Founded in October 2005, Changchun Corn Industry Park is situated in Xinglongshan Town which is on the “southwest-northeast industrial axis” of Changchun. The park totals 61.3 square kilometers with 49.1 square kilometers for layout and 8 square kilometers for initial development. On June 15, 2006, No. 74 [2006] Document, Approval of Province-level Preferential Policies for Changchun Konggang Development Zone by Jilin Provincial People’s Government, officially approved that both the park and Konggang Development Zone should enjoy the province-level preferential policies. The park is functionally divided into Core Area, Downstream Chemical Industry Area, Storage Area, Residential Area, Business Area, Hi-tech Industry R&D Area and Public Facility Area. The park takes Dacheng Group’s corn-based chemical polyol as the core technology to develop the downstream industries, and schedules ten years to create the world’s first manufacturing and processing center of synthetic fibers, engineering plastics and biological plastics, and the world’s first processing center of fine chemical products and finally to make the park the largest biological industry base of China for deep processing of corn chemical products and agricultural sideline products with an annual processing capacity of 8 million tons of corns and a total annual industrial output value of over RMB 100 billion.  

I Advantages

1. Technology Advantage

In September 9, 2004, the world’s first production line with proprietary intellectual property right for corn-base industrial polyol was put into operation here by Changchun Dacheng Group in Changchun Economical and Technological Developmental Zone. Through a-year-long production test, the production line proved to be technologically advanced and stable, and thus completely qualified for mass production. .

According to Dacheng Group’s contrastive analysis of production of chemical polyol with corn and petroleum, proportion of investment is 1:4, consumption, 1.76:8, and cost, 1:1.4, therefore corn is obviously more preferable than petroleum as raw materials for production of chemical polyol. Dacheng Group through constantly strengthening technological innovations has made progress in improving the production technologies and cutting the production cost, thereby becoming more competitive in the market. 

With the top-notch technologies, Dacheng Group has attracted close attentions from a batch of world famous enterprises such as ADM, America (Archer Daniels Midland Company, the largest supplier of agricultural sideline products), Mitsubichi Chemical Corporation, Japan (288th on Forbes List for World Top 500 Enterprises 2005) MITSUI & CO., LTD, Japan (148th on Forbes List of World Top 500 Enterprises 2005) and so on, which came one after another to discuss investment and cooperation with Dacheng Group.

2. Resource Advantage

As an important production base of corn in China, Changchun contributes 4% of China’s corn output, and 1/3 of the total of Jilin Province, and ranks the first in China in terms of planting area, output, per capita hold of corn, which lays a solid resource foundation for the development of corn industry in Jilin Province and Changchun City. In 2006, the total output of corn in Jilin Province was 19 million tons, and the actually planted area of corn in 2007 was 44 million mu, an increase of 0.5 million from 2006, which led to a surge of 1 million tons of corn. Jilin Province, the first largest province in production of corn in China, generates 1/7 of the total output of corn in China, and therefore has comparatively more advantages in resource of raw materials to develop processing industry of corn compared with other provinces in china.

3. Industry Advantage 

Dacheng Group, the largest corn-processing enterprise in Asia and the third largest globally, and the also one of the three model enterprises engaged in biochemical products of corn in China, has increased the annual processing capacity to over 2 million tons of corn, with the annual production capacity of 300,000 tons of lysine also ranking the first globally. In addition, Dacheng has also built the national R&D center with sufficient professionals, and has been able to manufacture 8 series including chemical polyol and polyester covering over 100 kinds of high value-added products. In 2006, Dacheng Group’s production value, economic return and export volume reached RMB 13.5 billion, RMB 1 billion and USD 120 million respectively. The record-breaking progress was made in export of lysine totaling 60,000 tons. As a blue chip listed in Hong Kong, Dacheng Group also has a strong financing ability which lays a solid foundation of funds for industrial development. As one of China’s production bases for petroleum chemicals, Jilin Province has good industrial groundwork and sufficient supply of raw materials, which is propitious to the development of the downstream products of chemical polyol.         

4. Scientific Research Advantage

Changchun is one of China’s central cities of science and technology and culture. In Changchun, there are 32 well-known institutions of higher learning such as Jilin University and Northeast Normal University and so on, 619 medium-level schools, 107 independent scientific research institutes, 0.3 million scientific personnel of all varieties, thereby making it one of the rare knowledge intensive cities in China which can provide investors sufficient talents and labor forces. 

The scientific research power, which is deeply rooted in such scientific research institutes for food and corn-based chemicals as National Corn Research Center, Changchun Applied Chemistry Institute, Jilin Provincial Research Institute for Agricultural Special Local Products and Jilin Agricultural Science Academy as well as Jilin University, Northeast Normal University and Jilin Agriculture University, provides strong technical supports for the development of the corn industry park.   

5. Location Advantage

Located adjacently to the geometric center of the economic circle of Northeast Asia, Changchun is at crucial traffic crossing of lines between the main artery of Jingha Railway and Tuwu Highway in Northeast China. Nearly all expressways and highways including Changji, Changbai, Changyi, Chang’an and Changshuang inside Jilin Province crosses within Changchun, which makes Changchun a regional traffic hinge. There are 15 big or medium-sized cities with a total population of approximately 2000 people surrounding Changchun within a radius distance of 300 kilometers. With over 60 cities totaling 40 million urban populations and an urbanization level of up to 35%, the northeastern area of China has great market potential.

　　Changchun Corn Industry Park is located in the northeast of Changchun’s Xinglongshan Town which is on the “southwest-northeast industrial axis” of Changchun’s overall layout. It is the main battle field of entrepreneurship of Changchun Economic and Technological Development Zone. It is closely adjacent to State Road 102 and City Ring Expressway of Changchun in the west, and 1 kilometer away from Kalun Lake Provincial Road 101, with a railway route to Jilin running through the park in the east. Located at the city’s lower, flat place with a draught, 14 kilometers away from Changchun Longjia International Airport, with advanced traffic network offering convenience for railway, highway and air transportation, the area in the east, north and south of the park is assimilated by that under the jurisdiction of Xinglongshan Town, and is reserved for industry of Changchun. Key factors such as power stations, water plants, coal mines and communication supportive for the development industry are around the park. All these make it an ideal place for the development of corn-based chemicals.   

As the main body of the park, Changchun Economic and Technological Development Zone, is a national level development zone with many years of practical experience in development and construction. It can not only offer high-level investment infrastructures, but also provide high-quality services for enterprises settling in the park.

6. System Advantage

In order to strengthen leadership for the construction of Changchun Corn Industry Base, Changchun has set up a high-profile organizing and guaranteeing organ consisting of secretary general of Changchun, director of Changchun Municipal People’s Congress and mayor as well 3 vice mayors of Changchun with such governmental departments as Development and Reform Committee, Economy Committee and Construction Committee as member units. Changchun Economic and Technological Development Zone has also established an administrative committee in charge of the construction of the park.  

　　Changchun Corn Industry Base, an important part in the construction of new-style industry base in the Compendium of the 11th Five-Year Plan for the Socioeconomic Development of Jilin Province, holds firmly the advantages of leading technology of corn-base chemical polyol, brings into full play the advantage of corn resources, integrates R&D resources of corn technologies according to the development direction of biochemical materials, functionalized raw materials and biological energies, sets up integrative development platforms, strengthens in-depth development, extends industrial chains, further associates with industries of petroleum chemicals, textiles and new-style materials, forms corn processing industrial unions, and strengthens the key initiatives tailor-made for consolidating the strategic position of corn industry. The construction of Changchun Corn Industry Base can completely improve the corn production quality, speed up the construction of high-quality corn industry bases, help increase the comprehensive benefits of agriculture and boost the agricultural modernization, thereby eradicating the issues related to “agriculture, farmers and rural areas”. The corn industrial chain can be extended and enlarged through the construction of Changchun Corn Industry Base, and in turn the development of hi-tech industries in Jilin Province greatly can be promoted, comprehensive utility of corn improved, added-value level increased, and many other industries including textile, auto, food, medicine and material will be facilitated as well. Construction of Changchun Corn Industry Base can also exploit market within Jilin Province for petroleum chemicals made by Jilin City, change the history that Jilin Province is a base for chemical materials, strengthen economic relations between the two cities Changchun and Jilin, effectively promote the economic integration between Changchun and Jilin, and improve the radiant influence on economy of the whole province. The construction of Changchun Corn Industry Base is of great overall economic and political importance to Jilin Province’s improvement in industrialization, urbanization, marketization and internationalization, promotion of construction of the new socialist countryside and earlier realization of the goal of revitalizing the old industrial base in Jilin Province  

II Perspective Layout

During the “11th Five-Year Plan”, high priority shall be given to the chemical polyol project, construction of necessary supporting infrastructures and such programs on products deriving form chemical polyol projects as well as start of production of lactic acid and polylactide (PLA). By 2010, an annual comprehensive production capacity of 5 million tons of corn will be formed. By 2015, production of lactic acid and PLA will be expanded, such products as corn-based Hydroxypropionic acid and succinic acid will be developed, and an annual comprehensive processing capacity of 8 million tons of corn and production capacity of 3.2 million tons of chemical polyol and downstream products will be formed as well.

1. Industrial Chain Layout

Under this goal, the product chain of Changchun Corn Industrial Base is mainly featured by development of such materials and products as synthetic fibers, ecological plastics and engineering plastics and so on. Efforts will also be made to selectively develop corn-based products such as daily chemicals, foods and medicines and so on along with moderately developing such fine chemicals with comparatively good market potential as modified starch, starch sugar, and food additives and so on. In addition, according to the latest foreign technologies for thyl acetate, attentions will be paid to produce thyl acetate and the simultaneously produced hydrogen can be used for the production of polyester polyol.

III Progressive Circumstance of Changchun Corn Industry Park

To fulfill the four goals set at the beginning of the year, namely, to further improve supporting functions of the infrastructures in the park, to steadily boost the construction of key projects, to make concrete progress in attracting investment, and to change Xinglongshan Town into a new look, all work are progressing smoothly with certain achievements already having been made.  

1. Supporting Projects in All-out Construction  

This year, RMB 1.12 billion will be put on infrastructures on the basis of the road network totaling 8 square kilometers completed last year to develop 2 square kilometers of land for 27 projects to measure up the standard ”seven accesses and one leveling”, and therefore the demands of project construction and investment attraction will be met. Meanwhile, “three links” will be realized which means linking the park with Provincial Road 101, and State Road 102, linking the park with the Bonded Logistics Center in Konggang Development Zone, and linking the park with life service area. 

Construction of the 5 out of the 11 roads has so far been started with construction for the rest to get started soon. Flood discharging project has been started, and raw water supply project is under construction which is expected to get operational in October. Firehouse is under construction and will be completed by the end of this year. Before this winter, three temporary heating supply houses will be completed to meet the demands of heating and gas. Preliminary preparation for the heating supply plant will be completed by the end of this year, and the whole project is expected to be finished next year. Such companies as Unicom, Mobile, Netcom and Cable TV and so on will pipe communication network as the construction of road network progresses. Having been approved, the specially used railway has been designed and organization for construction is under way. Sewage treatment project is under discussion on concrete agreement with investors. Application documents for the reconstruction of the Provincial Road 101 and State Road 102 within Xinglongshan Town has nearly been stamped, with land requisition and reconstruction of telecommunication and power network under way. The project for Railway Bridge is under examination and approval process by Jilin Provincial Department of Traffic. 

2. Key Projects under Smooth Process

Under the concept of “giving more efforts to put 0.2-million-ton chemical polyol project into operation, and to start the 1-million-ton chemical polyol project”, active efforts will be made to create favorable conditions for the construction of seed projects. At present, the 0.2-million-ton chemical polyol project has been put through production test on June 13th, and the 1-million-ton chemical polyol project was started on April 22nd. And meantime, in line with concept of “marching forward does not depend on one horse only”, the 1-million-ton starch sugar project has been completed and will get operational very soon. According to plan of building supporting processing base for corn industry, the construction of 100,000-ton project of Hong Kong Migao’s starch sugar project and 80,000-ton project for potash fertilizer project were already started on April 22nd. Under the concept of establishing biochemical industrial base, the construction of Jifa Group’s project of refining high-purity amino acid products by using animal fur, feather and blood was actually started on April 24th. Liansuo Group’s project of plastic pipe materials is under transaction procedure for startup.

　　The total investment for the 11 projects that are under construction is RMB 15 billion, of which RMB 2.7 billion is planted to invested in 2007, and once all projects get operational, the newly added annual output value together with the profit tax is estimated to reach RMB 50 billion and RMB 12 billion respectively. Of them, one project is estimated to bring a total annual output value of over RMB 10 billion. Dacheng Group’s of 1-mllion-ton chemical polyol project is expected to realize a yearly output value of RMB 22.4 billion. Three projects are respectively expected to bring an annual output value of RMB 1 billion. Hong Kong Gaonong’s amino acid project, Dacheng Group’s 0.2-million-ton chemical polyol project, and Chengchanglong’s project are expected to bring an annual output value of RMB 3.75 billion, RMB 1.75 billion, and RMB 1.04 billion respectively. 

3. Remarkable Achievements Made in Investment Attraction

A wide range of effective measures have been taken to attract investment and expand the fields from which investment may be attracted. Development fields have been widened through the change from singly introducing corn chemical projects to extensively ushering in deep processing projects for agricultural projects of all kinds (including food processing project), related petroleum chemical projects, and supporting projects for flagship enterprises. Along with actively creating the industrial chain “ mixed alcohol---- unsaturated polyester”, close attentions are being paid to attract investment for all corn-based products, introduction of projects including production of ethanol, building materials and active feedstuffs with corns straws, and introduction of deep processing projects of corn husks and corn cobs so that the industrial chain can be expanded. Efforts are being made to research and develop the projects such as storage and logistics and so on so that the supporting enterprises can be made stronger and larger. An agreement worth RMB 400 million on plastic pipe materials with Liansuo Group, and the one with a total investment of RMB 73 million for constructions including a standard industrial workshop covering a total land area of 35,000 square meters with Xinglong Industry Company have been signed. 

4. Reconstruction of Xinglongshang Town Progresses Smoothly

With the project of widening the Provincial Road 101 as an opportunity, and according to the city zone standard, Xinglongshan Town is under layout, design and construction from high jumping-off points and with distinctive features. A total of RMB 100 million social funds are to be input to build a shopping mall covering a total land area of 22,000 square meters so as to make it a reality that venders can “withdraw from side road and enter into indoor market”, which is under design and is expected to completed by the end of this year. Approaches based on market are to be adopted for the project to build buildings totaling RMB 90 million investments and 50,000 square meters of land area for the citizens withdrawing from shanty towns, which is under transaction procedures and is to be completed by the end of this year. Bungalows along the two sides of the Provincial Road 101 will be torn down or reconstructed, and in the meanwhile infrastructures inside the town for supply of water, electricity and natural gas and so on will be completed upgrading and constructing to promote the regional images and functions to meet the demands of investors, entrepreneurs and residents for life or business purposes, and to highlight popularity, prosperity and opportunity to boost harmonious socioeconomic development of Xinglongshan Town.