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Shandong - Yantai Export Processing Zone

Published: 10 Apr 2009 16:08:57 PST

Yantai Export Processing Zone

Facts&Figures (2007)

Rating
Year of Establishment	April 2000
Land Area	2.96 km²
Location	Yantai, Shandong
GDP	N.A.
FDI	N.A.
Utilized FDI	N.A.
Major Investors	Dongyuan Auto Parts, Hongxing, Huada Chemicals, Kerry EAS, Beiming Logistics, Sunshine Logistics
Major Industries Encouraged	Machinery, automobiles, electronics, biopharmaceuticals, fine chemicals, new materials, chemical fibers, textiles, light industries

Source: Administration Committee of Yantai Export Processing Zone

Introduction

Located in northern Yantai, Yantai Export Processing Zone (Yantai EPZ) was set up by the State Council in 2000. It covers an area of 2.96 km² and faces the Bohai Sea to the North.

Yantai has a pleasant climate due to its good geographical location. Located on the coast, it suffers relatively little pollution and enjoys mild summers and winters.

Yantai EPZ has a good transport network. The Yantai train station is located to its south, 10 km away. Ferry services located to the north of the zone are available for trains, which can be shipped to Dalian Port by compartments. Yantai Port is east of and adjacent to the zone. In 2007, the throughput of Yantai Port hit one hundred million tons, ranking 11^th in China.

Apart from the port, Yantai EPZ also enjoys convenient land transport, with three highways located to the east and south of the zone, connecting it with Qingdao, Weihai and Jinan. Furthermore, Yantai EPZ is only 17 km from Yantai Airport which had a throughput of 21,608 tons in 2007.

Investment Climate

Yantai EPZ encourages the development of the following industries: machinery, automobiles, electronics, biopharmaceuticals, fine chemicals, new materials, chemical fibers, textiles and light industries.

Yantai is located near South Korea and Japan and is therefore attractive to Korean and Japanese investors who want to supply their own domestic markets.

At present, nearly 100 companies from South Korea, Japan and the U.S. have invested in Yantai EPZ. Comprehensive industrial chains have been formed in the electronics and auto parts industries, which focus on the development of handset parts, quartz resonators, metal parts, auto instruments, wheels and interior trim components.

In 2007, Yantai EPZ became one of China's 7 trial export processing zones which launched their own bonded logistics functions. As of now, there are nine third-party logistics companies which have started their businesses in Yantai EPZ, among them Beiming Logistics and Sunshine Logistics.

Its proximity to Yantai Port is a major advantage for Yantai EPZ in developing its bonded logistics business. In the first eight months of 2008, the product value of bonded logistics businesses entering and leaving the zone reached US$1.1 billion.