Growth slows in Fengpu Industrial Park
16/8/2004 11:31
Dramatic growth in industrial output will cool down this year in Shanghai
Fengpu Industrial Park, one of the city's top industrial zones.
Last year,
industrial output from the park hit 6.47 billion yuan (US$779.52 million), up
245 percent year on year. In the first half of this year, output only climbed 30
percent.
"Pioneer and China Putian launched their plants in the zone last
year, which brought us a great fortune," said Pan Hongxing, director from the
Economic Operation Office from Fengxian District's economic committee.
The
two company's output reached about 5 billion yuan last year, accounting for
nearly 80 percent of the zone's total. Pioneer is a Japan-based electronics
producer while China Putian is a state-owned IT enterprise as well as the
manufacturer of Little Smart - a wireless telephone system based on a fixed-line
network.
However, rapid growth hasn't materialized this year. The park has
attracted 16 new firms since the beginning of the year, but none have started
operations yet.
"Though we attracted these companies, we don't have enough
land for them presently," said Li Yongjie, the deputy director of Fengpu
Management Committee from the park.
The industrial park wants to expand a
further 12.38 square kilometers. However, most of the land provided for the new
investments were awaiting approval from the municipal government.
"We believe
we can get the approval," Li said. "We are not simply selling land, but using it
to attract more competitive firms."
The park favors foreign companies and
requires a registered investment of at least US$150,000 per 0.12
hectares.
"The park does not only absorb foreign investment though, we
welcome national firms such as China Putian, but everyone has to meet our
requirements," Li said.
For national firms, the registered investment is
about 2 million yuan per 0.12 hectares.
Pan also said: "It takes time to
attract qualified firms and accommodate them properly. Pioneer and China Putian
also spent years settling in the park."
To develop the park, residents need
to be relocated, which is a difficult and time- consuming task for the
government.
Established in 1995, the park has the same importance as
Zhangjiang High-Tech Park and Shanghai Chemical Industry Park - the city's key
industrial zones.
The park prefers industries that don't cause much pollution
such as IT, gadgets, electricity and pharmaceuticals.
About 125 other
enterprises including Panasonic, General Electric and Shanghai Lei Yun Shang
Pharmaceutical Co Ltd, an old Chinese medicine brand, had opened in the park by
the end of last year.
The park also set up a national-level export
processing zone.
Li said: "With the rapid development of the city,
infrastructure is not the key to attract investment anymore. Most of the zones
are putting emphasis on after services."
Wu Jin
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