West­ern China hub draws lead­ing intl projects

China Daily (USA) - - CHENGDU SPECIAL - By ZHUAN TI

Chengdu is draw­ing high­tech projects from around the world as it be­comes more in­te­grated into the world econ­omy.

As an eco­nomic cen­ter in west­ern China, the city at­tracted a num­ber of high­end man­u­fac­tur­ing projects dur­ing the 16th West­ern China In­ter­na­tional Fair, a State-level in­ter­na­tional ex­po­si­tion held in the city ear­lier this month.

Zhe­jiang Geely Hold­ing Group signed three in­vest­ment agree­ments worth 35.5 bil­lion yuan ($5.15 bil­lion) with the city to strengthen co­op­er­a­tion in auto man­u­fac­tur­ing.

Geely started its in­vest­ment in Chengdu in 2007 by set­ting up a man­u­fac­tur­ing base. Then in 2010, the com­pany pur­chased Volvo, which is head­quar­tered in Gothen­burg, Swe­den, and later built Volvo’s first man­u­fac­tur­ing plant on the Chi­nese main­land in Chengdu.

One of the newly signed projects will be lo­cated in the Chengdu part of the Tianfu New Area, China’s 11th na­tional-level de­vel­op­ment area ap­proved by the State Coun­cil in Oc­to­ber 2014.

It will pro­duce high-per­for­mance, purely elec­tric ve­hi­cles un­der the Volvo brand, as well as lo­cally-branded purely elec­tric ve­hi­cles.

Li Donghui,

ex­ec­u­tive vi­cepres­i­dent of Geely

The sec­ond project will bring in Volvo’s Scal­able Prod­uct Ar­chi­tec­ture, a global full­size uni­body au­to­mo­bile plat­form de­vel­oped and pro­duced by Volvo.

The third project will pro­duce Geely’s BMA ve­hi­cles, us­ing the lat­est mod­u­lar ar­chi­tec­ture sys­tem de­vel­oped jointly with Volvo, as well as ad­vanced hy­brid and plug-in hy­brid power sys­tems.

The three projects will have an an­nual pro­duc­tion ca­pac­ity of 600,000 units.

Li Donghui, ex­ec­u­tive vice-pres­i­dent of Geely, said the three projects will fur­ther boost the de­vel­op­ment of Geely’s Chengdu base. He ex­pects the an­nual out­put value of the Chengdu base to reach 100 bil­lion yuan af­ter the projects are put into op­er­a­tion.

“Geely’s suc­cess in Chengdu ben­e­fits from the high ef­fi­ciency of the lo­cal govern­ment, the fa­vor­able en­vi­ron­ment for in­vest­ment, as well as the de­vel­op­ment op­por­tu­ni­ties cre­ated in Chengdu as it is des­ig­nated by the cen­tral govern­ment as a na­tion­ally cen­tral city,” he said.

Li said Geely will build the Chengdu base into one of its most im­por­tant strate­gic bases for new en­ergy ve­hi­cles, serv­ing the mar­kets along the Belt and Road.

The Chengdu city govern­ment also signed a strate­gic co­op­er­a­tion agree­ment with a group of lead­ing new en­ergy car­mak­ers to es­tab­lish a new en­ergy ve­hi­cle in­dus­try al­liance.

The Chengdu New En­ergy Ve­hi­cle In­dus­try Al­liance aims to es­tab­lish a co­op­er­a­tion plat­form for the whole in­dus­trial chain of Chengdu’s new en­ergy auto in­dus­try, help­ing to make the city an in­ter­na­tion­ally com­pet­i­tive new en­ergy ve­hi­cle man­u­fac­tur­ing base.

The auto in­dus­try is a pil­lar of Chengdu’s econ­omy. The Longquanyi district, lo­cated in eastern Chengdu, has gath­ered au­tomak­ers in­clud­ing Dongfeng Peu­geot Citroen Au­to­mo­bile, FAW-Volk­swa­gen and Geely, as well as many car com­po­nent sup­pli­ers.

The city is ex­pected to pro­duce 1.1 mil­lion ve­hi­cles this year, and the lo­cal auto in­dus­try is ex­pected to gen­er­ate a to­tal out­put value of 200 bil­lion yuan.

Dur­ing the fair, Ger­many­based Siemens AG signed an agree­ment worth one bil­lion yuan with BOE Tech­nol­ogy Group’s Chengdu sub­sidiary to help the lat­ter up­grade its pro­duc­tion line.

Ac­cord­ing to the agree­ment, Siemens will trans­form BOE’s pro­duc­tion line in Chengdu ac­cord­ing to the stan­dards of the Ger­man In­dus­try 4.0 strat­egy.

Dur­ing the West­ern China In­ter­na­tional Fair in 2011, Siemens signed an in­vest­ment agree­ment with the Chengdu Hi-tech Zone to es­tab­lish the com­pany’s first mod­ern dig­i­tal fac­tory in China.

In July, Siemens an­nounced that it would in­crease its pres­ence in Chengdu by set­ting up an independent le­gal com­pany with reg­is­tered cap­i­tal of 330 mil­lion yuan.

“Choos­ing Chengdu was a wise de­ci­sion,” said Roland Busch, mem­ber of the man­ag­ing board of Siemens dur­ing this year’s West­ern China In­ter­na­tional Fair.

Chengdu will also up­grade its co­op­er­a­tion with Dell Inc to make its Chengdu man­u­fac­tur­ing base into one of the com­pany’s most com­pet­i­tive R&D and man­u­fac­tur­ing bases in the world, ac­cord­ing to the city’s in­vest­ment pro­mo­tion com­mis­sion.

Geely’s suc­cess in Chengdu ben­e­fits from the high ef­fi­ciency of the lo­cal govern­ment ...”

PHO­TOS BY PENG CHAO / FOR CHINA DAILY

Chengdu’s ex­hi­bi­tion sec­tion at the fair shows the pro­vin­cial cap­i­tal’s am­bi­tion to be­come a na­tion­ally cen­tral city.

PENG CHAO / FOR CHINA DAILY

Ger­man Com­pa­nies Ex­hi­bi­tion Zone at the fair hosts a num­ber of lead­ing com­pa­nies.

Vis­i­tors shop for am­ber prod­ucts from Poland.

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