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Shandong - Yantai Economy Technology Development Zone

Published: 10 Apr 2009 16:10:59 PST

Yantai Economy Technology Development Zone

Facts&Figures (2007)

Rating
Year of Establishment	October 1984
Land Area	10 km²
Location	Yantai, Shandong
GDP	RMB 52.0 billion, 31.7% up
FDI	N.A.
Utilized FDI	US$506.6 million, 13.8% up
Major Investors	General Motor, Henkel, Hyundai Motor, LG, Foxconn, Daewoo, Denso, Toyota Tsusho, Asahi Kasei Industry
Major Industries Encouraged	Machinery, automobiles, electronics, IT, biopharmaceuticals, chemical fibers, textiles, food processing

Source: Administration Committee of Yantai Economy Technology Development Zone

Introduction

Located in the west of Yantai's downtown area, Yantai Economy Technology Development Zone (Yantai ETDZ) covers an area of 10 km² and faces the Bohai Sea to the north. It was set up by the State Council in 1984.

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

Yantai ETDZ has a good transport network. There are three highways located to the south, connecting it with Qingdao, Weihai and Weifang. Yantai Train Station and Yantai Airport lie 10 km and 20 km away from the zone respectively.

Approval to set up the Yantai Export Processing B Zone in Yantai ETDZ was given in September 2003. This zone covers an area of 2.26 km² and is adjacent to Foxconn Industrial Park, Automobile Industrial Park and IT Industrial Park.

Investment Climate

In 2007, Yantai ETDZ's GDP reached RMB 52.0 billion, up 31.7% over the previous year. Its pillar industries are machinery and automobiles, electronics and IT, biopharmaceuticals, chemical fibers, textiles, and food processing. Its major products are automobile and auto parts, construction machinery and equipment, computers and third-generation mobile communication terminals.

Yantai is located near South Korea and Japan, and investors from these countries consider it a good place to invest in to supply their own domestic markets.

Nearly 1200 foreign companies from 43 countries and regions have invested in Yantai ETDZ, including 43 from Fortune 500. South Korea and Hong Kong account for 61% of its total foreign investment. The major investors are General Motor, Henkel, Hyundai Motor, LG, Foxconn, Daewoo, Denso, Toyota Tsusho and Asahi Kasei Industry.

The big players have acted as the driving force for Yantai ETDZ's development. Being the largest manufacturer in Yantai and the largest exporter in Shandong, Foxconn has set up an industrial park in the zone, with a research center. The other projects, which have production output values of over RMB 10 billion, include LG's handset project and General Motor's Dongyue Automobile project. In the first five months of 2008, the industrial output from the Fortune 500 companies in the zone reached RMB 54 billion, enjoying fast growth of 124%.