Intel's Dalian facility

Authorities of the Dalian Economic and Technological Development Zone plan to attract more world-class projects by 2012 while building three industrial clusters with industrial output of 100 billion yuan each, according to Zhang Shikun, director of the zone's administrative committee.

In July, the State Council approved a plan to increase development of the Liaoning coastal economic belt with the coastal city Dalian as a core element.

"To capitalize on the preferential policies offered by the national strategic plan, we plan to develop the zone into an important petrochemical center in northeastern China, an advanced manufacturing hub in the province and an electronic information distribution center for northeast Asia," Zhang said.

Thirty-eight large petrochemical operations now have facilities in the development zone, including West Pacific Petrochemical Co Ltd and Dalian Qihua Chemical Co Ltd, that together had 44.3 billion yuan in output value last year.

The figure is expected to exceed 60 billion yuan in 2009 after 1.2 million-ton PTA and 700,000-ton PX plants - both of which make types of polyester - began production this year, Zhang added.

"We are also seeking to improve the petrochemical industry structure and enhance the fine chemical industry so the petrochemical sector will realize 10 billion yuan in industrial output value," he said.

Equipment manufacturing is another pillar industry of the development zone. The sector had an industrial output value of 54 billion yuan in 2008. The figure is projected to rise to more than 70 billion yuan this year.

Some 300 enterprises now make equipment in the zone, including Mitsubishi Forklift Truck and BorgWarner Inc, which began construction this year on a number of assembly and parts projects.

"We will take this opportunity to bolster the automobile and auto parts industries to make the zone a vehicle and parts logistic center in northeast China and one of the country's major production bases for new energy vehicles," Zhang noted.

"By 2011, the advanced manufacturing sector will bring an industry output of over 100 billion yuan," he added.

The zone's electronic information sector had 31 billion yuan in annual industrial output last year. Its sales revenue, added industrial value and profits all accounted for over 80 percent of the city's total.

Microprocessor giant Intel Corp is building its first Asia wafer fabrication factory in the development zone. The project is now in the equipment installation stage.

"We will promote growth of electronics, integrated circuits and related industries and strive towards the goal of becoming a world-class integrated circuit industry center. At the same time we are encouraging investment in personnel training, R&D, production and processing, packaging and testing and logistics and distribution," Zhang said, adding that the electronic information sector's industry output will surpass 100 billion yuan by 2011.

In addition to the 100 billion yuan industry clusters, the development zone will also foster two 10 billion yuan sectors in the next three years.

One is the photoelectron industry that has a target of 30 billion yuan in annual industrial value for the next three years. The other is the biomedical industry with an annual output target of 10 billion yuan by 2011.