Caohejing Hi-Tech Park gets US$500m investment

Twelve firms yesterday signed contracts with Caohejing Hi-Tech Park to launch projects valued at a combined capital of $500 million.

They will base their China R&D centers, regional headquarters and innovation enterprises in the park to develop industries in new energy, new materials, auto parts and network technology, said Ji Xinming, vice-president of Shanghai Caohejing Hi-Tech Park Development Corporation.

"These projects will help speed up our move to develop the modern service industry," Ji said.

CapitaLand, a Singapore-based real estate company, will invest $90 million in the park to establish its Shanghai headquarters, while Ashland, a US chemical company, will move its regional headquarters and technology center to the park in November.

"We have chosen Caohejing as a base for the development of our future business in China," Ashland China President Dale MacDonald said.

The two projects with a registered capital of $50 million are part of Ashland's $80 million second-round development in China. "The rest of the funds will be used to build factories in North China," said MacDonald.

As of June 2008, the hi-tech park, which came onstream in 1988, had attracted foreign investments to the tune of $5 billion from more than 500 overseas-funded companies. More than 40 multinationals have built 70 hi-tech enterprises in the park.

"A number of multinationals have been seeking new developments in the park in the past several years in the hope of setting up R&D and technology centers and regional headquarters," said Liu Jiaping, president of Caohejing Corporation.

Foreign investment has helped the park form five backbone industries that generated a combined sales of $20.7 billion last year, said Liu.

"The park owes its progress to its favorable environment, high-quality talent and the chain effect brought about by multinationals that have invested in the park," he said.

His words were echoed by Ji, who said: "Usually one company follows another to invest in the same place."