Tianjin Allocates $19.2 Billion for Six Key Industries

Strategic Insights -

Tianjin, a major industrial city in northern China, is investing heavily in six strategic sectors to drive economic growth. The city has allocated 160 billion yuan (approximately $19.2 billion) for 560 projects across these industries, with the goal of achieving a total output value of over 460 billion yuan by the end of 2005, representing a 23% increase over the previous year.

Key Takeaways:

  • The six pillar industries being targeted by Tianjin include IT, chemical and metallurgical sectors, automotive industry, biotechnology and modern pharmaceutical industry, and new energy and environment protection sector.
  • The city plans to complete the first-phase reconstruction project of a chip production line with a monthly production of 35,000 8-inch 0.13-0.35 micron IC chips.
  • The automotive industry will see significant investments, with 33 projects involving an investment of 10.4 billion yuan, including the expansion of Toyota sedan production.
  • The pharmaceutical industry will focus on establishing production bases for cardiovascular and diabetes drugs, as well as the research and development of bioengineering and chemical drugs.
  • New energy and environment protection projects will focus on the production of lithium ion cells, solar batteries, and related raw materials.

Statistics:

  • Total investment allocated for 560 projects across six industries: 160 billion yuan (approximately $19.2 billion)
  • Total output value target by the end of 2005: 460 billion yuan, representing a 23% increase over 2004
  • Monthly production capacity for IC chips: 55,000 (after completion of two chip production projects)
  • Annual production capacity for MARK-II sedans: 72,000
  • Annual production capacity for Toyota Corolla sedans: 300,000 (expected in 2007)
  • Annual production capacity for multi-purpose vehicles in the FAW Huali Motor-Daihatsu JV: 200,000 (expected in 2007)
  • Annual production capacity for 1.6-2.0L engines: 300,000 (expected in 2007)
  • Annual production capacity for 1.1-1.5L engines: 350,000 (expansion project of Toyota engines)

Sources:

(XIC) 22-02 2100