Total investment of 2 billion yuan! Here’s the latest update on these two major projects
2023-07-28 17:12

Recently, in Dalad Banner, Ordos City, construction is proceeding smoothly on projects for high-end optical materials and advanced synthetic quartz.

With a combined total investment of 2 billion yuan, both projects were introduced through the precise matchmaking of GuChuan United in 2022 and are being invested in and constructed by Hengtong Group—one of the world’s top three optical fiber communication companies and a member of the China 500.

Total investment of 2 billion yuan! Here’s the latest update on these two major projects

△ High-End Optical Materials Project / Dalate Release

According to preliminary estimates, once both projects are completed and reach full production capacity, their annual output value will exceed 1.2 billion yuan, with annual profits and taxes exceeding 300 million yuan.

Considerations for the Site Selection of the Two Projects

Dalate Banner’s resource advantages were the primary reason Hengtong Group chose to locate the projects here.

The region’s abundant natural resources—including solar energy, natural gas, and coal—can provide a diverse, stable, and cost-effective supply of raw materials for production: hydrogen.

According to preliminary estimates, the Inner Mongolia Autonomous Region produces over 1.3 million tons of industrial by-product hydrogen annually, offering a cost advantage. Enterprises such as Baogang Coking, Shenhua Baotou Coal Chemical, Huaxin Coal Coking, and Wuhai Chemical have already established hydrogen production projects using fossil fuels on a significant scale, with a potential production capacity exceeding 900,000 tons.

Furthermore, Inner Mongolia’s path toward green hydrogen cannot be overlooked.

As of January 2023, 37 hydrogen production projects utilizing wind and solar energy as feedstocks have entered the construction or planning phase across the region.

Industrial by-product hydrogen + fossil fuel-based hydrogen + green hydrogen—this combination means that the Hengtong project’s raw material costs and transportation time will be significantly reduced, thereby lowering production costs.

It is worth noting that this seamless collaboration on site selection and investment is not the first partnership between GuChuan United and Hengtong Group.

Total investment of 2 billion yuan! Here’s the latest update on these two major projects

△ Hengtong Group Project Signing Ceremony / Zhenjiang New Area Release

As early as the beginning of 2021, GuChuan United successfully facilitated Hengtong Group’s establishment in Zhenjiang New Area, where the company invested 6.8 billion yuan to build a new industrial development base project with an expected annual output value of 10 billion yuan.

With 14 years of deep expertise in investment promotion, GuChuan United has provided site selection and investment consulting services to over 990,000 enterprises, successfully facilitating the establishment of more than 7,400 projects, and delivering professional, efficient site selection services to enterprises of various industries and scales.

Guchuan United "Diagnoses" Corporate Site Selection

Hengtong Group’s operations span more than ten provinces and municipalities across China. Leveraging independent innovation platforms such as its corporate technology center, academician workstations, and postdoctoral research stations, the company has achieved self-reliance and control over key technologies in fields including optical fiber communications, ultra-high-voltage submarine cables, and semiconductor materials.

Given such extensive experience, why would a company like this still entrust its site selection to GuChuan United?

On the one hand, site selection is a relatively infrequent task, and few companies maintain dedicated talent reserves for it.

Even large enterprises typically opt to form ad-hoc project teams for site selection. However, team members must balance this work with their regular duties, resulting in limited energy and expertise.

On the other hand, selecting an industrial park that aligns with a company’s specific business needs from among the tens of thousands of industrial parks across the country is no easy task. It requires not only significant effort to gather information but also direct engagement with government investment promotion officials.

Aligning a company’s investment needs with a park’s investment requirements also requires a lengthy negotiation process.

Only a professional corporate site selection team can complete such a daunting task in a short period of time.

With 14 years of experience in investment promotion and corporate site selection services, GuChuan United operates across 19 cities nationwide, supported by experienced local service teams in each region.

With a broad network and deep local roots, GuChuan United can assist companies in making informed assessments that balance short-term interests with long-term growth, helping them find the most suitable “new home” in the shortest possible time.

Furthermore, GuChuan United’s negotiation skills regarding prospective sites and extensive local public relations networks can help companies secure greater policy support.

In reality, market conditions change rapidly, and few companies have the luxury of time to conduct a leisurely site selection process on their own.

Without Guichuan United’s involvement, companies may spend significantly more time searching for a “new home,” disrupting subsequent production and operational plans—a single misstep can lead to a series of difficulties.

With its data-driven approach and global perspective, Guichuan United has become a trusted partner for enterprises.

Dalate Banner: Ordos’ “New Calling Card”

Dalate Banner is nestled within the “bowstring” formed by the Kubuqi Desert and the “S-shaped bend” of the Yellow River, boasting a unique geographical location.

Its decades-long development history is also a grand narrative of ecological restoration.

Guided by the principle of “ecological priority and green development,” Dalate Banner has deepened its ecological foundation, intensified desert remediation efforts, and is fully committed to building a green industrial development system.

Total investment of 2 billion yuan! Here’s the latest update on these two major projects

△ Dalate Economic Development Zone / Dalate News

Practice has proven that “lucid waters and lush mountains are invaluable assets.”

In 2022, Dalate Banner achieved a regional GDP of 48.08 billion yuan, representing a year-on-year increase of 4.6%. Among these figures, industrial value-added grew by 10.5% year-on-year, far exceeding the national average growth rate.

In recent years, building on its existing industrial foundation and platform advantages, Dalate Banner has focused on developing the fine chemicals and green energy industries, accelerating the high-quality development of the entire banner.

These two major projects by Hengtong Group will not only help refine the Group’s strategic layout in the upstream raw materials sector but also drive Dalate Banner to further extend its industrial chain and expand into new fields.

We are confident that Dalate Banner will leverage the leading role of these flagship enterprises to continuously enhance related industrial, supply, and value chains, achieving a win-win outcome for both economic development and environmental protection.

Source: Investment Promotion Network
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