China Putian Plans US$600m Industrial Park in Shanghai

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Last updated at: (Beijing Time) Monday, November 25, 2002

China Putian Plans US$600m Industrial Park in Shanghai

Despite weak demand, China Putian Corporation, the country's largest telecom equipment vendor, plans to build a 5 billion yuan (US$602.4 million) industrial park in Shanghai in the next five years.

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Despite weak demand, China Putian Corporation, the country's largest telecom equipment vendor, plans to build a 5 billion yuan (US$602.4 million) industrial park in Shanghai in the next five years.

The 66.67-hectare project will be constructed in the Shanghai Comprehensive Industrial Development Zone in the city's southwest Fengxian County. It is the largest investment in the zone so far.

A source close to the deal said Putian will not be the sole investor of the park.

"Putian will be likely to build a number of separate plants in the park, some of which will be co-invested by its partners," he said, while refusing to give further details.

Putian Vice-President Bao Kangrong said: "The master plan for the park is still under research and discussion."

But Bao said Putian has plans to make the park its national manufacturing base, to include products like multimedia-aided terminals, mobile communication equipment, Internet protocol products, microwave equipment and postal machinery.

It will also accept general contracting of telecommunication projects from both home and abroad.

Bao said the company expects it will achieve 2 billion yuan (US$240 million) in sales in its first year of operation and reach 10 billion yuan (US$1.2 billion) five years later.

One of its first projects is expected to be a 500 million yuan (US$60.24 million) factory to produce the Xiaolingtong, a wireless terminal with most of the functions of mobile phones for the same fee as a fixed-line phone.

The product has already been well received by users.

UTStarcom, one of the three makers of the Xiaolingtong, sold more than 3 million terminals in China last year.

Putian, an industry arm of the former Ministry of Posts and Telecommunications, is now directly under the leadership of the central government.

It has been ranked as China's top telecom equipment vendor for two consecutive years.

Last year it had a revenue of 64.2 billion yuan (US$7.73 billion).

Putian owns over 50 affiliated subsidiaries, including five listed companies - Beijing's Capel Group, Shanghai Posts & Telecommunications Equipment, Chengdu Cable, Nanjing Putian and Ningbo Bird.

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