1、Automobile Industry

Whole Vehicle manufacturers invested by FAW, DFAC and Saicgroup—top 3 vehicle manufacturers in China has been established in Liuzhou, making it the most significant automobile manufacturing base in west China. At present, Liuzhou has established mature automobile industry from manufacturing the whole vehicle like manufacture car, Business Utility Vehicle, Minibus, Special Purpose Vehicle and Heavy-duty lorry etc to producing automotive spare parts and automotive products marketing. The production of vehicles in 2007 was 61, 6521.

In the coming five years, we will stick to the principle of self technical development and bringing in advanced technology, remain market-oriented, coordinate the production of both whole vehicle and spare parts, and finally strengthen the automobile industry as well as upgrade its competitiveness. We will, based on the our leading manufacturers like SMGW and DFAC (Liuzhou), enhance the cooperation on productivity, technology and product upgrading with competitive corporations both home and abroad like USA GM, Japan Nissan, France Nenault, Saicgroup, DFAC and FAW to increase our capacity and productivity in manufacturing whole vehicle.

We will make full use of market resources and the geographical advantages close to the Southeast Asia; actively develop new vehicles that can satisfy all kinds of market needs both home and abroad; fasten to develop high performance-ratio minibus, Business Utility Vehicle and multi heavy-duty lorry; struggle to timely develop economical automobile and classic cars; actively develop special purpose vehicles for building engineering, city service, airport, oil field, highway management & maintenance and modern logistics etc; pay attention to the development of new low-energy-consumption and environment-protection cars.   

We will regard the industry of automotive spare parts as a key industry, pay more efforts on increasing the local configuration level of the whole vehicle, increase the competitiveness of spare parts via the development of the whole vehicle, and finally strengthen the centralizing functions of the automobile industry. We will pay more efforts on the development of key parts, kernel parts, those parts where hi-tech are involved, the spare parts that can satisfy the security, environment protection and low consumption required by modern vehicles, electronic spare parts, spare parts for the chassis and body etc. We will also aim at upgrading spare parts from single part to assembling as well as from mechanical products to mechanical & electronic products so as to not only satisfy the needs of local automobile market but also get a foothold in the international market as a product supplier for international leading vehicle manufactures.

We will actively develop automobile trade and matching service, and build up a complete auto industry chain with full efforts. We will try to build up a automobile manufacturing system in which leading companies develop together with parts suppliers as well as that obtains our own intellectual property right and R&D capability on key technology. At present, Liuzhou has been the “National Vehicle and Its Share Parts Export Base”. It is expected that an industry with a capacity to manufacture 100 millions vehicles and 120 sets of engines per year in 2010.

2、Machinery Industry

Liuzhou machinery industry is represented by engineering machinery, air compressor and pre-stressed anchor etc. “LiuGong” loader and OVM pre-stressed anchor take the biggest market share all over China.

10 types of engineering mechanical products produced by LiuGong such as loader, excavator, and road roller etc have won province-level or ministry-level praise. The output value of its main business surpassed 10 billion RMB via selling more than 3,000 thousand products. The R&D center of pre-stressed technology in Liuzhou OVM is the Top 8 R&D centers in this area, and its dominant products and technology, winning more than 40 Ministry-level and State-level praises, are widely applied in key and large projects both home and abroad. “Huanyu” and “Lifeng” air compressors take up 1/3 market in China and sell well in 30 foreign countries and districts.   

The Machinery industry in Liuzhou aims at developing itself in the direction of structure optimization, diversification, integration of mechanics and electronics, intellectualization via micro-electronic control. Regarding to engineering machinery, efforts will be paid to strengthen and improve loader, fasten the development of excavator, road roller and forklift etc; in the area of general machinery, efforts will be given to the development of high added-value screw air compressor, turbination air compressor, air compressor used in oil and gas transportation, middle-sized and large-sized technical air compressor and concrete feeding pump etc. It will also fasten the escalation of building machinery such as pre-stressed anchor, strengthen the product reconstruction that will fill up the ethnology blank in China, and develop plastic machinery as well as machinery applied to textile. It is expected that the machinery industry will be able to manufacture 65 thousand engineering machineries in 2010.   

3、Metallurgy Industry

Metallurgy industry in Liuzhou is represented by Liuzhou Steel Company, Liuzhou Huaxi Group and etc. Its dominant products are concentrating on steel & non-ferrous metal and their further processing, and the products of steel, zinc, zinc oxide, lead, stibium, indium and lithopone play a critical role in the market both home and abroad. Among these products, non-ferrous products are mainly to export, and its “Gold Sea’ refined stannum, “Yinli”zinc, and zinc oxides have been registered in London Metal Exchange.

Liuzhou has rich non-ferrous metal resources; the surplus reserves of stannum reach to 500 thousand tons, antimony 410 thousand tons, zinc 2.7 million tons, and lead 480 thousand tons.

Liuzhou Steel Group ranks Chinese Top 500 Companies, its output of steel in 2007 surpassed 6 million tons, and production capacity amounted to 8 million tons with the output value of its main business over 26 billion RMB. It is expected that the production capacity will reach 10 million tons in 2010. The surplus reserves of stannum, antimony and indium of Huaxi Group rank the first over the country, and the production of indium ranks the first all over the world; yearly production of indium reaches 16 thousand tons, and the production capacity of smelting refined mine of lead and antimony is over 30 thousand tons every year.

The development of metallurgy industry in Liuzhou concentrates on the variety and technology of the products to optimize products structure. The non-ferrous metal industry will, via bringing in advanced technology and attracting investment, develop zinc alloy, superfine zinc powder, non-Hg zinc powder, superfine zinc oxide, nano zinc oxide, zinc oxide whisker, organic stannum, nano stannum oxide and indium products as well as their further processing, and finally broaden the scale of products, improve the added value of the products as well as advance the whole industry to develop deeper and wilder.

4、Other Industry

Industries of chemicals, medicine, refining sugar, paper making, building material and textile etc play significant roles in the whole industrial system in Liuzhou. There are a number of well-known brands and products such as LMZ toothpaste, Golden throat Lozenge, YF cement, Wangshan sugar, Yinou News paper, and Huahongpian etc. Among them, the sales of LMZ medicinal toothpaste have ranked the first in China in the past 15 years. 

5、Agriculture Economy

Liuzhou is located in the monsoon climate zone between the middle and southern subtropical zone, so the summer here is hot and lasts long, winter warm and short. The sunshine here is rich with yearly sunlight reaching 1,200-1,600; lots of rivers flow across with rich water resources; the average temperature is 20.3℃, rainfall 1, 400 mm, and the days without frost are 310-330 days in a year. Liuzhou features mainly hilly country and upland landform which together take up 70% of the total land area here. In the north, hilly country and upland dominate where the temperature is comparatively lower; in the south, small mountain, light upland and plain are the main landforms where the temperature is comparatively higher. Soils here are various such as red soil, yellow soil, paddy soil, calcareous soil, alluvial soil and purple red etc, among which the red soil and calcareous soil are the most popular with rich fertility. The agricultural conditions here and very ideal and hence commands a broad room and great potential to develop characteristic agricultural products.

The farmland in Liuzhou is 228.2 thousand hectares, among which the paddy field is 108.4 thousand hectares, and dry land 119.8 thousand hectares. The main economic crops here are: sugarcane of 99.9 thousand hectares with a production of 766 million tons, mulberry garden of 419.4 thousand mu with a yearly production of fresh cocoon of 41.75 thousand tons and silk 3.129 tons, 90% of which meet national 4A grade in quality, yellow gardenia of 7, 225 mu with a yearly production of 8, 962.5 tons, Momordica Fruit of 2, 565 mu with a yearly production of 1, 938 pieces, golden orange of 32, 313 mu with a yearly production of 20.131 thousand tons, lotus root of 71.9 thousand mu with a yearly production of 108 thousand tons. And the total output of pig, sheep and cow amounts to 173.7 thousand tons every year.

The forest area in Lizhou is 1.096 million hectares (the rate of forest coverage is 59.7%), and the reserves of woods is 26.2 million stere. The reserve of fir is the largest in Guangxi, reserve of bamboo is the second all over Guangxi, and that of tea and oil tung are among the largest in Guangxi. Forest here is luxuriant with various animals and plants living in and thus praised as the second “Xishuangbanna”.

The rich forestry resources provide desirable conditions and endless materials for medicine industry, bamboo and woods processing, wood (bamboo) pulp.

The development of agriculture in Liuzhou will, via the climate difference between Liuzhou and ASAN countries, develop those agricultural products that are complementary to those produced by or in the ASAN, and therefore improve the export of characteristic agricultural products. It will, via cultivating marine lives and fostering leading companies, process and sell lean-type pig, milk, beef and mutton, and finally establish name-brand products with standardized production as well as increase benefits. It will also, via fostering leading companies in bamboo & woods and forestry products, organize the production, processing and marketing of forestry, and finally establish name-brand products as well as improve both economic and ecologic benefits.

6、Tourism

Liuzhou commands rich and excellent tourism resources for its typical Karst landform, unique scenery of water and land, mysterious virgin forests, special ethnic tradition and its desirable location that is close to the international famous tourism city Guilin.

In accordance with the features of economic development in Liuzhou as well as the requirements in industrial structure adjusting, the tourism in Liuzhou will develop itself into an engine industry to propel the industrial structure adjusting, improve the investment and living environment, and advance the economic development. The tourism in Liuzhou will be the breach as well as the new business opportunity to develop the third industry; it will finally develop itself to be the key pillar industry in the third industry of Liuzhou city.

Liuzhou will emphasize to develop the scenery corridor along the Liu Jiang River including “Liuzhou Marvel Port”, Bailian Cave in the Big Dragon Pool, the “Ethnic Tradition Corridor” represented by Bazai, Yuanbao Mountain and the Bei Jiang River in Sanjiang county, and tourism agriculture around the city area etc. It will aims at constructing a tourism area featuring ethnic traditions, containing rich history and culture, and supported by scenery sightseeing as well as relaxing tour. It is expected that Liuzhou will receive 10 million travelers from all over the world and that the tourism income will reach 7 billion RMB in 2010. 

7、Trade Center

Products distribution now embraces a fresh developing opportunity. There have been lots of trade, dining and hotel facilities as well as a number of leading companies, forming a trade market system with the large-sized supermarkets as its core and the retail trade as structure.

Liuzhou enjoys convenient communications, abundant industrial base and advantage; the comprehensive economic development and consumption are upgraded and developed day by day; the overall arrangement of the city zone is under scientific adjusting and the city area is extended outward; all of these provide ideal conditions for the fabulous development of trade and products distribution.

The trade industry in Liuzhou will, based on the city planning guideline that to develop the city center eastward, perfect trade networks at different levels one by one, reasonably arrange the trade markets, and finally establish a complete and whole trade network that covers every districts and counties. It will perfect its function as life service, marketing radiation, and industry service, forming regular and reasonable inner structure. It will also establish and strength a number of trade companies, and try to realize the goal that the overall consuming value will reach 45 billion RMB in 2010.

8、City Construction and Real Estate

Liuzhou, as the second largest city in Guangxi, has established city transportation network supported by city inner-ring expressway and key city roads. The development of the East City will change the historic condition that Liuzhou is only a city peninsula with “sole center” into a big-city pattern with “multi centers”.

    From now on, Liuzhou will emphasize the construction and development of the East City as well as the reconstruction of the old city. It will, via attracting investment and flexible investment policy, fasten the speed of city construction, build up an ideal city suitable for living, and finally make Liuzhou a city of sustainable development. The population in Liuzhou will increase by 200-300 thousand in 2008. Supported by the rapid and strong development of economy as well as the explosive increase of population, the real estate in Liuzhou will increase in a sustainable, stable, fast and healthy step.

9、Logistics Economy

Located in the area where Southwest China, South China and Middle of China connect, Liuzhou is the transportation and communication hub of Southwest China with desirable geographic advantages. Especially together with the development of “China-ASAN Free Trade Zone”, the advantage of Liuzhou as the key access to the sea and the distribution center become increasingly obvious. The logistics will be broaden and strengthened with the development of “Provincial Export-Oriented Economy” and international trade which create the economic needs and impetus to develop modern logistics.

In Liuzhou, the logistics, especially the specialized third party logistics still stay in the original phrase. The excellent development conditions offer gigantic business opportunities for logistics. It is expected that the added valued of logistics in Liuzhou will reach 7.2 billion RMB in 2010, among which the third party logistics will share 10%.