As an “old friend”, Chia Tai Group, a well-known multinational enterprise, has been on the screen many times in the circle of friends of Ningbo people. It is not only one of the first foreign-funded enterprises to invest in China after the reform and opening up, but also ranks in the forefront of foreign-funded enterprises in China in terms of investment projects and scale.
As of December 2020, Chia Tai Group has invested in more than 30 enterprises in our city, and its confidence in investing in Ningbo can be seen.
Three decades of uninterrupted investment in Ningbo
Over the past 30 years, up to now, the accumulated investment has exceeded 15 billion yuan. As one of the first foreign-funded enterprises to invest in China after the reform and opening up, Chia Tai Group has made a concrete interpretation of the word “optimistic about Ningbo” with practical actions, and has continued to cast “confidence votes”.
As one of the first Fortune 500 companies to invest in Ningbo, Chia Tai Group has experienced and participated in the development and take-off of Ningbo’s open economy.
Chia Tai Group, headquartered in Thailand, has long been connected with Ningbo. In 1991, Chia Tai Group landed in Ningbo for the first time, invested 100 million dollars to establish Chia Tai Agriculture Co., Ltd. in Beilun, which has become the largest feed enterprise in Zhejiang Province.
Taking this as a starting point, Chia Tai Group has increased its capital and shares at an annual rate of 500 million yuan. It has successively entered the fields of grain and oil processing, livestock and poultry breeding, equipment manufacturing, food research and development, and has made great strides to build a “whole agricultural industry chain” in Ningbo.
Based in Ningbo and radiating the Yangtze River Delta. In 2009, Chia Tai Group invested in the construction of 39000 mu of Chia Tai Cixi Modern Ecological Agricultural Park in Cixi, Ningbo, and achieved the transformation of saline alkali land, rice planting and high yield in that year.
In the following 10 years, Chia Tai Group has successively registered 24 enterprises in the beach reed land on the south bank of Hangzhou Bay, invested in the construction of more than 20 major industrial projects, such as 25000 mu saline alkali rice planting, 1 million feather laying hens demonstration breeding, Chia Tai China Food Research and Development Headquarters, Xinbaiqin Agricultural and Animal Husbandry Special Vehicle Manufacturing, Gurui Livestock and Poultry Machinery Manufacturing, etc., completed an investment of more than 2 billion yuan, and built a domestic first-class, industry-leading comprehensive agricultural park.
In November 2018, Cixi Municipal Government and Chia Tai Group officially signed the “Cixi Chia Tai Agricultural Smart Innovation Bay Project”. The project area covers an area of 15000 mu, with a total investment of about 30 billion yuan. Based on agricultural scientific innovation and Tianhai Lake as the base, it will build China’s future agricultural Silicon Valley, integrating agriculture, culture, sports, education, tourism, community, etc., and build an agricultural new city with agricultural leadership, diversified integration, and innovation leadership.
The epidemic also did not stop Zhengda from increasing its capital in Ningbo. On December 5, 2020, Zhengdashun unveiled the Smart Agriculture Research Institute in Cixi, Ningbo, which is the 35th “branch” opened by this old multinational company in Ningbo. It will introduce the whole industry chain technology of rice oil and build Ningbo into an international model of modern agriculture.
“Ningbo has always been the focus of Chia Tai Group’s investment, and it is also the region with the largest investment scale and the richest business types in the world. There are 24 companies under Chia Tai in one park of Guangcixi, which is unique in the world!” Wang Qingjun, senior president of Chia Tai Group, said.
What is the reason for choosing Ningbo?
“Why take root in Ningbo?” In the opinion of Wang Jinwen, vice chairman of the agriculture, animal husbandry and food enterprise of Chia Tai Group in China, this is a “problem that is not a problem”.
From optimistic about Ningbo, to choosing Ningbo, to taking root in Ningbo – For the Fortune 500, the high-quality business environment has become the key factor to stimulate market vitality and further attract and boost international investment.
Take Ningbo as an example. In recent years, the business environment has improved, business governance has been strengthened, work efficiency has been improved, service awareness has been optimized, and high-level investment liberalization and facilitation measures have been introduced.
The 2019 China Urban Business Environment Report evaluates the business environment of 36 major cities in China from five dimensions: infrastructure, human resources, financial services, government environment, and inclusive innovation. Ningbo ranks in the top ten.
Wang Qingjun was not surprised.
It is understood that Cixi Zhengda egg industry under Zhengda Group is a continuous production enterprise, and the supply of shell egg products has never stopped. During the epidemic last year, enterprises once faced many problems such as feed supply failure, packaging material supply failure, and transportation obstacles. After knowing the situation, Cixi Municipal Government quickly listed the company in the first batch of enterprises to “ensure the people’s livelihood”, found local suppliers of packaging materials, and handled transport vehicle passes for them, which solved the urgent needs of enterprises.
At present, the number of branches of Chia Tai Group in Ningbo is increasing rapidly at the rate of 3-5 each year, and its industry in Ningbo is becoming increasingly deep-rooted. In April 2021, Zhengda Pig, the “pig industry undertaking”, had another son in Cixi, Ningbo; At the same time, Chia Tai (Cixi) Car Rental Co., Ltd. is also under registration.
In 2020, there will be 486 newly established foreign-invested enterprises in our city, with a total investment of 13.163 billion US dollars, and the actually utilized foreign capital of 2.467 billion US dollars. On the basis of the growth of 19.7% the previous year, the year-on-year growth will continue to be 4.4%, and the annual target task will be completed by 102.8%.
Among them, the investment of overseas Fortune 500 enterprises was active, and 10 overseas Fortune 500 enterprises and transnational corporations were introduced throughout the year. By the end of 2020, the city has 67 Fortune Global 500 enterprises, invested in 147 projects (sub institutions) in Ningbo, with a total investment of 21.44 billion US dollars.
Behind the Zhengda Group, and behind the bright data of this group, is the confidence of Ningbo to stabilize foreign investment, which shows the determination of sustainable and open development.
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(Contributed by Ningbo Municipal Commission of Commerce)