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BAIC Group's Huanghua Base Goes into Production, Creating New Achievements in the Beijing-Tianjin-Hebei Region

2015-11-27


On November 22, 2015, the BAIC Group's Huanghua Branch Founding and Production Launch Ceremony was held in Huanghua, Hebei. The founding and Production of Huanghua branch represents a positive response by the BAIC Group to the national Beijing-Tianjin-Hebei Region coordinated development strategy. By taking advantages of this strategic opportunity, the Group produced another new achievement in Hebei for industrial distribution.

"The BAIC Group's rapid development in recent years has benefited from the nation's remarkable development of the manufacturing industry and key support for the development of the automobile industry. It has benefited from its strategic positioning and implementation of enterprise transformation, as well as the improvement and development of its brands' whole value chain. Huanghua enjoys excellent regional advantages and has become a vital strategic option for the BAIC Group's Beijing-Tianjin-Hebei Region coordinated development strategy. The Huanghua Branch Founding and Production Launch Ceremony, held by the BAIC Group today, represents the group's confidence and commitment to realize its coordinated development strategy in the Beijing-Tianjin-Hebei Region." commented Xu Heyi, BAIC Group's Secretary of the Party Committee and Chairman.


Layout in Huanghua; Coordinated Development 

In 2014, combining the capital's urban function new positioning, the BAIC Group proposed its development strategy of "transforming from a traditional manufacturer to a manufacturing services and innovation enterprise model" setting down a new layout for the automobile industry and becoming a vital component in implementing the Beijing-Tianjin-Hebei Region's coordinated development strategy. Moreover, relying on said strategy, the city of Huanghua proposed its "Huanghua Automobile City" plan aimed at becoming a demonstration project in the Beijing-Tianjin-Hebei Region's coordinated development. Huanghua's developmental goals correspond perfectly with the BAIC Group's strategic objective of transition paving the way for an agreement to be easily reached over the group's construction of the Huanghua Base. In 2013, the BAIC Group's subsidiary BAIC Motor was first to enter the region, with technical upgrading and construction of BAIC Group's Huanghua Branch officially launched in April 2015.

The new branch is situated in the Automobile Industrial Park of Hebei Province's Huanghua City. It is a vehicle operating enterprise that covers R&D, production, sales and other whole value chain factors. The project is divided into two phases of construction, with the primary products including economic passenger vehicle models of SUVs and MPVs. The Phase 1 planning and design capacity is set to achieve an annual output of 300,000 vehicles, with an estimated annual output of 150,000 vehicles being generally achieved in 2015, and 300,000 being reached by the end of 2016. The Phase 2 plan will achieve an annual output capacity of 300,000 vehicles and 300,000 engines, and is estimated to be completed and put into production by 2018. After the BAIC Group's Huanghua Branch is established and officially put into production, it will contribute to the BAIC Group's continued push into the automobile industry and perfect its value chain system.

Xu Heyi commented that the BAIC Group's Huanghua Branch would bring full play to the group's and Huanghua's advantages, forming a whole value chain industry cluster and driving regional economic development, while also providing indispensable support for the group's 13th Five Year Plan growth in scale.


BAIC Speed; Constructing Huanghua

In fact, the establishment of the BAIC Group's Huanghua Branch represents another big move for the group in the Beijing-Tianjin-Hebei Region's coordinated development. Before this, the group had already formed ties with Hebei's Cangzhou, where it constructed four Beijing Hyundai factories. In order to form an industrial agglomeration effect and drive regional development, the BAIC Group accelerated the Huanghua Branch Project's construction via precision positioning, long-term planning and support from collectivization, and created the "BAIC Speed" series to turn Huanghua and Cangzhou into a developmental model for attracting strategic investment.

In less than four months, from its launch in April 25, 2015 to August 15, 2015, the Huanghua Base Phase 1 Project completed the construction and transformation of four primary technically related auxiliary functions—stamping, welding, coating and general assembly—giving the base full, independent vehicle production capacity and realizing the concept of "BAIC Speed" in factory construction. At present, the BAIC Group's Huanghua Base already boasts six production lines, while the city of Huanghua has gradually formed into a whole industry chain providing automobile manufacturing, automobile modifications, parts manufacturing, logistics and exporting.

Planning the Future; Working Together to Build an "Automobile Dream"

According to the Huanghua City Automobile Industry Development Plan, the city will adhere with the fundamental concept of "manufacturing automobiles to create a city", follow the developmental direction of building an industrial chain of technology services and manufacturing services, focus on creating a large automobile industry, and drive the city's transition and construction of service enterprises.

Build a nest to attract the phoenix and drive development. By 2016, the BAIC Group's Northern China Industrial Base will reach a production capacity of 300,000 vehicles. By 2020, the BAIC Group's Automobile Industrial Base will achieve an annual output value of RMB 50 billion, with tax payment of RMB 2.5 billion and will provide 10,000 employment positions.

At the same time, with support from the BAIC Group's Northern China Automobile Industrial Base, overall planning for the automobile industry in Huanghua City in the Bohai New Area will occupy 33,000 mu, with the creation of a whole industrial chain project cluster. This will include an annual output of 600,000 passenger vehicles and new energy vehicles, 100,000 special purpose vehicles and 300,000 engines, vehicle parts processing, vehicle parts remanufacturing, a proving ground, an automobile logistics base, a comprehensive bonded zone for vehicles in Huanghua Port, a roll-on/off terminal at Huanghua Port and other projects. It is estimated that by 2020, production value will reach RMB 100 billion.

With the Beijing-Tianjin-Hebei Region coordinated development strategy, the BAIC Group once again welcomes a historic development opportunity. The Huanghua Branch's production and further development, has undoubtedly become a major aid for the BAIC Group's Beijing-Tianjin-Hebei Region coordinated development layout and its transition and upgrading.

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