State-owned industrial and construction machinery firm China National Machinery Industry Corporation (Sinomach) has inked a new agreement to construct a new "world-class" industrial estate in Huizhou, in China's Guangdong Province. The signed the agreement with the municipal government of Huizhou is part of the country's larger ambitions to further develop its Greater Bay Area.
The country's largest industrial machinery company aims for the massive industrial zone to be the home of modern equipment manufacturing firms. The state-owned firm did not immediately disclose the project's investors or the private companies that will be putting up facilities at the industrial park. The 10-year project is estimated to cost more than 200 billion yuan or roughly $28.6 billion.
The site of the new industrial estate has an area of about 708 square kilometers, situated just southeast of Huizhou and close to the coast. The first phase of the project will involve the construction of Sinomach's new headquarters for its southern operations.
Sinomach, which is the country's leader in the manufacturing of tools, equipment, and infrastructure construction, has more than 140,000 employees and 27 subsidiaries. The company, which had reported a profit of 10.2 billion yuan in 2018, serves major companies in industries such as power and automotive manufacturing.
Other state-owned companies will also be building different facilities within the first phase, including "national level" research facilities, laboratories, petrochemical manufacturing plants, and smart manufacturing centers.
Sinomach stated that the second and third phases of the project will mostly be housing facilities for companies in the advanced material, new energy, and smart technologies sectors.
Sinomach's deputy general manager, Bai Shaotong, mentioned in a statement that the company will strive to complete the project ahead of schedule while perfectly implementing the agreed-upon blueprint and construction plan. He added that an investment company will be established to help accelerate the execution of the project.
China is placing added focus on the development of Huizhou and eight other mainland Chinese cities, which together with Macau and Hong Kong, form the country's Greater Bay Area. The city is still lagging behind its sister cities, with a gross domestic product that is only a sixth of Hong Kong.
Officials are hoping that the new project will elevate that figure in the coming years given the vast talent and resources available in the city. Apart from increasing its output, the project is aimed at further cementing the city's position as one of the country's manufacturing hub.
