UNIDONews and Events
Monday, Nov 17th, 2008
The Shandong Province Study Tour
The Shandong Province represents a practical strategy UNIDO-ITPO-China implemented in order to select qualified candidates for the “2009 Industrial Clusters Development & Capital Operation Program”.
The UNIDO ITPO-China team tactically executed this kind of strategy mainly to acquire further information regarding the current situation of capital operation, clean production and industrial clusters in Shandong Province, with special reference to the cities of Jinan, Zibo, Weifang, Qingdao and Linyi. An additional target involves assisting local enterprises with financial needs to establish strong ties with private equity funds.
The trip started on November 11 th 2008 in Jinan and terminated on the 16 th in Linyi.
In all the visited cities, the UNIDO ITPO-China delegation met the Municipal Governments to better understand the current situation of the industrial development and the government’s targets for future economy growth, and finally, to go through further understanding of the territory’s opportunities .
As a result of these talks, UNIDO ITPO-China delegation introduced the Industrial Clusters Development and Capital Operation Program to all, discussing the challenges and the opportunities of the Chinese Government and enterprises brought by the financial crisis. Meanwhile, direct investment operation and deal sourcing criteria of China’s Development Bank were also introduced.
In Jinan, UNIDO’s support has been very relevant since, within the potential strategic industrial evaluation and new leading industrial resource mobilization, it is planning to improve the current industrial clusters’ structure, giving suggestions on its industrial clusters’ current problems (leading companies without clusters or clusters without leading companies).
Moreover, the Jinan Municipal Government proposed to make use of UNIDO ITPO-China’s facilitation to initiate Jinan Solar City Plan, which promotes photo-thermal and photo-electricity production and implementation in Jinan with the investment support of Linuo Group Co. Ltd.
In some occasions, the delegation had the chance to physically observe the companies’ premises and the projects accomplished as in Zibo, where delegates visited Zibo National New & Hi-tech Industrial Development Zone to look at the Zibo’s hi-tech incubator, its existing industries and its enterprises' development.
Mr. Luo Xiang, National Program Director of UNIDO ITPO-China
Industrial Clusters Development & Capital Operation Program visited Zibo
National New & Hi-tech Industrial Development Zone with PE professionals
Mr. Luo Xiang, National Program Director of UNIDO ITPO-China Industrial Clusters
Development & Capital Operation Program in a meeting with Mr. Wang Dingqi,
Standing Committee Member of Zibo Municipal Party Committee and Standing
Vice Mayor of Zibo Municipal Government in Zibo.
Moreover, as in Weifang (Weifang’s capital operation is on a leading position among the all Shandong Province Cities, with 22 stocks listed and a total of 25 billion RMB raised), delegates also visited the Hi-tech Industrial Park, where many existing high-growth companies are located, Binhai Economic Development Area and new industrial clusters including logistics, clean-tech, chemicals and electronic components have been settled.
Mr. Luo Xiang, National Program Director of UNIDO ITPO-China Industrial Clusters
Development & Capital Operation Program in a meeting withMr. Xu Liquan, Mayor of Weifang
Municipal People’s Government in Weifang
The tour ended in Linyi, where the Municipal Government submitted a list of about 50 companies, which are preparing for the Initial Public Offering (IPO) process. This list comprises those companies who are actively seeking for strategic investment and private equity financing opportunities and UNIDO can play a relevant consulting and advising role.
Moreover, the Linyi consumer products wholesale market constitutes a very hot spot in the area and its logistic industry has become critical for the city now and must be improved.
In the end, UNIDO-ITPO-China delegation visited Stanley, Jinyimen, Jinzhengda, chemical fertilizer corporations, as well as Shandong Changlin Machinery Group Co. LTD. Except for the potential strategic investment from private equity funds, the chemical fertilizer companies are strongly expect ing support from UNIDO-ITPO-China about oversea expansion and oversea value chain acquisition.
The chance to personally observe the companies and the territory, made UNIDO-ITPO easily discover many attractive opportunities that are expected to be followed by many private equity funds.
It is relevant to report that, in Qingdao, Direct Investment Arm of China's Development Bank -CXCapital, CDH Investments, Bohai Industrial Investment Fund, China Fortune Capital and VantagePoint Venture Funds had a panel discussion with the representatives from the Boards of Qingdao MESNAC Co. LTD, Sailun Co. LTD., Qingdao Huaren Pharmaceutical Co. Ltd. and Huanghai Pharmaceutical Co. Ltd.
Mr. Luo Xiang, National Program Director of UNIDO-ITPO-China Industrial Clusters Development
& Capital Operation Program in a meeting with Mr. Wang Shujian, Executive Vice Mayor of Qingdao
Municipal Government in Qingdao.
Through the initial discussion, the PE fund firms showed great interest in the economic realities of the area, underlining the urgency for strong R&D in modern companies which seems to be leading to strong growth in the future.
UNIDO ITPO-China, led and effective execution of its starting strategy and is strongly committed to support and forward all the valuable activities identified during the Shandong Province Study Tour.