Group members: Chan Lit King, Jackie (4), Ding Liang, Peter (9), Lee Oi Ming, Amy (14), Tang Wai Ching, Crystal (21), Wang Tsz Chung, Charles (23)
Yangtze River Delta • Also called Chang Jiang Delta, or the Golden Triangle of the Yangtze • Eastern part of China • Mid-point of the coastline • Comprises the triangular-shaped territory of Shanghai, southern Jiangsu province and northern Zhejiang province of China
Relief: spacious, flat, extensive Physical condition: adequate water supply Characteristics of the YRD
General Background • The YRD leads in producing raw materials and intermediate goods. • The YRD is an important economic powerhouse of the Chinese mainland. • Shanghai is major distribution centre in the YRD. • Zhejiang and Jiangsu an increasingly important manufacturing base.
Industrial zones in Shanghai • Shanghai Hongqiao Economic and Technological Development Zone • Jinqiao Export Economic Processing Zone • Minhang Economic and Technological Development Zone • Shanghai Caohejing High and New Technological Development Zone • The zones provide a well-developed transport network and ample infrastructure, thus inducing industrialists to set up heavy industries there.
Jiangsu • Historically oriented towards light industries such as textiles and food industry • Since 1949, Jiangsu has also developed heavy industries such as chemical industry and construction materials. • Important industries include machinery, electronic, chemicals, and automobile.
Zhejiang Province • Its manufacturing is centered upon electromechanical industries, textiles, chemical industries, food, and construction materials.
Shipbuilding Iron and Steel Building materials industry Machinery Chemical engineering Electronics industry Heavy Industries in YRD
Characteristics Energy demanding Require lots of raw material Require skilled labour in different process, e.g. electric welding (電焊), machining (機械加工), machines control
Shipbuilding • Raw materials needed: steel plate • Equipment required: Plasma cutting machines(等離子切 割機) Shipbuilding And Repairing Lifting Equipment • Products: Bulk carriers, container vessels, oil tanks…
Shipbuilding Tone of ships finished on the first half year of 2008 in China: • 1.Jiangsu, 2.74 millions tones • 2.Shanghai , 2.46 million tones • 3. Zhejiang, 1.78 million tones
Shipbuilding in Shanghai Shanghai Shipyard Co. Ltd
Shipbuilding in Shanghai Shanghai Shipyard Co. Ltd Labour: more than 4300 employees 501 positioning in design 579 positioning in administration 2505 positioning in production 715 positioning in logistic Most of them are highly educated
Iron and Steel Industry Raw material used: lime stone, coal , molten iron ( 鐵水), pellet (鐵砂) , nickel (鎳) Products: Steel plate, structural steel (結構鋼;型鋼), Angle iron( 型鋼) , stainless steel (不銹鋼)
Iron and steel Industry in Shanghai Baosteel Group Corporation Electricity used : 1.2 billions W Steel products produced: 22.53 millions tones (2007) (world:5 China :2) 23-26 millions tones (expected in 2008) 50 millions tones ( expected in 2012) (world : 2) Labour employed: 60% graduated from university earn a salary of $90,000 per year
Power • HEP • Coal • Oil • Natural gas
Labour • Large population(75,000,000) • Jiangsu: 9-year-free education semi-skilled or unskilled labour eg. Logistic, construction, etc • University(eg.USTC, Zhe Jiang U) skilled labour in specific industries
Transport • Long coastal line and Chang Jiang • Water transport • Transport of raw materials and products • Shanghai- as a stepping stone C.China( eg.Changsa, Wuhan) • Deep water(SH-15m;Zhejiang-17m) • Well-developed linkage w/ other cities in the region agglomeration economies
Government Policy • Wujin Hi-Tech Industrial Zone (Southern part of Jiangsu) • Jiangsu- complement port and container hub • Expo 2010 Shanghai-China • SH-Yang Shang Port保稅港 • Less barriers in entering the mkt • SH-subsidies to encourage retraining
Market • Mainland China • Large citiesgreat demand • Industrial zonefor developing • International market • Coastal locationoverseas trading
The importance of raw material • raw material-oriented • better to locate near the RM -reduce transport cost • features: heavy and bulky • e.g. shipbuilding: steel plate iron and steel: iron ore, lime stone, coal • For iron and steel industries: major coal mines and iron ore is not located at PRD • For shipbuilding industries: steel plate is supplied by iron and steel industries
The importance of technology • Raw material • new furnaces • iron ore scrap iron • transports • bulk carriers • advancements in railway transport • transport cost • cheaper RM can be imported
The importance of government policy • Open door policy • Foreign investments in the coastal regions were encouraged • Policy of ‘having some regions developed first’ • Coastal areas have been chosen because of good ports
The importance of government policy • e.g. Baosteel in Shanghai • well-developed port facilities • import of good quality iron ore ( from Australia, India, Brazil) and coal • export of steel products ( to 48 countries and regions)
The importance of energy • Energy-demanding • generate the operation of machines • Burn and remove the impurities in the raw materials • Power resources are rare in PRD • The West-East Gas Pipeline • Natural gas
The importance of market • large cities (suppliers of scrap iron) and industrial centers in PRD • big markets for manufactured products • finished products are heavy and bulky • e.g. steel plate for shipbuilding industry, bulk carriers, big container ships for transportation • procurement cost and distribution cost
“One Core Six Zone" Shanghai will be used as a core for the development. Six zones refer to six “development zones” found along the Yangtze River for joint development of the region
Role of Shanghai play the role of a hub for domestic and international traffic cultural center and the source of innovation integrate the resources advantages in surrounding region reinforce the Shanghai’s ability of concentration and guide promote the exertion of regional overall advantages and enhancement of competitiveness.
Hu Ning The goal is to build it into a megapolis region with world developed level.
Making use of the “Golden Waterway” counties and cities along the Yangtze River will make full use of the advantage of it guides equipment manufacturing, chemical industry, metallurgy become the core components of the Yangtze River industrial zone
Development zone along Hangzhou Bay counties and cities along Hangzhou Bay rely on the existing industrial base and ports actively develop high value-added manufacturing, processing industries, chemical and heavy industries set up a coordinated modern manufacturing zone and town aggregate zone, and lead the development of South Wing of the Yangtze River Delta.
Development of the coastal development zone counties and cities which along the coastline must rely on the maritime port develop comprehensive economic zone with new port industries, marine economy and coordinate with ecological protection