Foreign cash bolsters a coastal boom
25/4/2005 16:29
An advanced manufacturing base along the bank of the Yangtze River has
taken shape in the Jiangyin City. Under its ongoing construction of Jiangyin
Economic Development Zone, which was kicked off in 1992 along the bank of the
Yangtze River, the city has attracted many foreign-invested firms. These
include the DSM Group, a Dutch provider of life-science products, performance
materials and industrial chemicals; the Belgium-based Bekaert Group, provider of
metal transformation, coatings and materials; and the Owens Corning Group, a
supplier of building materials from the United States. In the first three
months of this year, the zone introduced 32 foreign-invested
projects. Twenty-four of these involved investment of more than US$10 million
each. At the same time, the zone's overseas contracted investment in use
reached US$520 million and direct overseas investment in use hit US$210 million,
both registering a robust increase of more than 15 percent year-on-year. A
Korean investor said the city's convenient traffic makes it attractive to
foreign companies that want to enlarge their markets in China. Located beside
Yangtze River, Jiangyin has strong traffic lines both on roads and on
water. To take advantage of its prime location, the city has reconstructed
its economic development zone along the river. More and more foreign
investors have launched manufacturing bases in the Yangtze Delta because of its
cheaper labor and distribution network. By the end of last year, the zone had
attracted 1,399 foreign-invested projects with contracted investment in use at
US$4.26 billion and direct investment of US$2.25 billion. Twelve of the
projects involve investment of more than US$100 million each. The area's
growth has been based on eight pillar industries: IT; steel; electric power;
biological and pharmaceutical; metal fabrication; oil and chemicals; packaging;
and logistics. Based on those industries, the city expects to open stores
stretching from the edge of its manufacturing zone to the city center to enlarge
the business for the enterprises in the zone. In 2002, the zone also opened
Jingjiang Park in Jingjiang City, its neighbor separated by the Yangtze River,
to seek more land for its development. As the nearest northern neighbor to
Shanghai, Jiangyin City is a county-level city in Jiangsu Province. In recent
years, it has been the largest electric power base in southeast China. When
the third and fourth construction phases of Jiangsu Ligang Electric Power Co Ltd
are completed, the total power capacity will reach 3.8 million kilowatts. In
the first three months this year, overseas direct investment in the city hit
US$247 million, while it was US$132 million from January to February.
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