content · 2016-09-13 · content preface zibo today development of zibo operating costs business...

ContentPreface

Zibo Today

Development of Zibo

Operating Costs

Business and Living Environment

Investment in Zibo

Service Institutions

Name Lists of Main Companies

02/03

04/07

08/11

12/17

18/21

22/31

32/33

34/39

INVEST IN ZIBO

Preface

As a time-honored commercial town of Shandong, Zibo is one of the earliest regions

opening up to international trade and investment, which initiated its opening-up over a

century ago.

In 1904, Zhoucun, with a territory of more than 300,000 square metres, one of the

five districts in Zibo, was approved as a treaty port by the Qing government and since

then it has attracted investment from more than a hundred companies around the world.

British American Tobacco and Mobil, for example, set up sales representatives as early

as 1905.

With China's reopening to the world in the 1970s, Zibo's economy has seen

significant development. Zibo had a gross domestic product (GDP) compound annual

growth rate (CAGR) of 9.3 percent between 2011 and 2015. Zibo saw 2015 GDP growth

of 7.1 percent. This equated to a 2015 GDP of RMB 413.02 billion Yuan. Manufacturing

is seen as the base of Zibo's economic development, in which the local chemical and

medical industries play important roles. Zibo serves as an important provincial and even

national city in petrochemical industry. The medical industry is also a major force in Zibo.

It is the largest production and export base of antipyretic-analgesics in Asia, accounts

for 80 percent of domestic pharmaceutical glass production, and ranks top in China's

production scale of radiotherapy equipment, sterilisation & disinfection equipment and

surgical instrument. By virtue of rapid development since the foundation of the state,

and in particular during the over 30 years of reform and opening-up, Zibo has gradually

formed its comprehensive industrial system with characteristics of chemistry, medical

care, electrical machinery, building materials, ceramics and textile. In 2011, Zibo became

the provincially 3rd and the nationally 16th city with industrial economy exceeding 1 trillion

Yuan.

Zibo is listed as one of China's Top 50 Cities in Competitive Strength year by

year since 1992. In 2015, Zibo ranked 40th in China's Top 100 Cities of Comprehensive

Strength and 35th in Forbes' Best Commercial City in Mainland China. In 2015, Zibo

continued its holding of the title in the 4th Selection of National Civilized City,

and passed the Review of National Hygienic City in 2015.

Zibo Investment Guide

01 Zibo Today

·Location and History·Population and Natural Environment·Urban Development Planning

Serving as the key transportation hub of Shandong Province, Zibo boasts a time-honored history as well as a typical city complex comprised of several downtown areas.

Zibo Investment Guide 5

Location and History

Zibo City serves as the key transportation hub of Shandong Province.

Zibo, centrally located in Shandong province, connects the Luzhong mountain area and Lubei plain, and has long acted

as a regional transportation hub as well as the passage between the Central China and Shandong Peninsula. The railway

lines of Jiaoji (Qingdao-Ji'nan), Zhangbo (Zhangdian-Boshan), Zidong (Zibo-Dongying) and Xintai (Xindian-Tai'an) all

converge in Zibo. Besides, the National Highways 205 and 309, along with Highways Jiqing (Ji'nan-Qingdao) G20 and Binlai

(Binzhou-Laiwu) G18 all run through Zibo.

Historically, Zibo was the capital of the ancient Qi State.It

also developed into one of five ceramic centres in China and

claims to be a cradle of world football.

Zibo is one of the state's famous historic and cultural cities. Linzi,

now one of Zibo's districts, was the capital of the ancient Qi State and

one of the biggest cities around 2,500 years ago. Some of the earliest

Chinese works on the handicraft industry, Kao Gong Ji, on the agricultural

industry, Qi Min Yao Shu, and on the service industry, Guan Zi, originated

here. Serving as one of the earliest pottery production bases, Zibo boasts

a ceramic culture of more than 8,000 years. As one of the top five ceramic

cities in Chinese history, Zibo has been recognized as China's Famous City

of Ceramics by the National Light Industry Federation and China Ceramics

Industry Association in 2004, and now exports its ceramics to more than

80 countries and areas around the world. In July 2004, the International

Federation of Association Football (FIFA) announced in Beijing that “China is

the homeland of football (anciently named as Cuju) while Zibo is the cradle

of world football”.


Population and Natural Environment

Zibo features four distinct seasons and a pleasant climate

As of the end of 2015, Zibo has a population of 4.642 million. This city enjoys a semi-humid and semi-arid monsoon

climate of medium latitudes with average rainfall of 629.8 millimetres and average temperatures of 14.3 degrees Celsius,

annually.

With titles of “National Forest City” and “National Garden City”, Zibo has always regarded consolidation of

established achievements as the major means of optimizing urban environment and enhancing urban images. As of the end of

2015, Zibo had a total green space area of 12,215 hectares, equating to a 45 percent green space ratio across the city.

Currently, Zibo has 47 parks and park green area of 4,089 hectares, with around 19.5 square metres park green area per

capita.

Zibo’s geographic position in China Zibo’s transportation map

Ji’nan Yaoqiang International Airport

Qingdao Liuting International Airport

National Highway

Railway

Binzhou

Beijing

Shanghai

Yantai

Shandong

Guangzhou Hong Kong

Zibo

Zibo

WeihaiDongying

Ji’nan

Ji’ning

Qingdao

Weifang


Urban Development Planning

Zibo is a typical city complex comprised of several downtown areas.

Administratively, Zibo covers a total area of 5,965 square kilometres made up of five districts (Zhangdian, Zichuan,

Boshan, Zhoucun and Linzi), three counties (Huantai, Gaoqing and Yiyuan), and including Zibo National New & High-tech

Industrial Park and provincial-level Wenchang Lake Tourist Resort. Zhangdian district, as the economic, socio-political and

transportation centre of Zibo, is the seat of local government.

Formally established in 1955, Zibo has undergone multiple times of administrative division reform, forming the present

generally scatted while locally concentrated city complex with eight relatively independent urban areas, interlacing of urban &

rural areas and combination of industry & agriculture.

Zibo is continuing its infrastructure consolidation.

Zibo plans to further develop its infrastructure, focusing on transportation, energy security, IT infrastructure and water

facilities. Local projects underway include High-speed Rail Jiqing (Ji'nan-Qingdao) Project (Zibo Section), Highway Jiqing

(Ji'nan-Qingdao) Expansion Project (Zibo Section), Gaoqing General Airport Construction Project, Public Transportation

Intensification & Modification Project, Ultra-high Voltage Transmission & Transformation Project, Information Service Platform

Construction Project and Central Urban Area Water-system Renovation Project, etc.

With continuous improvement of commerce & tourism development, Zibo is simultaneously striving to become a National Ecological Garden City.

Zibo's government plans to modernize its tourism industry with

one tourism reception centre, two historic culture ties and four

tourism functional areas to be built up in 2020 as the principal

part, through which the development of interrelated industries (such

as hotel industry) can be motivated as well.

Zibo's government plans to modernize the city's commercial

sector through development of new commercial streets as well as

construction of medium and large commercial retail outlets.

Zibo is set to reach National Ecological Garden City standards

through its ecological function regionalization and ecological

construction of water & biological resources.

By the end of 2020, Zibo is expected to achieve forest coverage

rate of 38 percent, forest coverage area of 3.4 million Mu, 25 forest

parks and 2 natural conservation areas.

Key construction projects include Cultural Tourism Innovation

Park Project of Great Wall of Qi, Mata Lake Ecological Tourism

Resort Project, Wuyang Lake Tourism Infrastructure Project, Xiaofu

River Comprehensive Reconstruction Project and Jiuding Mountain

Ecological Rehabilitation Project, etc.

Map of Zibo

Binbo Highway

Jiqing Highway

Jiaoji Railway

Bolai Highway

National HighwayRailway

Zibo GovernmentZibo National New & High-tech Industrial ParkZibo Railway Station

Zhoucun District Zhangdian District

Gaoqing County

Huantai County

Linzi District

Zichuan District

Boshan District

Yiyuan County


02 Development

of Zibo

·Economy·Consumer Market·Major Industry Development PlanIn recent years, as one of major industrial cities in China, Zibo continuously boosts its steady economic development through diversified industrial structure.


Economy

Since China's reform and opening-up, Zibo's economy has seen steady growth

In 2015, the GDP of Zibo was 413.02 billion Yuan, ranking 5th in Shandong. The gross regional domestic product

per capita was 89,235 Yuan (US$14,330), ranking 4th in Shandong, 39% higher than the domestic average value. The

general public budget revenue reached 31.79 billion Yuan. For the past few years, Zibo accelerates its transformation

development from a traditional industrial city, constantly expediting industrial structure adjustment, and the ratio of

three times of industrial structure adjustment is 3.5:54:42.5. Zibo boasts enormous industrial strength. By 2015, there

were 2,910 large-scale industrial enterprises in Zibo, realizing the prime operating revenue of 1,146.25 billion Yuan.

There are currently 26 listed companies, with 22 listed in domestic stock exchanges. Shandong Equity Transaction

Centre is located in Zibo, in which 611 enterprises are listed and 763 ones are trusted. Key listed enterprises include

Jinjing Science and Technology Co., Ltd., Shinva Medical Instrument Co., Ltd., Shandong Bohui Paper Industrial Co.,

Ltd., Jinling Mining Co., Ltd., Shandong Dongyue Chemical Co., Ltd., Shengli Steel Pipe Co., Ltd.,Luthai Textile Co.,

Ltd., Zibo Qixiang Tengda Chemical Co., Ltd., Shandong Qifeng Special Paper Co., Ltd., Shandong Jincheng Pharmaceutical

& Chemical Co., Ltd., and Shandong Bluesail Medical Co., Ltd.

Consumer Market

Zibo offers a developing consumer market to investors

In 2015, Z ibo 's urban and rura l res idents '

disposable incomes per capita were 33,793 Yuan and

14,531 Yuan respectively, which were respectively 7

percent and 12.4 percent higher than average levels

of Shandong Province. Meanwhile, the consumption

expenditure per capita reached 22,120 Yuan and

10,372 Yuan respectively, which were respectively

11.4 percent and 18.6 percent higher than provincial

average levels. In 2015, Zibo's consumer markets saw

a steady development, and the annual gross retail

sales of social consumer goods reached 194.97 billion

Yuan, which was an increase of 10.6 percent compared

with the previous year.

Zibo boasts the largest high-end modernized

wholesaler trading market in central region of

Shandong Province-Zibo Yiwu Market. Other major

shopping areas are: Ceramic & Coloured Glaze Market

in Boshan district, Zhoucun Commercial Street, Zibo

Qisai Science and Technology Plaza, Rongbaozhai Qilu

Arts Plaza, Linzi Chemical Products Plaza, Zichuan

Building Materials Plaza and Zhoucun Textile Plaza,

etc.

25,000

20,000

15,000

10,000

5,000

02011 2012 2013 2014 2015

10,878 12,378

13,93215,531

14,531

24,95528,189

31,515

33,534

33,793

RMB YuanUrban Residents’ Disposable Income Per Capita

Source: Statistics Bureau of Zibo

3,280.233,557.2

3,801.2

4,029.8

4,130.23,500

3,000

2,500

2,000

1,500

1,000

500

0

18

16

14

12

10

8

6

4

2

0

%

2011 2012 2013 2014 2015

RMB One Hundred Million Yuan

Gross Regional Domestic Product

Source: Statistics Bureau of Zibo

Growth Rate

Rural Residents’ Disposable Income Per Capita


Major industry development plan

Zibo carries out “New & High-tech Industry Chain-casting Project”, establishes a batch of innovation industry chains that are technically leading both at home and abroad, accelerates development of three competitive industries (new materials, biology & medicine and mechanical & electrical equipment manufacturing) and two potential industries (energy conservation & environment protection and electronic information), realizing quality upgrading, capacity expansion and development multiplying of emerging industries. By the end of 13th Five-year Plan, Zibo's emerging industries are expected to account for over 30 percent of its large-scale industries.

Zibo is establishing itself into China's metropolis of new materials. It implements double-high strategy of “High-end materials + High-end Industries”, motivates transformation from orientation of basic common-use materials to that of high-end special-purpose ones; strengthens high-end manufacturing industry, expands large-scale application space of new materials, boosts industrial ecological system with effective connection of localized new-material supply and consumption. Zibo builds industrial innovation chains like functional ceramics, artificial lens, high-performance refractory materials, rare-earth materials, energy-saving and insulation materials, high-polymer materials, degradable materials, high-performance engineering materials, polyurethane, new-type chemical additives & catalysts, etc. By the end of 13th Five-year Plan, Zibo's prime operating revenue of these fields is expected to top 400 billion Yuan.

Zibo is building itself into national health industry valley. It keeps pace with the frontier of international life science development, sets up industrial innovation chains like biomedicine & bioengineering

and medical & pharmaceutical equipment, etc. , focuses on development of biopharmacy & new-type pharmaceutical preparations, traditional Chinese medicine & natural drugs, high-end medical instrument and health-care food, refines competitive industries like pharmaceutical intermediates, pharmaceutical equipment, packing materials for medicine and pharmaceutical adjuvants, etc., and positively develops green agricultural biologics and biological products. By the end of 13th Five-year Plan, Zibo's prime operating revenue of these fields is expected to top 100 billion Yuan.

Zibo is establishing itself into national famous city of electromechanical equipment. It upgrades independent design, manufacturing and total-package capacities of advanced major equipment, establishes industrial innovation chains of efficient energy-saving motor & transmission equipment and high-end pump products, focuses on development of competitive products like new-energy vehicles & parts, new type of motors and pumps, etc., actively cultivates intelligent equipment and products l ike top-grade numerical-control machine tools, intelligent engineering machinery, intelligent transportation vehicles, new-type sensors, satellite navigation equipment, remote sensing devices, aerospace & nuclear-power equipment & accessory products, intelligent power-grid accessory equipment and wearable devices, etc. By the end of 13th Five-year Plan, Zibo's prime operating revenue of these fields is expected to top 100 billion Yuan.

Zibo is building itself into highland of energy conservation and environment protection industry. It focuses on breakthrough of core technologies like efficient energy utilisation, environmental pollution prevention, VOC comprehensive treatment, etc., establishes industrial

innovation chains of non-toxic denitration catalysts and comprehensive resource utilisation, etc., prioritizes the development of environmental-protection materials & medicament, waste water, sludge & foul gas treatment technologies and equipment, and vigorously develops solar-energy equipment like thin-film solar cell, ultra-clear glass for photovoltaic cell substrate, semi-conductor accessories. Zibo strives to develop energy-saving and environmental-protection services like energy-saving service, socialisation operation of environmental-protection facilities, environment consultation & supervision, engineering technology design, authentication & evaluation, etc., and cultivates the development of new type of businesses like dynamic monitor of resource & environment, wise environmental protection, on-line waste transaction and energy performance contracting, etc. By the end of 13th Five-year Plan, Zibo's prime operating revenue of these fields is expected to top 100 billion Yuan.

Zibo is building itself into a strong city of electronic information industry in Shandong Province. It adheres to priority development of information industry, establishes industrial innovation chains of electronic information material & key components, integrated circuit, applied electronics, software & information service, etc., breaks through bottlenecks of core electronic device, high-end chip and basic software, etc., energetically develops micro electromechanical system (MEMS), capacitor, relay, metal-oxide-semiconductor field-effect transistor, medical electronics, IGBT & IC card module wrapping, and improves industry scale level. By the end of 13th Five-year Plan, Zibo's prime operating revenue of these fields is expected to top 100 billion Yuan.

Luthai Textile Co., Ltd. Sinopec Qilu Co., Ltd.


Zibo carries out “a new round o f t e c h n i c a l t r a n s f o r m a t i o n p l a n s ” , p o s i t i v e l y w i e l d s n e w technologies, processes, equipment and materials, reforms conventional leading industr ies l ike chemistry, m a c h i n e r y , b u i l d i n g m a t e r i a l s , metal lurgy, and texti le & apparel, etc., upgrades quality effectiveness, reduces discharge and accelerates transformation and upgrading towards advanced manufacturing. By the end of 13th Five-year Plan, Zibo's value-added rate of large-scale industries is expected to overpass 22 percent.

Zibo pushes forward transformation of chemical industry towards f ine chemicals and chemical new materials. I t organizes layout adjustment of chemical industries within the whole c i ty, propels chemical industr ies to develop towards direct ions of r e g i o n a l i z a t i o n , i n t e n s i f i c a t i o n , c luster ing and greenizat ion, and introduces no more new chemical projects in regions other than parks under municipal plan and clusters. Scale expansion of fundamental chemicals and raw chemical materials industries will not be continued, and instead, products that are highly value-added, further processed and terminal will be greatly developed. Development of petrochemical industry and chlorine-alkali chemical industry will be refined, and fine chemicals and new-material chemicals will be developed towards high-end and high-quality directions so as to realize transformation from conventional resource-driven chemical bases to modern technology-driven chemical industr ia l c luster . By the end of 13th Five-year Plan, Zibo's prime operating revenue and profit taxes of these fields are expected to reach 600 billion Yuan and 72 billion Yuan

respect ive ly, f ine chemicals and new-material chemicals are expected to account for over 70 percent of the whole industry, and chemical indust r ia l concent ra t ion ra t io is expected to top 80 percent.

Zibo pushes forward transformation of machinery industry towards the d irect ion of h igh-end equipment manufacturing. It improves levels of R & D, design, processing & manufacturing and system integration, promotes applications of flexible manufacturing system, automation system, intelligent control system and industrial robot, ref ines vehicles & parts, pumps, motors & driving system and main engine equipment like diesel engine, chemical equipment, building material equipment and agricultural equipment, etc. By the end of 13th Five-year Plan, Zibo's prime operating revenue and profit taxes of these fields are expected to reach 300 billion Yuan and 45 billion Yuan respectively.

Zibo pushes forward transformation of building material industry towards high-end and branding directions. It harnesses total production quantity, adjusts industrial structure, improves product grade, elevates workmanship o f bu i ld ing mater ia l i ndus t ry by penetrat ing into stages of brand, design, equipment, process, etc. in order to establish high-end brand in domestic building ceramic industry. Also, it compresses cement production capacity, and develops new types of energy-saving building materials. By the end of 13th Five-year Plan, Zibo's prime operating revenue and profit taxes of these fields are expected to reach 160 billion Yuan and 22 billion Yuan respectively.

Zibo pushes forward transformation o f m e t a l l u r g y i n d u s t r y t o w a r d s greenization and profound directions.

It accelerates the pace of technical reform, grade elevating and joint reorganization, focuses on eliminating outdated capacities like plain steel, coking and electrolyt ic aluminum, boosts structure upgrading, and enhances core competitiveness in industries like non-ferrous metals, rare-earth materials and high-end refractory materials, etc. By the end of 13th Five-year Plan, Zibo's prime operating revenue and profit taxes of these fields are expected to reach 150 billion Yuan and 20 billion Yuan respectively.

Zibo pushes forward transformation of textile & apparel industry towards p e r s o n a l i z a t i o n a n d s e r v i c i n g directions. It intensif ies industrial chains, improves value chains, and extends marketing chains, innovates on brand operat ion and product marketing modes, explores the mode of “C2M + naked price + O2O” under internet thought, and strengthens Zibo’s independent brand of textile & apparel. By the end of 13th Five-year Plan, Zibo's prime operating revenue and profit taxes of these fields are expected to reach 55 billion Yuan and 8 billion Yuan respectively.

Sicer Ceramics


03 Operating

Costs·Land, factory and office building costs·Labour costs·Utilities·Transportation costsOperating costs are crucial factors when selecting a plant or office location. Zibo has well established infrastructure to meet investor requirements. In 2015, Zibo ranked 35th in Forbe's Best Commercial Cities in China Mainland.


Land, factory and office building costs

Foreign companies may buy a “land use right” but cannot own property outright.

Foreign companies cannot own land in China; most lease land by

paying a one-time fee to the local government in exchange for a land use

right certificate. Industrial land is leased for a maximum of 50 years.

According to current law of China, land transfers are subject to public

bidding, auction and listing.

Purpose-built factories can be constructed in Zibo in a minimum of 30 days using a lightweight steel-frame structure

An indicative cost to construct a single story steel-frame plant with

a height of 8-15 metres is approximately 620 Yuan per square metre; a

concrete-structured factory with a height of 4-5 metres is approximately

1280 Yuan per square metre. Monthly rent for a standard factory

(concrete-structured factory with six floors) is around RMB 30 Yuan per

square metre.

“Our company has benefited from abundant labour. Zibo is rich in technical

workers, we are satisfied with our local recruitment base. And both railway

and highway options from Zibo are convenient.”

——Financial Controller of Gardner Denver Nash Machinery Ltd.

Shandong Institute of Tianjin University

Evergrowing Bank

Source: Bureau of Land Resources Zibo

Zibo class-one industrial and commercial standard land prices (as of March 2016)

District/countyCommercial standard land price

(Yuan/m2)

Industrial standard land price

(Yuan/m2)

Zhangdian (including ZNNHIP) 3,270 857

Zichuan 2,117 675

Boshan 116 460

Zhoucun 1,915 525

Linzi 2,129 770

Huantai 1,800 460

Gaoqing 980 305

Yiyuan 1,275 336

Wenchang Lake Resort 1,818 400


Selected office building rentals in Zibo (as of March 2016)

Name Occupancy rate Monthly rental (Yuan/m2)

Guomao Tower 99% 30

Zuanshi Business Tower 98% 30

Luzhong Chenbao Tower 97% 22

Yulong Tower 96% 20

Huaxia International Mansion 96% 25

Huijin Tower 90% 35

Chuangye Torch Plaza 90% 45

Source: Zibo Real Estate Enterprises Interview

Office building

High-end office buildings in downtown Zibo have convenient

access to the railway stations. Luzhong Terminal Building is

located in Guomao Tower, with dozens of airport buses shuttling

between the terminal building and airports of Ji'nan and Qingdao.

Furthermore, the check-in procedures can be immediately handled

here. Rent in such office buildings is typically RMB 20-45 per square

metre per month.Zibo Advanced Ceramics Institute of Wuhan University of Technology


Zibo is rich in labour resources

By the end of 2015, Zibo had 13 institut ions of higher education,

of which 8 are regular institutions of higher education, and 2 are adult

institutions of higher education. There are in total 33,000 students admitted

for undergraduate or junior college education, 103,000 students studying in

universities and colleges, and 29,000 students graduating from universities

and colleges. Up to the end of 2015, Zibo had approximately 130,000 medium

and high-level technicians. Simply in the year 2015, 1,200 persons obtained

high-level specialized technical qualification, approximately 2,900 persons

obtained medium-level specialized technical qualification, and about 1,300

persons harvested the titles of technicians or senior technicians.

In 2015, average Zibo employee annual income was under RMB 35,000 Yuan

The chart on the left details the range and average value for annual salaries

of employees in various job categories in Zibo. Data in the left chart are the wage

benchmarks of Zibo Labour Market, which serve as general reference for foreign

investors.

Salaries for higher-level staff tend to be directly related to the company

scale and thus vary significantly compared with average wage of general staff.

Social welfare benefits must also be paid by the company and thus need to be considered when estimating total staff costs

All enterprises must contribute to a range of benefits required by the

government on behalf of employees, including pensions, injury, unemployment,

medical, and maternity insurance, together with housing fund.

The level of contribution is based on a percentage of an employee's salary, as

set by the local authorities (details shown below).

These non-salary remunerations are equivalent to roughly 40 percent - 45

percent of an employee's base salary. There are however maximum and minimum

lines per month of social welfare benefits per employee (RMB 409-2046 Yuan).

Labour costs

Social welfare paid by employer in ZiboPension insurance 20%

Injury insurance 0.3%

Unemployment insurance 1%

Medical insurance 10%

Maternity insurance 0.8%

Housing fund 12%

Source: Bureau of Human Resources and Social Security of Zibo

80,000

40,000

30,000

20,000

10,000

40,000

30,00027,000 27,000

Notes:

The annual salary includes basic salary, social welfare, bonus and compensation.

Source: Bureau of Human Resources and Social Security of Zibo

Annual Salary Level in Zibo 2015 (Annual salary Unit: Yuan)

Production Manager

Administrator Technical Worker

OperationWorker

RMB


Notes: local call charges refer to local fixed line telephone chargesSource: China Unicom, Zibo Branch

Utilities

Zibo has modern utilities to meet local demand, with daily water-supply capacity reaching 650,000 cubic metres; it has 19

sewage treatment plants, with daily water sewage treatment capacity reaching 1,060,000 cubic metres. Zibo has 110 power

substations of 35 kV or above, and the maximum load of the electricity network is 4.49 million kW in order to guarantee power

demand of the whole city. All districts and counties of Zibo have access to natural gas via pipeline, with total supply of 1.1

billion cubic metres per annum.

There are three main internet access methods to connect Zibo with the world: DDN, LAN and ADSL.

Telephone options include international-standard fixed line, mobile phone and Internet Protocol (IP) services;

costs are shown below

Source: Price Bureau of Zibo

Utility prices in Zibo (as of March 2016) Utility Price

Water (Yuan/tonne)

Domestic (including sewage fee) 3.225

Industrial (including sewage 3.385

Electricity (Yuan/kw·h)

Domestic 0.5010-0.8469

Commercial ＜ 1000KV 0.7988

1-10KV 0.7838

≥ 35KV 0.7688

Industrial Electricity for large-scale industry 0.6196-0.6646

Electricity for medium and small-scale fertilizer 0.5219-0.5669

Natural gas (Yuan/m3)

Domestic 2.70

Commercial and industrial 3.03

Compressed natural gas for vehicles 3.88

Source: China Unicom, Zibo Branch

Monthly rent of broad band (as of March 2016)Broad band Monthly rent (Yuan)

2Mbps 100

4Mbps 125

6Mbps 150

8Mbps 175

10Mbps 200

100Mbps 2000-2500

Telephone charges (as of March 2016)

Local call Domestic call International call

Yuan/min Yuan/6 seconds Yuan/6 seconds

Fixed line 0.22 for the first 3 minutes

0.11 after 3 minutes

0.07 Hong Kong, Macau, Taiwan 0.2

Other countries and regions 0.8

Mobile phone 0.22 for the first 3 minutes

0.11 after 3 minutes

0.07 Hong Kong, Macau, Taiwan 0.2

Other countries and regions 0.8

IP phone Nil

0.3+local call charge

(dial 17951 or 17909)

Hong Kong, Macau, Taiwan 1.5+local call charge

U.S., Canada 2.4+local call charge

Bri ta in, France, Germany,

Japan, Korea, S ingapore,

Thailand, Malaysia, Indonesia,

Australia

3.6+local call charge

Other countries and regions 4.6-12+ local call charge


Utilities Transportation costs

Zibo's shipment can be implemented

through Qingdao or Shanghai ports.

It takes around 3 hours to transport

a 20-foot container of general cargo

from Zibo to Qingdao, and 10 hours

to Shanghai. The cost and time of

transportation from Zibo to major ports

in the world through Qingdao port are

shown at the lower left part of this

page.

Zibo is conveniently located for

highway and railway transportation.

Air cargo is also a choice in Zibo

Companies, such as FedEx, which

provides domestic and international

airfreight express transportation from

Zibo to destinations all over the world.

Transportation cost and time from Zibo to destinations by highway and railway

DEST Highway Railway

Cost (Yuan) Days Cost (Yuan/kg) Days

Beijing 0.95 Yuan/kg for heavy cargo, 200 Yuan/m3 for light cargo

3-4 1.8 2-3

Shanghai 1.25 Yuan/kg for heavy cargo, 263 Yuan/m3 for light cargo

3-4 2.8 2-3

Guangzhou 1.86 Yuan/kg for heavy cargo, 391 Yuan/m3 for light cargo

4-5 5.1 3-4

Qingdao 0.6 Yuan/kg for heavy cargo, 126 Yuan/m3 for light cargo

2-3 1.3 1-2

Sea-transportation cost and time from Zibo to destination through Qingdao

DEST Cost (Yuan) Days

Hong Kong 3,500 6

Osaka 3,500 5

Kaohsiung 5,600 8

Singapore 3,500 12

Los Angeles 9,300 16

Rotterdam 6,100 16

Hamburg 6,100 32

New York 18,300 32

Transportation cost from Zibo to the selected destination by air express service

(as of March 2016)

Destination Trans. Charge (cargo weight ≤ 1kg) Trans. Charge (cargo weight ＞ 1kg)

Hong Kong 76.9 21 for each added kg

Taiwan 99.5 21 for each added kg

Macau 108.9 28.7 for each added kg

Japan, Korea 124.2 29.6 for each added kg

Singapore 91 35.1 for each added kg

U.S., Canada 158.5 95 for each added kg

Australia 143.8 70 for each added kg

Britain, France 162.3 76.6 for each added kg

Brazil 240.2 122.5 for each added kg

Russia 170.2 59.3 for each added kg

Turkey 158.9 82.1 for each added kg

South Africa 210.2 117.1 for each added kg

Note: above prices are estimates and may fluctuate with changes in materials and fuel prices.Source: China Post Zibo branch

Note: highway transportation charge refers to the charge for cargo transportation from Zibo to the selected destination. Railway transportation charge refers to the charge for transportation of a 20-foot container of cargo to the selected destination. Above prices are estimates and may fluctuate with changes in material and fuel pricesSource: Sinotrans Limited Zibo Branch

Note: transportation charge refers to the charge for transportation of a 20-foot container of cargo from Zibo to the selected destination. Above prices are estimates and may fluctuate with changes in materials and fuel prices Source: Sinotrans Limited Zibo Branch


04 Business and Living

Environment

·Travel and housing

·Education and healthcare

·Shopping and recreation

Zibo offers diversified commercial and living choices for investors. Zhangdian district ranks at the top on living environment in Shandong Province.


Zibo is well connected to other major Chinese cities

Zibo is important railway transportation hub of Shandong Province, with well

developed railway transportation of passengers. Zibo residents can fly from Ji'nan

Yaoqiang International Airport or Qingdao Liuting International Airport to major

cities of both at home and abroad. The transportation service to both airports by

shuttle bus has been on service, which takes 80 minutes from Zibo downtown to

Ji'nan Yaoqiang International Airport and 3.5 hours to Qingdao Liuting International

Airport.

Several housing options are available in the city

Long-term residents in Zibo have several housing options, ranging from

renting apartments to serviced rooms in one of the many hotels.

Zibo has two 5-star hotels, four 4-star hotels and nineteen 3-star hotels.

The cost of renting a two-bedroom, 100-square metre (1,076 square feet)

apartment in the downtown area charges within the range of 900-1500 Yuan per

month (subject to decoration extent as well as geographical location).

The newly-built 5-star Sheraton Hotel will initiate its operation in September of

2016.

Zibo local transportation is cheap and convenient.

The public transportation system in Zibo is convenient. The bus travel

charges RMB 1 Yuan or 0.6 Yuan (with bus card) for each single trip.

The taxi charges RMB 8 Yuan for the first three kilometres and then RMB

1.5 Yuan for each kilometre thereafter during the day time; in the night,

the taxi charges RMB 9 Yuan for the first three kilometres and then RMB

1.8 Yuan for each kilometre thereafter. Vehicle rental is available in Zibo.

The vehicle plus driver cost around RMB 9,000-10,000 Yuan per month

(assuming a 300,000 Yuan sedan).

Travel and housing

Domestic travel by train (as of March, 2016)

DEST Price (Yuan）Number of Train

Shifts Per DayTravel time

Beijing 229 (High-speed) 14 2 hours and 50 minutes

Shanghai 433.5 (High-speed) 6 5 hours

Ji'nan32.5 (CRH)

34.5 (High-speed)

18

3448 minutes

Qingdao87.5 (CRH)

89.5 (High-speed)

10

291 hour and 55 minutes


Zibo has a strong educational resource

Zibo has 13 inst i tut ions of higher educat ion, of which 8 are

universit ies, and 2 are adult institutions of higher education. Key

universities include Shandong University of Technology and Shandong

Wanjie Medical University, and Zibo Vocational Institute has been listed

in the Top 100 Higher Vocational Colleges of China.

Education and healthcare

Zibo offers a range of healthcare facilities and services.

By the end of 2015, Zibo had 5,125 health institutions,

including 137 general urban hospitals, 189 community health

service centres, 89 health clinics in towns and townships,

9 maternity & child-care institutions, 5 special disease

prevention and treatment institutions, 9 disease prevention

and control institutions, and 10 health supervision agencies.

Together they have in total 30,000 beds and 34,000 health-

care staff, of whom 13,000 are certified doctors (including

assistants), and 13,000 are registered nurses.

Several hospitals in Zibo cater to expatriates, including

Central Hospital of Zibo, No.1 Hospital of Zibo, Zibo Traditional

Chinese Medicine Hospital and Zibo Maternity & Child-care

Hospital.


Many shopping and entertainment options are available in Zibo.

A number of multinational and national retailers, including Wal-Mart, Metro, Jusco, China Resources Vanguard, Rt-Mart,

Inzone, Da Shang, Li Qun, Maoye, and Intime, etc. have set up outlets in Zibo. Gyms, history and natural museums, parks

and other recreational facilities in and around Zibo provide plenty of entertainment options for residents and visitors alike.

As an ancient capital, Zibo is a tourist attraction.

As capital of the Qi State during the Chunqiu Period more than 2,500 years ago, the most powerful State of that time,

Zibo has many historical places of interest, such as the History of Museum of the Qi Kingdom, Linzi Ancient Chariots Museum,

the Funerary Horse Pit, former residence of Pu Songling, Memorial Temple of Master Jiang, etc. Zibo has 13 AAAA-graded

tourism areas, 21 AAA-graded tourism areas and 15 AA-graded areas, attracting 45,088,300 domestic and overseas visitors

in 2015.

During the 13th Five-year Plan, Zibo will strive to establish itself into a cultural-tourism destination city, with 2-3

backbone scenic spots each accepting over 500,000 tourists and creating comprehensive revenue of more than 50 million

Yuan annually and 10 backbone scenic spots each accepting over 300,000 tourists and creating comprehensive revenue of

more than 10 million Yuan annually. Zibo is endeavoring to upgrade its Zhoucun Historical Commercial Street and Yuanshan

Scenic Spot into national 5A tourism areas.

Shopping and recreation


05 Investment

in Zibo·Foreign direct investment

·Zibo National New & High-

tech Industrial Park and other

industrial parks

In recent years, Z ibo has seen the s k y r o c k e t i n g o f i t s F o r e i g n D i r e c t Investment (FDI). By the end of 2015, Zibo had attracted cumulative total Foreign Direct Investment (FDI) of US$ 16.9 billion.


2011 2012 2013 2014 2015

44,97150,025

52,666 54,41958,790

70,00060,00050,00040,00030,00020,00010,000

0

Foreign direct investment

The foreign direct investment is becoming increasingly important for the economic development of Zibo. Foreign investors are satisfied with the business environment of Zibo, and have great confidence in investment in Zibo.

In 2015, Zibo ratified 29 foreign-invested enterprises, with an increase of US$ 255.29 million contractual foreign

investment and US$ 587.9 million foreign direct investment, which saw an 8.03 percent increase compared with last year.

As of the end of 2015, Zibo had attracted 27 Fortune 500 companies and industrially leading enterprises investing

36 projects in Zibo, including Eastman, Air Products and Chemicals, Unifrax and KOHLER of America, Linde Group, Siemens,

BOSCH, B.Braun and Metro Group of Germany, Tesco of Britain, BUCHER of Switzerland, Asahi Glass, Mitsui and Citizen of

Japan, China Resources and Everbright Group of Hong Kong, etc.

Key industries utilizing foreign investment include: new materials, new energy, energy conservation & environment

protection, electronic information & software, robot & high-end equipment manufacturing, biology & medicine, old-age health

care, finance & insurance, cultural tourism, modern logistics and modern agriculture, etc.

As of the end of 2015, Zibo had cumulatively introduced US$ 7.9 billion of foreign investment, of which US$ 5.8 billion

“We ran into the problem of lack of construction land when we first came here for investment. After realizing the

situation, the municipal government extended great help by approving construction land for us, through which our

production was guaranteed. Besides, Zibo rendered substantial spiritual support and encouragement to such hi-tech

enterprises like us. The mayor has visited our company for a number of times, and organized & coordinated resources

from multiple sides for resolutions of the enterprises, which indeed strengthens our confidence in investment in Zibo.”

---- General Manager of Citizen (Zibo) Precision Machinery Co., Ltd.

belongs to manufacturing industry, accounting for 73

percent; there're 2060 foreign-invested enterprises in

manufacturing industry.

Foreign investment source

The largest source of foreign investment is Hong

Kong, accounting for 49.9 percent of cumulative total

foreign direct investment as of the end of 2015. The

U.S., Europe, Taiwan and Korea are also major sources,

together accounting for 24.8 percent.

Industry Qty. of FIEs Average investment (US$ 10,000)

Chemical materials and manufacturing 39 2,849

Textiles 27 1,821

Medical manufacturing 12 1,393

General equipment manufacturing 15 1,375

Special equipment manufacturing 21 905

Electronic equipment manufacturing 11 794

Non-metallic mineral production 77 746

Quantity and Average Investment of Existing Foreign-invested Industrial Enterprises in Zibo (As of March 2016)

CAGR: 6.93 percent

Amount of foreign direct investment (US$ 10,000)


Zibo National New & High-tech Industrial Park (ZNNHIP) and other industrial parks

Besides the national level new & high-tech industrial park, there are also ten provincial level economic industrial parks such as the provincial level Qilu Chemical Industrial Park, Wenchang Lake Tourist Resort, Zibo Economic Development Zone and Dongyue Fluoro-silicone Materials Industrial Park, etc.

Zibo National New & High-tech Industrial Park (ZNNHIP)

Zibo National New & High-tech Industrial Park (ZNNHIP) was approved for establishment by the State Council in

November 1992 and the construction was started in 1993. It is one of the 129 national level new & high-tech industrial parks

in China. ZNNHIP passed ISO14001 environmental system quality certification in 2005 and the current administration area is

approximately 121 square kilometres. ZNNHIP persistently promotes the construction of innovative platform and at present,

16 national level research centres, 22 academician workstations, 97 provincial level research centres, 155 municipal level

research centres and 28 industrial technology innovation unions have been established. ZNNHIP cooperates with colleges

and universities and establishes 7 research institutes such as “Tsinghua University National New & Hi-tech Industrial Park

MEMS Institute” and more than 140 enterprises in the industrial park realise 275 industry-university-research cooperation

projects with 116 colleges and universities; ZNNHIP is identified by the Ministry of Science and Technology as five national

industrial bases including the “National New Materials Industrial Base”, “China Torch Program Bioengineering and

Pharmaceutical Industrial Base”, “China Torch Program Advanced Ceramics Industrial Base”, “China Torch Plan

Functional Glass Specialty Industrial Base” and “China Torch Program Pump Industry Specialty Industrial Base”. As the

important impetus of economic growth of Zibo City and major concentrating area of new & high-tech industry, the economy of

ZNNHIP has kept the average annual growth rate of approximately 30 percent in recent years.

In 2015, ZNNHIP completed GDP in the amount of RMB 21.35 billion Yuan, increased by 8.6 percent; the added value

of the industries above the designated size increased by 10.6 percent; the main business income was RMB 58.42 billion

Yuan, increased by 6 percent; the profits and taxes were RMB 5.27 billion Yuan, increased by 5.3 percent; the fixed assets

investment was RMB 19.3 billion Yuan, increased by 14.7 percent; and the local financial revenue was RMB 3.29 billion Yuan,

increased by 13.76 percent, wherein, the tax revenue was RMB 2.545 billion Yuan, increased by 13.3 percent and accounted

for 77.4 percent. ZNNHIP puts forth efforts to create the “5+1” industrial cluster development pattern, i.e. prioritizing the

development of new materials, new energies and new environmental protection, pharmaceutical health, electronic information,

advanced equipment manufacturing industry and modern service industry. With the advantages of four national level industrial

bases, ZNNHIP is based on the prioritizing “5+1” industries and plans and constructs the “Five Parks and One Base”

(electronic information, new energies and new environmental protection, security technology, remote logistics, pharmaceutical

industrial parks and new materials pilot plant test base) to a high level. ZNNHIP takes efforts to cultivate “Three Top 30”

enterprises, focuses on “5+1” industrial cluster, integrates referential resources such as policies, financial and material

capabilities and production factors, concentrates to promote the development of 30 key industrial enterprises, 30 key service

enterprises and 30 high-growth science and technology enterprises and thus drives the promotion of the industrial overall

qualities and competitiveness.


Zibo Economic Development Zone

The predecessor of Zibo Economic Development Zone was Zibo Export-oriented Industry Manufacturing Area

established in 1992. In order to create the new accreting plate, in 2015, the Municipal Party Committee and Municipal

Government decided to expand the zone to Beijiao Town, Zhoucun District and the newly increased area was 56.23 square

kilometres, among which, the starting zone covered an area of 26.3 square kilometres. Currently, there are 204 enterprises

above the designated size and the industrial enterprises above the designated size realised the sales revenue in the amount

of RMB 47.84 billion Yuan. Four specialty industries including the high-end equipment manufacturing, energy-efficient

lighting, new material industry and modern service industry have been initially shaped and enterprises such as SHINVA

MEDICAL, Sanjin Glass Machinery and Komee Photoelectric have entered the zone. Based on the planning with a high

starting point, the zone will form the industrial space layout of “One Area and Three Parks”: Xiaofu River Coastwise CBD

Area, Health Industrial Park, High-end Equipment Industrial Park and Culture Creativity and Electronic Commerce Park. The

zone will be created into a new engine for the transformation and upgrading of the whole city, the sample plate of industry-city

integration and the demonstration area of innovation development and it will take five to ten years to establish into a national

level development zone.

The regional advantages are obvious. This zone is located at the main urban area of Zibo, respectively 70 kilometres

and 260 kilometres away from Ji’nan and Qingdao and adjacent to Zibo Station of Ji’nan-Qingdao High-speed Rail which

is about to construct. Both Binzhou-Laiwu Expressway and Qingdao-Yinchuan Expressway go across the administration

area with the entrance and exit and 309 National Highway and 205 National Highway collect in this area. The land and basic

conditions here are superior. The planned construction land area is 31,000 mu. This zone is flat and the developable lands

are concentrated together, so the project carrying capacity is strong. The natural environment and business environment

in this zone are excellent. With the green area of 19.34 square kilometres, the forest coverage rate reaches 34.4 percent.

Zibo Economic Development Investment Co., Ltd. is established with the registered capital of RMB 200 Million Yuan and the

company has reached agreements with 9 banks and obtained the line of credit in the amount of RMB 15 billion Yuan. The

company obtained the loan issued by the provincial Agricultural Bank of China in the amount of RMB 3.5 billion Yuan. With

the project outsourcing and commission system and working manner of “One Policy for One Enterprise and One Meeting

for One Matter”, the zone provides customized services for enterprises. The Economic Development Zone is created into

an economic transformation and upgrading demonstration area of the whole city with concentrated innovative resources,

distinctive industrial features, advantageous investment environment and superior development vitality and charms.


Wenchang Lake Tourist Resort

Zibo New Urban DistrictZibo New Urban District, in the west of

Zhangdian District and central urban area of

Zibo City, is starting from Shiji Road in the east

and ending at Binzhou-Laiwu Expressway in

the west, starting from 309 National Highway

in the south and ending at Ji’nan-Qingdao

Expressway in the north. With a total area of 52

square kilometres, this district is the new political,

cultural, sport, educational and financial centre

of Zibo City and it is the dominant functional

area accelerating the development of Zibo City

and driving the industrial transformation and

upgrading. In recent years and next few years,

the New Urban District will carry out constructions

and investment promotion centreed five industries

including the financial service industry, high-end

service industry, information industry, cultural

industry and tourist industry pursuant to the new

orientation of industry-city integration.

Wenchang Lake Provincial Level Tourist

Resort is located at southwest of the central

urban area of Zibo City and surrounding area of

Zhangdian District, Zichuan District and Zhoucun

District. The functional orientation of Wenchang

Lake Area is to promote the construction of

tourist products and supporting service system

pursuant to the establishment standards of

tourist resort and establish a famous tourist

resort integrating culture tourism, leisure

holidays, physical fitness and health care and

endowment. This resort promotes emerging

industries such as the culture creativity, electronic

information and commercial exhibi t ion to

concentrate to Wenchang Lake and establishes

an entrepreneurship technology “smart city”

integrating multiple functions including the

enterprise incubation, electronic commerce,

design originality, leisure and entertainment.


Zhangdian Economic Development ZoneZhangdian Economic Development Zone was approved as provincial

economic development zone by National Development and Reform Commission

and Shandong Provincial Government in March 2006 and it has planning area of

10.56 square kilometres. In 2015, the development zone realised RMB 55.977

billion Yuan of total industrial output value above designated size, RMB 47.544

billion Yuan of main business income and RMB 6.807 billion Yuan of profits and

taxes. Leading industry of Zhangdian Economic Development Zone is oriented to

machinery manufacturing and new material industries and the development zone

strives to build a modern manufacturing industry gathering area while vigorously

developing new energy industry.

Zichuan Economic Development Zone

Zichuan Economic Development Zone is a provincial economic development

zone established in 1992 under the approval of the provincial government with an

area under administration of 53.61 square kilometres. In 2015, the development

zone realised RMB 158.99 billion Yuan of total industrial output value, RMB 153.46

billion Yuan of sales revenue and RMB 17.99 billion Yuan of profits and taxes. At

present, the zone has more than 800 enterprises, 2 colleges and universities, has

introduced 5 Fortune 500 enterprises and has 6 post-doctoral scientific research

stations, 28 provincial research and development centres, 2 national research

and development centres, 2 publicly listed companies and 10 OTC enterprises,

gradually forming four industrial clusters, including high-end equipment

manufacturing, new energy, new materials and new medicine.


Boshan Economic Development Zone

Founded in 1992, Boshan Economic Development Zone has an area under administration of 68.29 square kilometres.

In recent years, the development zone has focused on accelerating the development of three leading industries including

electromechanical industry, pump industry and new materials. It has also planned three concentrated industrial planning

areas, including electromechanical industrial park, pump industrial park and new materials industrial park, preliminarily forming

electromechanical, pump and new materials industrial clusters. The zone has more than 2600 enterprises, including 342

industrial enterprises above designated size, and enjoys such industrial advantages like electromechanical, pump, new

Gardner Denver Nash Machinery Ltd.

Shandong Douhe Plant PhotosP r o c e s s i n g C e n t r e o f S h a n d o n g Huacheng Group

Zibo Asahi Glass Alumina Materials Co., Ltd.

materials, chemical fiber, textile, and

etc.

Boshan Economic Development

Zone has 7 publicly listed companies

a n d 1 2 O T C e n t e r p r i s e s , 6

academician workstations, 78 new

high-tech enterprises, 23 research

and development organizations above

provincial level and 13 Chinese Well-

known Trademarks and Chinese

Brand-name Products. In 2015, the

development zone realised RMB 48.7

billion Yuan of total industrial output

value, RMB 43.2 billion Yuan of sales

revenue and RMB 5.6 billion Yuan of

profits and taxes.

Zhoucun Economic Development Zone

Zhoucun Economic Development Zone is a provincial economic development

zone established in 1992 under the approval of Government of Shandong Province

with the total planning area of 35.76 square kilometres. At present, the zone

has 619 enterprises, 2 post-doctoral scientific research stations, 3 academician

workstations, 2 national enterprise technical centres, 10 provincial engineering

and technological research centres and 3 provincial enterprise technical centres.

In 2015, the development zone realised RMB 54.834 billion Yuan of total industrial

output value, RMB 53.603 billion Yuan of sales revenue and RMB 5.341 billion

Yuan of profits and taxes.

Zhoucun Economic Development Zone takes the development of advanced

processing and manufacturing as the focus so as to form three characteristic

industries, including high-end equipment manufacturing, textile and garment

and new environmentally friendly materials. BUCHER Group (Switzerland),

CITIZEN Group (Japan), IBG Group (Germany), Tianhong (Hong Kong) and

other international transnational companies have successively established solely

Hairun Silk

CITIZEN (Zibo) Precision Machinery Co., Ltd.

Zhoucun Passenger Transportation CentreAdministrative Service Center Square

foreign-owned enterprises in the

zone; Wal-Mart of America, BASF of

Germany and other world Fortune 500

enterprises have established friendly

trade cooperation relationships with

enterprises in the zone respectively.


Linzi Economic Development Zone

Linzi Economic Development Zone is the provincial Economic Development

Zone set up by the approval of Shandong Provincial Government in 1992 with

20 square kilometres of the planning area. The Economic Development Zone

achieved the RMB 58.351 billion Yuan of gross industrial output value, RMB

56.543 billion Yuan of sales revenues and RMB 919 Million Yuan of profits and

taxes in 2015. Linzi Economic Development Zone is planned to have five major

functional areas: the north comprehensive zone, the central basic industry zone,

the central machinery processing zone, south logistics storage zone and south

comprehensive service zone and it has formed the comprehensive industrial

system led by the steel industry and integrated with mining, metallurgy, equipment

manufacturing, warehouse logistics, high and new technologies and fine chemical

engineering.

Huantai Economic Development Zone

Founded in July 1992, Huantai Economic Development Zone covers an area of 137 square kilometres. In 2015, the

industrial enterprises above designated size in this Economic Development Zone realised RMB 120 billion Yuan of sales

revenue, RMB 17 billion Yuan of fixed-asset investment, RMB 2.5 billion Yuan of the income tax and US$960 Million of total

foreign trade value. Three major characteristic industrial clusters---fine chemical engineering, high-end manufacturing and

modern logistics have begun to take shape. By the end of 2015, the Zone has 1 listed company, 5 OTC companies and 58

enterprises introduced from the outside of the county and the country. A batch of famous enterprises has settled down here,

such as U.S. Kohler Company and German Refratechnik Company, promoting the steady growth of economic and social

benefits.

Zibo Kohler Co., Ltd.


Gaoqing Economic Development Zone

Founded in December 2002, Gaoqing Economic Development Zone has the total planning area of 53 square kilometres

and currently, it has completed the building of 16.47 square kilometres. The Economic Development Zone realised RMB

23.573 billion Yuan of the total above-scale industrial value and RMB 1.21 billion Yuan of tax revenues in 2015. It focuses on

fostering and developing four major industries, namely health and bio-pharmaceuticals, new energy and advanced equipment

manufacturing, high-end textile and garment and fluorine-silicone new materials. At present, 106 enterprises have invested

and developed the business in this Economic Development Zone, 60 of which are the industrial enterprises above designated

size.

Yiyuan Economic Development Zone

Yiyuan Economic Development Zone is the provincial Economic Development Zone set up by the approval of Shandong

Provincial Government in 2006 and focuses on establishing two industrial bases—pharmaceutical & healthcare products and

new materials, of which the pharmaceutical & healthcare industrial base is established to become the bioengineering and

pharmaceutical industrial base of Shandong Peninsula Blue Economy and Ocean Linkage Demonstration Area. The new-

material industrial base has formed the industrial sectors led by the energy-saving and thermal insulation materials and high

polymer materials to create the regional industrial heights of energy-saving and thermal insulation materials and high polymer

materials. By the end of 2015, this Zone has 266 enterprises, 6 post-doctoral research stations, 5 academician workstations,

32 high and new technology enterprises and 4 listed companies. The enterprises in this Zone realised RMB 37.2 billion Yuan

of the total industrial output value, RMB 34.1 billion Yuan of sales revenues and RMB 6.9 billion Yuan of profits and taxes in

2015.

REYOUNG Pharmaceutical Production WorkshopLuyang Company


Qilu Chemical Industrial Park

As an important cooperation project of Shandong

Provincial Government and Sinopec, Qi lu Chemical

Industrial Park is the third professional chemical industrial

park establ ished by the approval of the State after

Shanghai Chemical Industrial Zone and Nanjing Chemical

Industrial Zone. It covers the planning area of 60.71 square

kilometres, 22 square kilometres of which is occupied by Qilu

Petrochemical Company, and the new planning developed

area covers 38.71 square kilometres, mainly divided into

Qilu Petrochemical Plant, public service area, fine chemical

engineering zone, plastics processing and export processing

zone, logistics storage zone, Nanwang fine chemical

engineering zone, reserved development zone and Jinshan

Industrial Park. Since the establishment in September 2002,

Qilu Chemical Industrial Park has attracted investment by

many large enterprises from both at home and abroad

including Eastman and INTCO of America, BOC of Britain,

Perstorp of Sweden and Qixiang Tengda. This Park has had

224 enterprises above designated size and realised RMB

157.3 billion Yuan of the total industrial output value and RMB

22.9 billion Yuan of income taxes in 2015.

Shandong Huantai Dongyue Fluoro-silicone Material Industrial Park

Shandong Huantai Dongyue Fluoro-silicone Material Industrial Park is the professional chemical park set up by the

approval of NDRC and the provincial government in August 2006 with 5.65 square kilometres of the planning area and 23

enterprises above designated size. As the biggest fluoro-silicone material production base in Asia, Dongyue Industrial Park

has the proprietary intellectual property rights in the field of new environmental protection, new materials and new energy. The

leading products are the green environmental protection refrigerant and the production scale, technology and market sales

of PTFE high-polymer materials rank first in the world so its exported products account for more than 40 percent of the total

national exports in the same industry as the primary supplier of the well-known enterprises at home and abroad including

Dupont, Daikin, Mitsubishi, Haier, Hisense, Gree, Midea, Changhong and Chunlan. Currently, the Park has established

the high and new technology industrial chain and industrial clusters from mining of the fluorine ore to anhydrous hydrogen

fluoride—the basic materials of the fluorine chemistry, from methane chloride to the green refrigerants, from fluoro-alkyl

silanes to organosilicone, then to fluorine-containing high-polymer materials and its deep processing and even to the cutting-

edge technology—hexafluoropropylene, VDF, TFE and perfluoro ion-exchange resin and ionic membrane.


06 Service

Institutions

Zibo government offers a range of business

approval services to increase investors’

efficiency. Zibo Administrative Service

Centre was founded in 2003 with the aim of

providing “one-stop” services to foreign

investors.


Bureau of Commerce of Zibo City

Investment Promotion Office

Tel：+86 (533) 3190775

Fax: +86 (533) 3190856

Website：www.zbboftec.gov.cn

E-mail：[email protected]

Service institutions

Bureau of Commerce of Zibo City

Foreign Investment Administration Office

Tel：+86 (533) 3190778

Fax: +86 (533) 3190779


Bureau of Commerce of Zhangdian

District

Tel：+86（533）2867586

Fax: +86（533）2867586


Bureau of Commerce of Zichuan

District

Tel：+86（533）5282262

Fax: +86（533）5266030


Bureau of Commerce of Boshan

District

Tel：+86（533）4180173

Fax: +86（533）4188882


Bureau of Commerce of Zhoucun

District

Tel：+86（533）6195131

Fax:+86（533）6195131


Bureau of Commerce of Linzi

District

Tel：+86（533）7210266

Fax: +86（533）7222111


Bureau of Commerce of Huantai

County

Tel：+86（533）8180684

Fax: +86（533）8168510


Bureau of Commerce of Gaoqing

County

Tel：+86（533）6967198

Fax: +86（533）6967198


Bureau of Commerce of Yiyuan

County

Tel：+86（533）3241930

Fax: +86（533）3241930


Zibo National New & High-tech

Industrial Park

Investment Promotion Bureau

Tel：+86（533）3583617

Fax: +86（533）3588778

Website: http://www.snd.gov.cn/zsj/


Zibo Economic Development Zone

Industrial Development Promotion

Bureau II

Tel：+86（533）2827699

Fax: +86（533）2828780


Wenchang Lake Tourist Resort

Economic Development Bureau

Tel：+86（533）6030035

Fax: +86（533）6030035



07Name Lists

of Main Companies

At the end of 2015, Zibo had a total of 2,910 large-scale enterprises, with a 6.8 percent increase of annual industrial

added value compared with the previous year. The annual prime operating revenue of large-scale industries was 1146.25 bi l l ion Yuan, a 1.7 percent increase compared with the previous year; the profit taxes were 127.81 billion Yuan (an 8.5 percent increase) and the profit was 72.83 billion Yuan (a 6.6 percent increase). Zibo has formed several main industries like chemistry and medicine, electronic information, new material, new energy,

a u t o m o b i l e , m a c h i n e r y , metallurgy, light industry and textile, etc.


Name Lists of main companies of Zibo

No. Logo Company Name Industry Type

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Shandong Qilu Petrochemical Co. of SINOPEC

Qilu Eastman Specialty Chemicals Co., Ltd.

Shandong Qilong Chemical Industry Co., Ltd.

Shandong Luhuahongjin Chemical Industry Co., Ltd.

Shandong Doguide Group Co., Ltd.

Shandong Hongxin Chemical Co., Ltd.

Shandong Qilu Huaxin Industry Co., Ltd.

Shandong Heda Co., Ltd.

Zibo Continent Carbon Co., Ltd.

Zibo Xinglu Chemical Co., Ltd.

Zibo Qixiangtengda Chemical Co., Ltd.

Zibo Qilu BOC Air Co., Ltd.

Shandong Qiwangda Group Co., Ltd.

Zibo Nuoao Chemical Co., Ltd.

Shandong Qingyuan Group Co., Ltd.

Shandong Jincheng Petrochemical Group Co., Ltd.

Shandong Dongyue Group

Shandong Wonfull Petrochemical Co., Ltd.

Zibo Dexin Lianbang Chemical Industry Co., Ltd.

Shandong Bofeng Lizhong Chemical Co., Ltd.

Shandong Haili Chemical Industry Co., Ltd.

Shandong Licun Biotechnology Co., Ltd.

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry


23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

Gaoqing Hongyuan Petrochemical Co., Ltd.

Shandong Liaherd Chemical Industry Co., Ltd.

Shandong Ruifeng Chemical Co., Ltd.

Shandong Bluestar Dongda Chemical Co., Ltd.

Shandong Qilu Petrochemical Kaitai Industry Co., Ltd.

Shandong Blue Sail Plastic & Rubber Co., Ltd.

Zibo Hongye Shangqin Plastic & Rubber Co., Ltd.

Air Products (Zibo) Pharmaceutical Co., Ltd.

Shandong Qidu Pharmaceutical Co., Ltd.

Reyoung Pharmaceutical Co., Ltd.

Shandong Xinhua Pharmaceutical Co., Ltd.

Royal DSM (Zibo) Pharmaceutical Co., Ltd.

Shandong Jincheng Pharmaceutical Chemicals Co., Ltd.

Shandong Pharmaceutical Glass Co., Ltd.

Shandong Qiaopai Group Co., Ltd.

Shinva Medical Instrument Co., Ltd.

Shandong Zibo Shanchuan Medical Instrument Co., Ltd.

Shandong Tangjun Ouling Automobile Manufacture Co., Ltd.

Bosch Climate Technology (Shandong) Co., Ltd.

Shandong Shengli Steel Pipe Co., Ltd.

Zibo Diesel Engine Head Office

Citizen (Zibo) Precision Machinery Co., Ltd.

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Chemical Industry

Pharmaceutical Industry




Chemical & Pharmaceutical

Industry

Medical Package Material

Industry

Medical Equipment Industry




Machinery Manufacturing

Industry


Industry


Industry


Industry



45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

Zibo Hongyang Petroleum Equipment Co., Ltd.

Shandong Leopard Spring Co., Ltd.

Shandong Xianhe Yuexin Mechanical & Electrical Co.,

Ltd.

Gardner Denver Nash Machinery Co., Ltd.

Zibo Huacheng Pump Co., Ltd.

Zibo Hongma Engineering Machinery Co., Ltd.

Shandong Sanjin Glass Machinery Co., Ltd.

Zhangdian Iron & Steel Works

Shandong Zibo Vermicular Cast Iron Co., Ltd.

Shandong Borun Industrial Technology Co., Ltd.

Ebara Boshan Pumps Co., Ltd.

Shandong Yanshan Pumps Co., Ltd.

Shandong Boshan Pump Science & Technology Co., Ltd.

Boshan Vacuum Equipment Industry Co., Ltd.

Shandong Shanbo Electric Machine Group Co., Ltd.

Luthai Textile Co., Ltd.

Zibo Silverman Textile Co., Ltd.

Zibo Lanyan Group Co., Ltd.

Shandong Woyuan New Fabric Co., Ltd.

Zibo Kohler Co., Ltd.

Zibo Sunnsy Group Co., Ltd.

Shandong Dongtai Energy Group Co., Ltd.


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry


Industry

Textile Industry

Textile Industry

Textile Industry

Textile Industry

Building Material Industry





67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

Shandong Zhongshan Group Co., Ltd.

Shandong Longquan Pipeline Engineering Co., Ltd.

Zibo Asahi Glass Alumina Materials Co., Ltd.

Shandong Refractory Material Co., Ltd.

Shandong Luyang Co., Ltd.

Zibo Refra Technic Co., Ltd.

Wanjie Group

Shandong Wanxin Investment Co., Ltd.

Shandong Fengyang Group Co., Ltd.

Shandong Newstar Group

Shandong Amotech Electronic Co., Ltd.

China National Materials Group Corporation Ltd.

Zibo Jinjing Energy Saving Glass Co., Ltd.

Shandong Qifeng Special Paper Co., Ltd.

Shandong Guihe Xianxing Paper Co., Ltd.

Shandong Bohui Group Co., Ltd.

Zibo Dahuanjiu Polygrace Leather Co., Ltd.

Shandong Deyuan Leather Co., Ltd.

Shandong Bandaojing Co., Ltd.

Shandong Huashi Beer Co., Ltd.

Cargill Biological Engineering Co., Ltd.

CHALCO Shandong Branch



R e f r a c t o r y M a t e r i a l

Industry


Industry


Industry


Industry

Comprehensive Industry




Electronic Industry

Glass Industry

Glass Industry

Paper Making Industry



Leather Industry

Leather Industry

Food Industry

Food Industry

Food Additives Industry

Metallurgy Industry



89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

Shandong Zibo Fushan Group Co., Ltd.

Zibo Denuo Aluminum Science Co., Ltd.

Nanjinzhao Group

Zibo Jiahua New Material Resource Co., Ltd.

Zibo Commercial Building

Shandong Dongtai Group Co., Ltd.

Zibo Siemens Switch Socket Co., Ltd.

Zibo Taiguang Electric Equipment Factory

Shandong Dahong Glaze Co., Ltd.

Zibo Intrue Light Industrial Products Co., Ltd.

Shandong Excel Light Industrial Products Co., Ltd.

Sinoma New-hi Material Co., Ltd.

Zibo Sanlin New Material Co., Ltd.

Shandong Heritage Highway Materials Technologies,

LLC.

Shandong Huaan New Material Co., Ltd.

Zibo Guoli New Power Source Technology Co., Ltd.

Zibo Huarun Gas Co., Ltd.

Metallurgy Industry

Metallurgy Industry

Metallurgy Industry

Commerce & Retail Industry

Commerce & Retail Industry

Electr ica l Machines and

Equipment

Electrical Machine Industry

Light Industry

Light Industry

Light Industry

New Material Industry





New Resource Industry

Natural Gas Industry



Qi Xiaofu

Mao Zhongqiang

Wang Junjie

Zhang Xiuwei, Wang Ying, Ding Shaohua

Zibo Qiushi Translation & Interpretation Service Co., Ltd.

April 2016

Director

Deputy Director

Editor-in-chief

Deputy Chief Editors

Translation Agency

Publication Date

Editorial Committee of Zibo Investment Guide

Investment promotion staff of Zibo

Wang Junjie

Tel：+86（533）3190775


Working language: English & Mandarin

Zhang Xiuwei

Tel：+86（533）3190775



Zhou Hui

Tel：+86（533）3191381



(Consultation about foreign investment policies)

Zhu Yujian

Tel：+86（533）3167219



Wang Ying

Tel：+86（533）3190776


Working language: Japanese & Mandarin

Li Zhongqiu

Tel：+86（533）3190861


Working language: Korean & Mandarin

Ding Shaohua

Tel：+86（533）3190776


Working language: German & Mandarin

Wang Ke

Tel：+86（533）3190829


Working language: Russian, Ukrainian & Mandarin

Charlie Liu

Investment Promotion Representative of Zibo

Municipal Government in North America

Tel: +1 (416) 887-3298

E-mail: [email protected]

Working language: English, Mandarin & Cantonese

content · 2016-09-13 · content preface zibo today development of zibo operating costs business...

Documents