

Besides being close to Beijing, and having the second largest port in China, Tianjin also has a long history of industrial development. As a major area of focus for the New Binhai Development area, there will be a number of incentives for foreign companies to invest in the area, and the majority of tianjin’s 15 or so parks have recently revisited their offerings.

For foreign expats, Tianjin has yet to achieve the quality of life that Beijing or Shanghai would offer, but with many areas of Tianjin under development, it is only a matter of time before the lifestyle reaches a comparable status.

We hope you have enjoyed the information.

As always, we hope those in Tianjin will share their comments about the city, and its prospects. We have recently assisted one company in the area, and our opinion is just that.. ours. and we hope you will share yours.

Next up..Xiamen (Macro-profile here)

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