Jilin projects secure foreign investment worth 56.7b yuan
The Jilin provincial government yesterday secured 56.7 billion yuan (HK$64.28 billion) worth of foreign investment for 37 projects, moving to strengthen co-operation with Hong Kong and boost industry amid the financial crisis.
The investments include the joint development of vehicle and related products manufacturing, agricultural and energy businesses as well as the local property market.
'Both Jilin and Hong Kong are facing the challenges brought by the financial crisis,' said provincial party chief Wang Min at a ceremony in Hong Kong yesterday to mark the new investment projects. 'But it also brings opportunities. It has triggered a new round of industrial restructuring and provides a new opportunity for good enterprises to expand at lower costs.
'Jilin is accelerating the process of industrialisation and urbanisation. There's huge room for industrial development and construction of infrastructure and the economy is growing rapidly, which all bring Hong Kong enterprises new incentives to invest there.'
The province is one of the traditional manufacturing and agricultural bases on the mainland, with vehicle making, petrochemical production and agricultural processing all pillars of economic development. The majority of the 56.7 billion yuan investment came from Hong Kong investors.
The provincial capital Changchun and the second-largest city Jilin were the biggest winners. They attracted nine projects each among the 37 projects the province sealed, with total investments worth 16.9 billion yuan and 17.99 billion yuan respectively.
China Agri-Industries Holdings, a Hong Kong-listed unit of China National Cereals, Oils & Foodstuffs Import & Export Corp (Cofco), signed an agreement to invest 2.4 billion yuan in a food additives plant.
The factory will be located in Changchun and is expected to generate 1 billion yuan every year once production gets under way at the end of this year.
Two subsidiaries of state-owned China Resources (Holdings) also signed investment agreements.
China Resources Vanguard pledged to spend 200 million yuan on developing a 300 million yuan commercial complex in Changchun with a local partner.
The total gross floor area is 25,215 square metres and will be developed into a commercial building, hotel and residential property.
China Resources Gas (Holdings) agreed to invest 600 million yuan to provide gas to the province as well as two nearby provinces in the northeast.
Other companies such as CLP also signed pacts to invest in the province yesterday.
Jilin has already seen some Hong Kong-listed companies, including Hutchison Whampoa, Sun Hung Kai Properties and Global Bio-chem Technology Group, investing in Changchun over the years.