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Investment Solicitation Manual of Automobile and Parts Industry Cluster District of Xiaogan High-tech Industry Development Zone

I. Automobile and Parts Industry Cluster District of Xiaogan High-tech Industry Development Zone


Xiaogan High-tech Industry Development Zone was established in 1989 and it succeeded in being promoted as National High-tech Industry Development Zone in 2012, including one area and four parks (core area and Xiaonan, Yunmeng, Yingcheng and other parks). Total planning area of the core area is 80 square kilometers. The high-tech zone is located in the core zone of “comprehensive matched reform pilot area of two-oriented society” of Wuhan City Circle established upon approval of the State Council and is an important cooperative production base for automobile and parts industry of Wuhan Optics Valley of China and Wuhan Economic Development Zone.

Automobile and Parts Industry Cluster District of Xiaogan High-tech Industry Development Zone has gathered over 50 enterprises such as Sanjiang Heavy Industry Equipment Co., Ltd., Wanshan Special Vehicle Manufactory, Japanese Yazaki Corp., Japanese NHK Company, Italian Magneti Marelli Group, France Penda Group, Guilin Fuda Group, etc. and has the capacity of developing and producing heavy off-road vehicles, heavy flat cars and other special vehicles and producing automotive electronics and wiring harnesses, interior trim parts, automobile lamps, automobile axles, engine crankshafts, seats, frames and other automobile and parts series products.


II. Advantage and potential of automobile and parts industry in Xiaogan

1. Superior location and convenient transportation. Xiaogan National High-tech Industry Development Zone is located in the central place of economic geology of China with a distance of 35 kilometers away from the central mega-city Wuhan. Beijing-Guangzhou Railway spans across north and south China. Beijing-Hong Kong-Macau Expressway, Fuzhou-Yinchuan Expressway National Highway 107 and 316 all converge in downtown Xiaogan. Transportation here is very convenient, 30 kilometers away from Wuhan Tianhe International Airport and 50 kilometers away from Yangluo Deepwater Harbor.

2. Huge market potential. Xiaogan is in close vicinity with Wuhan, “Automobile Capital of China” and has a huge market potential for automobiles and parts. There are 8 full vehicle manufacturers in Wuhan. It is estimated that by the end of 12th five-year plan, Wuhan will have an annual vehicle production ability of 3 million and a total production value of 450 billion yuan. For the present, there are framework agreement of park cooperation and agreement of Dongfeng Renault automobile and auxiliary parts between Xiaogan Municipal Government and Wuhan Municipal Government. The market capacity is very large.


3. Xiaogan owns a superior environment of industry matching. Xiaogan is an important automobile and parts production base of the automobile industry corridor of Wuhan-Xiaogan-Xiangyang-Shiyan. It has more than 50 automobiles and parts enterprises, solid industry foundation and strong matching of upstream and downstream industries. In the meantime, the Zone places honesty in the first place, holds to the conception of “industry first and entrepreneurs foremost”, spends every effort to cultivate a friendly environment of “being respectful and amiable to commerce and securing and profiting commerce”, and forms a series of matching policies about land, taxation and services etc. in the principle of combining principle and flexibility.


III. Development Target


During the 12th Five Year Plan Period, taking national new industrialization demonstration base as the brand carrier, the high-tech zone expands its vehicle production capability of light vehicle, heavy off-road  and flat car and heavy special vehicle. In 2015, it is expected to achieve up to 10 billion yuan sales of automobile and parts industry, becoming the first pillar industry of the high-tech zone. 

IV. Business costs


1. Wage: minimum salary standard is 1020 yuan/month; 11yuan/hour for part-time.


2. Recruitment: The vicinity of the Zone is populous and abundant of labor force. Xiaogan is a city of advanced vocational-and-technical education. There are more than 80,000 students studying at school and 30 vocational-and-technical schools and annual undergraduates of 30,000.


3. Industrial land and factory lease cost: Industrial projects of the Zone enjoy a discount (including ground attachment and ground leveling) on the basis of 112,000yuan/Mu of industrial land benchmark price of Xiaogan. Factory lease reference price: 7-12yuan/ m2/month. 

4. Water price: for the present, water cost of downtown Xiaogan is 1.93yuan/ton and water price of industrial, commercial and administrative sectors applies to non-residential water price which is 2.39yuan/ton.

5. Gas price: industrial gas is 3.05yuan/cubic miter, commercial gas is 3.629yuan/cubic meter and domestic gas is 2.68yuan/cubic meter. 

V. Preferential policies  

Land policy: high-tech zone provides nine connections and one smooth land; land transfer is conducted as per the procedure of bid, auction and listing. Preferences will be given in accordance with project conditions.  

Tax policy: the local retention of corporate income tax in investment in the first two years shall be rewarded to enterprise in 100% and in 50% to enterprise in last three years; the local retention of added-value tax in the first three years shall be rewarded to enterprise in 50%. Administrative charges within the extent of city- level authority shall be free before the enterprise is constructed and put into operation. Charges of non-profit-making service will be half the price and management service fees shall be charged after the negotiation between charging units within scope approved by price departments.  

Special policies: projects with large scale investment, high scientific and technological content and good market prospect shall be carried out with specific policies of “one discussion for one project” and “one policy for one enterprise”.

Supporting service policy: system of centralized approval and formalities handling shall be implemented; special class package enterprise system shall be implemented; service commitment system and other systems shall also be put into practice. 

VI. Requirements for investment entity

Automobile and parts enterprises whose products comply with national industrial policy and environmental protection requirements (enterprises that supply land shall invest no less than 100 million yuan). 


VII. Contact information of investment solicitation

Xiaogan Investment Solicitation Bureau 

Zhang Yong 18972667700 (Yangtze River delta region)

Email: zs7700@qq.com

Wang Changchun 18986500333(Pearl River Delta region)

Email: 17162004@qq.com