Weifang zone to charge up new economic growth drivers
Key projects worth billions identified, investment procedures simplified as industrial area fosters growth
The Weifang Hi-tech Industrial Development Zone is set to develop into a leading demonstration area in eastern Shandong province, in a bid to replace old economic growth drivers with new ones in 2018.
The high-tech zone has identified 337 key projects and will focus closely on supporting them in the current year.
Zone officials estimate the total investment for the raft of projects will top 200 billion yuan ($31.6 billion).
Projects include a smart factory for Chinese high-tech acoustic company GoerTek’s wearable products such as VR headsets, an international component distribution center for diesel engine producer Weichai Group and an engine production facility for automaker Foton Motor.
Government officials have been assigned to individual projects in order to solve problems in an effective and efficient manner. Detailed timings and completion times for individual projects are also being set in advance.
The zone believes that new projects are the foundation for promoting its economic upgrade and transformation. Officials say that is why the local government is paying so much attention to supporting the key projects.
One example is Weichai’s new energy industrial park.
The blueprints for the construction of the park include one of China’s biggest new energy motor production centers and a world-leading hydrogen-power battery production center.
There will also be a commercial vehicle new energy powertrain factory, a cuttingedge new energy forklift plant and a new energy light commercial vehicle production center.
Weichai Group President Tan Xuguang said: “The construction of the new energy industrial park is the key project among all the projects in Shandong province, in its effort to transform from old to new economic development drivers.”
Weichai is not the only market player that has obtained strong support from the zone. GoerTek’s new projects include the smart city project, a photovoltaic industrial park and a smart factory for wearable products are also progressing as planned.
Construction of Shengrui Transmission’s 300,000-unit annual capacity transmission production line and the second phase of its industrial park is also going well.
Shandong has unveiled its economic upgrade plans, which call for more focus on promoting development of 10 industries, including a highend equipment manufacturing industry and a new generation information technology industry.
The zone’s industrial development will serve Shandong’s efforts to upgrade its industrial base.
Weichai’s new energy and new materials business, and GoerTek’s new generation IT, as well as Weichai and Shengrui and Foton’s high-end equipment manufacturing, have all established strong positions in their respective fields.
Companies in the zone realized significant business expansion last year.
Weichai reported more than 220 billion yuan in sales revenue in 2017, up 65 percent year-on-year. GoerTek reported 42.9 percent growth year-on-year in revenue, while Weifang Special Steel Group announced a 17.9 percent yearon-year increase in sales.
Foton, meanwhile, posted 14.4 percent year-on-year higher revenue in the high-tech zone, while Shengrui reported 14.1 percent year-on-year sales growth.
Apart from the big companies, small and medium-sized enterprises in the zone are also endeavoring to be future business leaders.
Huisheng Group has become a major force in developing insulation materials for voltage transformers in China. Power HF, a company specializing in diesel engines and manufacturing generators, plans to be listed on the main boards of China’s stock markets.
Officials say the zone has consolidated its business registration processes and has integrated multiple certifications and licenses into one consolidated business license, making it easier for companies and individuals to apply.
In addition, the zone has further simplified its procedures for investments in six sectors, such as public schools and the upgrade of shanty towns.
Tailor-made recruitment policies are also available for companies to hire more highcaliber professionals. Weichai plans to recruit international technical experts and industrial leaders to build a team of 2,000 to 3,000 engineers.
Officials say that in the coming years, the zone will continue to promote reforms of its services, innovate its administrative model and push its economic upgrade forward.