Rising Central Parts Industry

On November 29th, several representatives from the National People's Congress visited the Kongji Auto Parts Industrial Park in Changfeng County, Hefei City, Anhui Province. This industrial park, spanning 10 square kilometers, is home to over 50 "Golden Phoenix" enterprises from seven provinces and cities, including Zhejiang, forming the largest component industrial cluster in central China. Once an obscure town, it has transformed into a thriving hub of auto parts manufacturing within just two years. The area now hosts major companies such as Jiangjiang Ten Thousand Casting Center, Hefei Wanxiang Qianchao, Zhejiang Wanan Group, Wanshourly Group, Xingtong Rubber and Plastics Machinery, and Haofeng Machinery. These firms have established themselves in the park, creating a focused industrial cluster centered on casting, stamping, and machining. Experts have dubbed it the Chinese version of "Volkswagen," with the park becoming a key production base for automotive and construction machinery parts in Anhui. The Industrial Park Management Committee Director, Sheng Shengtang, noted that the park not only serves as a supply hub for JAC but also supports Chery, Changhe, Chang’an, Guangzhou Automobile, Jinlong, and Yutong. Its strategic location near Hefei, connected by Hehuai Road and major expressways like HeNing, HeXu, and HeYi, makes it easily accessible—just 15 km from JiangZe. Before 2002, Jiangqi Group had only two supporting companies in Kongji. However, Zuo Yan'an, chairman of Jiangqi Group, was impressed by the logistics efficiency and conceived the idea of establishing the JAC Auto Parts Industrial Park. This initiative brought significant changes to the region, leveraging Kongji’s geographical advantages to create a half-hour spare parts supply chain, boosting overall benefits through efficient logistics. Jiangqi Group actively supported the development of the park, treating it as more than just its own garden. It provided space for other companies to grow. For instance, Zhejiang Vientiane Group invested 45 million yuan to set up Hefei Wanxiang Qianchao Parts Co., Ltd., which became operational in 2003. The company increased its investment to 10 million this year and 20 million last year. Similarly, An Group, a leading manufacturer of automobile brake pump valves, saw its local business volume increase by 1.5 times after joining the park. Meanwhile, Hefei Xingtong Rubber and Plastics, a Taiwanese firm, expanded its revenue from 43.7 million yuan in 2003 to over 100 million yuan this year. The park's appeal has drawn well-known companies such as 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 for the park's development. Within just 400 days, the park attracted over 6 billion yuan in investments, including seven companies exceeding 100 million yuan in scale. The park generated over 1 billion yuan in industrial output, 200 million yuan in profits, and 30 million yuan in taxes. It has also created over 8,000 jobs, with per capita income rising from 400 yuan to over 1,000 yuan. Once a small agricultural town, Kongji has evolved into a key auto parts center. This year, it is expected to achieve sales revenue of 550 million yuan. The Anhui provincial government plans to develop the park into the sole auto parts base in the province. Changfeng County continues to seek greater collaboration with Jiangqi. To expand the production of complete vehicle parts, the park is investing heavily in infrastructure. Recently, it allocated 5 square kilometers for a new 6,000-mu automobile park, aiming to become the central region’s leading auto parts town.

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