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52 of the Fortune 500 Claim Half of SIP Output Value

More enterprises from the Fortune 500 have invested in Suzhou than in any other parts of China. At present, 100 from the Fortune 500 have built their businesses in Suzhou, and 52 of them have set up 84 projects in Suzhou Industrial Park, with a total investment amount of US$ 5 billion and registered capital of US$ 1.9. Statistics from SIP show that the SIP enterprises affiliated to "Fortune 500" multinational corporations, which fall into two major categories of  manufacturing and service industry, have made up half of the industrial output value and export earnings in foreign exchange in the whole of SIP.

The average investment amount of the projects of the 52 corporations in SIP is US$ 58 million, which is US$ 20 million more than the average amount of all the projects in SIP. Among the 84 projects invested by the 52 corporations, there are 31 exceeding US$ 30 million each, and 11 exceeding US$ 100 million each, such as those invested by Solectron Technology, Philips Semiconductor, Samsung Semiconductor, and Nokia, etc.

The investment pattern of the Fortune 500 is that more new enterprises are being set up while the old ones keep increasing their capital or investing in new projects, with the result that the industrial chains are constantly improved and R&D centers established one after another.

From 2000 up to now, 29 enterprises from the Fortune 500 have expanded their investment scale by an increase of US$ 1 billion. Samsung made the largest expansion by increasing US$ 300 million. Samsung Group developed 5 more projects in SIP, and Hitachi Corporation 15. The industries invested by Fortune 500 chiefly concern electronic information, electrical machinery, pharmaceutical, and hi-tech manufacturing. About 17% of the projects belong to the service sector. Alongside their investment in manufacturing industries, 4 of the "Fortune 500" enterprises are building their R&D centers in SIP, namely, Samsun, Emerson, Panasonic, and Bosch.

According to statistics of 2004, the ever-growing economic volume of the "Fortune 500" enterprises in SIP is playing critical role in all the economic targets of manufacturing industries. For instance, the industrial enterprises invested by Fortune 500 registered a total turnover of 62.25 billion RMB, foreign exchange revenue of US$ 5.68 billion, comprising 44% and 48% that of the whole of SIP respectively. Each of the 5 enterprises, Samsung Liquid Crystal, Solectron Technology, Hitachi Display Screen, Samsung Electronics, and Nokia Telecommunications, exceeded 5 billion RMB in annual output value and US$ 500 million in foreign exchange revenue. Samsung Liquid Crystal and Solectron Technology rank the first and second in SIP with their annual output value above 5 billion RMB. Besides, the "Fortune 500" enterprises have contributed largely to the financial revenue of SIP. The first biggest tax contributors in SIP in 2004 included 11 "Fortune 500" enterprises, which paid 120 million RMB tax in total, and Solectron Technology, L’oreal International, Maybelline Cosmetics, and GlaxoSmithKline Pharmaceutical paid over 100 million RMB tax annually each. In the service sector, the "Fortune 500" invested in a dozen enterprises, the large-scale being Auchan and B&Q Supermarket, which earned a total sales revenue of 640 million RMB in 2004, making up 35% of the total retail volume of social consumption commodities in SIP.

Sept. 7, 2005
  

   
 
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