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Yantai Economic and Technological Development Zone
China Knowledge Press, June 2011, Pages: 25
Yantai Economic and Technological Development Zone (Yantai ETDZ) rated “AAA” by China Knowledge in a research report on China’s industrial real estate published today. The Development Zone (Yantai ETDZ) covers an area of 10 sq km and faces the Bohai Sea to the north. It set up by the State Council in 1984.
Yantai has a pleasant climate due to its good geographical location. Located on the coast, it has little pollution and enjoys mild summers and winters. Yantai ETDZ has a good transportation network. Highways connect the zone with Qingdao, Weihai and Weifang. Yantai Train Station and Yantai Airport lie 10 km and 20 km from the zone, respectively. Yantai is one of China’s most important coastal port cities. It has a coastline of 702.5 km and 63 islands. Its seaport, Yantai Port, is located in Zhifu Bay on the northern shore of Shandong Peninsula from which Liaodong Peninsula is visible across the sea. In 2009, the cargo throughput of Yantai Port hit 124 million tons, ranking 13th in China.
Yantai Export Processing B Zone was approved in September 2003. This zone covers an area of 2.26 sq km and is adjacent to Foxconn Industrial Park, the automobile industrial park and the IT industrial park.
In 2009, Yantai ETDZ’s GDP grew 8.41% year on year to RMB 70.5 billion, accounting for 19% of the city’s GDP. The value-added industrial output rose 11.56% to RMB 56.4 billion, accounting for 27.6% of the city’s total.
Its pillar industries are machinery and automobiles, electronics and IT, biopharmaceuticals, chemical fibers, textiles and food processing. Its major products are automobiles and auto parts, construction machinery and equipment, computers and 3G mobile communication terminals.
In 2009, the export value decreased 7.58% to US$14 billion, while the utilized FDI fell 33.15% to US$371 million. Yantai is located near South Korea and Japan, and investors from these countries consider it a good place to invest in to supply their own domestic markets.
Nearly 1,200 foreign companies from 43 countries and regions have invested in Yantai ETDZ, including 43 Fortune 500 enterprises. South Korea and Hong Kong together accounted for 61% of the zone’s total foreign investment. The major investors are General Motors, Henkel, Hyundai Motor, LG, Foxconn, Daewoo, Denso, Toyota Tsusho and Asahi Kasei Industry.
The big players are the driving force for Yantai ETDZ’s development. Foxconn, the largest manufacturer in Yantai and the largest exporter in Shandong, has set up an industrial park and research center in the zone. The other projects whose output is valued at over RMB 10 billion include LG’s handset project and General Motors’ Dongyue Automobile project.
The latest figures show that in the first half of 2010, the export value rose 61.42% to US$10.74 billion. In the first three quarters of 2010, value-added industrial output of Yantai ETDZ amounted to RMB 45 billion, up 9.6% year on year. The utilized FDI rose 74.21% to US$292.31 million.
Industrial parks with AAA rating are the most established and have the best investment environment and are strongly recommended. There are only 11 among 254 rated ones that are classified as national or municipal level. These industrial parks have potential of listing in both domestic or foreign exchanges in the form of industrial real estates developer or industrial REIT. Small-size developments with core industry theme are listed in HKSE, SSE and SZE. There are enormous investment opportunities due to their well-developed infrastructure and large number of multinational and state-owned companies established there. It is estimated that the value of each industrial parks could exceed USD 30 billion each. The most notable one is the Tianjin TEDA that has large land bank for future development over several decades.
General Motors, Henkel, Hyundai Motor, LG, Foxconn, Daewoo, Denso, Toyota Tsusho and Asahi Kasei Industry