Lingang, home to Tesla’s first factory outside US, secures 24 deals worth US$1 billion, but investment ‘far from enough’, analyst says
- Tesla suppliers SAS Automotive Systems and Saint-Gobain Sekurit among companies signing on
- We will be innovative in policymaking, FTZ administration says
Shanghai’s Lingang free-trade zone, home to Tesla’s Gigafactory 3, said on Thursday it had signed 24 automotive industry-related deals worth a combined 8 billion yuan (US$1.1 billion).
Zhu Zhisong, executive deputy director with the FTZ’s administration, said Shanghai was committed to attracting more car manufacturers and component makers.
“Lingang has a unique position [in creating a car manufacturing industry from scratch], and we will be innovative in policymaking,” Zhu said at a signing ceremony. “More special policies will be announced to support the growth of automobile firms at Lingang.”
He did not elaborate on the incentives the FTZ would offer to bolster its car manufacturing sector.
“It is an initial step towards building an automobiles industrial zone, since 8 billion yuan worth of investments is far from enough to create a complete industry,” said Peter Chen, a Shanghai-based engineer with US car components maker TRW.
“Quite a big number of companies is expecting more tax incentives and good infrastructure at Lingang before they decide to move there.”