Guangzhou Daily: 277 new projects initiated by Huangpu district in 2019

Japan-based robot company Fanuc started building a regional headquarters in Guangzhou.  

A new factory by Guangzhou Yitong Packaging Co., Ltd. is put into operation. [Photo by Wang Weixuan/Guangzhou Daily]

In the first 10 months of 2019, Huangpu district launched 145 high-quality business projects - many of which are the result of investments by the world’s top 500 companies - and many more businesses are lining up to work with the district. The rate of building construction has been rising as well. As of mid-November, the district has 277 new projects under construction.

In November, Huangpu district has seen yet more new projects signed, inaugurated, and launched. Every few days, major projects make the headlines. On the 35th anniversary of the foundation of Guangzhou Development District, Huangpu district has taken the opportunities presented by burgeoning technologies to fuel strong growth in 'smart manufacturing' industries.

Fanuc, the world’s largest robot manufacturer, officially announced a new regional headquarters in South China. At the launch ceremony of the Guangzhou Fanuc Robot Company Ltd at Huangpu district and Guangzhou Development District, an impressed audience watched as robots made drinks, played the piano, sorted out packages, and polished taps. Among the audience were leading experts from the smart manufacturing industry.

November has been a busy month for Huangpu district. On Nov 6, at the national platform of China International Import Expo, the district signed two projects with world top 500 companies. One is the regional headquarters of AstraZeneca for new drug sales and operational functions in southern China, and the other is a PV and smart storage energy demonstration project signed by ABB Group and a local SOE - Guangzhou Suikai Power Energy Corporation.

Just two days later, another world top 500 company announced a project in Huangpu district. Siemens is set to build its first smart factory for distribution transformers in the world. It marks the third investment by Siemens in Huangpu, and it is scheduled to be operational in 2021. By that time, all existing distribution transformer capacity by Siemens Transformer Guangzhou (STGZ) will be relocated to the new factory, with a target to double capacity.

In addition to the remarkable progress made by the district in smart manufacturing, bio-medicine is another upcoming area. Thanks to years of planning and preparation in emerging industries by Huangpu district and Guangzhou Development District, these sectors have grown to be regional leaders.

On Nov 18, the first batch of 6 KUBio models were installed successfully in the GE-LONZA Bio-medicine Project in the GE Biotech Park of Knowledge Town. As the world’s largest pharmaceutical company, LONZA has an established presence in the Guangdong-Hong Kong-Macao greater bay area. It brings in world-leading technology in pharmaceutical development and manufacturing, and helps bio-medicine companies commercialize their products, via the platform provided by Huangpu district and Guangzhou Development District.

Earlier projects included the Merck Guangdong Innovation Center, created by the world giant tech leader in order to stimulate the health ecosystem in the greater bay area. The adalimumab product by Bio-thera was the first adalimumab analogue approved in China for commercial sale. Akesobio and GE Healthcare have been working jointly on a new generation of antineoplastic drugs.

The regulatory approval of BeiGene’s new anti-cancer drug in the US market is a groundbreaking achievement by Chinese pharmaceutical companies in selling to an overseas market. The next thing to look forward to is BeiGene Guangzhou Bio-medicine Production Base (Phase I). After an official announcement in September on construction completion, the company is one step closer to commercial production of its self-developed PD-1 anti-cancer drug. By that time, it will supply those in need worldwide with this life-saving product made in the Guangzhou Production Base.

With the spread of emerging industries, seeds for innovation have been planted for high-quality development. These seeds are gaining momentum for 'leap-frog' growth, and soon the dividend will be reaped in the 'realization phase'.

New Agreements and Under-construction Projects

For January to October of 2019, Huangpu district signed 145 agreements for high-quality business projects, notably with high-tech and leading companies. Of these, 33 are in the world top 500, Chinese central enterprises, top 500 private-sector companies, and headquarter projects. Total investment has exceeded RMB 540 billion ($76.86 billion).

189 projects have been initiated for construction; a notable rising trend in recent years. Huangpu district and Guangzhou Development District recorded 189 projects under-construction in 2017, 219 projects in 2018, and 277 projects as of Nov 13, 2019.  

As a result, in the first three quarters of this year, the district has the highest fixed asset investment among all districts in Guangzhou. Total industrial output for business above designated scale is RMB 575.62 billion, amounting to 41.6 percent of the municipal total.  

The highest concentration of newly-initiated projects is in the New Guangzhou Knowledge Town. On the first anniversary of upgrading to a national-level bilateral cooperation project, Knowledge Town has made remarkable achievements.

In the recently-closed Sino-Singapore Knowledge Forum, it was learnt that as of October 2019, the Knowledge Town had 54 major industrial projects, and 113 projects under construction. An industrial layout featuring businesses in areas such as new-generation information technology, high-end equipment manufacturing, green and low carbon, and bio-medicine industries has been created, with a total of 1,605 registered companies and registered capital of RMB 136.03 billion.

This year, a number of key projects designated for the northern part of the Knowledge Town went into production, leading to a strong period of development. At the end of October, Guangzhou Yitong Packaging, a project created by global packaging system leader APTAR, was officially launched. Just one kilometer from the new establishment, CanSemi’s 12-inch fab project had realized commercial production in September and made the “first chip in Guangzhou”. At the same time, a star innovator in bio-medicine, BeiGene, completed its phase I production base in the city.

In the northern part of the Knowledge Town, industries such as renewable energy, new material, and chip manufacturing have been growing substantively, serving to drive the transformation of manufacturing industries and empowering traditional industrials to further develop themselves. Projects ranging from the new smart-manufacturing center by P&G, high-tech carbon-fiber projects by Kingfa, the CanSemi project and the toAPTAR factory all support the growth of the industrial cluster while achieving high-quality output.

Headlines that mention the flocking in of world top 500 companies, significant projects, and global investors demonstrate how far Huangpu district and Guangzhou Development District have come in recent years.

On Nov 11, Guangzhou Development District received an award from the UNCATD in Geneva for its excellence in promoting sustainable investment.

Huangpu district has designated the Private Economy and Enterprise Service Bureau (previously Enterprise Construction and Service Bureau) and Administration Review Bureau to facilitate preparation and administrative approval processes for project owners. The district offers “one-window request acceptance, one system review and approval, and one set of documents for construction filing”, provides customized notices on pending items, and streamlines the procedures as far as is possible. A complete trust approach is applied on approvals. This requires the company to submit a letter of commitment for administrative decision-making and allows it to obtain approval and then supplement paper-work. This approach helps to shorten the project preparation timeline.

The district has also expedited the development of projects as companies are 'forced' to pace up preparation in turn.

In the case of the recently initiated Siemens’ distribution transformer project, Huangpu district and Guangzhou Development District adopted the model of “land transfer with plans” for the first time in the province. Under this model, before land was transferred to the project, plans were filed and a review was completed. Transfer of land-use right was conducted along with in-place project plans, allowing the project owner to enter planning and construction permit procedures immediately after obtaining land-use right.

The general manager of Guangzhou Siemens Transformer said that the trusted preparation approach by the government has allowed them to obtain an interim power-use permit and produce plans in advance. The project also obtained a construction permit under this 'trust approach'. These have all effectively accelerated the project. “There is no reason for us not to stay in Guangzhou, and in Guangzhou Development District,” they said.

The head of the Private Economy and Enterprise Service Bureau, Dai Xinxiang, clarified the commitment to attending to every request and inquiry from preparatory projects and ensuring timely responses and actions. 

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