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Auto Parts Industry
I. Rapid Growth of China Auto Industry
| The year 2006 was the fifth anniversary of China’s WTO accession, and China auto industry has made a historical leap and become one of the global auto manufacturing giants, ranking the 3rd up from the original 8th place in the world. The latest statistic of the annual output and sale released by China Association of Automobile Industry demonstrated the annual automobile output and sale topped 7.2797 million and 7.216 million respectively, up by 27.32% and 25.13% in 2006.China has overtaken Germany to be the third largest automobile manufacturers in the world following the U.S.A and Japan. It is estimated that the auto output will reach 8.5 million in 2007.The national accumulative import&export gross value of auto commodities reached $49.022 billion in 2006, among which the gross import value was $20.878 billion, increasing by 36.34% and export value $28.144 billion, growing by 42.76%. |
Source: China Association Automobile Industry Statistics
II.Detroit of the East---Guangzhou
Currently, Guangzhou auto industry cluster consists of three whole vehicle manufacturers: Huadu Dongfeng Nissan in the north, Huangpu Guangzhou Honda and export base in the east and Toyota base in the south.
The auto output of Guangzhou in 2006 reached 550 thousand, following that of Shanghai of 610 thousand, ranking second in the whole country. The annual revenue of the industry reached RMB100 billion, with output value of 116.223 billion Yuan and export value of 784 million Yuan. It is estimated that the output will top 1 million in 2008 in Guangzhou and annual productive capacity will reach 1.3 million by 2010 and output value around 200 million Yuan ,output value of auto parts 100 billion Yuan. Guangzhou will become one of the major automobile manufacturing bases in the world.
The great market potential demand brings prosperity to the auto parts manufacturers. By the end of 2006, the number of China civilian cars was over 38 million, among which the private cars were nearly 22 million. Guangdong ranks first nationwide in the number of cars and the private cars accounted for 1/3 in China. Pearl River Delta, with Guangzhou as the center, is China’s largest auto consumer market, occupying 1/4 in the whole country, which is the important market foundation for the development of Guangzhou auto industry. |
The General Situation of Guangzhou’s Three Japan-funded Auto manufacturers
|
Manufacturer |
Date of Foundation |
Output and Sale in 2006 |
Sales Revenue in 2006 |
Productive Capacity |
Targets in 2007 |
Guangzhou Toyota |
Sep.1,2004 |
Output:61304. Sale:over 60000 (put into production in the first half of 2006) |
— |
Initial output:100 thousand/year，Future Planning Output:300 thousand/year |
Sales:150 thousand |
Guangzhou Honda |
July 1,1998 |
Output and sales: 260 thousand |
RMB40 billion |
360 thousand/year |
Output and sales:310 thousand |
Dongfeng Nissan |
June 16,2003 |
Output and sales:203,537 |
— |
300 thousand/year |
Output and sales:300 thousand |
Source: websites of the Guangzhou’s three Japan-funded automobile manufacturers and the report- Guangzhou Automobile Industry: Rushing Toward the Goal of 800 thousand in Output and Sales covered by Information Times.
III.Whole Cars in Guangzhou and Spare Parts in Foshan
| 1) Excellent geographic location. Both Foshan and Guangzhou are located in the central part of Pearl River Delta and put in place the “Guangzhou-Foshan Economic Circle”. The two cities are geographically linked and have supporting infrastructure, jointly building up the efficient and modern traffic network. It is within one hour’s drive from central Foshan to the three main transport hubs of Guangzhou(Guangzhou New Baiyun International Airport, Guangzhou Nansha Port, Guangzhou Railway Station),and it is also the same hour’s drive from Foshan industrial parks to Guangzhou’s three largest whole-car bases. Since the Toyota manufacturing base is adjacent to Foshan Shunde District and Honda to Nanhai District, and Nissan and Hyundai to Sanshui District, the four concentrated development areas of auto parts industry in Shunde,Nanhai, Sanshui, Chancheng respectively have taken shape.
2) Strong Advantage of Supporting Industry. At present, there are nearly 300 auto parts manufacturers in Foshan, with 107 foreign-funded ones, total investment amount of $993.18 million and contractual capital of $528.35 million. There are altogether 28 auto parts projects invested by the world top 500 enterprises. Many Japanese professional auto parts manufacturers have invested in Foshan, such as Toyota Tsusho Corporation, Toyota Gosei Ltd, Toyoda Machine Works Ltd, Toyota Bespoke Corporation,Denso.Ltd,Aisin Seiki,Koyo Liuhe,Aisan Industry Co., Honda Motor, Japan Brake Industry Co.Ltd, Metal One,Maruichi,Enkei.In addition, there are dozens of locally private auto parts manufacturers that have sufficient capital and strong market power in Foshan,which can provide convenience and cooperation for the entry of Japanese and Korean auto parts manufacturers. At present, the various kinds of auto parts produced locally form a complete supporting system. The major products include clutch assembly, brake gear assembly , hydraulic torque meter, auto exhaust assembly, cylinder, wave box, mould, bearing and wheeling hub as well as such auto parts and auxiliaries as vehicle air conditioner, acoustics, filter cleaner, brake strip, muffler, vehicle lighting fitting, electric equipment, leather and interior decorations.
3) Competitive Cost Advantage. Municipal Government of Foshan gives priority to the cultivation of auto parts manufacturing industry which is considered as the rising pillar industry and encourages the Japanese and Korean enterprises to make investments since it can reduce the cost when investing in Foshan.Based on the three whole car manufacturing bases in Guangzhou, the professional auto parts industrial parks are characterized by efficient traffic network ,well-established infrastructure and full-fledged commercial service and we can provide land for the investors to build the workshop or set up the buildings according to the investor’s requirements and offer services regarding lease, commission and translation. Moreover, there are special investment promotion institutions available to provide the investors with the service of following the projects and giving support in power supply and offering help in hiring employees. |
IV.Key Development Planning of Foshan Auto Parts Industry
4.1 Auto Electronics
| Two kinds of manufacturers of auto electronic products will be introduced: one is the auto electronic control equipment. Auto electronic control equipments go hand in hand with auto mechanical system, which is the auto electronic equipment combining the machinery and electronics. The products include: engine, chassis, vehicle body electronic control, such as electronic fuel injection system, antilock brake control, anti-skid control, tractive force control, electronic controlled suspension, electronically control gearbox and electrical power steering. The other one is the car electronic equipment, which can be used independently in the car, including car information system, navigation system, acoustics, TV entertainment system, car telecommunications system and equipment for surfing the internet. |
4.2 Other Important Auto Parts.
Important parts such as chassis,engine,gearbox, clutch, brake stuff,redirector,suspension system, tail gas purifying equipment, large size auto pressing parts, injection molding, auto bearing.
Spare parts such as engine parts, alloy wheel hub, car fasteners, auto supplies, and auto decorations and supporting products. |
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Machinery
Manufacturing Industry
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1. The Status in Quo of Machinery
Manufacturing Industry of Foshan
In 2005, the gross value of industrial output in
machinery manufacturing industry of Foshan was up to 95 billion
RMB, which increased by 32.4% as compared with that in the
previous year.
2. The Competitive Advantage of Machinery Manufacturing
Industry of Foshan
2.1 A Mass of Enterprises and Industrial Clusters
with Characteristics
After so many years’ development, the machinery
manufacturing industry of our city is capable of providing
effective supports for the development of other industries,
the optimization and upgrading of product structure and the
improvement of production technology of enterprises based
on the solid industrial basis of local or surrounding regions.
In accommodation with the development of such industries as
household appliances, ceramic ware, plastics and furniture,
a group of characteristic and dominant industrial sectors
covering ceramic machinery, electrical machinery and equipment,
pressing machinery, woodworking machinery, plastic machinery,
textile machinery, glass machinery, printing and packing machinery,
metallic working machinery, auto parts, mould, aluminum sections,
stainless steel products have come into being. Among them,
the plastic machinery and pressing machinery respectively
account for 30% and 40% of the total market share in Guangdong
Province; the ceramic machinery, woodworking machinery and
aluminum sections respectively account for 85%, 50% and 40%
of the total market share in domestic market. The technical
level of such products as ceramic pressing machine, dry-type
transformer, bedding machinery, plastic jetting-moulding machine
and vacuum pump rank among the top position in comparison
with that of the their domestic and international counterparts.
As a result of it, a group of industrial clusters represented
by pressing machinery in Chengcun, woodworking machinery in
Lunjiao, plastic machinery in Daliang and Ronggui, aluminum
sections of Dali and stainless steel products of Dalan as
well as the four auto parts concentration areas in Chancheng,
Nanhai, Shunde and Sanshui have made their prominent appearances.
2.2 High Superiority and Powerful Strength of Leading
Enterprises in Machinery Manufacturing Industry
After so many years’ development, a number
of manufacturing enterprises with considerable strength have
made their prominent appearances in the machinery manufacturing
industry of our city. Among them, there is no lack of such
leading enterprises ranking among the top positions in the
whole country. In 2005, there were altogether 21 enterprises
with the taxation topping over 100 million RMB. Among them,
the taxes paid by 5 enterprises from machinery manufacturing
industry accounted for 23.8% of the total taxation. At present,
3 among the 11 listed companies are from machinery manufacturing
industry. The three enterprises are Guangdong Keda Industrial
Co., Ltd, Asia Aluminum Factory Co., Ltd and Guangdong Macro
Co., Ltd.
General View of Well-known Machinery Manufacturers
in Foshan City
| Product
Type |
Enterprise
Name |
Remark |
| whole set of ceramic polished brick manufacturing
equipment |
Guangdong Keda Industrial Co., Ltd |
It is the sole enterprise which is capable of providing
whole set of equipments for manufacturing ceramic polished
bricks as well as the biggest manufacturers of ceramics
in the country. Its products are up to the advanced
international technical levels. |
| plastic jetting-moulding machine |
Shunde Chen De Plastics Machinery Co., Ltd |
As the biggest manufacturing base for plastic injection
moulding machines, it has an annual capacity of 12000
typical plastic injection moulding machines. |
| dry-type transformer |
Sunten Electrics Co., Ltd |
Its dry-type transformer has maintained the top position
in domestic market in terms of the market share ever
since 1992, and its technical level has always been
in a leading position in both domestic and international
market. |
| pressure thermostat |
Tongbao Corporation Limited |
As one of the three biggest thermostat manufacturers
in the world, it has an annual capacity of 11 million
sets, which accounts for 50% of the total capacity of
the whole country. It holds the first place in the country
in terms of its production capacity. |
| electromagnetic cross reversing valve |
Foshan Hualu Refrigerating Co., Ltd. |
It ranks the third place in the world in terms of
the output. |
| oil-free compressor |
Foshan Guangshun Electrical Equipment Co.,Ltd. |
It ranks the second place in the world in terms of
the output |
| bimetallic strip |
Foshan Electrical Precision Alloy Co., Ltd |
It ranks the first place in the world in terms of
the output |
| communication cable |
Foshan Cable Industrial Co., Ltd |
It ranks the second place in the world in terms of
the output |
| container semi-trailer |
Shunde Guang Lianhong Traffic Machinery Manufacturing
Co., Ltd |
It is the biggest enterprise manufacturing container
semi-trailers as well as the exporting base in the country.
Its output and export volume rank the first place in
the country. |
| computer |
Shunda Computer Co., Ltd |
It is one of the biggest manufacturing bases of Mitac
International Corporation, the biggest computer manufacturing
group in Taiwan. |
2.3 Wide Application of Advanced
Technological Equipments and Enhanced Innovation Ability
Accompanied by the wide
application of such advanced technologies as optical-mechanical-electrical
integration, advanced hydraulic transmission, precision manufacture
and testing, a mass of advanced equipments represented by
flexible machining center, machining center, automatic stereo
warehouse, numerically-controlled machine tool and large-scale
precision manufacturing equipment have also found wide application
in machinery manufacturing enterprises of large or medium
sizes. The establishment of engineering R & D centers
and technical centers in succession has further improved the
technical innovation level of machinery manufacturing enterprises.
Currently, there are 8 enterprise-owned technical centers
and 89 engineering technical R & D centers of various
levels in our city, which account for 38.1% and 40.% of the
those in the whole city respectively. Furthermore, there are
also numerous industrial public innovation platforms represented
by Guangdong Chencun Machinery Production Promotion Center,
South China Stainless Steel Technical Innovation Center and
Guangdong Nonferrous Metals Technical Innovation Center. These
technical innovation centers have provided necessary technical
supports for the development machinery manufacturing industry
of our city
3. Future Planning .
3.1 Industries Enjoying Priorities in Development
Priorities will be given to 6 advantaged machinery
manufacturing sectors represented by auto and auto parts sector,
machinery sectors with special features, electrical machinery
and equipment sector, communication and electrical equipment
sector, metallic section sector and mould manufacturing sector.
3.2 Areas Enjoying Priorities in Development
Priorities will be given to such characteristic national
industrial bases represented by Foshan Precision Manufacturing
Industrial Base, Foshan Automatic Machinery and Equipment
Industrial Base and Foshan Electrical and Electronic Appliances
Industrial Base designated by National Torch Plan, National
(Foshan) display Unit Industrial Park and National (Shunde)
Household Appliances Industrial Park; special industrial parks
represented by Chancheng Ceramic Equipment Manufacturing Base,
Textle Machinery Manufacturing Base in Xiqiao Science &
Technology Industrial Park, Chencun International Pressing
Machinery Industrial Park, Lunjiao International Woodworking
Machinery Industrial Park, Daliang Plastic Machinery &
Equipment Manufacturing Industrial Park, Ronggui Mould Industrial
City and Leliu International Traffic Machinery Assembly Zone;
auto parts industrial assembly zones represented by Chancheng,
Nanhai, Shunde and Sanshui; special towns of metallic materials
and products represented by Lanshi, Dali, Beihao, Chencun,
Yanghe and Genghe.
3.3 Critical Products with Priorities in Development
Automobile and Auto Parts Industry: and special chassis,
special vehicles represented by road wreckers, road conservation
vehicles, road cleaning vehicles, concrete mixers for engineering
purpose, traveling vehicles, refrigeration vehicles, special
vehicles for medical treatment, tractor trucks, special semi-trailers
and relevant chassis, critical assemblies and components represented
by engines, transmission cases, clutches, brakes, steering
gears, suspension systems, fuel jetting electrical control
devices, tail gas decontamination devices, large-size automobile
stampings, injection moulding components and automobile bearings,
auto parts represented by engine parts, alloy wheel hubs,
special automobile fasteners and auto supplies, vehicle electronic
products, auto decorations and auxiliary parts.
Machinery Industry with Special Features: large-scale special
ceramic machinery and equipment complex, high efficient and
precise numerically-controlled plastic machinery of high tonnage
and mode locking force, multifunctional numerically-controlled
woodworking machinery, special glass fabricating machinery,
high-speed textile machinery, multifunctional packing and
printing machinery, numerically-controlled machine tools and
system, flexible and multi-linkage machining center, multistage
and precise compression moulding equipment applicable to metallic
products, high-speed, precise, flexible optical-mechanical-electrical
integration metal processing equipment and industrial automation
control system.
Electrical Machinery and Equipment Manufacturing Industry:
such high-voltage electricity delivery and transform control
equipment and equipment complex represented by automatic,
numerically-controlled and intelligent isolating switch, breaker,
rectifier, capacitor, mutual inductor and transformer with
high reliability; minimized, intelligent, modularized, integrated
and networked low voltage apparatus; new type, green, high-pressured
cross-linked cable as well as cables for special purposes
and extended products with high technical level; cable insulation
materials.
Communication & Electric Equipment Manufacturing Industry:
such exchange, transmission, terminal and network system devices
as photoelectrical coupler, photoelectrical exchanger, high-luminance
luminescent diode, transistor, new-type LCD, chip capacitor,
chip resistor, chip inductor, chip diode and triode, sensing
element, high-frequency element, communication antenna, microwave
element, communication station and exchange.
Medical Apparatuses and Devices Manufacturing Industry: optical-mechanical-electrical,
intelligent, numerically-controlled and automatic large-scale
instruments for medical diagnosis, portable and intelligent
self diagnostic instruments and health care apparatuses for
household application, new-type medical materials for implantation
and new-type biomedical materials.
Metal Section Manufacturing Industry: new-type vehicle aluminum,
steel and compound materials, high quality industrial aluminum,
steel and compound materials of high strength and high-grade
compound materials for construction purpose.
Mould Manufacturing Industry: precision plastic mould, precision
punching mould utilized in IT industry, punching dies characterized
by complex structure, high strength and long service life
and large-scale moulds for covering components.
Other Industries: pumps with such characteristics as anti-corrosion,
long service life and high performance, which are used for
agricultural and industrial purpose, energy-saving single-screw
compressors characterized with long service life, refrigerating
and air-conditioning equipments, new-type hydraulic, sealing
and pneumatic elements and apparatuses, heat sensing devices,
thermostats and such environmental protection equipments and
testing instruments as smoke abatement, dust separation, desulfurization
and water treatment equipments. |
Household
appliances Manufacturing Industry
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1. The Status in Quo of Development
of Household Appliances Manufacturing Industry of Foshan
After more than 20 years’ development, the
scale of household appliances manufacturing industry of Foshan
and the product quality hold a leading position in China.
Foshan is the most important household appliances manufacturing
base in China with the output of household appliances accounting
for 60% of that in Guangdong Province. The industrial output
value realized in household appliances and equipment manufacturing
industry accounts for one third of the total industrial output
of the city. Such well-known household appliances manufacturing
enterprises in the world represented by Toshiba, Panasonic
and Sanyo from Japan and Whirlpool from U.S.A. have invested
in many household appliances projects in Foshan. The output
of microwave ovens, refrigerators and air conditioners of
Foshan respectively accounts for 48.6%, 80% and 50% of that
nationwide. The household appliances manufactured in Foshan
not only have brisk sales in domestic market but also are
exported to overseas market in large quantities. After so
many years’ development, such leading enterprises as
Midea, Galanz, Kelon, Vanward, Macro, Kangbao and Chigo have
achieved considerable scale. As a result of it, the industrial
chain headed by leading enterprises has formed in the whole
industry, and a number of Chinese well-known brands have emerged.
The dominant products of the industry enjoy a high popularity
and a large proportion of market share in domestic market.
The modern technologies have found wide application in household
appliance manufacturing industry of Foshan, which have in
turn pushed forward the upgrading of traditional products.
So far, microelectronic technique, digital technique, fuzzy
control technology, converter technique, air purification
technique, energy-saving, preserving, long service life, medical
care and silencing technologies, heat magnetization technology,
anti-static as well as anti-interference and network technique
have been adopted by household appliances of new generation.
In order to provide supports for large –size household
appliances and critical spare parts, a series of household
appliance products characterized by their high efficiency,
environmental protection conception, intelligent property
and low noise, which are in accommodation with different hierarchies
of consumption have been developed.
Output of Major Household Appliances Manufactured
in Foshan in 2005
|
Product
Name |
Unit
of Measurement |
Absolute
Number |
|
Domestic Refrigerator |
ten thousand sets |
307.13 |
Electric Fan |
ten thousand sets |
2303.72 |
Room air Conditioner |
ten thousand sets |
1534.11 |
Microwave Oven |
ten thousand sets |
2870.10 |
Color Kinescope |
ten thousand sets |
286.15 |
Integrated Semiconductor Circuit |
ten thousand pieces |
23604.00 |
Camera |
ten thousand sets |
1293.81 |
2. Analysis of Advantages of Developing
Household Appliances in Foshan
2.1 Large Gross Scale
The production capacity
of household appliances industry in Foshan holds a critical
position in China. Foshan is an important exporting base of
household appliances in China or even in the world, and its
dominant products, such as air conditioners, electric fans,
electric cookers, gas-fueled devices, refrigerators, microwave
ovens, disinfecting dish cabinets enjoy a high popularity
and a large proportion of market share in domestic market.
The production and sales of such well-known brands of refrigerators,
air conditioners, microwave ovens, electric cookers, electric
fans, disinfecting dish cabinets and electric water heaters
represented by Kelon, Rongsheng, Midea, Chigo, Macro, Vanward
and Galanz hold a leading position in domestic market.
2.2 Formation of Industrial Chain Headed by Leading
Enterprises
The industrial chain headed by leading enterprises
in household appliance manufacturing industry of Foshan has
formed. The whole industrial chain extends in a direction
from south to north and from east from west. So far, 7 engineering
technical R & D centers, 2 national enterprise technical
centers and 2 overseas R & D centers have been established
in household appliances manufacturing industry of Foshan.
The matching ratio of spare parts sourced from local region
has increased to 90%, and the procurement cost is decreasing
at an annual rate of 2%.
3. Planning for the Development of Household Appliances
Manufacturing Industry of Foshan
3.1 To encourage enterprises in terms of the international
development objective, to accelerate the pace of adaptation
to international standards and advanced standards widely accepted
in developed countries and proactively push forward the standard
upgrading of enterprises.
3.2 To encourage the technical innovation performed
by enterprises so as to upgrade the technical development
level.
It is necessary to encourage enterprises to conduct
technical innovation through enhancing the protection for
intellectual property. The municipal government will prevent
sham products from impacting on the industrial development
and prohibit the low-price competition in the household appliances
manufacturing industry by upgrading the technical standard
and enhancing the law enforcement and supervision.
3.3 To enhance the construction of household appliances
industrial park with industrial constellation effect
By taking the industrial policies as orientation,
the municipal government will bring into full play the advantages
of local regions, so as to make them obtain full development
and strength, form the high concentration of talents, capitals,
physical distribution, research and development and supporting
facilities and achieve the considerable industrial competitive
power.
3.4 It is necessary to attach importance to the invitation
of foreign investment. When deciding the development orientation
in line with the globalization trend, it is necessary for
household appliance manufacturing industry of Foshan to attract
investment from world-class companies. At the same time, it
is also necessary to seize the opportunity of globalization
of household appliances and industrial transformation to attract
the attention of world-class manufacturers by enlisting on
the solid foundation laid by leading household appliances
manufacturers. The key points for attracting foreign investment
also include the manufacture of household appliances and critical
spare parts, industrial design of big or small household appliances
and recovery processing centers. |
Electronic Information Industry
 |
I General Situation of the Development of Foshan Electronic Information Industry.
1.Pearl River Delta is the core area of China’s electronic information industry.
Since the 1990s, China electronic information industry has maintained a rapid and persistent growth, with industry scale expanding and growth rate ranking first in all sectors. The annual average growth rate of the industry output value was over 30% from 1990-2005, almost three times of the annual average GDP growth rate.
China has become the largest manufacturers of electronic products in the world. The sales revenue accounted for over 15% in the global market in 2005. A number of American, Japanese and Taiwan enterprises set up their factories in China mainland in order to efficiently decrease the production cost.
The gross output of Guangdong electronic information industry accounts for 1/3 nationwide, and the enterprises are mainly situated in Pearl River Delta. The hi-tech industrial scale in PRD area takes up 94% in Guangdong and the industry in PRD is concentrated and has formed established industrial chain.
2. Foshan is the key manufacturing base of Guangdong electronic information industry.
Foshan is the core member of PRD city cluster and electronic information industry is the pillar industry of Foshan. The growth rate of output value ,sales revenue and export revenue of the industry in Foshan from 2001-2006 was over 20%, accounting for 24% in Foshan GDP compared to the original 14%.The output value in 2006 was 158 billion Yuan ,increasing by 25.6%.
Foshan electronic information industry covers the six fields in terms of product structure, such as computer commnunications,electronic components, optical data storage, consumption electronic products, auto electronics and software, and there are altogether more than 1800 varieties.Foshan has developed dozens of well-known and competitive enterprises , such as Chigo Air-Conditioner,Shunde Computer Corporation, Guangdong Nortel Communications Equipment, Nationstar Optoelectronics, Blue Rocket,Midea and Galanz.
Foshan possesses the most advanced household appliance industry in China. Foshan electronic information industry mainly focus on electronic product manufacturing in terms of industrial structure and the output value of household appliances accounts for over 60% in the whole industry.
Foshan household appliance industry ranks in the forefront in the whole country in the aspects of industry scale, product quality, and the construction of industrial chain as well as the well established market system. Foshan is the important household appliance manufacturing and export base in China and even in the world. The output of household appliance accounts for 60% in Guangdong and microwave ovens 48.6% in China. A large number of household appliances, such as fridges,air-conditioners and cameras are made in Foshan.The industrial pattern takes shape with dozens of giant manufacturers as the center, such as Midea, Galanz, Vanward, Macro,Canbo, Chigo, and a lot of small and medium size enterprises home and abroad providing supporting services. The matching rate of local spare parts reached 90%, and purchasing cost dropped by 2% annually, forming the relatively complete industrial chain.
II Development Planning
Foshan gives priority to the development of electronic information industry and it has been listed as the key development industry. According to the national industry distribution pattern and Foshan electronic information industry foundation, Foshan has established industry development zones according to different industries and now it presents a trend of industry concentration.
In 1999, Nanhai Software Science and Technology Park, one of the four largest software parks in Guangdong, was set up.
In 2004, Foshan electronic information industry was included into “National Electronic Information Industry Base” and under unified management.
In March, 2006, Foshan was awarded “National Electronic Information Industry Base”, and National (Foshan) Display Devices Industrial Park was inaugurated.
Foshan focuses on the development of fluid crystal display devices, auto electronics and information home appliances. Besides the steady growth of traditional household appliances, Foshan display devices and auto electronic industries have a great market potential and enjoy a rapid growth, gradually becoming the key economic growth point.
1 TFT-LCD－TV:
1.1 Great prospect for the development of liquid crystal TV industry.
The rapid growth of China economy, great market demand and advantage of production cost enable China to become the largest manufacturing base of TVs, PC displays and notebook computers in the world. And there is a great market demand for TFT-LCD displays.
China has become the major manufacturing and export country of color TVs. The output has reached over 74 million, which accounts for 40% in global export.
China’s color TV industry has a gradual transition from CRT to flat panel display and finds their ways into common families. Display Search estimated that the demand for liquid crystal TV would increase at a compound growth rate of 126.1% from 2005-2007 and the sales of liquid crystal TV would surpass that of CRT in 2006, and there would be over 70% of CRTs in the world in 2008.As the price of liquid crystal TV goes down, the prospect of the industry would be better.
Japanese, Korean and Taiwan panel manufacturers are strengthening their efforts in making investments in TFT-LCD back-end module. The number of LCD processed and manufactured in mainland China accounts for 60%-70% in the world.
1.2 There is a concentration of the downstream industry of liquid crystal in PRD area, so the developmental potential for the upstream industry is quite large.
TV output in PRD area accounts for 47% in China (including CRT and liquid crystal TV), and the production of PCs and notebook computers also plays an important role in the world. Last year, the liquid crystal display panels imported in Guangdong was over 1 billion in number and worth 8.5 billion dollars.
There are only two enterprises investing in PRD area, one is Taiwan Innolux investing in Shenzhen and the other is Display Qimei Optoelectronics in Nanhai, which fall far short of the demand of downstream market. The TFT-LCD industry in PRD will have a rapid development in the future.
1.3 Advantages of developing TFT-LCD project
Policy support: in Dec.2005, People’s Government of Guangdong Province decided to place the project TFT-LCD which was included in Guangdong key industry development planning in Foshan. The initial phase focuses on the construction of module and the final objective is to form the scale TFT-LCD industrial chain and world-class TFT-LCD industrial base.
In order to enhance the development of TFT-LCD project, Foshan set up an area of 2 km2 in Nanhai as display device industrial park and is planning to introduce the leading enterprises of liquid crystal flat panel. With the professional parks as the platform, the display device industrial chain that is well-structured and has good supporting function is gradually made. Double circuit power supply is offered to the key projects to ensure the security and reliability of power supply.
Six advantages of Foshan liquid display device industry are:
1 supported by national display device industrial park
2 solid electronic information industry foundations
3 good talent support from sufficient human resource
4 abundant land resources and strong local economic strength
5 efficient logistic network and customs clearance, and the opening of E-port forms the modern commerce circulation system radiating out domestically and globally.
6 Support from efficient government and standardized practice.
LCM module project put into production. In April,2006, Taiwan Qimei electronics corporation ,world’s fourth largest liquid crystal display and second largest liquid crystal display panel manufacturers, signed a contract in making investment in LCM module project in Foshan Nanhai, with total planning investment of $480million ,producing liquid crystal TV module, and annual productive capacity of 9.6 million display modules.
LCM is a module that assembles the liquid crystal parts, connecting fitting, integrate circuit, circuit board, backlight, components .The entry of the project laid a solid foundation for the special area of Foshan liquid crystal TV industry.
1.4 Orientation of Key Projects to be introduced
TFT-LCD industry involves the fields of optics, semiconductor, electrical machinery, chemistry engineering, materials, and is of extensive technical level and obvious division in fields.
Foshan gives priority to the development of the following areas: glass base plate, ITO electricity conduction glass, liquid crystal materials, integrate circuit, color filter, backlight module, polarizer, driving IC, control IC.
2 Auto Electronics:
1.1 Unique Advantages in Investing in Auto Parts in Foshan.
There were 550 thousand cars produced in Guangzhou in 2006, ranking second in China and output value of 116.223 billion Yuan, and export value $784 million. It is estimated that the annual productive capacity of whole cars will reach 1.3 million in 2010 and output value of 200 billion Yuan and output value of auto parts of 100 billion Yuan. Guangzhou will become one of the major auto manufacturing bases in the world.
The great market potential demand brings prosperity to the auto parts manufacturers. By the end of 2006, the number of China civilian cars was over 38 million, among which the private cars was nearly 22 million. Guangdong ranked first nationwide in the number of cars and the private cars accounted for 1/3 in China. Pearl River Delta, with Guangzhou as the center, is China’s largest auto consumer market, accounting for 1/4 in the whole country, which is the important market foundation for the development of Guangzhou auto industry.
Foshan has excellent geographic location and competitive cost advantage in investing in auto parts industry.Foshan industrial parks is within one hour’s drive to the three whole car bases of Guangzhou-Toyota, Honda and Nissan. Surrounding the three bases, professional industrial parks with improved service function are formed to effectively decrease the investment cost.
Currently, there are almost 300 auto parts manufacturers, among which there are 107 foreign funded ones, with total investment amount of nearly $1 billion. And a number of auto parts suppliers, such as Toyota, Honda, have settled down in Foshan.
1.2 Auto electronic is the key development direction for auto technology and electronic industry.
As the most important means of transportation in the modern society, the modern automobiles are developed in the directions of communications, security, comfort, environment and happiness. With the strengthening awareness of environmental protection, the auto electronization is keeping been upgraded. The traditional mechanical system is gradually placed by electronic technology.
Auto electronization is considered as one revolution in the process of the development of auto technology. The degree of auto electronization is regarded as the important gauge to measure the modern automobiles and the most important technical measures to develop new auto style and to improve the auto performance. The authoritative experts estimated that 70%-80% of the future development of auto industry would come from auto electronics.
1.3 Two kinds of auto electronic product manufacturers will be introduced.
One is the auto electronic control equipment. Auto electronic control equipments go hand in hand with auto mechanical system that is the auto electronic equipment combining the machinery and electronics. The products include: engine, chassis, vehicle body electronic control, such as electronic fuel injection system, antilock brake control, anti-skid control, tractive force control, electronic controlled suspension, electronically control gearbox and electrical power steering. The other one is the car electronic equipment, which can be used independently in the car, including car information system, navigation system, acoustics, TV entertainment system, car telecommunications system and equipment for surfing the internet.
1.4 Other Important Auto Parts.
Important parts such as chassis,engine,gearbox, clutch, brake stuff,redirector,suspension system, tail gas purifying equipment, large size auto pressing parts, injection molding, auto bearing
Spare parts such as engine parts, alloy wheel hub, car fasteners, auto supplies, and auto decorations and supporting products.
III Information Home Appliance and Embedded Software.
The scale of Foshan household appliance industry, output and product quality are in a leading position, and Foshan is the most important household appliance industry base in China. There are dozens of major enterprises with output value of over 1 billion Yuan, such as Midea, Kelon, Galanz, Sampo, Shell Electric, and Chigo.
Foshan gives full play to the basic advantages of household appliance industry, and focus on digital, smart and individual products which can exchange information through network. The products include series of household network appliances, such as smart phones, digital TV and embedded household appliances and household digital products such as portable communications and network equipment, terminal products of wired broad band network, broad band wireless access terminal, household exclusive use network system and terminal, smart construction terminal.
By the end of 2006, there were more than 200 software enterprises in Foshan, with operating income of 4.4billion Yuan.Foshan gives priority to the development of embedded software products, such as embedded smart household appliance controller and system, media system and auto navigation system.
|
type |
content |
Embedded software products |
Embedded smart household appliance controller and system
Auto media system
Auto control system
Embedded software R&D platform Numerically controlled machine tool control system Integrate circuit chips design |
Application software |
Development and application of digital media Development of e-commerce software and system engineering Development of e-government software and system engineering Information security |
Plastics Manufacturing
Industry
1. The Status in Quo of Plastics
Manufacturing ndustry
After many years’ development, an all-around industrial
production system with considerable scale and development
level has been established in the plastic manufacturing industry
of Foshan city. Its major products include plastic packing
materials, sheet materials, pipe sections, artificial leathers,
plastic knitted composite materials, packing container, daily
plastics as well as such further processed products represented
by aluminum plating products, bronzing products, coated products,
color printing composite products and adhesive tapes. In 2005,
the industrial output value of the whole industry was up to
2.9 billion U.S dollars, which increased by 35.28% compared
with that in the previous year, and accounted for 5% of the
total industrial output value of the city.
Foshan has such renowned local enterprises represented by
Foshan Plastics Group Co., Ltd, Liansu Science & Technology
Industry Co., Ltd in Shunde District, Guangdong Goody Plastics
and Synthetic Plastics and Hardware Co., Ltd.
Foshan Plastics Group Co., Ltd has established cooperative
relationship with Dupont Company and Invista Company from
U.S.A as well as Sumitomo Corporation and Teijin Group from
Japan.
2. The Advantages of Developing Plastics Manufacturing
Industry in Foshan
So far, a group of well-known leading enterprises with considerable
scale and certain technical level have emerged in the industry.
For example, the sales income and output of Foshan Plastic
Group Co., Ltd holds a leading position among other enterprises
in the whole country, and a number of its individual products
have come to the top in the industry; Foshan Gaoming Goody
Plastics Co., Ltd has two well-known brands---Goody and Deyi.
Furthermore, Guangdong High Polymerized Chemicals Company
Limited is one of the three biggest fireproof shutter manufacturers
in China.
3. Planning for the Development of Plastics Manufacturing
Industry of Foshan city
3.1 It is necessary to implement the strategy of big corporations
and big companies so as to form a group of backbone plastics
manufacturers with international competitive capacity. Furthermore,
it is also necessary to promote the development of industrial
groups and the improvement of industrial concentration by
optimizing the allocation o social resources, directing and
supporting enterprises, so as to seize the opportunity of
international industrial transfer to enable them to obtain
full development and powerful strength.
3.2 It is necessary to further optimize the investment environment.
As the plastics manufacturing industry in Pearl River Delta
Region has already formed a considerable scale, it is necessary
to further optimize relevant policies and regulations on investment
and revenue, so as to enhance the invitation of both domestic
and foreign investment.
3.3 It is necessary to push forward the technical advance
and innovation of enterprises, attach importance to the strategic
management, conduct reasonable planning for the development
of enterprises and regulated the investment action of enterprises.
Furthermore, it is also necessary to attach importance to
the technical advance and innovation, implementation of strategy
of developing enterprises through science and technology,
so as to improve the core competitive ability of enterprises
based on their core technologies.
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Metal Die
1.0 General information
With the vigorous development of Chinese auto industry and four famous foreign investment auto manufacture enterprises (Japan Honda, Toyota and Nissan) entered Guagnzhou, the rapid growth of Foshan’s auto parts industry will brings huge demand and potential developing opportunities to metal die industry.
Because Foshan is a major producing and trading distributing center of Chinese metal die products, numerous well-known enterprises such as Korea POSCO, Japan Sumitomo, Metal One, Hanatairiku and Maruichi set up metal die manufacture factories here. There is a favorable development prospect on setting up metal die manufacture enterprises and metal die processing enterprises in Foshan.
2.0 development advantages of metal die industry in Foshan
2.1 Solid industry basic
Foshan is the biggest metal processing and production base in the southern part of China. The industry scale is placing in the first position of that in Guangdong. On 2005, there are 847 or above enterprises in a certain scale within the metal processing and production industry. They achieved gross value of output of 68.881 billion RMB and reach sales profits of 65.483 billion RMB.
Table 1: Develop information of metal processing and production industry in Foshan
| |
Enterprises amount |
Gross value of output |
Industrial growth rate |
Profit amount |
Tax amount |
Employees |
| Percentages by comparing with the same industry in Guangdong |
23.1 |
25.8 |
28.6 |
18.8 |
32.1 |
24.1 |
According to association’s Stat.: (Pie Charts)
* Outputs of aluminum material for building in Foshan account for 60% of that in Guangdong and accounts for 40% of that in China
* Outputs of stainless steel products in Foshan account for 35%, among which, the outputs of stainless steel tube account for 80% of that in China.
* Outputs of hardware products account for 40% or above of that in Guangdong and accounts for 20% or above of that in China.
| Area |
Outputs of Aluminum Material for Building (%) |
| Foshan |
60% |
| The other cities in Guangdong |
40% |
| Area |
Outputs of Aluminum Material for Building (%) |
| Foshan |
40% |
| The other cities in China |
60% |
| Area |
Outputs of Stainless Steel Products (%) |
| Foshan |
35% |
| The other cities in China |
65% |
| Area |
Outputs of Stainless Steel Tube Products (%) |
| Foshan |
80% |
| The other cities in China |
20% |
| Area |
Outputs of Hardware Products (%) |
| Foshan |
40% |
| The other cities in Guangdong |
60% |
| Area |
Outputs of Hardware Products (%) |
| Foshan |
20% |
| The other cities in China |
80% |
2.2 Established numerous centralization industry towns and industry bases
Area |
Industry |
Introduction |
Bases |
| Lanshi Town in Chancheng District |
Stainless Steel |
The biggest stainless steel processing and distributing base in China. It contains 600 stainless steel enterprises, 2000 merchants, more than 1000 welded tube product lines and more than 180 calendering product lines. Furthermore, the annual production capability respectively reaches 12 million ton and 8 million ton. Moreover, the actual outputs are up to 10 million ton or above, which account for one third of that in China, while the stainless steel tube accounts for 80% of that in China. |
Lanshi International Metal Trading Center: Total area is 1000mu. There are more than 20 well-known steel manufacture enterprises such as Shanxi Taiyuan Iron&steel, Shangha Baosteel, Baoxin, Korea Posco, Japan NTK, and Taiwan YUSCO has joint here. |
| Dali Town in Nanhai District |
Non-ferrous Metal (Aluminum), Secondary Metal |
Chinese biggest aluminum production base, which contains 110 aluminum production and processing enterprises. Annual processing capability reach 8 million ton. Produce and sale amount accounts for 50% of that in Guangdong, accounts for 30% of that in China. The turnover of secondary metal in Dali is up to 20 million ton/year, which accounts for one third of that in China. Furthermore, importing amount of metal scrap is up to 10million ton/year. |
Nanhai Non-ferrous Metal Exhibition And Trading Center: Total area is 900 mu and it combines the functions such as trading, logistic, storing, quality management, finance, information, technology, industry intercommunion and hotel as a whole. |
| Danzao Town in Nanhai District |
Hardware |
The biggest hardware production base in the southern part of China. It contains more than 1800 hardware enterprises. Production value was up to 4.6billion RMB in 2005, the produce and sale amount accounted for 40% of that in Guangdong, accounted for 20% of that in China. |
Hengjiang Iron Material Market: Total area is 70 thousand m2 and building area is up to 30 thousand m2 . Presently, more than 800 famous enterprises entered here, daily trading amount exceed thousands ton. South China Hardware Trading Market: Planning area will exceed 100 mu, building area is up to 11 thousand m2 and it is planning to invest 220 million RMB in this market’s constructing. |
| Beijiao Town in Shunde District |
Metal |
The number of metal processing enterprise was up to 130 in 2005 in Beijiao town, the gross value of industry output was 5 billion RMB and the forecasting of gross value of industry output would increase to 12 billion RMB in 2010. |
Metal Base: enterprises which established here includes the top 500 Global steel corporations such as Baosteel, Korea Posco, Samsung, Japan NISSHO IWAI, and numerous domestic large die steel and non-ferrous metals processing organizations, such as the biggest specialization product line for middle size or large size flat steel and auto use die steel producing. |
| Lecong Town in Shunde District |
Steel |
Lecong Steel Market is the biggest steel market in China with total area of 20 million m2 . It contains 1200 enterprises and 100 steel, metal processing enterprises. Furthermore, the annual sales reaches 150 million ton and annual processing capability is up to 500 million ton. Such market scale and market covering power are ranking on first place in China. |
| Tanghe Town in Gaoming |
Metals Processing |
By the end of 2005, the annual production value of metal in Yanghe town has reaches 4.476 billion RMB. According to the Stat. in 2005, there are 65 processing enterprises which process steel rolls, copper rolls, aluminum and stainless steel have established. Among which, the production of steel rolls was up to 20 million ton, the production of aluminum was up to 3 million ton. The well-known metal rolling and processing enterprises which are famous by their huge production scale and high production added value such as Jiye, Jinxi Jinlan, Jingangniu and Yong Li Jian are located here. |
Tanghe Town Metal Industry Base: It locates in Gaoming Cangjiang industry park within Tanghe town popedom. The planning area is more than 100 thousand mu. In present, there are 65 metal industry projects such as producing and processing cold-rolling sheet and metal strip, stainless steel cold-rolling sheet and products processing, aluminum sheet and thin aluminum sheet’s cold rolling and processing, as well as metal furniture processing are run here. |
3.0 Core developing program for metal die in Foshan
Die and metal industry are the major developing industries in Foshan.
3.1 Die industry
Key development items: precision plastic mold, precision progressive die and the complexity, high strength with long working life pressing die in IT industry, as well as large-size covering parts die, etc.
3.2 Metal industry
Metal products which are used in building and for citizen use should be consolidating continually, while composite metallic material which is used in engineering, military affairs and aerospace industry, new type metal and metal processing products is encouraged to develop.
It includes the products such as aluminum for auto use, steel composite profile, high level composite aluminum sections for building use, new hardware production, metal material for packaging use, new type alloy material, steel, copper, aluminum and other non-ferrous metal processing.
http://www.investfoshan.gov.cn/cj2007/gb/machinery.asp |
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