Auto cluster wins global contracts

Over the last eight years, the Qingdao Tonghe Automobile Parts Industrial Park (TACIP) has developed into the destination of choice for overseas investment in the lucrative field of auto parts manufacturing

According to Tang Yunli, deputy secretary of the Tonghe Industrial Estate Administration Committee, the Tonghe industrial park is currently home to more 100 auto parts businesses, representing a total investment of $320 million. This has seen the park producing more than 300 different automotive components, including engine parts, vehicle electronics and driving mechanisms. As a result, the annual sales revenue of the park has reached 3.6 billion yuan, with annual foreign currency earnings of $250 million.

Its success is due, in part, to the park's considerable geographical advantages. To its east, the park, situated in the Shandong province, has easy access to South Korea and Japan, both major automotive manufacturing nations.