SUZHOU: The China-Singapore Suzhou Industrial Park Development Co will change ownership next year so the Chinese partner gets a majority in the joint venture.
The Chinese consortium and Singapore consortium, the two industrial park partners, will exchange shares in the venture as well as their positions on the board of directors.
The Chinese consortium will take 65 per cent, and the Singapore contingent will get 35 per cent, said Liang Baohua, secretary of Suzhou's Standing Committee of the Communist Party of China.
Since six year ago, when the project broke ground in the Yangtze River Delta in Jiangsu Province, the Singapore consortium has been the larger share holder.
Liang said the ownership shift will not alter the two consortiums' co-operation in the park.
"The Chinese Government and the Suzhou government will unswervingly support the development of the park," said Suzhou Mayor Chen Deming.
Both consortia also have indicated they will keep working with each other on making the park attractive to industry.
"The transfer will in no case shake the determination of Singapore to maintain its support for the park or affect the wise choices of prestigious enterprises to further their development," said Khaw Boon Wan, permanent secretary of Singapore's Ministry of Trade and Industry.
"We are proud of this masterpiece of the co-operation between the two nations," said Khaw. "And we will continue to make it perfect."
The two partners have gone to the United States and Europe to market the park and have found investors.
And to preserve the park's management, 20 senior personnel were sent to Singapore for professional training last year. Another 53 were trained in Singapore this year on promoting productivity, managing property and using information technology.
The park is already doing well. Lim Neo Chian, chief executive officer of China-Singapore Suzhou Industrial Park Development Co, said the first phase has changed eight of the park's 70 square kilometres into a "beautiful, well-regulated, investment-friendly and profitable" industrial park.
It is designed to attract foreign companies.
The park now has drawn 186 foreign enterprises, 36 of which are among the Fortune 500 companies, with total investments of US$6.948 billion. Companies spent US$315 million in the park in the first quarter of this year.
The modern, adequate infrastructure which has cost 7 billion yuan (US$843 million), the park's management and its services have commanded much attention from the business world.
Recently it was named one of the "10 Best Industrial Parks of Asia" by Corporate Location, a British magazine.
The park is now focusing on commercial, tourism and housing projects to diversify the business mix.
(China Daily)
