Samsung arrives, resolves 'Shaanxi paradox'(2)

"Industrial highland" optimizes structure

The powerful driving force of Samsung will send great "shocking waves" to the province's economic restructuring.

After Samsung's announcement of the investment plan in Xi'an, the Xi'an branch of Air Products, one of the world's largest industrial air producers, was set up in April, intending to serve customers including the Samsung plant and expecting an investment of more than US$ 200 million in the coming few years in the city.

The Samsung phase I project, after completion, is expected to create an annual output of 66 billion yuan, said Zhao, and meanwhile bring in more than 160 supportive enterprises, creating an industrial cluster that would soon boast an annual output of over 100 billion yuan and provide more than 10,000 jobs.

"The settlement of Samsung is expected to boost the IT industry revenue in Xi'an from 78 billion yuan of 2011 to 300 billion yuan by 2015," said Dong Jun, mayor of Xi'an.

As energy and chemistry take more than 50% of Shaanxi's industrial economy, the settlement of Samsung will turn IT into a real pillar industry of the province and give a strong push to industrial restructuring and core competitiveness, said Lou Qinjian, executive governor of Shaanxi.

As Shaanxi houses a large batch of IT research institutions and enterprises, Lou said, the Samsung project will render great support to enterprises at both upper and lower reaches of the industrial chain, so as to help them cut costs and improve techniques, finally shaping a regional IT industrial cluster.

Samsung's semiconductor manufacturing goes far ahead domestic makers and it will employ 70% engineers locally, said Zhao. This, plus the innovative concepts, mechanisms and management that comes along, will help us cultivate more innovation-oriented people.