ZTE Corp, one of China's major telecommunication companies, is putting the final touches on an investment plan to build a factory in Belarus.

Together with VASL Speditions-und Handelsgesellschaft mbH, a German company specializing in logistics, trade and consultancy, ZTE will manufacture telecommunication products at the 90-square-km China-Belarus Industrial Park in Minsk, which is due to open next year.

"We hope to finalize our investment plan in the next few days," Tang Luhao, general manager of ZTE operations in Belarus, Ukraine and the Baltic states, told China Daily before President Xi Jinping's visit to Belarus. "With our German partner, we are going to lease land and start constructing a factory at the park in June to manufacture locally."

Xi was given a warm welcome by Belarus President Alexander Lukashenko when he arrived in Minsk on Sunday. On Tuesday, both leaders were due to visit the China-Belarus Industrial Park - the largest investment cooperation project between the two counties.

Trade between the two nations increased to nearly $4 billion last year, a year-on-year increase of 27 percent. Chinese investment in Belarus exceeds $400 million and loans of about $5.5 billion have been offered to the European country by China.

Both countries are determined to make the jointly developed industrial park a key program of the Silk Road Economic Belt initiative, the leaders said. The initiative was first proposed by Xi. In 20 years, the park will become a high-tech city that is home to at least 200,000 people after being identified as a key project under Xi's proposal.

Tang said: "We are progressing very fast right now and experts are busy with our detailed investment plan for the park." He said ZTE is likely to benefit from financing opportunities offered by China, tax breaks and other advantages from Belarus in moving into the park.

"This will help us to manufacture in Belarus on a bigger scale and will create more jobs there," Tang said. "In return, we can gain more market access to the Customs Union of Belarus, Kazakhstan and Russia."

ZTE has secured exclusive rights to provide telecommunication infrastructure products at the park.

The company's decision to expand into Belarus will help it to increase its business in Europe. "In doing so, we can help integrate our production and marketing in this region and in the European Union," Tang said. "We also have a production base in Hungary."

ZTE is not the only Chinese company looking to move into the industrial park.

Andrei Vadimovich Gal, head of the park's administrative authority, said six Chinese companies have already signed agreements. A further nine, including Huawei Technologies Co, Sinomach and Zoomlion Heavy Industry Science & Technology Development Co Ltd, have signed agreements of intention, while another 30 Chinese companies are in talks with the administrative authority.

Gal said before Xi's visit: "We are open to investors worldwide if they meet the requirements. The park has also triggered interest from companies in Russia and Germany."

He also said that China Merchants Group, a State-owned corporation, plans to invest $500 million in the park.

"China Merchants Group is also planning to buy 20 percent of the stock capital in the park's joint management company," Gal said. "This would mean the company would be able to participate in the park's decision-making, management and development."

Liu Jia in Brussels contributed to this story.

fujing@chinadaily.com.cn

(China Daily 05/12/2015 page3)