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32 companies to head to Shanwei

By Chen Hong (China Daily)
Updated: 2008-12-19 07:48

SHENZHEN: A number of companies from Shenzhen, Hong Kong and Taiwan will relocate to Shanwei, an undeveloped city in the east of Guangdong province, an official said on Thursday.

The move is part of the government's policy on industrial restructuring to boost the economies of the underdeveloped eastern, western and northern parts of the country.

Thirty-two companies, a majority of them from Shenzhen, Hong Kong and Taiwan, yesterday signed letters of intent and investment agreements with the Shanwei industrial park, where they will be relocated, Zheng Yanxiong, acting mayor of Shanwei, said.

The 1,000-hectare industrial park in the town of Efu, Haifeng county, will be jointly developed by the Shenzhen and Shanwei governments over 20 years.

They will invest 2 billion yuan in the first three years for the first phase of the project, which will cover an area of 400 hectares.

The major industries at the park will include manufacturing of electronics, logistics, textile, garment, shoes, underwear, home appliances, jewelry processing and seafood processing, Zheng said, adding the project could bring in an investment of 26.8 billion yuan to the city.

"Investors can take advantages of convenient transport links, abundant land, cheap labor and incentives, and stable government policies to develop their businesses in Shanwei," he said.

The companies could get subsidy for labor training and cheaper prices for land, electricity and water, Zheng said.

In May, the provincial government decided to raise at least 40 billion yuan for the next five years to stimulate the transfer of the labor-intensive industries from Pearl River Delta cities to the undeveloped eastern, western and northern areas.