The Hebei Jingliang Electric Power Equipment Co., Ltd. which was settled down in Botou industrial region three years ago has realized the annual production value of RMB100m and RMB160m in 2006 and 2007 respectively. Its successful operation became a range pole of attracting “Beiguang”.

Currently, Beijing Beiguang Investment Consultation Co., Ltd. has made the final choice through speculation of half a year in terms of settling down the factory in Gu’an, Langfan or Botou, Cangzhou.

Beiguang has not only successfully accomplished a capital operation, obtained a another cooperation partner who was Beijing Sanyuan Taihe Investment Management Co., Ltd., but also has realized its another expansion of expanding from food, beverage industries to be foundry industry, with the Hebei Beiguang Electric Power Equipment Project with 50,000 ton annual production capacity of electric power equipments and total investment valued at RMB300m put into production in Botou industrial region.

The selection course is also the result of constant measurement for Beiguang. Botou increasingly power industrial base and “all-round” services besides the trend of Beijing-Tianjian industry transferring are also the important factors of making Beiguang settled down in Botou.

Beiguang took aimed at foundry industry and considered making changes in different places.

It is said Beijing Beiguang Investment Consultation Co., Ltd. is a full-time capital operation enterprise and China’s many famous enterprises have share-holding or hold shares directly in Beiguang, The investment scale of the company is mainly referred to sugar, wine, food, beverage and some other industries.

Although the existing investment realms have brought stable incomes to company, the company’s administrators have kept the indispensable insight for industries of “having potential market” or “having not reached pure competition”, with Beiguang as the company mainly engaging in capital operation.

The whole company began to pay attention to foundry realm with some administrators of the company began to “focus on development of foundry industry” half a year ago. They thought although the number of China’s relevant enterprises is increasing increasingly, the number has not still satisfied the market demands. Take China’s a diesel engine enterprise as an example. This diesel engine enterprise has a mould repair workshop, the exploitation for new products and duplicated mould manufacturing is realized through assigning goods order. It is estimated that this enterprise needs two or three sets pf cylinder metal mould every year and the production value can reach over RMB1m. The market gap of more precise foundry will be much larger.

So Beiguang has considered investing foundry industry from then on. But, Beiguang selected Gu’an, Langfang as the factory address at the beginning. The geographical advantage of being adjacent to Beijing and more and more developed local economy becomes the motive of Beiguang to make such selection undoubtedly.

Nevertheless, Beiguang began to hesitate for its own selection soon. Beiguang has suffered harassment of two issues all the time. The two issues were: (1) If Beiguang selected to develop foundry industry, whether the local industrial base can supply powerful support for the enterprise; (2) Once the enterprises was established, whether the enterprise had the same layout with Beijing-Tianjian industry development layout. Beiguang thought it can make the final decision only when the two issues were solved.

All-round services, Botou won the commercial opportunities

Beiguang’s making selection once more also gave the opportunities to other places.

Botou obtained this opportunity in Nov. of last year. Botou has ever issued over 500 relevant information on over 30 investment attracting and industrial websites prior to it.

Botou industrial region management commission deputy direction named Zhang Junyi recalled and said: “the investor has a phone call and wants to understand industrial situation and investment policies in Botou. We felt that this investor may have an investment in Botou so we introduces the general situation of Botou at once and send the relevant data to it”.

Botou industrial advantages also attracted Beiguang which tried to seek for industrial support. In this way, the both Parties began to have subsequent multiple commercial contact with this good beginning as the base.

"In order to win Beiguang, we deploy all-round services. I have gong to Beijing for many times" said Zhang Junyi. He said "we have brought the latest information concerned by Beiguang in terms of relevant industry development situation in Botou every time". Zhang Junyi said they also introduced the industrial development layout in Botou in the future years to Beiguang. The industrial region development layout was thoroughly established by experts for Botou industrial region and Hebei University of Science & Technology signed cooperation protocol in early-2010. So the development layout will be more rational and scientific and Beiguang was also showed much interest. Moreover, they also actively supplied all kinds of commercial information to Beiguang to help it solve the possible problems appearing in the future such as where can Beiguang bought the cheapest raw materials such iron and carbon in Botou; government can help enterprises to solve the issue of deficient industrial workers after enterprises had investment in Botou. Leaders of Botou organized special persons to promise to help enterprises to deal with issues and promise to accomplish dealing with the issues in limited term in terms of project transaction and transaction cycle concerned by investors.

Zhang Junyi recalled and said that Beiguang was attracted by large-sized scale industrial support and Botou leaders’ sincerity. He said Beiguang disclosed it will choose Botou to have an investment soon.

At this moment, a Beijing enterprise which came to Botou to have an investment three years ago acted as an example for Beiguang to leave in Botou.

This enterprise was Beijing Sanyuan Taihe Investment Co., Ltd. Beiguang not only further confirmed the previous situation reflected by government, but also reached the consensus in many issues with Sanyuan by this opportunity, through the talk with Sanyuan. Finally, Sanyuan anf Beiguang decided to have a joint venture. Sanyuan also helped Beiguang to decide to invest the electric power equipment manufacturing finally.

There was another new leading enterprise, based on which, the foundry industry had improvement.

In this way, Beiguang finally decided to have investment in Botou.

As per appointment, the investment proportion of this investment for Beiguang and Sanyuan should be 80% and 20%. This electric power equipment project occupied the total construction area of 54,000 sq m and this project will be constructed into two phases. After the first-phase project was put into production, the annual production capacity of electric power equipment was estimated to be 12,000 tons and sales income valued at RMB150m can be realized; the annual production capacity of electric power facilities will reach 50,000 tons after the whole project is put into production. Nowadays, all of the relevant procedures have been transacted and the geological exploration preparation work before the construction is ongoing. It is hopeful that the first-phase engineering may be put into production in late-2010.

The constructed Hebei Beiguang Electric Power Equipment project will be in leading position in Botou undoubtedly regardless of project scale and technology content. Botou industrial region management commission deputy director Zhang Junyi introduced that this project will be another leading enterprise in foundry industry in Botou after this project was constructed and put into production. This project will certainly bring active effect on Botou foundry industry and drive relevant industries to upgrade with the smooth implementation of project for this project was invested by two investors and the complementarity of market and capital is strong and there is powerful technology advantage.

Zhang Lei, vice general manager of Beijing Sanyuan Taihe Investment Management Co., Ltd and Heibei Jingliang Electric Power Equipment Co., Ltd, said Jingliang and the Beiguang will adopt spheroidal graphite casting technology with high technology content, comparing with most of enterprises’ adopting grey iron casting technology in local regions.

The scale of “leading” enterprises means the length and strength of the whole industry chain. Zhang Lei said Jingliang realized the annual production value of RMB160m in the last year. There were over 100 local enterprises matching Jingliang. Nowadays, some matching enterprises have begun to engaged in technology alteration and equipment upgrade in order to realize the technology butt-joint with Jingliang or other enterprises. It was estimated that the drive function of the high-tech enterprises will be more obvious after Beiguang project was put into production.

Zhang Lei said moreover, Beiguang’s independent market system will further expand market coverage scale of the whole foundry industry in Botou to win larger survival space for relevant enterprises. These advantages were not available by small and mid-sized enterprises.