QINGDAO City has started the relocation of 54 enterprises in its old urban area in the past three years, involving fixed assets of more than 7.25 billion yuan.

    Seventeen relocated enterprises have started operations on their new sites, while another 17 relocated enterprises have started the construction of new manufacturing facilities.

    In 2008, the city started moving its mechanical and light industry enterprises out of the old urban areas, planning to eventually relocate 110 enterprises in total.

    In 2009, the relocation work started on these chemical industry enterprises, which posed a potential threat to people’s lives and environment.

    The city government provided preferential land and financial packages to relocated enterprises, aiding them in their search of investment, said Xiang Yangqing, director of the enterprise relocation office.

    Xiang continued: “In 2008, the city promoted 160 key projects, more than 50 of which landed cooperation partners with a contract volume of over 22 billion yuan.”

    In 2009, the city promoted 217 key projects to invite investments from big companies and groups, pushing forward the restructuring of the relocated enterprises, Xiang said.

    “The enterprises affiliated with our group will build two chemical industrial estates in Dongjiakou and Xinhe after moving gradually out of the old urban area, aiming for co-development,” said Luo Fanghui, president of Qingdao Hiwin Group.

    The chemical enterprises affiliated with the group employed environment-friendly technologies to upgrade their manufacturing after the relocation.

    Once restrained by limited space in development, MESNAC Co. Ltd. moved to Jiaozhou in 2008 to build a soft control equipment industrial park, achieving considerable improvement in its production capacity, technology, management and energy reservation.

    The company saw its sales income doubled over the period before the relocation, jumping from fourth to sixteenth in the world ranking for the entire industry and reducing energy consumption by over 30 percent.

    More than 3.8 billion yuan had been invested in manufacturing equipment by 17 relocated enterprises last year, said Dong Deyi, deputy director of Qingdao Economic and Information Technology Committee.

    The city planned six industrial zones with unique features for the enterprise relocation, covering equipment manufacturing, heavy chemical industry, auto parts, light industry and ship building industry.

    A total of 62 projects each with an investment of over 100 million yuan have been introduced to the six industrial zones.(Li Hao, Lin Gang)