Economy

China to build first outdoor production base in Yunyang

(China Daily)
Updated: 2011-03-03 10:50

Outdoor activities are increasingly popular in China, and are bringing more business opportunities to the country. [Photo / Provided to China Daily]

BEIJING - China is to build its first outdoor production base in the western region, near the Three Gorges, given the booming demand and availability of local labor and capital resources.

The base, involving investment of 300-million-yuan ($45.6 million) and covering 85,000 square meters, will open in September in Yunyang, Chongqing municipality.

"Consumption of outdoor products, including sportswear and equipment, in the western region increased 40 percent year-on-year in 2010, and we can guarantee orders for enterprises coming into the production base due to the market potential," said Cao Wenhua, marketing director at Sanxia Outdoor Industry City Industrial Park.

The base has already attracted more than 10 enterprises including Beijing Toread Outdoor Products Co, a Shenzhen-listed company with revenue of 433 million yuan last year.

Cao said that enterprises in the production base will be original equipment manufacturers (OEMs) for foreign outdoor products, mainly for Japanese brands.

"They (Chinese OEMs) will also develop their own brands here," he added.

Yu Dongtang, director at Yunyang Investment Promotion Bureau, said that Yunyang is a county with a population of 1.34 million, including more than 170,000 immigrants from the Three Gorges area. The State Council has decided to allocate 12 billion yuan for the county's development.

"We have confidence in the potential of the outdoor-gear market and will develop it as one of the main industries," said Yu.

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According to Yu, many places in the western region have the natural environment to hold outdoor activities, while the facilities are in short-supply locally. The new production base in the region will supply outdoor products and in turn could benefit the local economy as well.

China News Service quoted the China Media Culture Promotion Association as saying that the sales of China's outdoor products in 2010 amounted to nearly 5 billion yuan, with an annual growth rate of 50 percent and is expected to increase more than 30 percent this year.

Wang Yao, vice-president of the China General Chamber of Commerce, said outdoor activities are becoming more and more popular in China with the rising standard of living.

"Though the outdoor industry in China has a short history of no more than 20 years, its development is surprising," said Wang.

It is estimated that there are more than 400 outdoor brands, 60 million outdoor sports fans and more than 1,000 outdoor clubs in China.