Equipment Manufacturing Base

　　The central government and Shanghai Municipal government is aimed to promote the image of Shanghai as a modern and world class city by utilizing the chance to hold Expo 2010. As part of its moves to achieve the objectives, a city named Lingang New City will be established aiming to build a world class modern equipment manufacturing base. The base will focus on civil aviation, passenger vehicle manufacturing, manufacturing of key pieces of ship, power generation and transmission equipment, marine engineering equipment etc. All these projects are listed as the key equipment manufacturing sectors to be supported by the central and Shanghai government.  

　　Lingang, strategically located near Shanghai Pudong International Airport and Yangshan deepwater port, is the only base in China that featuring manufacturing and life.

　　Developers are gunning for a total of 120 billion yuan (US$14.95 billion) in investments by 2010. Yang said. "Lingang New City is not a general development zone, and it's different from the two other new cities of Songjiang and Jiading. It is a modern city that will be supported by strong industries, and will be a key link in the operations of Shanghai's two main commerce checkpoints."

　　Lingang is built on an island at the entrance of Hangzhou Bay, connected to the main city center by Donghai Bridge. About 27.5 kilometers from the city's Luchaogang area in Nanhui District, Lingang is poised to play an important part in the Northeast Asia shipping industry, particularly when the Yangshan port becomes fully operational later this year.

　　The city will be divided into five functional parts: the main city area, heavy equipment industry area, logistics area, main industry area and mixed-use area. Preferential policies will apply, and there are plans to include free trade zones and export processing zones. The city will also serve as a platform for six industrial manufacturing bases: automobiles, heavy equipment, logistics equipment, aviation equipment, and photoelectric equipment.

　　On one hand, the equipment manufacturing industry is clustering here. “To revitalize the equipment manufacturing industry” has become a national strategy. Based on the existing industrial advantages and its potential of growing, Lingang will give full play to its integrated transport advantages, full range of logistics functions and preferential policies to develop equipment manufacturing industry. At present, the pattern of five equipment manufacturing base has been basically formed.

　　According to the central and municipal government’s request, Lingang will be committed to three activities: manufacturing, innovation and industry concentration. By then, Lingang will be the nation’s leading industrial park for innovation-based equipment manufacturing industry by introducing foreign investment and promotion of services project related to equipment manufacturing.

　　In the process of achieving above objectives Lingang Group will bring in a number of advanced manufacturing enterprises, including China State Shipbuilding Corporation, China Shipbuilding Industry Corporation, Commercial Aircraft Corporation of China, Ltd, China National Aviation Holding Company, Shanghai Automotive Industry Corporation (Group), Shanghai Electric, China International Marine Containers (Group) Ltd., Huayi Electric Apparatus Group, Kaishan Group, Caterpillar Group, Volvo, Mitsui Engineering & Shipbuilding Co., Ltd., Thyssenkrupp, Siemens, Konecranes, Kalmar, Wärtsilä Corporation, DongHwa Entec etc.

　　Passenger vehicle manufacturing

　　SAIC independent innovation brand vehicle and engine production base has been built to produce KV4 and KV6 engine with intellectual property rights. The base has the capacity of producing 300,000 engine and 225,000 motor vehicles; in 2010, 5 platforms can be built with the scale of 30 models.

　　Key pieces of ship manufacturing

　　CSSC-Mitsui project, CSIC-Wartsila project, VOVLO PENDA project is covering full range of marine engines of low, medium and high speed. All types of supporting enterprises started to settle up here. CSSC-Mitsui project in particular, has reached an annual production capacity of 1,700,000 horsepower diesel engine. With the start of its second phase, the capacities will reach 4, 000,000 horsepower. The base has become the major manufacturing base for the diesel engine used for ships. The output of crankshaft with cylinder diameter of 900 mm has reached 160, making China one of the few countries who have mastered the technology, following Japan and Korea.  

　　Civil aviation industry

　　An agreement was signed between China Aviation Industry Corporation and Shanghai Municipal government. According to the document, a civil aviation industrial base will be established to attract relevant project investment, including engine, avionics, Electrical and mechanical, environmental control, new materials, logistics etc. An engine manufacturing company, leading by China Aviation Industry Corporation and Shanghai government, will be initiated with registered capital of 6 billion Yuan. 

　　Mechanical engineering and other related manufacturing

　　China International Marine Containers (Group) Ltd., Kalmar port machinery and Kone has been put into production and to be expanded. With the completion of project of Tanaka laser machine, Atlas Copco, Kaisan, Thyssenkrupp, HIAB, SCHIESS BRIGHTON etc., more and more project will settle up here.

　　Lingang New City will be a strong impetus to the economy of Shanghai, even to China as a whole, which will be a positive signal to all related business during a time of current turmoil among global economy. In contrast with such a negative situation globally, China will still keep GDP growing at 8 percent in 2009.

　　Shanghai International Machine Tool Fair (EASTPO 2009), approved by Shanghai Foreign Economic Relation & Trade Commission, will be held for 11th edition incorporating first time with AMB China at Shanghai New International Expo Center (SNIEC), from 15-18 July, 2009. EASTPO 2009 is expecting 100,000 visitors and 100,000 sqm floor plan.