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Zhuhai Aims to Become a Yacht Center

This coastal city in South China's Guangdong Province is vying to become the largest yacht and yacht-related products manufacturing center in China in the next few years, sources with the local government said.

 

The center, located in the Pingsha Industrial Zone in the city's Jingwan District, covers an area of 6 square kilometers.

 

"We have already successfully held an international air show and racing competition," said Fang Xuan, a top official from the local government. "And now we also want first-class yachts to be made in Zhuhai." To date, 10 yacht manufacturers from the United States, the Chinese mainland, Taiwan and Hong Kong have entered the industrial zone, with a total investment of 480 million yuan (US$58 million).

 

The annual output value of the center is expected to reach 1 billion yuan (US$12 million).

 

Of the 10 yacht enterprises, three have already started operations and one is expected to be operational soon.

 

In addition, the Jingwan District is set to organize a business delegation to Taiwan in a bid to find more yacht industry investors.

 

Four out of the 10 yacht enterprises investing in Zhuhai are from Taiwan.

 

The establishment of the yacht manufacturing center in Zhuhai will aid all yacht manufacturing companies in setting up an integrated market network, said one employee from Taiwan's Taixing Yacht Company.

 

"As most of the yacht companies in other coastal cities are small scaled, they cannot satisfy market demand," Huang said.

 

In 2001, the Taixing Yacht Company from Taiwan started investing in the city.

 

Insiders said that as the yacht sector becomes a booming industry, the establishment of the yacht center will help China seek more market share in the international yacht manufacturing business.

 

Statistics indicate that the estimated annual trade volume of yachts in the world will total about 300 billion yuan (US$36 billion) in the coming years. At present, China's total value of yacht export stands at only about US$17 million.

 

The manufacturing center is expected to help boost the development of other related industries, insiders said.

 

Thanks to the fast development of the yacht manufacturing industry, a number of yacht clubs have been established in the province's coastal cities.

 

The Longcheer Yacht Club in Shenzhen, another coastal city bordering Hong Kong, has accepted more than 300 members since it began operations in June 2000.

 

While in Guangzhou, a number of boating enthusiasts, most of which are successful businesspeople, have bought private yachts and about 70 of them have received boating licenses in recent years.

 

"We believe more people from Hong Kong, Macao and the mainland will come to Zhuhai to enjoy sailing on the weekends and holidays when the yacht market here gradually becomes mature," said Lu Xiaofen, deputy-director of Jingwan District.

 

(China Daily March 11, 2004)

 

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