Rising Central Parts Industry

On November 29th, representatives from the National People's Congress visited the Kongji Auto Parts Industrial Park in Changfeng County, Hefei City, Anhui Province. Nestled within a 10-square-kilometer area, the park is home to over 50 "Golden Phoenix" enterprises from seven provinces and cities, including Zhejiang. This has created the largest component industrial cluster in central China, showcasing remarkable growth and economic development. Once an obscure town, Kongji has transformed into a thriving hub of auto parts manufacturing in just two years or more. The park has attracted major players such as Jiangjiang Ten Thousand Casting Center, Hefei Wanxiang Qianchao, Zhejiang Wanan Group, Wanshourly Group, Xingtong Rubber and Plastics Machinery, and Haofeng Machinery. These companies have established themselves in the park, focusing on casting, stamping, and machining—key sectors in automotive components. Experts have dubbed it the Chinese-style "Volkswagen," highlighting its role as a critical production base for automobile and construction machinery parts in Anhui. The Industrial Park Management Committee Director, Sheng Shengtang, emphasized that the park is no longer just a supplier for JAC but also supports other major automakers like Chery, Changhe, Chang’an, Guangzhou Automobile, Jinlong, and Yutong. Its strategic location, with Hehuai Road running through the town and connecting to major expressways, makes it easily accessible. Just 15 km from Jiangze, the area benefits from convenient transportation networks. Before 2002, Jiangqi Group had only two supporting companies in Kongji. However, Zuo Yan'an, Chairman of Jiangqi Group, was impressed by the efficient logistics in the region. This inspired the idea of creating the JAC Auto Parts Industrial Park, which brought significant changes to this once-remote area. Leveraging Kongji’s geographical advantages, the park established a half-hour spare parts supply chain, maximizing logistical efficiency and business benefits. To support the park’s development, Jiangqi Group not only sees it as its own "garden" but also actively helps the industrial park grow. For example, Zhejiang Vientiane Group invested 45 million yuan to establish Hefei Wanxiang Qianchao Parts Co., Ltd., which became operational in 2003. The company has continued to invest, with support reaching 10 million yuan this year and 20 million yuan last year. Another company, An Group, known for producing brake pump valves, saw its local business volume increase by 1.5 times after joining the park. Similarly, Hefei Xingtong Rubber and Plastics, a Taiwanese investment, boosted its revenue from 43.7 million yuan in 2003 to over 100 million yuan this year. The success of the Jiangqi Industrial Park has drawn attention from well-known enterprises across China, including Guangdong Yanda, Hebei Quanzheng, Liaoning Chaochai, and Indore Auto Parts. In 2023, the General Manager of Jianghuai Automobile Co., Ltd., An Jin, and the Governor of Changfeng County, Nie Aiguo, signed a cooperation agreement to further develop the park. By the end of this year, the park has attracted over 6 billion yuan in investment, including seven companies exceeding 100 million yuan in scale. The park has achieved an industrial output value of over 1 billion yuan, with profits exceeding 200 million yuan and tax contributions surpassing 30 million yuan. Additionally, the park has created over 8,000 jobs, with average income rising from 400 yuan to over 1,000 yuan per person. Kongji has evolved from a small agricultural town into a key center for auto parts. It is expected to achieve sales revenue of 550 million yuan this year. The Anhui provincial government aims to position the park as the sole auto parts base in the province. Changfeng County continues to seek stronger collaboration with Jiangqi, investing heavily in infrastructure and planning a new 6,000-mu automobile park on 5 square kilometers of land. This ambitious project aims to make Kongji a leading auto parts town in central China.

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