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September 16, 2013

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Home » District » Songjiang

Mature industrial zones help ‘homeless’ high-tech companies find suburban sites

Caohejing High-Tech Park in the Xuhui District and Songjiang signed a contract last month to collaborate on Songjiang’s New Industrial Zone.

The project is part of Shanghai’s district-to-district industrial parks policy, aimed at addressing a growing scarcity of space for technology expansion.

ÔHomeless’ enterprises

According to the Shanghai Municipal Commission of Economy and Informatization, the city’s prime 1,000 square kilometers of land zoned for industrial parks has almost been used up, leaving many high-tech enterprises “homeless.” At the same time, many suburban industrial parks are stuck in the dilemma: They have good sites but have trouble attracting good projects.

“The cooperation between Xuhui and Songjiang is a model for utilizing land resources to their optimum and attracting high-tech companies,” Li Yaoxin, the commission’s director, said at the signing ceremony. “It also sets a good example for the integration of manufacturing and services industries.” 

The Songjiang towns of Xinqiao, Jiuting and Sheshan Hill, and the Zhongshan Community have signed agreements with the New Industrial Zone.

Enterprises such as Shanghai Manheng Graphic Design Information Co, online children’s games developer TaoMee Inc. and software developer TCSoft are going to set up shop there.

Seeking expansion

Shanghai’s manufacturing and services industries last year generated combined sales of more than 5 trillion yuan (US$817 billion), and industrial parks accounted for three-fourths of the total. The average sales generated on every one square kilometer of land exceeded 10 billion yuan.

More mature industrial parks, such as Caohejing, Jiading Automobile City and the Jinqiao Development Zone in Pudong New Area, created even higher sales of more than 20 billion yuan on every square kilometer, while rural suburban development zones with smaller companies generated no more than 3 billion yuan per kilometer.

Caohejing has started to seek expansion opportunities in several suburbs in the past two decades. It has established branch zones in 12 districts, including Minhang, Fengxian, Jinshan, Jiading and Pudong.

In the 1990s, it built the Caohejing Development Zone (Songjiang), turning an 11-hectare deserted site into a park for privately owned companies, attracting some high-profile Chinese enterprises, such as the men’s wear clothing brand Saint Angelo.

 




 

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