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Multinational firms take a shine to Zhejiang province

Pinghu zone grabs spotlight due to favorable policies, fast-growing sales

China Daily | Updated: 2024-03-15 10:49
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Workers operate on an air conditioner assembly line of Gree in Hangzhou, Zhejiang province, on March 1. [ZHANG XIANGRONG/FOR CHINA DAILY]

In 1994, Japan's JFE Group ventured into China to invest and establish Zhejiang JFE Shoji Steel Products Co Ltd. Over the past three decades, the Chinese branch has undergone nine rounds of investment expansion, with the group's total investment increasing 20 fold, the company said.

Maeda Tatsushi, managing director of Zhejiang JFE Shoji Steel Products Co Ltd., said that in order to adapt to the development trend of China's new energy vehicle market, the company invested $34 million in 2022 to implement a specialized project aimed at achieving an annual output of 20,400 metric tons of engine core stamping parts.

"The project is expected to be put into production in June, mainly producing NEV motor and electric power steering parts. It is expected to reach an annual output value of 700 million yuan," said Maeda.

The company's entire chain of raw material procurement and product sales is now concentrated in China. He said that the continuous development of enterprises is more closely integrated with Chinese industries.

"In 2023, our raw materials mainly came from Baosteel and Shougang Group. Regarding our products, 98 percent of the total 80,000 tons shipped were sold in China," he added.

According to data from the Pinghu municipal government, in 2023 alone, the city signed 27 foreign investment projects, with a total investment of $2.54 billion. Its actual use of foreign investment during the period topped $480 million.

Xinhua

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