More than 10 days after the groundbreaking for the construction of the Fengle North Industrial Park, a new “guest” came. On March 10, Guangzhou Cosma Auto System Co., Ltd, jointly invested by Magna Group-the third biggest auto part supplier in the world and a Fortune 500 enterprise-and GAC Component, signed contract with Huangpu District to launch the project in the park.

 

It was learnt that Magna is the most diversified auto part and system supplier in the world, with a series of system integration capabilities covering design, development and manufacturing of all major systems of autos. The launch of the project in the park will inject new vigor to Guangzhou, which is known as the “city of autos”.

 

Following the layout of Foxconn, Cisco and other innovative multinationals in Guangzhou, the project of Foxconn in Zengcheng was started, while BeiGene signed contract to launch in Huangpu District and Guangzhou Development District. Guangzhou is taking more steadfast steps toward the first choice of global investors and the best place for business development.

 

Fortune 500 enterprise’s project launched in new industrial park

 

More than 10 days after groundbreaking, the Fengle North Industrial Park ushered in the project invested by Magna Group. It is disclosed that Magna Group is a Fortune 500 enterprise based in Ontario, Canada, and it is the third biggest auto part supplier in the world, with 317 manufacturing operations and 102 product development, engineering and sales centers worldwide. It is the most diversified auto part and system supplier in the world.

 

Magna has a series of system integration capabilities for design, development and manufacturing of all major systems of autos, including metal body and chassis, interiors and exteriors, seating, closures, vision systems, electronics, powertrain, roof systems, and also capabilities for vehicle engineering and contract manufacturing.

 

In addition, Cosma International, a wholly-owned subsidiary of Magna, is the world’s biggest metal stamping supplier, with capabilities for research, development and manufacturing of bodies-in-white and chassis systems for vehicles. It provides body and chassis system engineering, research and development and manufacturing services for global clients.

 

It was learnt that, the Fengle North Industrial Park, where the project will be launched, is a new-type industrial park newly developed and built by Huangpu District, focusing on advanced manufacturing. The park has attracted a number of enterprises and organizations, including Guangzhou Cosma Auto System Co., Ltd, Ehang Smart Equipment and Guangdong Machinery Research Institute. It is predicted that the projects of these enterprises and organizations will generate total output value of more than RMB10 billion at full designed production capacity.

 

In addition, the park is located at the central area of Huangpu District, east of the factory of GAC HONDA and north of Guangyuan East Fast Road. The surrounding area, boasting integrated supporting facilities and services for the auto industry and well-developed traffic network, is an important part of the eastern auto industry belt of Guangzhou, with obvious location advantages for the development of the auto industry.

 

Eastern auto industry chain introduces a key component

 

The auto industry has been one of the pillar industries of Huangpu District and GDD, and an eastern auto industry cluster has taken shape, ranking top throughout Guangdong province in terms of scale and numbers of related enterprises. The auto business in the district covers four sub-sectors, including chassis system, body system, engine system and electronic and electrical system. There are three manufacturers of finished vehicles, including GAC HONDA, HONDA CHINA and Guangri Special Vehicles.

 

Relevant data indicated that, in 2016, the total output value of the auto manufacturing industry of Huangpu District and GDD reached RMB138.653 billion, with an annual increase of more than 10%, accounting for nearly 20% of the total industrial output value of the district.

 

GAC HONDA is one of earliest auto enterprises to launch projects in the district. As Dongfeng Nissan, it is also one of the biggest manufacturers of finished vehicles in Guangzhou, with a manufacturing base capable of producing 600,000 vehicles each year. Since 1998, it has been operated in Huangpu District for 19 years. Now, it has integrated functions for manufacturing, marketing and research, with accumulated output and sales respectively reaching more than 500 vehicles by 2016.

 

In terms of manufacturing of new energy vehicles, XPENG begins to show an outstanding development, successively acquiring investment from He Xiaopeng, founder of UC, Li Xueling, founder of YY, Wu Xiaoguang, senior vice president of Tencent and Yao Jinbo, CEO of 58.com. Relevant data on the official website of the company showed that, last year, an investment of USD102 million acquired through A-round financing was paid in, and Beta vehicles closest approaching the vehicles for mass production will be released in the first half of the year, and then there will be a plan for a small-scale production.

 

In terms of high-end auto parts, Guangzhou Stanley Electric Co., Ltd, Webasto (Guangzhou) Roof System Co., Ltd and other companies have established an integrated industrial eco-system in Huangpu District and GDD.

 

At the end of last year, Guangzhou released the Plan for Construction of Guangzhou International Auto Part Industry Base to boost the development of the high-end auto part industry of Guangzhou. The introduction of the project of Cosma Auto System of Magna will further enrich the eco-system of the high-end auto part industry of Guangzhou.

 

“Huangpu District and GDD have become a top auto manufacturing base in South China. It has a strong foundation for industrial development, integrated industry chains and a two-hour traffic circle covering Foshan, Dongguan and Shenzhen. In addition, it has docks, ports and other related facilities and also advantageous geographical location,” said Huang Guangji, deputy general manager of Jatco (Guangzhou) Automatic Transmission Ltd.

 

So far, the district has introduced a number of organizations engaged in research and development, certification and testing as well as standard establishment related to auto products, including Guangzhou Mechanical Engineering Research Institute Co., Ltd, CVC, SinoMach and TUV, to provide services and support for the further development of the auto industry.

 

It was learnt that, in the next step, the district will spare no efforts to promote the development of auto service industry (including financial leasing, auto research and development, auto charging, insurance, modification and renting), propel the use of new energy vehicles and build Guangzhou Science Park and Sino-Singapore Guangzhou Knowledge City into a pioneer area for using electric smart vehicles and a base for research and development, manufacturing and marketing of auto products, striving to become a major base of Guangzhou and even Guangdong province for new energy and smart vehicles.

 

Highlighted advantages for becoming the “first choice of global investors”

 

On March 1, the construction of the all-ecosystem industrial park for 10.5-Generation 8K displays with investment of RMB61 billion from Foxconn was started in Zengcheng. Relying Foxconn and other giant enterprises, Guangzhou’s output value of new-type displays is expected to reach more than RMB300 billion in 2020. That will drive the output value of the electronic information product manufacturing industry to surpass RMB500 billion.

 

On March 7, BeiGene, the first Chinese innovative bio-medicine enterprise listed in the US capital market, signed contract to launch its project in Huangpu District and GDD to make research of and produce Chinese anticancer drugs in Guangzhou.

 

Currently, many global high-tech projects choose to test the “temperature of market” in China first. Guangzhou is increasingly becoming a “laboratory” for high-end international projects to explore new business types. So far, 288 Fortune 500 enterprises have made investment in Guangzhou to seek a development here. A great number of emerging projects concerning new-generation technology, bio-medicine, smart manufacturing and cross-border e-business have been carried out in Guangzhou.

 

Owen Chan, chairman and CEO of Cisco Greater China, believe that, under profound global economic reform, Guangzhou has taken a lead to promote innovation of international trade and investment rules, structure new open economic systems and establish a new multi-level and high-standard opening-up pattern covering a wide range of fields. Guangzhou does not only have a broad market but also effective policy support.

 

Recently, Huangpu District and GDD have promoted four “10-article golden policies” for the development of the advanced manufacturing, modern services, headquarters economy and high-tech industry.

 

“The new incentive policies further provide all-around beneficial conditions for enterprises. They also encourage us,” said Zheng Heng, executive deputy general manager of GAC HONDA. He said, based on the policies, GAC HONDA is exerting all efforts to realize the goal for an annual output and sales of 700,000 vehicles and an increase of total industrial output value of 10% in 2017.

 

Soon, the Sino-Singapore Guangzhou Knowledge City in Huangpu District and GDD will be built into a portal and hub of Guangzhou for foreign trade, attracting investment and enterprises’ going global.  

 

In addition, under the four “10-article golden policies”, for enterprises under the special program for “going global”, advanced manufacturing enterprises under the special program for auto and part export bases and projects supported by guiding fund for development of service industry, high-tech projects and projects granted rewards for science and technology development, subsidies and rewards equal to 100%, 70% or 50% (up to RMB5 million) of the acquired subsidies will be provided.

 

List of giant auto enterprises in Huangpu District and GDD

 

GAC HONDA

 

Sales at marketing terminals reached more than 600,000 vehicles last year, ranking top in the domestic market.

 

Jatco (Guangzhou) Automatic Transmission Ltd.

 

It is one of the largest transmission manufacturers in the world and the No.1 enterprise in the field of CVT, with output of CVTs accounting for 41% of the global market.

 

Guangzhou Stanley Electric Co., Ltd

 

It ranks second worldwide in the field of vehicle lamps.

 

Webasto (Guangzhou) Roof System Co., Ltd

 

It is one of the world’s largest and most advanced auto skylight suppliers, sharing 48% of the global market.

 

NTN Corporation (Guangzhou)

 

It ranks second worldwide in the field of bearings, with products sharing more than 20% of the global market. The bearings used for wind power generation and railways rank first in the world.

 

 

It is one of the most advanced core sensing and controlling technology suppliers in the world. In the district, it is mainly engaged in manufacturing of electronic devices, electronic components and parts as well as electronic special equipment for vehicles.

 

Source: Translated from Invest Guangzhou, March 13, 2017