Choice

With a century of history in industrial development, Tiexi district boasts solid industrial foundation and a skilled labor force.

The district has an annual industrial output of more than 190 billion yuan. The equipment and machinery manufacturing sector contributed about 123 billion yuan of the total.

"When we decided to develop construction as a pillar industry, we did not intend to give up our advantageous manufacturing sector," said Zeng Wei, Party chief of the Shenyang municipal committee.

Manufacturing provides equipment and machinery as well as materials needed in construction, while growth in the construction industry promotes expansion of the manufacturing sector, Zeng said.

"Developing a modern construction industry is a decision based on a thorough research and careful consideration with a focus on optimizing the industrial structure and nurturing new economic growth spots," he added.

Yao Bing, president of China Construction Metal Structure Association, noted that "the new path of innovative industrialization that the construction industry is taking has close ties with equipment and machinery".

"The traditional advantage in manufacturing will provide strong support for the construction industry in technology and facilities and meanwhile promote growth of the latter,' he said.

Opportunity

Data from the British Engineering Consultancy Firm said that China's current construction volume accounts for about half of the global total, ranking the country as the world's largest construction market in both consumption and production.

Sales of construction materials like aluminum-plastic composite panels, ceramics and steel have ranked at the top of the world for years. The country's trade in construction coatings ranks second globally, while its output of elevators is at the top of worldwide production. The nation comprises more than 50 percent of the total global market for concrete machinery.

Northeast China and the Bohai Bay rim are important building product markets in the country. Their total housing space is projected to reach about 800 million sq m by 2015 and 1 billion sq m by 2020.

"The number of flats constructed in China is approximately 4.5 million annually, about 4.5 times that of Japan. China might be the largest housing market in the world. It is a huge market for entire industries in construction and building materials," said Inoue Ichirou, president of Nichiha Corp.

The enormous market potential has stimulated rapid development of Shenyang's construction industry and helped the growth of leading local industrial players such as Yuanda Group based in Tiexi district.

"Our corporate vision is to open up a channel to the world for Shenyang's modern construction industry," said Guo Zhongshan, vice board chairman of Yuanda Group.

The company has grown into a modern construction group with an annual output value of more than 18 billion yuan, and entered markets in the United States, Japan and the Middle East, among others.