Project for Food Manufacturing Industrial Cluster

Main Content and Investment Scale of the Project:

Built in 2007, Nonggao District is located alongside Anyang Highway and 2.5 km from the center of the county. According to a long-term plan, the Park has a total area of 48 km², including a core processing area as large as 12 km². Funds have been invested successively to complete the park’s infrastructure construction such as roads, drainage, power supply, communication, etc. Now, the Park has met the standards of accommodating projects. As planned, the cluster covers an area of 4 km², owns a total investment of RMB 62 billion yuan, accommodates 75 enterprises, employs 25,000 employees and pays RMB 450 million yuan as taxes.

Necessities of the Project:

The project promotes the development of local economy and enlarges local employment. The Industrial Park of Food Manufacturing in Tai’an County is developed vigorously through constructing the cluster.

Analysis of Economic Benefit and Forecast of Market Prospects:

The cluster of high and new technology industry has a large demonstration effect on promoting the development of agricultural product deep processing and modern agriculture in surrounding areas, as well as plays a leading role in promoting the development of relevant supporting industries outside of the cluster base. Through unified planning and unified disposition of enterprises in the Park, pollutant discharge is reduced greatly; through high vegetation coverage and good irrigation, air quality in the Park reaches a unified standard. The environment will be improved.

Geographic Location, Transport and Communication Infrastructure for the Project:

Tai’an County is located in a “one-hour economic circle” surrounded by six major cities (Shenyang, Anshan, Yingkou, Liaoyang, Panjin and Jinzhou), with Beijing—Harbin Expressway, Shenyang—Panjin Highway and Anshan—Yangshan Highway running through its territory. Nonggao District of Tai’an County is only 5 km from the Tai’an Exit of Beijing—Harbin Expressway and about 50 km from South Anshan Entrance and Exit of Shenyang—Dalian Expressway. Qinghuangdao—Shenyang High-speed Electrified Railway traverses the entire county. This area is less than 100 km from several ports such as Yingkou Port, Baiyuquan Port, Jinzhou Port and Panjin Port, 300 km from Dalian Port, 120km from Shenyang Taoxian International Airport and 300 km from Dalian Zhoushuizi International Airport. The soon to be constructed Anshan—Tai’an Expressway and the Special Railway Line from Shenyang to Panjin Port will also pass this Park. An extensive transport network constituted by transport lines on land, on the sea and in the sky has already formed. Communication is complete and perfect as well.

Conditions of Investment Provided by Both Parties and Investment Proportion: reconsidered through negotiation by both parties.

Progress of the Preliminary Work of the Project:

The project is under construction. Enterprises investing in the project increase by years.

Project Construction Period and Payback Period: the construction period is 3 years while the payback period is 3 years.

Project Advantages and Preferential Policies:

(1) Industrial Policies

All of the industrial projects entering into the Industrial Park and Nonggao District should conforms to relevant national industrial polices and meet requirements for new-type industrialization development. Priority will be given to the introduction of projects on agricultural and sideline product deep processing, wood ware processing, chemical engineering industry, papermaking industry, equipment manufacturing and its supporting industries, etc.

(2) Environmental Policies

All of the industrial projects entering Nonggao District should conform to national environmental policies, meet the relevant requirements, carry out laws and regulations concerning environmental protection and reach emission standards.

(3) Land Polices

Land for industrial projects is guaranteed based on the principle of conservation and intension.

①Land Price for Domestic Invested Projects

Benchmark Land Price: a unified industrial land price is implemented in Nonggao District, namely, RMB 205 yuan per square meter, or RMB 136,667 yuan per mu. The land tenure is 50 years.

Land Granting Price: for any industrial projects that meet the requirements of land supply, the land granting price is RMB 82.5 yuan per square meter, or 55,000 RMB yuan per mu (exclusive of deed tax). The full sum of money should be paid according to the benchmark land price of RMB 136,667 yuan per mu when going through land usage formalities. When the auction of the land succeeds, the gap will be plugged through a one-off reward to enterprises as the price of RMB 81,667 yuan per mu.

（4）Land Price for Foreign Funded Projects

①For projects invested with fixed assets of more than 5 million US dollars, the land granting price is RMB 30,000 yuan per mu (exclusive of deed tax).

②For projects invested with fixed assets of more than 15 million US dollars, the land granting price is RMB 20,000 yuan per mu (exclusive of deed tax).

③For projects invested with fixed assets of more than 30 million US dollars, the land granting price is RMB 10,000 yuan per mu (exclusive of deed tax).

④For projects invested with fixed assets of more than 50 million US dollars, the land granting fee is exempt (exclusive of deed tax).

（5）Conditions of Land Supply

①investment quota≥1.5 million RMB yuan per mu

②plot ratio≥0.8

③output capacity≥20 million RMB yuan per hectare each year

（6）Investment Scale: only projects of agricultural and sideline product deep processing invested with fixed assets of more than RMB 20 million yuan are permitted to enter Nonggao District.

（7）Construction Term of Projects Entering the Park

Construction term of projects is controlled within two years. If a project fails to be completed and go into operation within two years due to some exceptional cases, its construction term could be extended only after reporting to and being approved by the Management Committee of the Park. An idle land fee will be collected if a project fails to start within one year upon the date of signature; the land will be taken back for free by the Management Committee of the Park with the County Government’s approval if without any justified reason, a project fails to start within two years upon the date of signature and all financial losses thus incurred shall be borne by the enterprise.

The above-mentioned clauses apply to projects of modern logistics industry and projects of modern service industry as well. 

（8）Awarding Policies

①New projects may enjoy 100% reward of the county-level retained portion from the paid-in taxes (added-value tax and corporate income tax) , which offered by the County Government every year in the first three years after going into operation and may enjoy 50% such reward in the following two years. This is for supporting the development of enterprises.

②In order to reduce enterprises’ cost for using land and encourage enterprises to grow both in size and strength, any enterprise with an annual sales revenue of above RMB 50 million yuan may enjoy a reward of RMB 20,000 yuan per mu of the county-level retained portion from the enterprise’s paid-in added-value tax and corporate income tax when its land for project construction is granted, namely, the actual land granting price is RMB 35,000 yuan per mu. (The price may change with the change of policies for land grant.)

（9）Charge Policies

①Administrative and institutional fees at the county-level for project construction are exempted.

②Service fees concerned with public institutions subordinate to relevant departments reduce by half on basis of the amount stipulated in national standards.

（10）Financial Aid Policies

①The government helps enterprises to get loans for project construction.

②The government prioritizes the enterprises that entering the Park and strives for various funds that benefiting enterprises such as special subsidies and interest subsidies from the governments at the next three higher levels.

（11）Other Policies

①Based on the principles of “One Project One Discussion” and “Special Methods for Special Cases”, more preferential policies are given to foreign-funded enterprises, enterprises among the domestic top 500 enterprises and the world’s top 500 enterprises, key enterprises, backbone enterprises, as well as high-tech enterprises with a large investment scale and a strong ability to promote the development of other enterprises.

②A reward is given to the referrer of a project according to the project’s investment scale and paid-in taxes.

Liaison Unit：LIAONING PROVINCIAL BUREAU OF FOREIGN TRADE AND ECONOMIC COOPERATION

Contact Person：Han Erxin

Tel：024-86892225-7076   

15940071390

Fax：024-86893858

EMAIL：hanerxin@126.com