No shock at electronics park's current success

By Wang Xiantao (China Daily)
Updated: 2009-08-26 07:53

Tonghe: enjoying an economic renaissance thanks to the success of its industrial development zones.

The Tonghe Electronics Industrial Park (TEIP) of Qingdao is now set to become one of the key economic drivers in Shandong province. It now accounts for more than 2.5 billion yuan ($350 million) of annual sales revenue and attracts a substantial in-flow of foreign capital.

Following a 400 million yuan ($58 million) injection for infrastructure enhancement and the arrival of a raft of overseas-backed-funded electronics businesses - including Chengnan Electric and Wencheng Electric - the development of the TEIP has stepped up by several gears.

Its on-site businesses are currently capable of manufacturing across eight sectors of internationally in-demand hi-tech products, including communications equipment, home appliances and computer accessories, according to Qi Changzheng, deputy director of the administrative committee of the TEIP.

It was designated as an electronic information industrial park by the Shandong Provincial Department of Information Industry back in June 2007. By the end of 2008, with a cumulative investment totaling $300 million, 80 companies had been approved to operate in the park.

The TEIP is now seeking innovative ways to attract investment, with the aim of establishing a multi-faceted cluster in the electronic spare parts industry. To this end, several large projects, each individually worth more than $10 million, have now been carried out in quick succession.

More than 20 of the resident enterprises have opted to increase their investment capital by a total of $30 million in recognition of the site's success. South Korea's Qingdao Asia Woosung Enterprise Co Ltd, for instance, now produces and exports two million sets of TV parts per annum, generating some $100 million worth of sales revenue.

Ten countries and regions including Japan, South Korea and Hong Kong have already invested in TEIP, quickly establishing it as one of the lead suppliers for 30 of the world's electronics giants including Haier, Hisense, Siemens and Nokia.

(China Daily 08/26/2009 page15)