The automobile parts industry in Fushan High-tech Industrial Area has developed rapidly, achieving an industrial output value of US$26.25 million in 2005, a growth rate of 110 per cent from 2004, according to Huang Wanjie, director of Fushan High-tech Industrial Area.

In the first eight months of this year, the growth rate was more than 60 per cent compared with the same period last year, while the growth rates of incremental industrial value and tax revenue were 63.8 and 66.5 per cent respectively.

"By 2008 the Fushan zone will become an important auto parts base in North China with the most integrated production system, the largest production capacity and the best economic benefits," said Huang confidently.

"The fast growth has been attributed to the passenger car project Shanghai GM Dongyue Automobile Co Ltd, which is designed to make 300,000 cars annually," Huang said, "The sector started from nothing and is now a pillar industry for the zone."

To date, the zone has 75 such projects with an overall investment of US$122.5 million. The projects have employed 10,030 workers, accounting for 7.4 per cent of the zone's total employment.

The zone has developed a complete range of auto parts products oriented to both domestic and international markets.

The Japanese-funded Yantai Yazaki Automotive Parts Co Ltd, with overall investment of US$47.5 million, supplies its products to such automakers as Ford, General Motors, Toyota and Suzuki. Last year the company achieved US$75 million in sales value, US$6.9 million in tax revenue and US$100 million in exports.

Shandong Shangqi Auto Gear-box Project is funded by Shanghai Automotive Industry Corporation with US$190 million of investment. With the operation of its first phase alone, the project can make 300,000 sets of gearboxes a year, with an industrial output value of US$125 million and tax revenue of US$12.5 million.

Yantai Junhui Motor Mould Co funded by Honda from Japan is capable of making 1,000 tons of mould and 3,800 tons of standard dies and moulds annually. Sixty per cent of the products are exported.

Other successful companies include Shanghai Yanfeng Johnson Auto Seats Project and Delphi Electronic Wires Project.

Meanwhile the zone is also working on attracting environmentally friendly automobile projects.

Zhongshang Electric Passenger Car Project adopts the most advanced technologies to make wireless and trackless passenger cars.

Its first-stage project will see an annual production of 12,000 cars. The project is to be introduced to Beijing, Guangzhou, Harbin and other major cities in China by 2008.