A strong peripheral chain bolsters this Zhongshan town’s status as a major home appliances center.
Dongfeng relies on a large supplier pool and a strong auxiliary network to be among China’s leading manufacturing hubs for home appliances. This town in the northern part of Zhongshan city, Guangdong province hosts an estimated 3,000 enterprises involved in appliance production, packaging and printing. Hardware and plastic providers are readily accessible within the area as well.
The area is also home to local industry giants, including Midea, Iron Generals and Mester. The last owns a research and manufacturing center dedicated to the technological development of soy milk makers.
Midea, meanwhile, has invested more than $32 million in the establishment of a production facility that covers 65 hectares. Currently, the company churns out approximately 700 million units of air purifiers, and electric fans and heaters each year.
Zhonghan Tianyi, a major provider of copper mainly used for appliance motors, has likewise spent more than $3.5 billion in expansion projects. It is now among the largest copper processing enterprises in South China.
With such benefits at hand, Dongfeng was able to generate $2.6 billion on domestic and international sales of home appliances last year. The figure accounted for 55 percent of the town’s overall revenue.
At present, Dongfeng is one of the world’s largest exporters of electric fans and gas appliances. The town was recognized as China’s Small Household Appliances Industrial Clusters Demonstration Area by Guangdong’s Economic and Trade Commission in 2006.
Zhongshan is a prefecture-level city in the south of the Pearl River Delta region. It was renamed in honor of Dr. Sun Yat-sen, who went by the name Zungsaan and was from Cuiheng village of Nanlang Town.
Zhongshan is located along the west side of the mouth of the Pearl River Delta, directly opposite Shenzhen and Hong Kong. The area, Dongguan, Nanhai and Shunde are called the Four Little Tigers of Guangdong. The proximity of Zhongshan to Hong Kong and Macau is an advantage to its economic development, especially in the manufacturing industries.
The government of Zhongshan encourages research and design by setting up national-level research centers and specialized industrial regions. For example, the Zhongshan National Torch High-Tech Industrial Development Zone was established in 1990 by the Ministry of Science and Technology and the governments of Guangdong and Zhongshan.
Zhongshan Port, which ranks among the top 10 ports nationwide in terms of container-handling capacity, is in the zone. The primary industries are agriculture, with rice, lychee, banana and sugar cane the main crops. Added to this, horticulture in Zhongshan is famous throughout southern China for its blooming chrysanthemum.
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.