Xiamen offers investment opportunities in solar power

XIAMEN, Penang's sister city, is offering vast opportunities for investments, with the biggest projects being in manufacturing solar power products.

The solar power projects have an estimated investment value of US$447mil.

The projects include a US$215mil facility to package solar cell components with 80 to 300 watts, a US$140mil plant to produce solar cells, a US$71mil solar power generation grid facility to make equipment for AC-DC conversion, and a US$21mil facility to produce solar glass panels.

Xiamen mayor Li Cigui said the solar power schemes were among the 19 projects in the manufacturing sector which had a value of over US$800mil.
 
"These solar power projects will be wholly owned foreign investments," Liu added.

Liu was speaking during a trade mission to Xiamen led by Penang Chief Minister Lim Guan Eng, comprising state government officials and businessmen.

Also in the delegation were Penang Chinese Chamber of Commerce president Tan Sri Tan Kok Ping and Penang Xiamen Friendship Association president Datuk Choot Ewe Seng.

Another big project in the manufacturing sector is the relocation of the Xiamen Papermaking Co Ltd with an investment value of US$100mil.

The project, to be located in the Xiamen Tong'an District, will introduce innovative paper-making techniques and include equipment for the production of decoration paper, food packaging paper, and tissue paper.

"Capital input and cooperation from outside are wanted for this project," Liu said.

Besides the manufacturing sector, Xiamen also provides over US$490mil of investment opportunities, comprising 12 projects, for the services sector. The biggest of these projects is the construction of the US$143mil Dongdu Terminal in the Xiamen port.

The Xiamen Industrial Park

The terminal has a coastline of 550 metres and stretches 500 metres on land, covering a land area of 250,000 sq m.

The terminal is designed to have a berth equipped with multi-functions and the capacity to serve 50,000 tonnage vessels.

It has the annual capacity to handle 400,000 TEUs (20ft equivalent units) and 600,000 metric tonnes of bulk cargo.

Another large scale project in the services industry is the US$100mil Aviation Logistic Park, an ongoing project scheduled for completion in April 2009.

The Aviation Logistics Park, covering 1.17 sq km on reclaimed land, is designed to house an administrative complex, storage area, aviation industry, and business service area.

"So far 420,000 sq m has been reclaimed for construction. The project developer is now seeking investors to assist in the running of the park," Liu said.

Liu said by the end of 2007, Xiamen had attracted 7,928 foreign direct investment (FDI) projects, with an FDI value of US$28.7bil.

"Foreign-affiliated enterprises contributed over 79% of the total industrial output value of enterprises that yield over RMB5mil annually.Of the global Fortune 500 companies, 42 have invested about US$2.3bil in 72 projects in Xiamen," Liu said.

In 2007, Xiamen's bilateral trade value was US$39.7bil, of which the import value was US$14bil and export, US$25.5bil, Liu said.

"Hi-tech industries encouraged by the state enjoy a preferential corporate income tax of 15%," he said.