Fortune-500 Projects in SIP Exceed 100
On Dec. 22, business license was issued to Caterpillar (Suzhou) Co., Ltd., a subsidiary invested by the Fortune-500 US Caterpillar Group, which makes the company the 102nd enterprise in SIP from the Fortune 500. Since the entry of the first Fortune-500 enterprise, the Korean Samsung Group’ investment project, in SIP in 1994, there have been 66 Fortune-500 enterprises that invested a total of 102 projects in SIP, with a total investment amount of USD 6.4 billion, comprising over 13% of the total foreign investment in SIP. A tendency is showing clearly that these projects are aimed to build up manufacturing bases in SIP.
Of the 102 projects, 89 are manufacturing with a total investment of USD 6.17 billion, and 13 in the service sector with total investment of USD 230 million. Many of them have reaped satisfactory investment returns within short periods, and kept increasing investment and transferred production facilities from elsewhere into SIP to make SIP premises the manufacturing bases of their headquarters. The American-owned Solectron, for one thing, initiated Solectron (Suzhou) Technology Co., Ltd. in SIP in 1996, and kept increasing investment on 7 occasions, which added up to a total of USD 620 million and hit an annual turnover of nearly 10 billion RMB. Since its first project in SIP, Samsung Electronics (Suzhou) Semiconductor Co., Ltd., in 1995, Samsung Group of Korea has set up 5 projects in SIP with total investment of USD 1.01 billion and annual production output value of 13.46 billion RMB from semiconductor chips, laptop computers, electrical appliances, and LCDs. In the meantime, a multi-polarization has characterized the the Fortune-500 investment in SIP. Hitachi first set up Renesas Semiconductor (Suzhou) Co., Ltd. in SIP, and later invested in 14 more projects covering the fields of semiconductor, electronic instruments, automotive parts, medical appliances, construction, food processing, and logistics. So far, 15 of the Fortune-500 enterprises in SIP have each invested more than one projects in SIP.
The Fortune-500 investors in SIP are also showing more interest in setting up R&D institutions and service industries in SIP, which has a close bearing on their strategy to turn SIP facilities into HQ manufacturing bases. A number of multinational corporations are setting up independent R&D units or within their enterprises in SIP to speed up development of products for Chinese and Asian markets in order to win bigger market shares, such as Emerson Climate Technology (Suzhou) R&D Co., Ltd. by American Emerson Electricals, Bosch Technological Center (Suzhou) Co., Ltd. by German Bosch Holdings, Panasonic Electrical R&D (Suzhou) Co., Ltd. by Panasonic Corporation, and Samsung Semiconductor (China) R&D Co., Ltd. by Korean Samsung Group, etc.
In the service sector, there have appeared Auchan Supermarket invested by Auchan Group of France, B&Q decorative and building material mall by Kingfisher Group of UK, and Carrefour Shopping Mall by Carrefour of France. In recent years, a number of production-oriented service projects are making headway into SIP, such as HSBC Suzhou Branch set up by UK HSBC Group, Suzhou Representative of Nippon Property Insurance from Japan, Suzhou Mitsui International Logistics & Trade Co., Ltd., and Kintetze Warehousing Co., Ltd., etc.
Projects by Fortune-500 enterprises in SIP are making outstanding contributions to SIP growth. The 89 manufacturing projects from Fortune-500, though 13% of the total foreign investment in SIP, are making 33% of the total industrial output value and 26.3% of the total profit in SIP respectively by hitting 39.46 billion RMB and making 2.21 billion RMB profit from January to September this year.
Dec. 10, 2006