Friday, February 15, 2008

Report 3 on Four of China's Tier-3 Cities: Wuhu

Wuhu is home to Chery Automotive Company. As one of China's rising automotive powerhouses
, Chery has an ambitious goal of selling 1,000,000 automobiles annually within the next five years. Preliminary plans to enter the US market were derailed when their partnership with Malcolm Bricklin fell apart. They'll be back - probably hitting the US by 2012.

Many other companies and investments have started to grow around Chery's remarkable story and home base. Here's Wuhu's summary:


Wuhu is located in southeastern Anhui. Historically known for its agriculture and trade, during the Qing Dynasty it had one of China’s biggest rice markets. Wuhu Port is an important deep water port on the Yangtze River. Today the city’s backbone industries include autos and auto parts, new construction materials, and electronic appliances. The city, with a population of 2.3 million, posted a GDP of approximately 48 billion yuan (USD6.3 billion) in 2006, an increase of 15.4 percent year-on-year.

In his 2007 best-selling book, China Shakes the World, former Financial Times Bureau Chief of Beijing and author James Kynge writes of Wuhu, “The city of Wuhu, a river port on the Yangtze’s middle course, was a backwater as recently as 1998. When I first went there at that time, it took me six hours along a bone-jangling, potholed road to reach it from Hefei, the provincial capital. When I did the journey again in 2002, it took an hour and a half, and Wuhu had been transformed. In just four years, four expressways, a road-and-rail bridge over the Yangtze, and a river port had been built. It was not possible, the vice mayor told me, to reach 250 million people within eight hours of the city center. ‘That is the population of America,’ he said with a smile.” (p31)

Wuhu 2004 GDP: 34.5 billion RMB; expected 2007 GDP: 64 billion RMB

Wuhu 2004 per capita GDP: 15,366;

Logistics

Wuhu Export Processing Zone


Wuhu Export Processing Zone (EPZ) is one of two major industrial bases in Wuhu. It was approved and set up by State Council in 2002, with a planned area of 2.95 km², the first phase consisting of 1.1 km². Since April of 2003, Wuhu EPZ has been operating service sectors including Customs Commodity Inspection, Banking, Logistics, Storage, etc. that cooperate for one-stop export services.

Wuhu EPZ enjoys the following advantages:
Geographic Situation: Wuhu is a transportation hub for East China, connecting 3 highways and 5 railways. The Wuhu Yangtze River Bridge is the largest dual-duty bridge of railway and highway. Wuhu port is currently the last deepwater port upstream in the Yangtze River which can provide major logistics support to export-oriented enterprises along the Yangtze.
The largest dual-use (railway and highway) bridge over the Yangtze River is in Wuhu,

Pillar Industries: The Wuhu EPZ lies within Wuhu Economic & Technological Development Area (WEDA), which is the most important industrial production base in East China and now has more than 150 enterprises in production, forming 3 pillar industries: automobile and automotive parts, electrical appliance, and building materials.





Human Resources: Wuhu has two universities, six colleges, and more than twenty technical schools offering over 60,000 students available for corporate recruitment of all majors and at different entry levels.

Investment: Wuhu PZ is located between the new urban area and the old industrial area, hence its infrastructure and water supply are stable after long-term construction with plentiful utility supply, including power, natural gas, and water. Land use rights are cheaper than in the rest of WEDA.

Wuhu Economic and Technological Development Zone


Wuhu
Economic and Technological Development Zone (WEDZ) was approved as a state-level development zone in April 1993. The zone has a developed area of 10 square kilometers and is situated in northern Wuhu.


Transportation and Infrastructure
The main traffic routes in the zone are part of the municipal transportation network and are directly joined with three expressways leading to Shanghai
, Hangzhou, and Hefei. as the 3 expressways and 5 railways mentioned above all converge here. Wuhu Harbor is also the last deep-water port at the upper stream of the Yangtze River joining all important ports around the globe. Water carriage routes were opened to such designations as Hong Kong, Japan and Southeast Asia. WEDZ is one hour's ride to Luokou International Airport of Nanjing, and Luogang Airport of Hefei, both of which have flights to major domestic and foreign destinations.

-2 of China’s 4 eastern trunk railways of Beijing to Nanjing, Shanghai to Nanjing, Nanjing to Wuhu and Wuhu to Yingtan (Jiangxi) meet in Wuhu, connecting with major trunk railways and large and medium sized cities all over China. So Wuhu is an essential railway hub to connect with Central, East, and North China.



Manufacturing Industries
Three pillar industrial groups have come into shape in WEDZ, including automobiles and parts, electronics and electrical appliances and new building materials.

In view of its industrial structure and current stage of development, WEDZ encourages investment in the following sectors:

Automobile and parts:
Development and manufacturing of

  • Car bodywork and accessories
  • Car engines, gear-boxes, and other key components
  • Car moulds
  • Electronics
  • Precision founding of major car components, black founding, and colored casting semi-finished production
  • Light materials
  • Key car parts and components
  • Car discharge emission systems
  • Car accreditation and inspection systems

Electronics and electrical appliances:

  • Intelligent household appliances
  • Electronic components
  • Photo-electronic products
  • Integrated Circuits


New materials:

  • New building materials
  • New energy-saving materials
  • Micro-electronic and photo-electronic materials
  • Surface coatings and films
  • High-quality structure materials
  • Environmentally friendly materials

Bio-medical and bio-pharmaceutical products:

  • Bio-medicines and drugs
  • New traditional Chinese medicines
  • Synthetic and chemical medicines
  • Medical equipment and electronic apparatus
  • Refined chemicals.

Software products:

  • Software platforms and intermediaries for all types of business applications
  • Application systems in broad-band networks
  • Critical software for corporate informatization and information security systems
  • Management software for E-commerce



    Administration Committee
    Tel: 86-553-5841768
    Fax: 86-553-5841876
    Email: wuetdz@mail.ahwhptt.net.cn
    Wetsite: http://www.weda.gov.cn/eindex.html

http://knows.jongo.com/res/article/7131

Human Resources

-Anhui Normal University is located in Wuhu. Founded in 1928, it is the oldest institution of higher education in Anhui Province and also one of the national comprehensive universities established at a very early stage. The university is a major scientific research institution. In addition to Anhui Normal, Wuhu’s other major institutes of higher learning include: Anhui University of Technology and Science, Wannan Medical College, Wuhu Radio and Television University, and Wuhu Vocational Institute of Technology

Principal: Jiang Yumin
Zip code: 241000
Address: NO.1 Beijing Road(E), Wuhu, Anhui
Tel: (0553)3869234
Email: ymjiang@mail.ahnu.edu.cn
Website: http://www.ahnu.edu.cn/nic/

-Some factories in Wuhu (and surrounding regions) pay workers the equivalent of $0.30 an hour.

Companies

-Yinghua Wire sold controlling interest of a wire harness plant in Wuhu to the Michigan company KenSa,

-Wuhu’s Conch International Hotel is consistently filled with guests from Germany, Australia, Japan and the United States.

-There are 104 factories owned or partly owned by foreign companies, up from 55 just five years ago.

-Germany-based Siemens AG builds automotive gauges in Wuhu.

-Tower Automotive, based in Troy, builds suspension components.

-Wuhu is one of dozens of industrial centers in China, which has become “a Candyland for Rust Belt manufacturers hungry for cheap labor.”

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