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          BIZCHINA> Center
          Caohejing Hi-Tech Park gets $500m investment
          By Chen Qide (China Daily)
          Updated: 2008-07-10 10:38

          Twelve firms yesterday signed contracts with Caohejing Hi-Tech Park to launch projects valued at a combined capital of $500 million.

          They will base their China R&D centers, regional headquarters and innovation enterprises in the park to develop industries in new energy, new materials, auto parts and network technology, said Ji Xinming, vice-president of Shanghai Caohejing Hi-Tech Park Development Corporation.

          "These projects will help speed up our move to develop the modern service industry," Ji said.

          CapitaLand, a Singapore-based real estate company, will invest $90 million in the park to establish its Shanghai headquarters, while Ashland, a US chemical company, will move its regional headquarters and technology center to the park in November.

          "We have chosen Caohejing as a base for the development of our future business in China," Ashland China President Dale MacDonald said.

          The two projects with a registered capital of $50 million are part of Ashland's $80 million second-round development in China. "The rest of the funds will be used to build factories in North China," said MacDonald.

          As of June 2008, the hi-tech park, which came onstream in 1988, had attracted foreign investments to the tune of $5 billion from more than 500 overseas-funded companies. More than 40 multinationals have built 70 hi-tech enterprises in the park.

          "A number of multinationals have been seeking new developments in the park in the past several years in the hope of setting up R&D and technology centers and regional headquarters," said Liu Jiaping, president of Caohejing Corporation.

          Foreign investment has helped the park form five backbone industries that generated a combined sales of $20.7 billion last year, said Liu.

          "The park owes its progress to its favorable environment, high-quality talent and the chain effect brought about by multinationals that have invested in the park," he said.

          His words were echoed by Ji, who said: "Usually one company follows another to invest in the same place."


          (For more biz stories, please visit Industries)

           

           

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