Nursing the Auto and Aviation Industries

TIE Beijing Automotive Production Base (BAPB), establishedin 2003, is one of the capital’s modern manufacturing enginesand provides thrust to its general economyas well. Located in the northeastern suburban district of Shunyi, its 19-squarekilometer property rests adjacent to theBeijing Capital International Airport andTianzhu Free Trade Zone. Currently employing 8,176 people, it reported an outputvalue of RMB 63.64 billion in 2010.

Lifting off from Autos

The production base is a synthesis ofbusinesses and establishments that represent the full spectrum of the auto industry.Within its perimeter are auto makers,headed by Beijing Hyundai and BeijingAutomotive Industry Holding Co., Ltd.,a research institution-Beijing ATC, thequality-control authority-Beijing AutoQuality Supervision Inspection & TestingStation, auto dealerships, and a trade paper China Automotive News. It also servesas the hatching ground for local brandsof civic vehicles. After the constructionof Beijing Hyundai’s No.3 plant brokeground at the end of last year, the base wasready for the strong boost that would giveits production capacity.

Recently BAPB successfully bifurcated, opening a business line in the aviation industry. In 2009 Aviation IndustryCorporation (AVIC) moved three of itsbranches into the area-AVIC Engine,AVIC Systems Co., Ltd. and AVIC Technology Foundation Establishment. Thebase has had to establish a specific section for the swelling ranks of the aviationbusinesses.

The automotive park is organized intoquarters: one for end-to-end assembly ofcomplete vehicles, one for parts and accessories, one for research and development and one spare quarter for pendingpurposes. The aviation park consists offive enclaves, all run by AVIC, and covering logistics, the AVIC International Industry & Trade Park, AVIC Systems, AVICTechnology Foundation Establishmentand AVIC Engine Park. The AVIC International Industry & Trade Park was broughtto life with an investment of RMB 59o million and construction is underway on itslo-hectare allotment. On completion it willstraddle both auto and aviation sectors,including the functions of airplane partsmanufacturing and distribution, R&D andassembly of special-purpose vehicles andR&D and production of electric drive unitsfor electric cars.

Service Matters

It is traditional for auto R&D institntions to mostly snuggle up to a select fewentities: universities, auto quality supervision and testing administrations, companies doing third-party development andparts/accessories, and locations near R&Dcenters for complete cars. BAPB flourishes thanks to the preeminence of brandshaving operations in the region and thetechnological strength and related servicesavailable there.

In this regard the Hyundai plant, Beijing Automotive Industry Holding Co.,Ltd., and Beijing Auto Quality Supervi sion Inspection & Testing Station workas magnets to medium-sized and smallauto R&D and design companies. Theyprovide potent sci & tech support to businesses in the base.

The base also encompasses completeservice functions that ensure both convenient living and efficiency at work for itstenant-employees. The well-appointedService Tower puts key service providersunder one roof, including accounting, legaland financial outlets. Meanwhile, the Service Tower also serves as an informationexchange platform for companies in theregion.

Beefing Up Four Fronts

BAPB sees itself not only as a inanufacturing hnb, but also a plafforin of industryinformation, of financing for sci & tech innovation and of human resources services.It optimizes its managelnent talent baseto meet the varied demands of local enterprises, and what’s more, to bring out thebest in preferential policies for relevantindustries.

Innovation is vital to any technologyintensive industry. To keep the growthand that of its tenants chugging along, inthe coming five years BAPB will focus onresearch and development of hi-tech products, including engine control chips, andcontrol modules for airbags, ABS and navigation. To do so it plans to bring in morecompanies competent in these reahns. Theadvantage of such a confluence is significant and apparent, particularly for R&Dbusinesses of smaller sizes: the overheadcost and the burden of capital equipmentcosts can be brought down.

The base exploits all financing meansand resources to give its colnpanies fullfinancial backing, including the BT (BnildTransfer) mode, and the PPP (Public-Private Partnership) mode. It also taps intothe AVIC Fund and venture capital funds,assists companies to apply for low-interestbank loans, and encourages the qualifiedto raise funds by listing on the Growth Enterprises Market.

BAPB is as committed to building itstalent pool as upgrading its infrastructureand services. It is mulling over establishment of a talent fund which will be usedto subsidize researchers participating inkey sci & teeh innovation programs, inparticular those whose studies mesh withthe priority sectors of the auto and aviation industries BAPB has singled out forlong-term development. While wooing investment and projects, the base makes anequal effort to court top-ranking professionals, with the understanding that manpower is the fundamental force behindsocial and economic development.