The first installment of this two-part series presents the province’s advantages as a key manufacturing base for A/V and computer interconnects.
Jiangsu province’s efforts to advance its electronic information industry under the 12th Five-Year Plan will extend to the A/V and computer connectors and cable assembly segments. The objective for the first is to hit $569.2 billion in sales by 2015. This, in turn, is expected to enhance the area’s position as one of China’s major production bases for the A/V and PC interconnects categories. The province generated 30 percent of the country’s total revenue for the lines last year.
Besides development initiatives outlined in the Plan, Jiangsu has in place preferential policies that fast-tracked its electronics industries in the past decade and continue to attract investments.
The coastal hub has one national electronic information industrial base and four parks, and 12 and 15 similar installations at provincial level. Four in the latter group have been designated as National New Industrialization Bases.
Opportunities in these zones, together with good working conditions, have also drawn skilled manpower from inland provinces.
At present, makers operating there account for as much as 80 percent of Jiangsu’s aggregate sales.
The province also has universities and research institutes that cooperate with manufacturers in technology development and personnel training.
For materials and components, there is a pool of providers, including local enterprises and agents of foreign companies.
Jiangsu boasts geographical advantages, aside from proximity to Shanghai, and Anhui and Shandong provinces.
The area has a network of waterways. There are the Yangtze River stretching more than 425km from east to west, and the Hangzhou Grand Canal 718km from north to south. The Qinhuai River is in the southwest, and in the north are the Subei (North Jiangsu) General Irrigation Canal, Xinmu River and the Tongyang (Nantong and Yangzhou) Canal.
Capitalizing on this natural resource, Jiangsu reached total port handling capacity of 1.8 billion tons in 2011, surging by 20 percent from the previous year, according to the Jiangsu Communication Department.
Nanjing Port, Suzhou Port, Nantong Port, Lianyungang Port, Zhenjiang Port, Jiangyin Port and Taizhou Port each have more than 100 million tons.
To boost this further, the province will invest $800 million in inland river construction and $1.7 billion in building 12 harbors this year.
For air transport, there are the Nanjing Lukou International Airport and the Wuxi Shuofang International Airport.
Jiangsu hosts 200 to 300 suppliers of A/V and computer connectors and cable assemblies, including foreign-invested operations Foxconn, IMS and Suyin.
The majority of the enterprises gather in the cities of Kunshan, Suzhou, Wuxi, Zhenjiang and Changzhou In terms of scale, homegrown businesses can each realize about $7.6 million in sales, while it is $690,000 for smallworkshops. Players from overseas are at the $15.4 million level.
Many companies plan to expand manufacture in the next one or two years. Foxconn is investing $210 million in a new factory in Huai’an. The 40,000sqm facility will turn out mainly accessories for Apple products, which include connectors and cable assemblies. Scheduled to begin mass production in October this year, the plant is expected to achieve $0.9 to $1.1 billion in output value annually.
More than 90 percent of the makers in Jiangsu export their products, with ratios varying from 20 to 80 percent. Some ship their entire yield overseas.
The main markets are still Europe and the US despite the current economic conditions there. The other destinations are East and Southeast Asia, the Middle East and Russia.
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Note: This article "Jiangsu boosting hub status for A/V & computer interconnects" was originally published
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