County attracts biz on strong industry chain

GUIYANG — With Christmas approaching, production lines in a workshop in a remote county in Southwest China's Guizhou province are busy working to meet the increasing demand as orders keep pouring in.

Surprisingly, there are few people on the shop floor. Automated welding machines have taken over most of the work.

"The high level of equipment automation has reduced the requirement for workers. This has created job opportunities for local women who can work near home," said Gan Luo, general manager of Yidong Household Products in Changming economic development zone in Guiding county, adding female staff members account for two-thirds of the factory's employees.

The factory is now operating at full capacity to fulfill export orders from European and US markets. "We have established a trade company dedicated to dealing with overseas business. This year's orders have exceeded 20 million yuan ($2.75 million) already," Gan said.

A Guizhou local, Gan started his own business in Ningbo, a coastal city in Zhejiang province.

Prior to relocating his operations to Guizhou, Gan's business had been thriving. However, the escalating costs associated with labor, as well as land and energy consumption had emerged as formidable obstacles to sustaining a healthy profit margin. Consequently, Gan turned his attention to his hometown, seeking a more cost-effective solution.

Located in the mountain-ringed southwest, Guizhou itself is a major province for electricity output, which is a big edge for many enterprises. With lower wages and land prices, the only obstacle for Gan seems to be the relatively higher transportation costs.

"In recent years, the enhancements to Guizhou's transportation network, along with savings accrued from other sectors, can effectively neutralize the rise in delivery costs," Gan said.

In 2021, officials from the Changming economic development zone and a prominent local enterprise in Guiding county embarked on a business recruitment trip to Ningbo to encourage companies to relocate to their hometown. This initiative was successful in attracting businesses, including Gan, who was motivated by the local government's support and established his operations in Guiding in 2022.

Gan expressed his confidence in returning, "The promising business prospects, coupled with the local government's proactive efforts, have instilled us with confidence."

Simply attracting one or two companies is far from sufficient. The local government understands that only by establishing a complete supporting industry and forming a comprehensive industrial chain can businesses truly settle in Guiding.

Sun Ling, deputy director of the local industry and information technology bureau, emphasized their focus on the entire aluminum industry chain, from upstream to downstream businesses, as the primary target for investment attraction. This strategic approach aims to bolster the region's economic development and create a thriving industrial ecosystem.

Gan's comeback is part of a broader trend of businesses returning to the region. "The relocation of more enterprises on the supply chain will help reduce the costs," Gan told Xinhua News Agency.

At the same recruitment event, after serious discussion with fellow partners, another Guiding native, Yang Liangyuan, who runs an aluminum accessories firm in Ningbo, also decided to relocate his factory home.

"The favorable business environment and cost savings are appealing, but it is the complete industry cluster that truly helps cut costs," Yang said.

Xinhua