| Vol. 58, Monthly Issue,Nov., 2006 |
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| INVEST TEDA(monthly) is an e-magazine sponsored by the TEDA Administrative Commission in association with the Tianjin representative office of Deloitte Touche Tohmatsu Accounting Firm (Consultant on Commercial Affairs to the TEDA Administrative Commission). As a bridge connecting the project market with the capital market, the magazine is to provide investors and potential investors with consulting services in terms of TEDA¡¯s latest development, current investment situations, and prospects of development while keeping an eye on the relevant domestic information within China. | |
| Entrepreneur: |
Administrative Commission of Tianjin Economic Technological Development Area (TEDA) |
| Assisted by: |
Deloitte Touche Tohmatsu CPA Ltd, Tianjin Branch | |
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| PPG Coatings(Tianjin) CO.,LTD.Purchases and to Expand Production |
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Recently, the Administrative Commission of TEDA and PPG Coatings (Tianjin) Co., Ltd. signed a Land Transfer Agreement, for PPG bought a piece of land of about 60,000 m2 adjacent to its Tianjin plant. The newly purchased land will be used for PPG's new investment plans and for expanding its production capacity of automotive coatings and industrial coatings, to better serve the needs of its clients.
Registered in TEDA in April of 1994, PPG Coatings (Tianjin) Co. Ltd. has a total investment of US$ 23.80 million and covers an area of 40,000 m2. It provides high quality automotive, industrial and architectural coatings to China¡¯s market. As the market of automotive and industrial coatings is growing fast, PPG has increased its investment and thus expanded its production capacity to 45,000 tons a year. Up to now, PPG¡¯s industrial output has maintained a double-digit annual growth rate. Its production has developed from 8 hours a day and 5 days a week to 24 hours a day and 7 days a week. Its employees have accordingly increased from tens of people to over 700. Its sales value reached nearly 1 billion RMB yuan in 2005 and is estimated to reach 1.5 billion yuan in 2006. In 2005, to meet the needs of its customers, PPG set up in its existing facility new labs, production lines for water coatings and wood coatings, as well as a Service Center for High Performance Architectural Coatings. It has also funded a new production facility for base coatings, whose floor space is about 4,000 m2. The newly purchased land can ease PPG¡¯s urgent need to expand production, better satisfy the demands of its customers and therefore help PPG to maintain its rapid development. |
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| Haiyan Apartment Building for Blue-Collar Workers Inaugurated in the West Zone of TEDA |

Days ago, the opening ceremony of Haiyan Apartment Building for Blue-collar Workers was held in the West Zone of TEDA.
It¡¯s learned that Haiyan Apartment Building is located in the first phase of the West Zone, to the east of the Investment Service Center of the West Zone of TEDA. Constructed and run by Tianjin Haiyan Industry Company of Tianjin State Farms Agribusiness Group Corporation, Haiyan Apartment Building, the first apartment building completed in the West Zone for the use of blue-collar workers, can hold 8,000 people. Guochen Apartment Building for Blue-collar Workers in the south central part of the West Zone will soon be available for use too, and thus the total capacity of the apartment buildings for blue-collar workers will reach 16,000. As more and more investors come to carry out their production, the West Zone will start to construct a new apartment building for white-collar workers in the first phase next year. |
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| CISCO Systems, INC. of Us Seeking Gold in TEDA |
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Recently Mr. Pi Qiansheng, Member of Standing Committee of Tianjin Municipal Party Committee and Chairman of the Administrative Commission of Tianjin New Coastal District, met with the delegation led by Victor Tsao, Vice President of Cisco Systems, Inc. of US.
The main R&D base of Cisco Systems, Inc. of US is located in India. Currently the company is seeking for establishing a relatively large new R&D center in China¡¯s mainland. The aim of Victor Tsao¡¯s visit to TEDA is to investigate the social and economic development and investment environment, especially the growth speed, scale and development plan of the IT industry in TEDA. Victor said that Cisco Systems, Inc of US placed high expectations on the vast Chinese market and hoped for greater development in China.
It is learned that Cisco Systems, Inc. is a recognized leading provider of global networking solutions for the Internet, with its clients from industries like telecommunications, finance, services, retail, etc. as well as governmental departments, educational institutions, etc. Meanwhile, it is also the mainstay in the establishment of networks. At present 80% of internet traffic are transferred by the products of Cisco Systems, Inc. (Tr. by Chen Yu) |
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| A World-Level Sweetener Productin Base Begins its Construction in Chemical Industrial Park of TEDA |
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After signing an investment agreement and a land transfer contract with the Administrative Commission of TEDA, Cargill Food (Tianjin) Co., Ltd. recently held an opening ceremony, marking its settlement in Chemical Industrial Park of TEDA.
It is learned that Cargill Inc. of US is the largest farm produce processor and grain and food trader in the world. Having its business involved in 91 industries, Cargill Inc. has over 1,000 facilities in 60 countries. Its sales revenue in 2003 was about 59.9 billon dollars, ranking first among private-owned companies in US.
Cargill Inc. will build a high fructose project with an annual production capacity of 120,000 tons. With its first-phase investment of 160 million yuan and total investment of 560 million yuan, the three-phase project will develop a world-level sweetener production base in Tianjin. |
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| New TEDA Hospital to be Opened Next Year |
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The New TEDA Hospital, currently under construction, is located to the east of the TEDA International Cardiovascular Hospital and to the west of the Beihai Road. Upon its completion scheduled on June 30th, 2007, the Hospital will become the largest general hospital of the entire Tianjin New Coastal District. It is expected to cover a land area of 45,000 square meter (construction area totaling 78,000 square meter) and comprises of such seven freestanding units as the outpatient tower (five stories), the tower of medical technologies (three stories), the inpatient tower (12 stories), hyperbaric oxygen chambers, animal labs, sewage treatment station, and sewage tank. Each of the inpatient tower and the tower of medical technologies will have one underground story. The underground story of the tower of medical technologies will be used as a parking lot.
Based on its existing facilities and expertise, the New TEDA Hospital will develop into a triple-A non-profit public hospital with 500 beds and a fully-fledged service package of medical treatment, education, research and rehabilitation. Its key departments may include emergency rescue, traumatic surgery, orthopedics, tumor surgery, ENT, neurosurgery, gynecology& obstetrics, and the prevention of occupational diseases.
Initially designed to serve patients in TEDA, the Hospital now has a bigger plan. Its service will gradually reach out from TEDA to the TNCD and downtown Tianjin so as to better respond to health care and disease prevention demands of various levels and fields and guarantee reliable medical support to more Tianjin citizens. Following the completion of the TEDA International Cardiovascular Hospital, the expansion and reconstruction of TEDA Hospital, and the open of the 120 first aid hotline, a medical network has taken shape in TEDA and is supposed to better prepare this region for any possible public health emergencies in the long run. |
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| TEDA Office in Dallas Solemnly Opens |

On October 11 of 2006 (local time), the municipal government of the City of Dallas of the United States held a solemn opening ceremony of TEDA Office in Dallas. More than 60 political celebrities, entrepreneurs and journalists, including Hua Jinzhou, Consul General of the People¡¯s Republic of China in Houston, and Laura Miller, Mayor of the City of Dallas, attended the ceremony. The City of Dallas municipal government welcomed TEDA¡¯s decision to open an office in Dallas and expressed a keen interest in the closer and better ties between Dallas and TEDA.
Dallas, one of the largest cities in the United States, is also one of the homes to the most headquarters of Fortune Global 500 companies. The famous enterprises in Dallas include EDS, ACS, Texas Instruments, Kimberly-Clark, JC Penny, and Seven-Eleven. Dallas, a key transportation hub in the South of the United States, became a sister city of Tianjin early in 1994, and its largest trade partner now is China. |
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| Total Investment in West Zone of TEDA Excceeds 2.7 Billion Dollars |
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So far 52 enterprises have settled down in TEDA¡¯s West Zone, which was just established three years and three months ago, with their total investment over 2.7 billion dollars. Among them two are from Fortune Global 500 corporations, and eight are world leaders in their fields.
At present 66 km roads which cover one million square meters have been accumulatively developed in the zone, linking the zone to TEDA, downtown Tianjin and Tanggu District. Especially the opening of the toll stations to Beijing-Tianjin-Tanggu Expressway, Tangshan-Tianjin Expressway and Jinbin Expressway in the zone connects the zone to the outside in all directions. A comprehensive transportation network with North Avenue, South Avenue, Zhongxinzhuang Road, and Chunhua Road as its main roads has formed inside the zone, creating a convenient industrial logistics environment with high efficiency. Besides, over ten bridges have been built in the zone, covering 250,000 square meters.
The zone has developed green areas of 1.5 million square meters, water and steam pipelines of 10 km, and a daily water supply capacity of 50,000 tons. And it is working on introducing its second source of water. At present there are 28 enterprises and projects under construction in the zone. The pump station for pumping rainwater and sewage has been put to use in the first phase of the zone.
With regards to electricity facilities, a 110 kv substation with a daily power supply capacity of 100,000 kva has been completed. A 220 kv substation is now being constructed, which will meet the zone¡¯s demand for long-term power supply.
As to gas supply facilities, gas pipelines which connect the zone with outside regions have been laid, and a gas gate station has been constructed, with a daily gas supply capacity of 530,000 cubic meters. As to heat supply facilities, a boiler room for regulating heat supply at peak times has been constructed, with an hourly steam supply capacity of 90 tons.
The first phase project of Sewage Treatment Plant of West Zone of TEDA has been put into operation, with a daily sewage treatment capacity of 12,500 tons. Haiyan Blue Collar Apartment which can accommodate 8,600 employees has been completed and put to use a few days ago. Guochen Blue Collar Apartment will be put to use very soon.
As learned from experts, enterprises in West Zone of TEDA have taken a nationwide leading position in terms of scale, land use rate, output value per unit area£¬energy consumption per 10,000 yuan of industrial added value and environmental protection indexes. |
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| Overseas-Founded Enterprises Add More Investment in TEDA |
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In this September 19 overseas-founded enterprises were newly approved and 25 overseas-founded enterprises increased their investment in TEDA. Total overseas investment, contracted overseas investment and actually funded overseas investment in TEDA have accumulatively reached 361 million dollars, 291 million dollars and 79 million dollars respectively. Overseas-founded companies¡¯ adding their investment has again featured the absorption of overseas investment this month.
12 projects, which take a main part of the newly approved projects in September, have each of their investment over 10 million dollars. Among them Erasteel Innovative Materials Co., Ltd., Haomeng Precise Forging Technology (Tianjin) Co., Ltd., Cargill Food (Tianjin) Co., Ltd., etc. are engaged in the leading industries of TEDA.
It is learned that so far this year 95 newly approved overseas-founded enterprises have each of their total investment over 10 million dollars, 35 are founded by multinational corporations, and three are established by Fortune Global 500 corporations. Among the projects which increase their investment, 23 have added over 10 million dollars, of which 10 are from Fortune Global 500 corporations and 26 are multinational corporations. |
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| Investment Promotion Bureau of TEDA |
Tel:(86 22)2520 2597 |
Fax:(86 22)2520 1836 |
| WAdd: No. 19, Hong Da Street, TEDA, Tianjin |
Postcode:300457 |
Website:http://en.investteda.org/ |
Deloitte Touche Tohmatsu CPA Ltd. Tianjin Branch |
Tel:(86 22)2320 6688 |
Fax:(86 22)2320 6699 |
| PostCode: 300051 |
WebSite:www.deloitte.com.cn |
| E-mail:jassua@deloitte.hk.com |
| Add: 30/F The Exchange North Tower 189 Nanjing Road Heping DistrictTianjin 300051,PRC |
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