The industrial park was built in 1990 in the western part of Suzhou, Jiangsu Province, and was renamed Suzhou New District in 1993. The park lies only 12 km from downtown Suzhou. Its land area currently stands at 258 sq km. It also has an Export Processing Zone approved in April 2003. Similar to some of the AAA rated industrial parks, its large size of land bank has great potential for multi-facets and industry-cluster developments. Putting out for financing in the Shanghai Stock Exchange was Suzhou New District Hi Tech Industrial Co Ltd <600736> value over RMB 6.6 billion in market capitalization as of 1 June 2011. Suzhou ND’s subsidiaries owns a majority stake in this entity is a showcase its enormous values that remain untapped. The common term China Knowledge would describe as ‘parks within the industrial park’ concept of development.
There are more than 20 state- and province-level development zones in Suzhou. Suzhou ND is viewed by some Singaporeans as a direct rival to China-Singapore Suzhou Industrial Park (SIP), as the latter was developed jointly by the Chinese and Singaporeans. After 18 years of development, Suzhou ND was the seventh-largest state-level high-tech park in China in terms of value-added industrial output in 2008. In 2008, the district’s value-added industrial output reached RMB 48.1 billion. Its export value surpassed US$23.6 billion.
Singapore’s SIP has publicized its plan to list in the exchange: “it is granted an in-principle approval for its application to list in the Shanghai Stock Exchange”, according to Ma Minglong, Executive Member of CPC Suzhou Municipal Committee and Secretary of Suzhou Industrial Park Party Working Committee, said in an interview with Singapore’s Chinese press. Once the China Securities Regulatory committee approved its listing it will have six months period to launch the IPO. More insights was further provided by Du Jianhua, the Vice Secretary of Suzhou Industrial Park Party Working Committee and Managing Director, that it aims to price at 30 times price-earning ratio offering RMB 10 per share to raise RMB 4.5 billion.
The Suzhou ND’s major industries are information technology, optical-mechanical-electronic integration, pharmaceuticals, fine chemicals and auto parts. About 780 enterprises have set up there. These firms have achieved a combined gross industrial output of RMB 184.5 billion in 2008. More than 100 software developers have established themselves, generating sales revenue of RMB 8 billion in 2007. The BPO sector has generated RMB 4.5 billion in revenue. In addition, the auto parts manufacturing sector aims to achieve an annual industrial output of RMB 15 billion to RMB 18 billion by the end of 2010. By the end of 2007, 53 Fortune 500 enterprises had set up business in the zone.
Major investors include Logitech from Switzerland, Asus and Acer from Taiwan, Canon and Seiko from Japan and Motorola and Timken from the U.S. In 2008, Asus spent US$20 million to build an R&D center in Suzhou ND.