Guang­dong Con­struc­tion to step up over­seas play

China Daily (Hong Kong) - - BUSINESS - By XU JINGXI in Guangzhou xu­jingxi@chi­

Guang­dong Con­struc­tion En­gi­neer­ing Group Co Ltd, a State-owned in­dus­try leader based in Guangzhou, plans to ex­pand its over­seas busi­ness by in­creas­ing in­vest­ments and strength­en­ing R&D.

To­ward this end and other pur­poses, GDCEG has co-launched a series of in­vest­ment plat­forms with banks as well as gov­ern­men­tal and non­govern­men­tal funds.

These plat­forms can draw in­vest­ments worth more than 50 bil­lion yuan ($7.35 bil­lion), said Qiu Xiaoguang, chair­man of the board of GDCEG.

The plat­forms are ex­pected to help the SOE in­crease its over­seas in­vest­ments, which are very lim­ited now.

Over­seas busi­ness takes only about 10 per­cent of the to­tal vol­ume, with projects in Laos, Cam­bo­dia, Myan­mar and the Mid­dle East.

For ex­am­ple, it built the first thor­ough­fare in Vi­en­tiane, the cap­i­tal and largest city of Laos, and has a plan to in­vest in a power sta­tion in Laos.

“The Belt and Road Ini­tia­tive gives us op­por­tu­ni­ties to go global. We are care­fully in­creas­ing our in­vest­ments over­seas, es­pe­cially in South­east Asia,” said Qiu.

With the help of the planned in­vest­ment plat­forms, GDCEG will be able to par­tic­i­pate in more and big­ger do­mes­tic pub­lic-pri­vatepart­ner­ship projects as well, Qiu said.

For in­stance, it is work­ing with the city gov­ern­ment of Meizhou in Guang­dong province on an 8-bil­lion-yuan project to re­build shanties.

GDCEG is also guid­ing its two ma­jor sub­sidiaries to­ward big projects, in­clud­ing some sta­tioned abroad.

To take ad­van­tage of city rails’ rapid de­vel­op­ment, China Tun­nel Con­struc­tion (Guang­dong), one of its sub­sidiaries, is go­ing to build a pro­duc­tion base ca­pa­ble of mak­ing 50 sets of tun­nel-bor­ing ma­chines for the mar­kets in South China and in South­east Asia, ac­cord­ing to Zhao Hui, the com­pany’s pres­i­dent.

In 2013, China Tun­nel Con­struc­tion in­vented China’s first tun­nel-bor­ing ma­chine that can use both earth pres­sure and slurry to ex­ca­vate tun­nels.

There are two sets of such ma­chines and they have proved their safety and ef­fi­ciency in the con­struc­tion of sub­way lines 9 and 21 of Guangzhou, which were deemed the city’s two most dif­fi­cult sub­way lines to build be­cause of the com­pli­cated land­forms they run through.

China’s city rail trans­porta­tion is on a fast track of de­vel­op­ment. By Septem­ber, the Na­tional De­vel­op­ment and Re­form Com­mis­sion had ap­proved the plan of build­ing rail­way sys­tems in 43 cities that have a to­tal track length of about 8,600 km.

Guang­dong Pro­vin­cial Academy of Build­ing Re­search Group, the other ma­jor sub­sidiary of GDCEG, owns the coun­try’s big­gest wind tun­nel lab­o­ra­tory, which con­ducted the im­por­tant wind tun­nel test­ing for the Can­ton Tower in Guangzhou and the Sul­tan Ibrahim Larkin Sta­dium in Malaysia.

The re­search com­pany is build­ing a four-times-big­ger wind tun­nel lab­o­ra­tory in Guang­dong province, which will en­able the com­pany to take larger projects such as test­ing for huge bridges, ac­cord­ing to Qiu.

Founded in 1953, GDCEG is the main builder of of­fice build­ings, wa­ter con­ser­vancy projects, rail traf­fic fa­cil­i­ties, roads and bridges as well as ar­chi­tec­tural icons in South China.

Its profit from Jan­uary to Oc­to­ber was 370 mil­lion yuan, up 44 per­cent year-onyear. It plans to boost its an­nual net profit to more than 1 bil­lion yuan by 2020 and an­nual rev­enue to more than 50 bil­lion yuan.

To achieve this goal, the SOE is up­grad­ing and trans­form­ing it­self from a builder to a provider of com­pre­hen­sive ser­vices for city de­vel­op­ment, cov­er­ing every link in the in­dus­try chain — plan­ning and de­sign, sci­en­tific re­search, build­ing, in­vest­ing and fundrais­ing, and op­er­a­tions man­age­ment.

The Belt and Road Ini­tia­tive gives us op­por­tu­ni­ties to go global.” Qiu Xiaoguang, chair­man of the board of GDCEG ex­pected an­nual net profit of Guang­dong Con­struc­tion En­gi­neer­ing Group by 2020

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