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CSIC first SOE to go big on Xiongan plan

By ZHONG NAN and REN XIAOJIN | China Daily | Updated: 2017-04-08 09:32

CSIC first SOE to go big on Xiongan plan

China Shipbuilding Industry Corp has announced that it will make the most of the opportunities expected from the planned creation of the Xiongan New Area in Hebei province. [Photo/VCG]

Shipbuilder to expedite relocation of units to Baoding near the new area

China Shipbuilding Industry Corp, one of the country's two largest State-owned shipbuilders, has announced that it will make the most of the opportunities expected from the planned creation of the Xiongan New Area in Hebei province.

CSIC has been relocating some of its core businesses to Boading, which is close to the new area.

This relocation process will now be expedited and intensified in the wake of the new area announcement.

CSIC thus becomes the first central SOE to respond in a big way to emerging opportunities in the area.

Hu Wenming, chairman of CSIC, said the launch of the Xiongan New Area suggests it is going to be an essential part of the coordinated development of Beijing, Tianjin and Hebei province.

"CSIC will accelerate the progress of its strategic collaboration projects in big data, environmental solutions, information technology and elderly care with cities in both Hebei and the Xiongan New Area," said Hu.

Hu did not specify when or whether the company's headquarters would be relocated.

As a contractor for the country's navy, CSIC has already moved seven of its power businesses to its Baoding-based unit-CSIC Fengfan Co Ltd-one of the group's storage battery manufacturers.

Among the seven businesses there are engine research and development branches for vessels, wind power and offshore engineering power products.

The shipbuilder has already gained the right to use 67 hectares of land from the Hebei provincial government to build a power source research and development center and a maritime equipment industrial park in Baoding.

CSIC will also set up a marine aircraft plant with a private company that is licensed to manufacture military products in the park.

In addition to shipbuilding and offshore engineering businesses, CSIC wants to boost 10 other areas, including power and underwater defense products, electronic information and intelligent equipment, and mechanical and electrical equipment, to integrate its civilian and military businesses over the next five years.

With a workforce of about 150,000, CSIC operates more than 50 industrial subsidiaries and 30 research institutes, including Dalian Shipbuilding Industry Co, Bohai Shipbuilding Heavy Industry Co and the China Ship Research and Development Academy. It has exported various types of vessels to more than 70 countries and regions.

However, CSIC is not the only major corporate eyeing the new area.

Some 13 central SOEs, including China United Network Communications Group Co, China Railway Construction Corp Ltd and Sinopec Group, have already held top management meetings to discuss their plans for the Xiongan New Area.

Li Jin, chief researcher at the Beijing-based China Enterprise Research Institute, said central SOEs, particularly in infrastructure, manufacturing, mining, telecommunication and transportation, are expected to be the first batch to move their headquarters and subsidiaries to the Xiongan New Area, in order to exploit the expected commercial opportunities.

"If the majority of central SOEs move to the new area, it would save more space for Beijing, which can be further developed for service-related businesses and attract foreign companies," Li said.

More than 80 of the 102 central SOEs have their headquarters in Beijing. Even a large number of their subsidiaries are in the capital city, according to data from the State-owned Assets Supervision and Administration Commission.

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