VIEWS: 299 PAGES: 18 CATEGORY: Markets / Industries POSTED ON: 12/8/2009
Auto industry is one of the leading industries of Chengdu which has reached a considerable scale after over one decade of steady growth. The city of Chengdu currently hosts 155 auto companies (16 whole-vehicle manufacturing and vehicle-reassembly companies and 139 parts manufacturers) employing a total of more than 39 000 people.
Guide to invest in the Automobile industry in Chengdu Contents 1. THE INDSUTRY STATUS QUO………………………………1 1.1 THE INDUSTRY PROFILE………………………………1 1 . 1. 1 T he ove ra ll e co n o mic fi gu res of t he a ut o i nd us try …… … 1 1.1.2 The industry growth………………………………………2 1.2 ABOUT THE INDUSTRY CHAIN…………………………2 1.2.1 1.2.2 The The whole vechicles………………………………………2 parts…………………………………………2 vehicle 1.2.3 The representative companies……………………………3 1.3 THE MARKET PROFILE……………………………………5 2. INVESTMENT ENVIRONMENT………………………………5 2.1 LABOR RESOURCE………………………………………5 2.1.1 2.1.2 2.1.3 Labor/HR Labor HR supply…………………………………………5 cost…………………………………………………7 services………………………………………………8 2.2 INFRASTRUCTURE………………………………………9 2.2.1 2.2.2 2.2.3 2.2.4 Wa t e r supply……………………………………………9 supply………………………………………9 supply………………………………………10 treatment …………………………………10 Electricity Natural gas Sewage/water 2 . 2 . 5 Te l e c o m m u n i c a t i o n s a n d i n t e r n e t a c c e s s … … … … … … … 1 1 2.3 LOGISTICS…………………………………………………11 2.3.1 Air t r a n s p o r t a t i o n … … … … … … … … … … … … … … … … 11 transportation…………………………………14 transporation…………………………………16 2.3.2 Railway transportation……………………………………12 2.3.3 2.3.4 Highway Wa t e r w a y 2.4 Environmental requirements…………………………17 2.4.1 Enviornmental quality standards …………………………17 2 . 4 . 2 Wa s t e s d i s c h a r g e s t a n d a r d s … … … … … … … … … … … … 1 7 3. INDUSTRY GROWTH…………………………………………17 3.1 INDUSTRY POLICY………………………………………17 3.2 INDUSTRY PLANNING…………………………………18 3.2.1 3.2.2 Growth Growth priorities…………………………………………18 objectives………………………………………18 3.3 ONE DISTRICT BY ONE INDUSTRY……………………18 3.3.1 About the One District by One Industry Policy…………18 3.3.2 About the parks/zones hosting the auto industry …………21 4. IPACT OF WENCHUAN EARTHQUAKE ON THE INDUSTRY GROWTH OF cHENGDU ………………………………………… 23 4 . 1 I M PA C T O F W E N C H U A N E A RT H Q U A K E O N C H E N G D U …2 3 4.2 IMPACT OF WENCHUAN EARTHQUAKE ON THE AUTO INDUSTRY OF CHENGDU……………………………………24 1. The industry status quo 1.1 The industry profile 1.1.1 The overall economic figures of the auto industry Auto industry is one of the leading industries of Chengdu which has reached a considerable scale after over one decade of steady growth. The city of Chengdu currently hosts 155 auto companies (16 whole-vehicle manufacturing and vehicle-reassembly companies and 139 parts manufacturers) employing a total of more than 39 000 people. The auto industry of Chengdu realized 19.57 billion yuan in annual revenue 2007, increasing by 15.68% over the previous year; 6.374 billion yuan in added-value, increasing by 19.56% year on year and accounting for over 36% of added value of the whole machinery-manufacturing industry of Chengdu; 3.164 billion yuan in tax, rising by 64.11％; and 1.826 billion yuan in net profits. The local industry produced 70 000 complete vehicles in 2007. The other Construction &metallurgy materials Auto industry Machinery manufacture Petrochem Food & beverage Electronics & information Pharmaceuticals Proportion of auto industry in the Chengdu industry （according to industrial added value 2007） 1.1.2 The industry growth (see the following figure) 80000 单位（辆） 60000 40000 20000 0 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 Vehicle output of Chengdu from 2000 through 2007 1.2 About the industry chain Currently, an auto industry system incorporating the R&D, manufacturing, and commerce of whole vehicles (passenger cars, SUVs, buses and trucks) and parts has been primarily formed in the city of Chengdu. 1.2.1 The whole vehicles The city has 16 vehicle manufacturers such as Sichuan FAW TOYOTA Motor, Chengdu FAW Motor, Chengdu Wangpai Motor Group and Chengdu Bus Co that produce Coaster bus, Prado SUVs, Wangpai pickups, Jiefang trucks and Yuanda special-purpose vehicles. And together with the fire trucks produced by Sichuan Morita Fire Safety Appliances Co. Ltd., these vehicles have a considerable share of the western China market. 1.2.2 The vehicle parts There are 139 vehicle parts manufacturing enterprises in the city of Chengdu that include CNAIC Chengdu Parts Co., Chengdu Zhengheng Dynamics Parts Co., Chengdu Tianxing Instrument Co., Chengdu Space Mould & Plastic Co., Sichuan Dujiang Machinery Co., and Fengtianfang Automobile Parts & Upholstery Co. that produce products such as auto chassis, body, diesel motor, vehicle bridge, auto shock absorber, auto instruments, various generators, battery, auto seats and upholstery items, some of which are being used in the vehicle manufacturing of auto manufacturers such as Shanghai Automotive Industry Corporation (Group) (SAIC), Beijing Jeep, Guangzhou Honda, Dongfeng Peugeot Citroen, Chang’an Suzuki, Cherry and Geely. Meanwhile, the auto electronic products segment has been growing very fast in Chengdu with manufacturers such as Sichuan Hongguang Auto Mechanics & Electronics Co., Kangda (chengdu) Electronic Co., Sichuan Dakexing Group Co., Chengdu Jinjiang Appliances (Electronics) Manufacture Co. which have acquired a fair production scale and market share in terms of gas valves of electronic controlled automobile engine, auto heated oxygen sensor, rate meter for cabs, GPS and mileage meter. In the meantime, local industry sees leading universities such as University of Electronic Science and Technology of China, and Sichuan University, as well as nationally leading research institutes for electronics products such as the 10th institute, 29th institute and 30th institute of Ministry of Industry and Information Technology. 1.2.3 The representative companies Profiles of the leading local auto makers Name Sichuan FAW TOYOTA Motor Company profile Sichuan FAW TOYOTA Motor is a joint-venture collectively incorporated by China FAW, Toyota and Toyota Tsusho Corporation, and is the first whole vehicle manufacturing factory of Toyota in China. The total investment of the factory is 99.09 million US dollars, which produces the multi-purpose vehicle Coaster and the SUV Prado mainly. Chengdu FAW Motor was incorporated in October 2002 when the former Sichuan Station Wagon Manufacturer joined FAW. The company employs 1 958 people; covers 291 000 square meters of land; has 2.034 billion yuan of total assets and 395 000 000 yuan of fixed assets. Incepted in 1987, Chengdu Wangpai Motor Group was a 10-billion corporate of top priority in the 11th Five Year Plan. The corporate now has 4 holding companies, and was ranked the 24th place overall among the auto (including passenger cars) manufactures in China 2006 (12th place in heavy truck, 4th place in medium truck and 17th place in light truck). Chengdu Bus Co. (the former Chengdu Bus Factory) was one of the 3 key enterprises in bus production prioritized by the Ministry of Construction in the 9th Five-Year Plan. The company boasts proprietary R&D capabilities and an annual capacity of 2 500 large and medium buses. CNAIC Chengdu Parts Co. was incorporated from the former Chengdu Motor FAW Chengdu Wangpai Motor Group Chengdu Bus Co CNAIC Chengdu Parts Co. Chengdu Zhengheng Dynamics Parts Co. Chengdu Tianxing Instrument Co. Chengdu Space Mould & Plastic Co. Chengdu Fengtianfang Automobile Parts & Upholstery Co. Chengdu Auto Parts Plant General in August 2000, and is now a subsidiary of Sichuan Hejia Industrials Group Co (a list company). The company now boasts over 580 sets of equipments and 230 000 000 yuan of total assets. The annual production capacity is 1 million sets and over 380 varieties of motor camshafts have been produced. Founded in 1997, Chengdu Zhengheng Dynamics Parts Co. is a company committed to the production of motor cylinder blocks of automobiles. The company produces over 10 models of cylinder blocks in the 3 major categories of mini-car cylinder blocks, light-car cylinder blocks and sedan cylinder blocks; and boasts an annual capacity of 450 000 units. As a limited liability company incorporated by multiple shareholders including China South Industries Group Corporation, Chengdu Tianxing Instrument Co. is a key enterprise designated by the state to produce auto instruments, motor bike instruments and auto parts. The company now employs 1 500 people and boast 400 000 000 yuan in total assets; and is regarded one of the major production (and R&D) bases of auto instruments. Chengdu Space Mould & Plastic Co. is a specialized company committed to the manufacturing of dies and auto upholstery. It is a shareholders company with its principal shareholder being Liaoyuan Wireless Plant of China Aerospace Science and Technology Corporation and one of its participating shareholders being Shanghai Aerospace Automobile Electronmechanical Co., Ltd.. Chengdu Fengtianfang Automobile Parts & Upholstery Co. is a company committed to the production and R&D of auto body, seats, upholstery and components with an annual turnover at between 50 million and 100 million yuan. 1.3 The market profile As the domestic auto manufacturing activities both by domestic enterprises and foreign enterprises are moving to the western China and consumption volume increase is increasingly contributed by western China, the western China market represented by Sichuan province is becoming a major increase point. Though accounting for 15% of the national population, Sichuan province owns only 7.5% of the total number of vehicles in China. And as a super-large metropolis of western China, Chengdu is ranked on top of China in the purchase capability of automobiles, and has maintained a growth rate of around 20% over the years. Regarded as the 3rd largest city in ownership of private cars, Chengdu holds substantial market potentials. 2. Investment environment 2.1 Labor resource 2.1.1 Labor supply 1) Number of professionals/skilled workers Ranked the 4th in China and the 1st in western China among the major cities in the number of technicians, Chengdu has 1.55 million professional workers in various disciplines/fields, over 70% of which hold university degrees. And the number is increasing at a rate of 8.9% year by year. Moreover, there are 49 members of Chinese Academy of Science and Technology and Chinese Academy of Engineering, 24 of them (nearly 50%) being engaged in the research of mechanics and electronics. 2) Number of university students Chengdu now boasts 40 general universities, 5 of them being directly under the related ministries which are Sichuan University, Southwest Jiaotong University, University of Electronic Science and Technology of China, Southwestern University of Finance and Economics and Southwest University for Nationalities. There were 520 000 students in the general universities in Chengdu in 2007, 300 000 of them being undergraduates, 41 000 of them being graduates and 9 500 of them being doctors. Information of universities in Chengdu Disciplines and degrees Electronics & information Mechanics Key national disciplines Master’s degree Doctor’s degree Post-doctor station Number of universities with the disciplines or degrees 20 plus 30 plus 108 619 299 41 3) Number of students at vocational schools Chengdu has a comprehensive range of 120 vocational schools (including average technical schools, adult technical schools and technical high schools), with 59 000 graduates and 246 000 students. Education and Age Structure of Professional & Technical Personnel Categories College education Master’s degree holders Bachelor’s degree holders Junior college education Under 35 years old Between 35 and 45 years old Between 46 and 54 years old Over 55 years old Number of people 370 000 20 000 150 000 200 000 200 000 120 000 40 000 10 000 Percentage 4% 30% 40% 54% 32% 11% 3% 2.1.2 Labor cost 1) Salary Starting from December 2007, the minimum salary in Chengdu is 650 yuan per month. Reference salary for enterprises with foreign investment (in manufacturing industry) in Chengdu Positions Senior management (factory manager) Department management (CFO, and logistics manager…) Engineers (with 2 years of experience and plus) Engineers (with less than 2 years of experience) Technicians/supervisors (with 2 years of experience and plus) Skilled operators/operation workers (with 2 years of experience and plus) Skilled operators (with 1 year of experience) Fresh operators (graduates from technical schools) Yuan/month 2300-5000 1800-4000 1500-3000 1250-2500 860-1500 700-1500 600-1300 580-1000 2) Legally required insurance and social benefits (for employees) Currently, 31% of businesses are paying for social insurance for the employees in Chengdu. Based on the average monthly salary of 1 440 yuan in 2006, the base range of social insurance payment is between 864 yuan and 4320 yuan (1440×60%-1440×3). And the pay for housing fund currently in Chengdu is between 6% and 15% of monthly salary, the specific percentage is subject to the free choice of employers. 3) Low employee turnover For 5 consecutive years from 2003 to 2007, the general talent turnover in Chengdu had been under 8%, while the turnover of operation workers had been under 5%. The unemployment rate over the past 3 years in Chengdu has been between 3% and 5%. Approximately two thirds of the university graduates would choose to work in Chengdu; and as multinationals such as INTEL, UNISEM, and SMIC are increasingly establishing their presence in Chengdu, more and more talents from outside of Sichuan and abroad are choosing to work in Chengdu. Currently, the talent supply and demand ratio (of engineers, professionals and technicians…) among the multinationals located in the High-tech District of Chengdu is approximately 20/1 to 30/1. 2.1.3 HR services Sichuan Service Center for Enterprises with Foreign Investment （FESCO）provides a full package of services for foreign businesses including employment paperwork, talent recommendation, recruiting and employment, personnel documentation management, salary payment service, salary tax planning, as well as social insurance and housing fund services. 2.2 Infrastructure 2.2.1 Water supply The water supply capacity of Chengdu is 2.2 million cubic meters daily, the water source quality reaching GB57 to GB84, and hydraulic pressure reaching 0.16 MPa. And, the daily capacity of tap water in the economic development zones/parks in Chengdu is 500 000 cubic meters at hydraulic pressure of 0.3 MPa. The price of living tap water in Chengdu is 1.55yuan/m3 (including water treatment charge); while the water for industrial use is 2.05yuan/m3 (including water treatment charge). Water consumption： Category Whole vehicle(0 000 cubic meters) Parts (0 000 cubic meters) Total (0 000 cubic meters) year 2012 197 372 569 year 2017 273 492 765 2.2.2 Electricity supply The electricity supply capacity of Chengdu is about 13.2 billion kilowatt-hours annually. The economic development zones/parks of Chengdu are covered by the metropolitan power grid and the supply system support is 110 kv (national grid supply). Currently, there are two 220 kv substations, six 110 kv substations and several 35 kv substations in the development zones of Chengdu, supplying a total of over 600 000 KVA of electricity effectively. Incessant electricity supply is ensured for the enterprises. Electricity is 0.79 yuan/kwh for industrial use, 0.85yuan/kwh for commercial use and 0.46yuan/kwh for living activities (all the prices include tax). Power consumption： Category Whole vehicle（0 000kwh） parts（0 000 kwh） Total（0 000kwh） Year 2012 25850 30398 56248 Year 2017 34502 38029 72531 2.2.3 Natural gas supply The city of Chengdu boasts a total supply capacity of 2.52 billion cubic meters of natural gas daily. The Chengdu metropolitan pipe net provides 400 000 cubic meters of natural gas to the development zones/parks every day. Under the earth of the development zone there is a rich deposit of shallow natural gas at about 150 billion cubic meters. And the two natural gas supply firms at the development zone are operating at a daily capacity of 700 000 cubic meters. The pipe calibers in the parks are 219mm, 159mm, 108mm and 57mm respectively. Price of natural gas for industrial use is 1.6 yuan/cubic meter. Natural gas consumption： Year Total (0 000 cubic meters) 2012 1551 2017 2240 2.2.4 Sewage/water treatment The sewage/waste pipe network has been laid at the development zones. The 1st phase (40 000 tons daily capacity) of the 100 000 tons/day water treatment plant has already launched into operation, and the treatment standard of the water treatment plant reaches GB8978-96 3rd Category Water, 1st Level Release Standard. 2.2.5 Telecommunications and internet access The city of Chengdu is one of the 8 leading telecom hubs of China, with 8 vertical and 8 horizontal optical fiber lines and nodes. The city has realized long-haul and local telephone exchange and digital transmission, as well as telecom access to over 180 countries and regions and over 600 cities in China. The bandwidth of the network access in Chengdu is 60G/S. 2.3 Logistics 2.3.1 Air transportation The Shuangliu International Airport of Chengdu is one of the 6 leading airports in China and the largest airport in western China. In 2006, the airport transported 381 000 tons of freight, and 16.28 million passengers. With 156 000 flights annually, the airport is ranked the 83rd place globally, while its freight capacity is ranked the 58th place in the world and 1st place in China. In 2007, the passenger transports broke the record of 18 million. Over 20 domestic and international airline companies have opened 72 domestic routes, and 31 international routes and international charter routes. There are over 400 flights in and out of the airport everyday. 2.3.2 Railway transportation 1) General information The city of Chengdu is the largest railway transportation hub of Southwestern China where the 4 major railways (Cheng-Yu, Bao-Cheng, Cheng-Kun and DaCheng) converge; and there are now 4 major freight train stations in Chengdu: East Station, South Station, West Station and Dawan Station in Qingbaijiang District. In April 2007, the Chengdu North Marshalling Station constructed by the Ministry of Railway with 1.7 billion yuan of investment was officially launched. The station is the first dual-direction-3-phase-6-station hinge marshaling station in the history of Chinese railway finished in one single time with the most advanced technologies, largest scale and biggest capacity. And the International Central Container Station, the largest one in Asia, invested with 1.17 billion yuan under the planning of the Ministry of Railway China to be launched at early 2009 will boast an annual capacity of 2 200 000 to 2 500 000 standard containers. Besides, the Ministry of Railway is currently rebuilding the Hu(Shanghai)-Han(Wuhan)-Rong(Chengdu) freight express as a major freight railway connecting the east and west of China. And it is projected that the express rail will be launched during the Eleventh Five-year Plan. 2) Rail routes reaching to the coast Currently, the ports for import and export from Chengdu reachable by railways are Shanghai, Shenzhen, Tianjin, Nanjing, Qingtao, and Lianyungang among other coastal ports. The city of Chengdu has opened 9 fixed freight trains (with fixed stops, fixed path, fixed runs, fixed time and fixed price) to Shanghai, Shenzhen, Tianjin, Nanjing, Guangzhou, Xuzhou, Lianyungang and Lanzhou among other destinations. Compared with the general freight trains, these fixed trains travel faster, arrive and depart at steady time and charge low price. Information about the price of container transportation on railways (in yuan) Destinations North Shenzhen Yangpu, Shanghai North Shanghai North Tianjin Tianjin Port South Tianjin Lianyungang Port 1 ton 236.65 -174.3 159.74 -160.04 -10 tons 2960.57 2208.84 2198.34 1982.64 -1986.74 -20 tons 5997.09 4499.55 4477.74 4098.85 4195.97 4107.55 3993.91 40 tons 11112.38 8326.43 8287.82 -7519.42 -7178.12 2.3.3 Highway transportation There are 8 major state trunk highways and state trunk highways starting from Chengdu or passing Chengdu, 2 (Huhehaote of Inner Mongolia to Hekou of Yunnan, and Shanghai to Chengdu) of them being major state trunk highways and 6 (Beijing to Kunming, Lanzhou to Mohan, Chengdu to Naqu, Shanghai to Zhangmu, Xiamen to Chengdu and Guangzhou to Chengdu) being state trunk highways. And in the highway layout of Sichuan province, Chengdu is the focal point of the provincial highway network. Apart from them, there are 10 freeways (Cheng-Yu, Cheng-Mian, Cheng-Le, Cheng-Ya, Cheng-Nan, Cheng-Guan, Cheng-Peng, Raocheng and Cheng-Wen) established in Chengdu, creating a radiating ring-style highway network with downtown Chengdu in the center. At present, Chengdu has inter-city freight transportations (trucks and buses) to 9 nearby cities including Yibin, Leshan, Ya’an, and Chongqing. And there are two highways leading to the sea from Chengdu: Chengdu-North Sea Highway and Chengdu-Chongqing-Shanghai Highway that could transport containers to the coast. Transportation of containers via highway from Chengdu to ports Passage ChengduShanghai ChengduShenzhen ChengduTianjin Target port Yangshan Port Route Price Mileage （in Container （in yuan） Duration kilometers） dimension One-way 2508 2 days 40 feet 12500 ChengduXi’an, Shangqiu-Nanjing-S uzhou-Shanghai Chengdu-Chongqin g-Guiyang-Nanning Yantian Port -Guangzhou-Shenzh en Chengdu-Xi’anTianjin Port Zhengzhou-Shijiazh uang-Tianjin 2400 2 days 40 feet 13000 2230 2491 2 days 2 days 40 feet 40 feet 12500 13000 Chengdu- Lianyungan Chengdu-Xi’an-Sha Lianyungang g Port ngqiu-Lianyungang 2.3.4 Waterway transportation The major river ports/wharfs closest to Chengdu are Leshan Port, Luzhou Port and Chongqing Port, with Leshan Port 144 kilometers from Chengdu reachable by Chengdu-Leshan Freeway, Luzhou Port 290 kilometers from Chengdu reachable by Chengdu-Luzhou Freeway, and Chongqing Port 290 kilometers from Chengdu reachable by Cheng-Yu Freeway. River port cargo Container throuthroughput Ghput Capacity capacity (000 standard (000 tons) containers) 8 000 50 maximum lifting load(tons) Channel Note 10 000-ton ships could reach directly to the Chongqing Port after the 3-Gorge Project is fully filled with water. the port could host 1 000- to 1 500-ton ships the port could host 1 000- to 1 500-ton ships Chongqing Port Luzhou Port Leshan Port 180 3rd-grade channel 3rd-grade channel 200 200 25 25 35 35 （ 500-ton port dedicated to large-piece cargo） 2.4 Environmental requirements 2.4.1 Environmental quality standards Items Ambient air Standards the 2nd level standard of Ambient Air Quality Standard GB 3095-1996 GB 3838-2002III Category water standard of Environmental Quality Standard for Surface Water the 3rd level standard of Standard of Environmental Noise of Urban Area GB 3096-93 Note hydrogen chloride, ammonia, sulphuric acid mist, and chlorine will be in conformity with the maximum limit of harmful substances in the air of residential area of the Hygienic standards for the Design of Industrial Enterprises （TJ 36-79） Surface water Noise 2.4.2 Wastes discharge standards Items Waste water discharge Standards In conformity with the 3rd level standard of Integrated Wastewater Discharge Standard GB 8978-1996 In conformity with the 2nd level standard, the discharge limit of air pollutants from new polluting source, Integrated Emission Standard of Air Pollutants GB 16297-1996 in conformity with the III category standard of the Standard of Noise at Boundary of Industrial Enterprises GB12348-90. Note Waste gas discharge Ammonia will be in conformity with Emission Standard for Odor Pollutants GB 14554-93. Exhaust/flue gas from natural gasrun boilers will be in conformity with standard of 2nd category areas of Emission Standard of Air Pollutants for Boilers GB13271-2001. noise (at boundary of industrial enterprises) 3. Industry growth 3.1 Industry policy The policy is to provide steady and strong policy supports to the businesses moving to the development zones in accordance with the industry planning of Chengdu. And apart from the incentives offered by the State Go-west Initiative and the development zone administration, the businesses in the zones are also privileged with “Tailored” incentives/policies offered by the local government according to the technological intensity/content, investment scale, investment intensity of the projects and employments generated. 3.2 Industry planning 3.2.1 Growth priorities The top priority is to support both domestic and foreign auto companies in establishing their production facilities in Chengdu, in line with the local auto industry development plan. And the key priorities are to cultivate the car manufacturing, enhance the SUV production, boost the truck and bus sector, extend the industry chain and develop the auto service industry. 3.2.2 Growth objectives The aim is to increase the vehicle production volume and the total auto industry revenue of Chengdu to 250 000 units and 40 billion yuan respectively by 2010, 700 000 units and 120 billion yuan respectively by 2015, and 1 million units and 170 billion yuan respectively by 2020. 3.3 One District by One Industry 3.3.1 About the One District by One Industry Policy In accordance with the aims and requirements of The Trial Concepts on Expediting the Construction and Development of Industrial Development Cluster Zones by Chengdu Government, the city of Chengdu will further improve the planning of industrial cluster development zones of Chengdu following the principles of scientific construction, development and management, and speed up the construction of infrastructure facilities and associated facilities, and innovate the management system and operation system, so that industrial development cluster zones with distinguished industry features, sophisticated supporting functions, strong capacities, substantial quality benefits and sustainability will be formed. It is aimed that by 2010 the added-value from large-scale enterprises in the industrial development cluster zones of Chengdu will reach over 130 billion yuan, and the over 70% enterprises will be clustered. And 10 industrial development cluster zones with yearly sales revenue exceeding 10 billion yuan individually will be built, over 5 of which will see sales revenue of more than 30 billion yuan individually. Moreover, 70% of the value-added businesses in the zones will enjoy substantial incentives/supports. The 1 District by 1Industry positioning of the industrial development cluster zones of Chengdu Number 1 District name High-tech District, Chengdu Jingkai District, Chengdu Petrochem Base, Chengdu Jinjiang District Prioritized/supported industries Electronics, information (including software), and biopharmaceutical industries Modern manufacturing industry represented by whole vehicles (including mechanical engineering) and parts Petrochemicals industry Headquarters park of companies mainly in creative designs, electronics and information industries Headquarters park of companies mainly in the aviation die industry Headquarters park of companies mainly in electronics and information service industry Headquarters park of companies mainly in light industrial designs and software development Prohibited industries 1. 2. sugar refinement monosodium glutamate manufacturing （except for packaging） printing and dying leather tanning production of manmade base oil coking processing of nuclear fuel manufacturing of reclaimed rubber metal smelting (except for pressing, or rolling processes) 2 3 3. 4. 5. 6. 7. 8. 9. 4 5 Qingyang District Jinniu District 6 7 Wuhou District 8 Chenghua District Wenjiang District Qingbaijiang District Xindu District Dujiangyan City Pengzhou City Qionglai City Chongzhou City Jintang County Shuangliu County Pi County 9 10 11 12 13 14 15 16 17 18 19 20 21 Dayi County Pujiang County Xinjin County industries Headquarters park of companies mainly in electrical and mechanical research and development Electronics and mechanical industries Metallurgy and construction materials industries Precision machinery manufacturing industry (with furniture industry in Xinfan Town) electrical and mechanical industry and software industry Plastic manufacturing industry Natural gas chemicals industry Light industries driven by footwear New-type construction materials manufacturing industry (with textile and footwear industries in Huaikou Town) PV, electrical and mechanical industries Precision machinery industry (with Sichuan cuisine ingredients processing industry in Ande Town) Light industrial machinery manufacturing industry Foods and beverage production industry Chemicals industry represented by new energies and new materials 3.3.2 About the parks/zones hosting the industry The physical planning for the auto industry in Chengdu is One Zone/District and Three Points/Parks. In line with the One District by One Industry requirement, the newly established whole vehicle and key parts manufacturing facilities will be located at the core zone (Chengdu Economic Development Zone). 1) The core zone (Chengdu Economic Development Zone) Companies led by Chengdu FAW Motor, Sichuan FAW TOYOTA Motor and Chengdu Gaoyuan Motor will establish their whole vehicle and parts manufacturing facilities in Chengdu Economic Development Zone. ⅰ venue for whole vehicle manufacturing activities 10.5 square kilometers of land will be constructed at the new south area of Chengdu Economic Development Zone for the manufacturing of whole vehicles. ⅱ parts and components park 5.8 square kilometers of land will be constructed in Chengdu Economic Development Zone as a parts and components manufacturing park. ⅲ logistics park for the auto manufacturing activities 1.2 square kilometers of land will be constructed in Chengdu Economic Development Zone as a logistics park. 2） Truck manufacturing site (at Qingbaijiang District) Led by Chengdu Wangpai Motor Group, a truck and complementary parts manufacturing park/site will be constructed in Qingbaijiang District. 3) Bus manufacturing site (at Wenjiang District and Pi County) ⅰ Support the growth of Nanjun Automobile Co., Ltd. ⅱ Support the growth of Chengdu Bus Co., Ltd. The planning map： 4. Impact of Wenchuan Earthquake on the industry growth of Chengdu 4.1 Impact of Wenchuan Earthquake on Chengdu The parts of Dujiangyan, Pengzhou and Chongzhou city of Chengdu Metropolis which were close to the earthquake fault/fracture belt suffered great loss during the Wenchuan Earthquake with 4304 people killed and 95.84 billion yuan of direct economic loss resulted. However, the GDP of the three cities combined only accounted for 9% of the total GDP of Chengdu in 2007. The main downtown districts and the major industrial zones/parks experienced very little damage; and expect for those in these seriously damaged areas, the businesses in other places of Chengdu suffered very little loss. And by June 2nd, 2008, 94.82% of large-scale industrial enterprises in Chengdu had resumed their normal production activities. Experts’ comments: “Since the energy accumulated in the earth surface has been released during the Wenchuan Earthquake, the city of Chengdu will not see any major earthquake beyond 8 degrees in the future 200 years. Chengdu is safe for at least 200 years.” -- Professor Liu Baojun, a famous geologist and member of Chinese Academy of Sciences and Technologies “The slowness of the slipping of the faults near Mount Longmen would prolong the cycle of strong earthquake reoccurring; therefore, it is safe to say that it will take at least 3 000 to 5 000 years for a major earthquake beyond 8 degrees to happen around the Mount Longmen faults.” -- Zhang Peizhen, head of Institute of Geology China Seismological Bureau, team leader of the South-North Earthquake Formation Research Team of China Wenchuan Earthquake Experts Committee 4.2 Impact of Wenchuan Earthquake on the auto industry of Chengdu 4.2.1 Little short-term impact In general, the earthquake did not bring any direct major impact on the production and manufacturing activities of auto enterprises in Chengdu. Most of the companies experienced very little damage which is restricted to cracks on the factory walls and glass windows. Though many enterprises stopped working or producing temporarily after the earthquake, most of them soon resumed production or facility construction at the time between May 13 th and May 16th. Generally, no auto enterprises are located at the seriously hit places such as Pengzhou, Chongzhou, Qionglai and Dayi. 4.2.2 Stimulation on medium and long term growth Sichuan province faces massive work in post-quake reconstruction that is projected to take 8 years, the first 3 years between 2008 and 2010 being recovery and reconstruction phase, and the 5 years between 2011 and 2015 being development and enhancement phase. The total investment in the post-quake reconstruction in Sichuan is 1 000 billion yuan. Consequentially, as the reconstruction work unfolds, the vehicle and engineering machinery manufacturing industry in Chengdu will see new growth opportunities, especially in the truck, specialized vehicles, engineering and construction machinery markets. Furthermore, because passenger cars, MPVs and SUVs played a significant role in the earthquake self-protection and voluntary rescue activities, the citizens have become eager to purchase these vehicles, triggering market demands and bringing prospects for the growth of passenger vehicle industry. Please find the details in the following: Category rural residential houses urban residential houses Buildings (to be constructed) area of schools Units 0 000 units 0 000 square meters 7 million square meters Market demands 350 100 1797.9 Industries triggered Vehicles, engineering machinery and associated infrastructure area of health centers 1.1 Roads 19 state and provincial highways Key economy-oriented highways Rural roads Kilometers Kilometers 0 000 kilometers 4907 715 2.2
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