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Chongqing Xiyong Micro-Electronics Industrial Park.
Chongqing Xiyong Micro-Electronics Industrial Park.

In recent years, China has been implementing the strategy of open economy and regional developments, and therefore the infrastructure and investment environment of the central and western regions were significantly improved. The industrial developments in the cities of these regions are picking up momentum very quickly.

According to the statistics of the National Bureau of Statistics of China, the growth of industrial values for enterprises above designated level in central and western China were 1.2% and 0.2% higher than the country average level in the first three quarters of 2017.

In the wake of the rising electricity and labor cost as well as the shortage of land resources in eastern China, more enterprises in the automotive, E&E, printing and packaging industries are shifting their production to central and western China. This production shift is reinforcing the development of the plastic industry in these regions.

Chongqing to form a plastics industry cluster

Located at the upper course of the Yangtze River, Chongqing is the strategic pivot of the national Belt and Road Initiative and the Yangtze River Economic Zone.

The city is also the starting point of the Chongqing-Xinjiang-Europe Railway, also known as Yu’Xin’Ou Railway, and a key import and export city in western China.

Huge quantity of plastics machinery and plastic materials are imported into China through Chongqing every year. The city is now an important trading and service centre for materials procurement. It is also a city of choice for investors targeting to unlock the market potential of the central and western China.

Chongqing is one of the biggest production bases of notebook computers in the world, and the second largest production base of automobiles in China, representing loads of opportunities to the plastics industry. The market demand for plastics is expected to reach 7 million tons at RMB 200 billion by 2025.

The Chongqing local government is focusing on the establishment of a giant plastics industry park, so as to facilitate the forming of a plastics industry cluster in the city.

According to the planning, the production value of the plastics industry park will reach hundreds of billions of RMB, and house the production of plastic products, molds, modified plastics, research & development, testing and trading.

Wuhan continues expanding its automotive industry
Wuhan is the first Chinese city that has the production lines of five automakers from four countries.
Wuhan is the first city in China that has the production lines of five automakers from four countries, including France, Japan, USA and China. In the last five years, the automotive industry in the city has been expanding continuously. Wuhan is the largest automotive production base in central China, and ranks sixth in China now.

In 2016, about 1.76 millions of automobiles at a value of RMB 306 billion were manufactured Wuhan, contributing 23% of the total industrial production of the city. The rocket growing automotive industry in Wuhan is pushing the development of automotive plastics industry of the city.

Kingfa Sci. & Tech. Co., Ltd., the Guangdong based leading Chinese modified plastics enterprise, invested RMB 5 billion in Wuhan Economic Development Zone for the development and production of new high performance materials. The project focuses on modified plastics and carbon fiber composites used for the automotive, E&E and aerospace applications. After the project completion in 2018, the annual capacity will reach 520,000 tons with production value of RMB 15 billion.

Xi’an rises with packaging and automotive industries growing

The printing and packing industries in Xi’an have been developing rapidly over the last few years. Currently, there are 52 enterprises in the printing and packing production base located in Xi’an with a total investment of RMB 2.99 billion and annual sales of RMB 3.473 billion.

Numerous leading Chinese medical and pharmaceutical enterprises have set up their facilities in the Biomedical Park in Gaoxin District of Xi’an, including Sinopharm, CP Pharmaceutical, Xi’an Haixin, Ginwa Enterprise, and Xi’an Chiho, etc. The presence of these enterprises will push the development of medical packaging industry in the city.

Meanwhile, there are almost a thousand of large food production enterprises in Xi’an. As an indispensable part for food production, the food packaging industry enjoys a promising future.

There are more than 1,300 IT enterprises in Xi’an, of which more than 1,000 are located in the Gaoxin District. With ZTE and Huawei as the leaders and supported by many small and medium enterprises like CNT and Hua Jing, the district will emerge as an important cluster for the communications, software and E&E sectors in Shanxi province.

Besides, the automotive industry in Xi’an is promising. Headed by the Shaanxi Automobile Group, FAST Group and BYD, a big project will be launched, which will transform the city into an important production base of new energy vehicles in China. The project aims at expanding the manufacturing of light to medium trucks, specialty vehicles, automotive powertrains, transmission systems, and other key components and parts of the city.

For example, Geely is working on a project for the production of 300,000 new energy vehicles in Xi’an, FAST Group will start the production of 100,000 transmission systems for light to medium trucks, and BYD will also complete the setup for a production of 5,000 electric passenger buses.

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