Five firms from Chinas eastern province of Jiangsu have committed to invest an estimated AED1.1bn ($300m) in the yet to be constructed China-UAE Capacity Demonstration Park, an industrial zone to be located at Area A of the Khalifa Port Free Trade Zone.
The industrial zone, which will occupy a land area of about 2 square kilometres, is understood to cater to firms specialising in energy, aluminium, biomedicine and food production facilities, among others.
The Jiangsu Provincial Overseas Cooperation and Investment Company (Jocic) has been designated as the main stakeholder of the industrial zone after signing a 50-year lease agreement with the Abu Dhabi Ports Company.
The Chinese firms signed an investment cooperation framework in Abu Dhabi on 31 July.
The firms and their planned investments in the industrial zone include:
- Hanergy Thin Film Power Group: AED800m in thin film production
- Guanzheng Group: AED155m in integrated industrial composite plant
- Fantai Mining: AED82m copper production of non-ferrous metals
- (Fifth firm): AED55m steel production
- Jiangsu Jinzi: AED163m for environmental protection equipment
The Bank of China also signed a strategic cooperation to provide low interest financing to the companies that will set up in the zone.
These agreements follow the signing of a contract in September last year between Abu Dhabi Ports and Chinas Cosco Shipping Ports to form a joint venture to build and operate the second container terminal at the Khalifa Port.