Top: An employee works on a production line in the Hyundai Wia Auto Engine Company in Rizhao. Above: The busy production line of the Tsingtao Brewery (Rizhao) Co Ltd.

The Rizhao Economic and Technical Development Zone is taking advantage of its location by developing industries that maximize the benefits of the nearby Port of Rizhao.

"By the end of 2015, the zone will be developed into a new area with a yearly output of 100 billion yuan," Xu Shuli, the director of the zone's management committee said.

Xu said the total investment in projects under construction in the zone will reach 11 billion yuan by the end of this year and once these projects are in operation, they will definitely be a shot in the arm for the zone.

Now the zone has several specialized parks, including parks for food and edible oil processing, building materials, costume making and auto parts.

Rizhao is considered the starting point of the New Eurasian Continental Bridge, which starts from Rizhao and Lianyungang in the East and passes through seven countries to end at Rotterdam in the Netherlands. The city is also included in the Shandong Peninsula Economic Zone, a top zone approved by the State Council as part of a national strategy for regional development.

Thanks to its advantageous position, the Rizhao zone has built economic relationships with enterprises from 19 countries and regions, including six Fortune 500 companies, such as Sony and Hyundai.

Jiangsu East Heavy Industry is investing 10 billion yuan into the construction of a major base for manufacturing marine heavy equipment. Sales from this project are expected to exceed 10 billion yuan.

The Hyundai Wia project in Rizhao involves a total investment of $270 million and is designed to annually produce 700,000 auto engines, which will be sold to more than 10 countries.

Large projects have triggered related businesses to build facilities in the Rizhao zone. One example is the Hyundai Wia project, which has drawn more than 50 companies to establish facilities in the park to produce related parts, forming a complete chain for producing auto parts. Encouraged by the auto parts chain, the zone plans to build itself into a manufacturing base for commercial vehicles.

According to the 12th Five-Year Plan for the Rizhao Economic and Technical Development Zone (2011-2015), the zone is set to become a major base for auto parts, marine equipment, food processing, paper making and modern logistics in the eastern China.

The marine equipment manufacturing base will focus on enterprises engaged in shipbuilding and ship repair as well as the production of offshore oil extraction equipment and yachts.

Led by Rizhao Asia Pacific SSYMB Pulp & Paper Co Ltd, the papermaking industry includes projects on pulp, high-end printing and packaging paper. By 2015, sales from papermaking industry will surpass 50 billion yuan.

The combined output from food processing and modern logistics will exceed 40 billion yuan by 2015.

zhaoruixue@chinadaily.com.cn