Nam Tai eyes Qianhai with 12b yuan site makeover
Nam Tai, a manufacturer of electronic products, plans to redevelop an existing plant close to Qianhai to leverage the growth opportunities of the special economic zone.
Chairman Koo Ming-kown said the site cost 30 million yuan (HK$37.8 million) when the company bought it in 1993.
The plan to turn the 50,000-square-metre factory site into a 300,000 sqmetre commercial, serviced-apartment and hotel complex would cost between 9 billion and 12 billion yuan.
The company has hired experts to study the redevelopment plan while it begins to apply for regulatory approval from mainland authorities.
"If all goes well, we can start the redevelopment next year, and that would match plans for Qianhai's development," Koo said.
The special economic zone of Qianhai is located west of Shenzhen and is about an hour by road from Hong Kong. The area was identified in June last year as the testing ground for full yuan convertibility.
"The Qianhai project is going to attract many international companies and financial firms to set up office there," Koo said. "This also provides business opportunities for Nam Tai as our factory site is only 16 kilometres from Qianhai."
Koo said he was not concerned about regulatory approval as he believed the redevelopment plan was in line with the Shenzhen government's plan for areas near Qianhai, under which factory or rural sites will be converted into modern commercial and living areas to contribute to the development of the area.
He said he did not plan to sell the completed complex, hoping to keep it for rental purposes.
The existing factory may be moved to another site the company has in Shenzhen.
Koo said Nam Tai would use internal resources and bank loans to finance the factory redevelopment.