Daxie Development Zone --Development Plan--Key Investment orientation--Key Project--Preferential Policies

Ningbo Daxie Development Zone, approved by the State Council to be set up in March, 1993 and developed by China International Trust & Investment Corporation, is a State-level economic and technical development zone with main industries of port, industry, trade, etc. A series of preferential treatment are vested in the zone by the State and local government to encourage investing and developing different kinds of industries.

Ningbo Daxie Development Zone (NDDZ), situated in the east part of Ningbo City and 40 km away from the down town, is located at the side of Hangzhou Bay, which is at southeast corner of Yangtze River Delta, and is in the middle of Jintang Water System, borders on Damao Yang of the East Sea, connects with international shipping channel to the east, close to Beilun port to the west, faces Zhoushan Archipelago to the north, and is only 500 meters away from the nearest mainland to the south. NDDZ is also only seperated from Ningbo Economic and Technical Development Zone and Free Trade Zone by water. Daxie Island covers an area of 30.84 sq.km. and has a deep water coastline with length of 10 km. The water near coast is from 10 meters to more than 20 meters in depth with the characters of ice-free and silt-free, which is specially suitable for building large-scaled port and developing port-related industries.

CITIC has planned to build Daxie Island into a large-scaled international port and foreign-oriented economic zone with world class by setting export-oriented processing and hi-tech industries as key industries, international trade, cargo transshipment, warehousing and transportation as its mainstay and with more developed tertiary industry, complete function, beautiful environment and rational distribution.
Having been developed and constructed for several years, the infrastructure facilities in Daxie Development Zone such as water electricity, road, bridge, communication, etc, are being perfected and can meet the needs of development and construction of large and small projects. Investors both at home and abroad are welcome to invest industries in the development zone.

Address: Ningbo Daxie Development Zone, Ningbo, P.R.C.
Post Code: 315812
Tel.: 86-574-86768552, 86769227
Fax: 86-574-86758433,86768850
E-mail: citicdx@public.nbptt.zj.cn
Website:www.citic-daxie.com

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Development Plan

CITIC tentatively planned to build Daxie Island into a large-scaled international port and foreign-oriented economic zone with world class by setting export-oriented processing and hi-tech industries as key industries, international trade, cargo transshipment, warehousing as well as transportation as its mainsty, and with more developed tetiary industry, complete function, beautiful environment and rational distribution through three stages in about 15 years. Mr. Rong Yiren highly summarized the purpose of the development of Daxie Island as to build Daxie Island into an economic and trade zone with world class port.
The details of this overall purpose reflects as following aspects:
1. To build Daxie and Beilun into key ports of container Transportation of Shanghai International Shipping Center and a large international container transshipment base.
2. To build a large-scaled transshipment base for liquefied chemical, dangerous goods, crude oil, oil products and other goods.
3. To make full use of the advantage of deepwater port to develop port-related industries, hi-tech and export-oriented processing industrial zone.
4. To build Daxie Island into an active economic and technical development zone by developing banking, commerce, trade, storage and warehousing, tourism and other tertiary industry with great efforts.
5. To create an ideal investment environment with good infrastructure facilities, beautiful surroundings, excellent service and good investment environment to make the enterprises profitable, and to build the island into a foreign-oriented zone step by step.

The planned functional areas can be divided into development starting area, container port-warehousing industry area, bulk-oil goods-harbour area, finance-commerce & trade-living center area and residence area. It is planned to build 40 berths ranging from 20,000 to 300,000 tonnage with annual through put of cargo of 100 million tons including 3.15 million TEU of containers. It is also planned to construct some areas for tourism and spending holidays such as sea tourism area, golf court, villa, etc.

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Key Investment orientation

  • Infrastructure facilities
  • Port, wharf, warehousing and transshipment
  • crude oil, oil products, liquefied chemicals, warehousing and distributing
  • Shiprepairing & shipbuilding, container repairing & building
  • Petroleum refining, metallurgy, mechanical and electronic products
  • Building materials
  • Electronic communication equipment, biological technology.
  • Refined chemicals, light & textile processing
  • Grain, edible oil and aquatic products processing
  • Real estate
  • Tertiary industry such as tourism, service, etc.
  • Others.

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Key Project

  • LPG Break-bulk Terminal Project for East China
    Total investment USD 96.5 million, with BP-Amoco as the major share-holder. It covers an area of 23.6 hectares, includes two 500,000 m3 underground caverns, one 50,000 DWT berth, two 5,000 DWT berths, and relevant supporting facilities. It is to import LPG 1 million tons per year. It is planned to be operational in the middle of 2002. It will be the storage and distribution center of LPG for East China.

  • 250,000 DWT Crude Transshipment Terminal and Storage Base
    It covers an area of 41.2 hectares and includes one 250,000 DWT crude oil jetty, one 50,000 DWT oil jetty, and a tank farm of 2 million cubic meters. Phase one of the project, which covers one 250,000 DWT crude oil jetty and six 55,000 m3 storage tanks with investment RMB 500 million, is planned to be operational in August in 2001.

  • Dean Water Treatment
    Water treatment facilities manufactured by Dean New Technology Corporation, an ISO9001-certified company, enjoys wide fame in China. The major products includes DA Series Multi-functional Electronic Disincrustationer and DAY Series Water Purifying System.

  • Dayin Furniture
    This Sino-Italy joint venture boasts a total investment of USD20.5 million. It is a company of producing artificial granite toilet wares and artistic wares, with an annual capacity of 800,000 tons.

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Preferential Policies
NDDZ (Ningbo Daxie Development Zone) provides the following preferential policies to investors and operators:
1. Corporate Income Tax
The corporate income tax rate in NDDZ is 15% and subjects to "Five-year exemption and five-year half-reduction", i.e., as of the first profit-earning year, the corporate income tax is completely exempted for five years, and subjects to half-reduction for the following five years.
2. VAT and Business Tax
Enterprises in NDDZ can enjoy five years' preferential treatment in VAT or business tax as follows:
l By December 31, 2001, financial subsidy can be given to enterprises for VAT or business tax in the following rate:
Amount of basic construction investment Subsidy rate
RMB 1 to 5 million 40%
RMB 5 to 10 million 50%
RMB 10 and above 55%
l From January 1, 2002 to December 31, 2004, the subsidy rate for the VAT or business tax is as follows:
Amount of basic construction investment Subsidy rate
RMB 1 to 5 million 25%
RMB 5 to 10 million 30%
RMB 10 and above 35%
3. Land subsidy
The transfer period for land use right is 50 years. The land transfer price is RMB 180/ m2, which subjects to subsidy as per the following:
l For basic construction investment between RMB 1 to 5 million, RMB 45/ m2 can be subsidized.
l For basic construction investment above RMB 5 million, RMB 75/ m2 can be subsidized.
l For investment in high and new technology, additional RMB 30 m2 can be subsidized.
4. Others
NDDZ has its own independent customs office. Subject to approval, duty-bonded warehouses and plants can be set up.

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