Chengdu Investment News: June 4

Wednesday, June 4, 2008 8:36
Posted in category China's Other Cities
Comments Off on Chengdu Investment News: June 4

1. Industrial Bank still chose Chengdu as the site for its “three centers”
On May 19th, Industrial Bank Chengdu Branch provided the first loan of 200 million yuan in support of the reconstruction of the quake-stricken areas via Chengdu urban construction investment management group. At the signing ceremony, Chen Jingguang, head of the bank’s Chengdu subsidiary formally announced that Industrial Bank still chooses Chengdu as its home front after Sichuan Wenchuan encountered the earthquake of such magnitude, and is to invest at least 500 million yuan in Chengdu to build its client service center, background operation center and anti-disaster center.

2. First big project signed after earthquake, Tencent to invest 550 million yuan to build base in Chengdu
On May 22nd, Tencent signed with Chengdu High-tech Zone a cooperation agreement and is to invest 550 million yuan in Chengdu to build its R&D center, data processing center and client services center, estimated to have 1,500 employees within 3 years. Tencent is the first company that came to Chengdu to invest after the earthquake of Wenchuan.

“To invest in Chengdu is conforming to our strategy!” said Chen Yidan, senior vice President and CEO of Tencent: numerous colleges and universities in Chengdu with a strong advantage in talent, while local culture, living environment, as well as the open attitude and policies of government supporting development bolster our choice, “although here occurred the earthquake, our confidence in Chengdu is not shaken.”

He also revealed that before making the decision, Tencent had invited earthquake experts to make a thorough analysis of Chengdu’s geology, and then finalized the corporate action prudently. “During this earthquake, the central part of Chengdu is less impacted, which our expert believes is due, on one hand, to a riftzone separating the central city from the Longman Mountain seismic belt, and on the other, to the swampy sandy fluvial plain beneath the soil of Chengdu, which naturally cushioned the strike of the earthquake.”

It is reported that Tencent is one of China’s biggest internet integrated services providers, and also Asia’s first and the world’s third internet instant communication services provider. The company so far has made direct donation added up to 20 million yuan, donating and fundraising more than 36 million yuan.

3. In developing in Chengdu, we are still full of confidence
On May 22nd, Ge Honglin, vice secretary of the CPC municipal committee and mayor of Chengdu met a delegation headed by Gao Ruibin, Motorola’s senior vice President and President of China Corporation. Gao Ruibin applauded the quick reaction and handling capability of the municipal government in face of the natural calamity of such magnitude, and he said Motorola’s confidence in developing in Chengdu will not be changed and best efforts be carried out to support the reconstruction work of the city. The Chengdu-based R&D center of Motorola has already resumed normal operations.

4. Toyota Boshoku invested 500 million yuan in Chengdu to make auto parts
Fortune Global 500 company, Toyota Boshoku’s Automotive Parts Co. Ltd followed its prearranged plan and signed with Longquanyi district government an investment agreement of 500 million yuan a few days ago. The project based in the Chengdu Economic and Technological Development Zone (CETDZ) focuses on the production of vehicle seats, interior ornaments and other related auto parts, which will achieve annually 1.5 to 2 billion yuan of sales revenue and 100 million yuan of tax income after meeting full competence, providing more than 200 job vacancies.

“We have gone through a synthesized evaluation, and the earthquake will not sway our confidence in Chengdu”, said the general manager of Chengdu Fengtianfang Auto Parts Co. Ltd, and the CETDZ has gathered over 40 automotive projects including FAW, Geely, Sichuan Automobile and Yikong Gaoke, having formed a relatively intensive automotive industrial cluster, and in the meantime, the city’s convenient transportation and broad radiating coverage of the western China market make it a choice of reason and rich prospect for the auto parts manufacturing to be invested here. It is reported that the construction will start in August.

5. Intel Chengdu factory resumed normal production
As introduced by Intel China, after the outbreak of the Wenchuan earthquake, Intel Chengdu factory was shut down briefly, and May 16th, 1600 employees returned to the factory and the production lines were put into normal operation. Intel Vice President of and Great China General Manager Yang Xu days ago had already led a group to Chengdu and discussed with the local government about the idea of the reconstruction of the disaster areas, and Intel President Barrett’s end-June visit to Chengdu will not change, revealed Intel China.

It is reported that earlier on May 22nd, Intel (China) Co. Ltd and Intel Fund has announced to add 35-million-yuan donation to the regions hit by 8.0-magnitude earthquake of Wenchuan, Sichuan, mainly for the reconstruction of school facilities and returning of students to schools. Up to now, Intel has contributed over 45 million yuan to support China’s relief efforts.

6. Nine supporting measures adopted by Chengdu Customs
From this very day, import and export business from companies from all quake-hit areas in Sichuan can benefit the around-the-clock customs declaration services provided by Chengdu Customs, and meanwhile, to the companies who due to the earthquake damage could not declare or pay the tariff on time, the resulting late fee could be remit. On May 24th, Chengdu Customs announced nine measures, aiming to ensure the quick passage of needed materials to the disaster-hurt areas, solve effectively the actual problems encountered by companies while importing and exporting goods after the earthquake, and to support the speedy reconstruction of earthquake-stricken regions and the prompt recovery of influenced companies.

7. Investment of 2 billion yuan, Chengdu-Wenjiang light industry machinery park project concluded
On May 25th, China Xinya Investment Group Co. Ltd signed a cooperation agreement with Dayi county for Chengdu-Wenzhou light industry machinery park. The investment amount is 2 billion yuan.

Xinya investment group is China’s first leading printing company and the biggest in Zhejiang province. Xinya group will build a Chengdu-Wenjiang light industry machinery park with 2,000mu land and 2 billion yuan investment, mainly for the transferring of Wenzhou’s industries, including machinery manufacturing, printing and packaging, food and beverage, new material and textile and costumes etc.

8. Futong Group urgently added 35-million-yuan investment to Chengdu
After the outbreak of the Wenchuan earthquake, some companies immediately responded and donated money and material to heavily-hit areas to support their relief efforts, and in the meantime, they hold their confidence in Chengdu and urgently added investment to the city. May 26th, the journalist learnt from the industrial and commercial bureau of Chengdu and of the High-tech Zone that, the famous private company Zhejiang Futong Group donated 1 million yuan on hearing the disaster, and the same night urgently transported the donated communication optical fiber cables worth 1.38 million yuan to the front line. May 19th, Group headquarters decided in unanimity to add 35 million yuan to Chengdu, and May 20th, the registration was completed in Chengdu.

Xu Dong, General Manager of Futong Group (Chengdu) Company, revealed that this year the company will finish the investment of 630 million yuan in the city, and besides that, the group will introduce more partners to invest in Chengdu.

It is reported that Futong engages itself in the development of electronic information in Chengdu, mainly to produce optical fiber precast rod, optical fiber cable, telecommunication cable, data cable and some related products. The completion of the project will fill the blank of the high-end optical fiber material production in Southwest China, and become West China’s biggest optical communication fabrication base.

9. Carrefour: plans to open 5 stores in Chengdu within three years
On May 27th, the Fortune Global 500 company – Carrefour’s China Section President and General Manager of Central and West China division Jean Luc Lhuillier in Chengdu proclaimed that Carrefour still holds full confidence in Chengdu’s investment environment after the devastating earthquake happened in Wenchuan: it will further invest 250 million yuan to open 5 stores within three years. “The iron and courageous Sichuan people make Carrefour more confident in investing here”, said Jean Luc Lhuillier.

Up to that day, Carrefour headquarters has donated 23 million yuan to the disaster-hit areas, while its Chinese employees collected 1.2 million yuan. Carrefour is said to be the French company in China who made the biggest donation for the earthquake.

10. Chengdu (Longjian) Modern Industrial Concentration Development Zone took off
According to the introduction of Longquanyi district, the Chengdu (Longjian) Modern Industrial Concentration Development Zone built jointly by the district and Jianyang city was formally put into operation recently. The orientation of the zone is towards machinery manufacturing, electronic and electrical appliances production, metallurgy and new material, deep procession of agricultural products and airport-adjacent business activities, etc. The industrial park strives to use 3 years to develop a concentration development zone of 30 square meters, which to realize 30 billion yuan of sales revenue a year, and by 2012, reach 50 billion yuan.

11.Two companies joining hands to develop wind power generation equipment supplementary project
Having already established in Qingbaijiang district, on May 27th, Zhejiang Tianma Railway Bearing Co. Ltd and Hong Kong Migao Group signed again with the district to jointly develop the wind power generation equipment supplementary project by making good use of the industrial chains within the district.

It is learnt that the Tianma Bearing will mainly produce high-precision bearings for wind power generator, with total investment of 550 million yuan, while Migao Group involves largely the manufacturing of wind power generation equipment, investing 56.6 million US dollars. The two projects will provide about 2,000 job vacancies.

12.Celebrity City Hotel to move its China headquarters to Chengdu
Famous hotel chain management group – Celebrity City Hotel (China) Co. Ltd at the colloquia for important companies of Qingyang district post-earthquake held on May 28 formally announced that the company is going to move its China headquarters from Hong Kong to Chengdu, while at the same time to increase its total investment from originally 5 million to 100 million US dollars.

General Manager Wang Ling held that the earthquake on the whole will not change the basic aspect of Chengdu’s economic development, especially with the steadily growing income of residents, guiding and boosting of state policies, as well as the holding of important activities such as Olympics, Chinese tourism and hotel industry thus have enormous development room and a bright future; moreover, more policies has been and will be issued to support the reconstruction work of Sichuan province, and Chengdu’s government department at all levels have also adopted effective measures to prop up the development of companies, “therefore, we still look upon Chengdu as a market with fairly great development potential and believe that with the recovery of economy in quake-hit areas, more opportunities will come forth”.

13.CNBM to increase investment in Chengdu
China National Building Material Group Corporation (CNBM) has decided to invest 4 billion yuan in Chengdu to build the industrial base of light-weight residence and new-type dry-process cement project, and also add another 3 billion yuan to the city to construct China’s biggest production base of fiber glass. The signing ceremony of the project was held between CNBM and the municipal government on May 28th.

14.IBM to continue increasing capital and expanding capacity in Chengdu with two years
On May 28th, while meeting with Ge Honglin, mayor of Chengdu, Zhou Weikun, vice President of IBM Greater China expressed the firm confidence of IBM in Chengdu’s development prospect, “this year, we will continue to push forward the expansion plan of our service-outsourcing base located in Chengdu High-tech zone, and next year with the same speed to develop business in the city”.
It is introduced that employees in Chengdu company will grow from currently 600 to nearly 1,000 at the end of the year. IBM will donate all the related software and hardware of SAHANA system and also provide technical support to the quake-hit areas to help improve their disaster relief and emergency management systems.

Both comments and pings are currently closed.