Sinomach pumps $29bn into Greater Bay Area

Chinese machinery manufacturing giant Sinomach is planning to build a US$28.6 billion smart industrial complex dedicated to the manufacture of modern equipment in China’s Greater Bay Area, it announced on Wednesday. The 708km2 complex will be located in the south-eastern city of Huizhou in the province of Guandong, close to Shenzhen and the mouth of the Pearl River Delta. The project is the latest statement of Beijing’s intent to turn the Greater Bay Area into a regional economic powerhouse by creating a network of sector specific hubs (see table). With a combined population of over 60 million, the area is already responsible for 7% of the country’s exports and 12% of its gross domestic product.

POWERHOUSE
HUBSECTORSGDPPOPULATION GDP Per capita 
MacaoTourism & Leisure$50bn0.65 m $76.92 k
Hong KongBanking & Finance$342bn 7.45 m $45.9 k
ShenzhenTechnology & Innovation$332bn12.53 m $26.5 k
JiangmenLogistics$40bn1.68m  $23.81 k
ZhuahaiTourism$38bn1.76 m $21.60 k
GuangzhouTrading, Import/Export$318bn14.94 m $21.29 k
FoshanAuto, Biotech, Chemicals, Electronics$141bn7.20 m $19.5 k
ZhongshanHome Appliances/Denim$51bn3.14 m $16,24 k
DongguanICT, Robotics$112bn8.26 m $13.60 k
HuizhouClean Energy. Petrochemicals$57bn4.78 m $11.92 k
HSBC Research/BIG

The Sinomach deal is just the latest in a spate of investments that Huizhou has attracted in recent months. In April, the  US oil giant ExxonMobil broke ground on a wholly-owned $10 billion petrochemical complex, and the following month Royal Dutch Shell and China National Offshore Oil Corporation signed off on a $5.6 billion expansion of their petrochemical joint venture. Since then. the city has secured commitment for the construction of three data centres, including one for China Mobile that will service its entire customer base in the Pearl River Delta area.