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Manual The 1st Sino-German SME Cooperation Zone in South China Sino-German Metal Eco City 中德金属集团 Zhongde Metal Group 2016

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Manual

The 1st Sino-German SME Cooperation Zone in South China

Sino-German Metal Eco City

中德金属集团Zhongde Metal Group

2016

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Location and Transportation

About the Sino-German Metal Eco City

International Cooperation

Cooperation Results

Demonstration Projects

Production Facilities

Living Facilities

Ecological Facilities

Establishment of the Metal Enterprises Union of Jieyang

Establishment of ZhongDe Metal Group

Development History

Project Overview

Sino-European Cooperation

Supporting Facilities

Background

Headquarters & Subsidiaries

Sino-German Resource Regeneration Base

Polytechnik Biomass Power Generation Project

Bauku Intelligence Pipe Network System Project

Menrad Optics (Asia) Manufacturing Site

DeVeTec ORC Plants Manufacturing Project

Guardwin Robot and Automation Project

Bestir Presicion Tools Production Project

Delight Precision Mould Intelligent Manufacturing Project

Guangdong Desun Environmental Technology Project

Four Centers

Industrial Exhibition Hall

Zero-Wastewater-Discharge Surface Treatment Center

Sino-German Cooperative Innovation Base

Sino-German InnoHub International Incubator

International Cooperation Base of Science and Technology in the MEC

Sino-German Cross-Border E-Commerce Industrial Park

Sino-German University of Applied Sciences

Staff Community

MEC Culture Center

Arterial Roads

Sino-German Expert Service Base

van Beethoven Nature Park

Sculpture Park

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2 Sino-German Metal Eco City

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Jieyang, with a land area of 5,240 km2, is a famous historical and cultural city in Guangdong Province. As the birthplace of Chaoshan culture, it is recognized as "China's Hardware Base”, "Hometown of Overseas Chinese" and "Asian Jade City". In 2015, the total import and export value was USD 7.045 billion, up 29.0%, and the GDP of Jieyang was RMB 189.001 billion, with the average annual growth rate in recent five years reached 11.8%. Under the circumstance that the national and provincial import and export value decreased by 7.0% and 3.9% respectively, Jieyang achieved rapid economic growth by virtue of export and was highlighted in the annual economic operation.

Here gathers 7,600 metal enterprises and 400,000 employees. With the history in metal processing of over 1,000 years, it is a national decisive base for production, import & export, material distribution, processing and R&D of metal industry. Through developing for over 30 years, the metal industry in Jieyang is large in scale, but faces difficulties in continuing devel-opment.

In order to push forward the transfor-mation of the traditional metal industry, Jieyang joins hands with Germany and other European countries, planning and constructing the Sino-German Metal Eco City with an innovative way of coopera-tion. Taking "international cooperation, market orientation, whole industrial chain, environmental friendliness, industry-city integration" as the unique park-running idea, the Sino-German Metal Eco City (MEC) intends to create a communication and cooperation platform for Chinese and German (European) SMEs to achieve mutual benefit and win-win result.

Preface

3The 1st Sino-German SME Cooperation Zone in South China

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Aviation Railway

Highway Water Transportation

Location and Transportation

Jieyang Chaoshan International Airport is just about 10 km away from the MEC with flights to areas including Shanghai, Jiangsu Province, Zhejiang Provinces, Nanjing and Taiwan. It has specially arranged many international flights for global connectivity. Only 1 hour is required from Jieyang to Hong Kong and the Pearl River Delta by flight.

Shantou–Kunming Expressway, Jieyang-Puning Expressway, Chaozhou-Huizhou Expressway and Shantou-Jieyang-Meizhou Expressway run through the MEC. These expressways together with the three arterial roads (Sino-German Avenue, Pearl Avenue and Rhein Avenue) help to construct a complete external trans-portation network that connects the MEC with the surrounding cities.

Several railways are around the MEC. Xiamen-Shenzhen High-speed Railway, Guangzhou-Meizhou-Shantou Railway, Guang-zhou-Shenzhen Railway, Beijing–Kowloon Railway and Bei-jing-Guangzhou Railway pass through it. The MEC is 15 km to Chaoshan Station of Xiamen-Shenzhen Railway and a dedicated railway freight station will be set up in it.

The MEC is 12 km to the main stream of Rongjiang River, which is about 175 km long and allows 10,000-ton freighters to go through without hindrance. In the future, access to the Pacific Ocean will be provided by the planned 300,000-ton wharf in Hui-lai County of Jieyang, which lowers costs and improves efficiency of international logistics in the MEC.

Project Overview

4 Sino-German Metal Eco CityLocation and Transportation

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Jieyang, the city of Guangdong Provincelocated in the radiation belt of the Pearl River Delta Economic Zone in which the economy is the most vigorous in China.

Sino-German Metal Eco City

Chaozhou

Jieyang

Jieyang Chaoshan International Airport

Chaoshan Railway Station

Shantou

Jieyang

Shantou

Hongkong

Shenzhen

Guangzhou

Xiamen

Taipei

Guangdong Province has a population of 100 millionwhile Jieyang has over 7 million

5The 1st Sino-German SME Cooperation Zone in South China Location and Transportation

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Park-running Mode

About the MECThe Sino-German Metal Eco City (MEC) is situated in Jieyang City of Guangdong Province. With a planned area of about 23.4166 km², it is one of the two Sino-German SME cooperation zones in China approved by the Ministry of Industry and Information Tech-nology of the People's Republic of China. After its completion in 2020, it's expected to achieve an output value of over RMB 100 billion.

For the purpose of building a new industrial city with German DNA that covers the whole industrial chain and integrates city and industry, the MEC introduces the advanced operation and management experience of WISTA-MANAGEMENT GMBH, which operates Berlin-Adlershof Science and Technology Park, one of the most modern industrial parks in Europe.

Consisting of three phases, the Joint Innovation Town, the Mo-tivation Town and the Wisdom Creation Town, the MEC makes joint efforts with German and European institutions to plan and build six platforms of Trading of Diverse Products, Technological Innovation and Industrial Design, Metal Product and Machinery Manufacturing, Human Resources of Metal Industry, Resource Recycling and Metal Industry Finance. It mainly focuses on the industries of energy conservation and environmental protection, advanced equipment manufacturing and metal works, active-

ly exploring new park construction and management system, innovative international cooperation, and the new pattern of transformation and upgrading of traditional superior industries. It is expected to introduce 300 Sino-German (European) coop-eration enterprises to settle down, and build a “green city with workshops under the trees, households beside the factories, and a vast forest around the city” that integrates industry and city as a demonstration project.

The MEC is the first industrial park in China that is constructed under the leading of the local enterprises union and owns the land use right, enjoying the right of making regula-tions for the park so that the enterprises can flexibly adapt to the market changes.

Led by Party Committee, guided by government, dominated by association, invested by enterprises and a market-oriented operation

Joint Innovation Town

Motivation TownWisdom Creation Town

6 Sino-German Metal Eco CityAbout the MEC

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International CooperationZhongDe Metal Group Co., Ltd. (ZhongDe) is in charge of devel-oping, raising and operating the MEC. In 2012, more than 700 metal enterprises co-built the Metal Enterprises Union of Jieyang, and set up an industry fund to launch the project of the MEC.

In 2014, ZhongDe Metal Group GmbH was established in Stutt-gart as an exchange platform between Chinese and German En-terprises. The company has also set up 10 representative offices in Germany, Spain, Austria, France and Czech Republic, providing relevant services for German (European) SMEs to enter the MEC and improving access to markets for enterprises from both coun-tries.

· Cooperate with Fraunhofer-Gesellschaft to co-build the Institute for Technology Transfer (IFT).

· Plan to build alliance and partnership with Esslingen University of Applied Sciences, and undertake reform according to German

dual vocational education system.

· Sign a strategic cooperation agreement with AHK Greater China.

· Become member of the Chamber of Commerce and Industry of China in France to strengthen communication between leaders of both countries.

· Sign the agreement on the Establishment of Comprehensive Strategic Partnership with Confederation of Industry of the Czech Republic.

· Reach strategic cooperation agreements with Eurecat, PIMEC and Valencian organizations and research institutes in the field of furniture manufacturing, metal processing and so on.

· Sign MOU with Club de Marketing de Navarra, and join the Cata-lan quality association, Ben Fet!.

Sino-European Cooperation

7The 1st Sino-German SME Cooperation Zone in South China International Cooperation

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Project Promoting

Construction of Industrial Public Platform

Business Network Development

Cooperation Results

The average exchange visits by Chinese and German entrepreneurs can reach more than five batches per month. There are 30 enterprises representing the projects of leading intelligent manufacturing and environmental protection settled down in the MEC like ALBA Group, BAUKU Bau and Kunststoffohr GmbH, Polytechnik Luft- und Feuerungstech-nik GmbH and so on, and 58 enterprises are discussing relevant cooperation details now.

In park management, the MEC cooperates with Berlin-Adlershof Science and Technolo-gy Park and Humboldt University of Berlin to introduce advanced German management concepts, systems and mechanisms; while in talent training, the MEC plans to establish a dual university of applied sciences with Esslingen University of Applied Sciences, and develop a training institution with several associations and enterprises to train senior technicians that meet the German and European standard; in scientific research, six Eu-ropean scientific research organizations, including Berlin Production Technology Center, Fraunhofer Institute for Production Systems and Design Technology IPK, and ELISAVA Barcelona School of Design and Engineering, will cooperate with the MEC to co-con-struct a metal R&D center and a trading platform.

Through the match-making between industry associations, the MEC has established co-operative relationship with more than 20 European industry associations like DIHK, Ger-man Foundation for Family Business, Confederation of German Employers’ Association (BDA), German Machinery Manufacturing Association, Trade Association of Machinery, Metalware and Foundry Industries of the Austrian Economic Chamber, Spain Catalonian Metal Center, Fraunhofer-Gesellschaft, Confederation of Industry of the Czech Republic and so on. A series of pragmatic cooperation has been carried out by forming friendly

8 Sino-German Metal Eco CityCooperation Results

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Establishment of Institute for Technology TransferInstitute for Technology TransferIt is co-built by the Development and Reform Commission of Guangdong Province, Jieyang Municipal Govern-ment, ZhongDe Metal Group Co., Ltd., WISTA-MANAGEMENT GMBH and Fraun-hofer-Gesellschaft. Based on the overseas representative offices of ZhongDe Metal Group, a large number of European ad-vanced technologies will be gathered in this Institute with the help of a platform, which was established from the plan of Four “One Hundred”, for the display, trans-fer and transformation of over 100 pieces of high-tech achievements and advanced equipment.

Institute for Technology Transfer -- Advanced Equipment Production Base A complete independent innovation system of advanced equipment and technology is to be formed by introducing, learning from, integrating and re-innovating the progres-sive equipment and technology drawn from Europe, so as to formulate a manageable industrial eco-chain and achieve the localization of advanced equipment.

Domestic and Overseas PromotionDomestic Promotion: Since the construction of the MEC at the end of 2012, ZhongDe Metal Group has been supported and promoted by national ministries and commissions, Guangdong Provincial Government and Jieyang Municipal Government. By federated promotion energies from the political, business and cultural sectors, the MEC has be-come a new signature of industrial transformation and upgrading in Jieyang and even in eastern Guangdong. At the same time, Jieyang City has organized all kinds of high-end activities so as to make famous the new brand of the international industrial park. At present, ZhongDe has established cooperative relationships with thousands of media agencies to promote the MEC through newspaper, magazine, broadcast, television, Inter-net, new media, etc. National level media agencies like CCTV, People's Daily and Xinhua News Agency have made a wide range of in-depth reports about the MEC.

Overseas Promotion: As of September 2014, ZhongDe Metal Group becomes the main sponsor of ALBA BERLIN Basketball Team, enhancing the visibility of ZhongDe as a global high-end enterprise. In March 2016, ZhongDe, as the main sponsor, organized the “Ba-varia-China Spring Festival Celebration” with Chinaforum Bayern in Munich, on which over 600 celebrities from political, economic and social areas took part in the meeting, improving MEC’s popularity in Germany. Meanwhile, representing the city of Jieyang, or even the province of Guangdong, ZhongDe Metal Group has been invited frequently to attend political and commercial activities in Germany. It has established a good basis of cooperation with 2,800 media agencies in Germany and Europe, making promotion and reports through newspaper, magazine, broadcast, television, Internet, etc., which im-proves Jieyang’s popularity in Europe.

relationship of trust with nearly a hundred of institutions from Germany, France, Czech Republic, Austria and Spain.

9The 1st Sino-German SME Cooperation Zone in South China Cooperation Results

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China-Germany SME ConferenceThe 1st China-Germany SME ConferenceOn May 16, 2015, the launching ceremony of the 1st China-Germany SME Conference was successfully held in Jieyang. The 1st China-Germany SME Conference, themed on “One Belt, One Road”, was held under the guidance and support of CPC Guangdong Com-mittee, Guangdong Provincial Government, Ministry of Industry and Information Tech-nology of the People’s Republic of China and Federal Ministry for Economic Affairs and Energy of Germany. Approved by the Ministry of Industry and Information Technology, the MEC has set up the first Sino-German SME Cooperation Zone in South China. Fur-thermore, it has been awarded as Sino-German (Jieyang) SMEs Pilot IPR Protection Zone and Sino-German Intelligent Manufacturing (Industry 4.0) Innovation Base. During June 5-6, 122 enterprises and institutions from Germany, Spain and Austria had 235 business matchmakings with 132 domestic enterprises from Guangdong Province, Baotou City of the Inner Mongolia Autonomous Region and Mianyang City of Sichuan Province. 24 co-operation agreements were signed during the conference. Moreover, 38 exhibitors with 105 science and technology achievements from Germany and Europe presented a visual feast for the participants. The goal of four “One Hundred” has been achieved.

The 2nd China-Germany SME ConferenceDuring June 6-7, 2016, the 2nd China-Germany SME Conference was held with the theme of “The Belt and Road, Builds the Future”, sponsored by Guangdong Provincial Govern-ment, Ministry of Industry and Information Technology and the largest industrial asso-ciation in Germany—AHK (Delegations of German Industry and Commerce). 184 foreign enterprises (institutions) from Germany, France, Austria, Spain and Czech Republic had communication and interaction with 230 corporate representatives from China. Keynote speeches were delivered by the renowned guests—Dr. Eric Schweitzer (President of DIHK), Dr. Dieter Hundt (Honorary President of the Confederation of German Employers’ Associations), Mr. František Chaloupecký (Vice President of Confederation of Industry of the Czech Republic), Hermann Simon (Author of Hidden Champions).

Hu Chunhua—Party Secretary of CPC Guangdong Committee, and Member of the Political Bureau of CPC Central Committee—visited the MEC and met the foreign guests before the conference. During the conference, 438 matchmakings were organized, 30

10 Sino-German Metal Eco CityCooperation Results

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The 5th Sino-German SME Consultation Meeting – a new starting point for the MEC

Shopping and Culture Festival

cooperation agreements were signed between Chinese and German (European) govern-ments, institutions and enterprises, reaching cooperative consensus in many fields. The launching event of preparations of CHINA CENTRE, the awarding event of Training Center of Sino-German (Jieyang) SME Cooperation Zone and the unveiling event for Jieyang Doctoral Workstation of Canton Society of Teochew Doctors were also taken place dur-ing the opening ceremony. With the increasing of influence, the Dusseldorf Office was officially established during the conference.

On January 19, 2016, the 5th Sino-German SME Consultation Meeting was held in Jieyang. The meeting was jointly held by Mr. Feng Fei, Vice Minister of Industry and Information Technology, and Ms. Iris Gleicke, Parliamentary State Secretary at Federal Republic of Germany Ministry for Economic Affairs and Energy. Four topics were discussed at the Meeting, including the latest policies of Chinese SMEs, policy and financing support for start-ups, coop-erative projects and activities presented by chambers of commerce and associa-tions and policy environment for SMEs. The MEC will take the Meeting as the new start to strengthen its cooperation with Germany and other European countries.

On the day, all leaders and guests attended the unveiling ceremonies of Institute for Technology Transfer, IFT International Incubator and Institute for Sino-German SME Poli-cy, as well as the name awarding ceremony of Guangdong Assistance Center for Intellec-tual Property Protection, Jieyang Branch. CPC Guangdong Committee and Guangdong Provincial Government expressed that they will support the MEC to promote the match-making of Made in China 2025 and German Industry 4.0 as always. Jieyang will be the pilot area of the matchmaking to deepen the cooperation between China and Germany (Europe).

In January 2016, the 1st Shopping and Culture Festival was held. It is the largest trading activity with the highest quality in Jieyang. During the 5 days, over 100,000 people from various regions visited the Festival. Its significant achievements of creating a regional brand and stimulating economic growth have been fully showed. 278 domestic and foreign enterprises with 300 brands exhibited over one thousand products in 421 exhi-bition stands. A lot of customers were attracted by quite a few German and European brands and local famous specialties. Aiming at promoting the commercial cooperation between China and Germany (Europe), the MEC’s cooperation with Germany (Europe) will step into a new stage with the help of this platform. The Festival has originated an ecological shopping platform with flowers and nature, to develop a new trading mode that carries lower risk and facilitate the integrative development between real economy and e-commerce. The MEC will continue the improvement of infrastructure construction and upgrade the Shopping and Culture Festival.

11The 1st Sino-German SME Cooperation Zone in South China Cooperation Results

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China's First Project of Third Generation Waste Treatment Technology

Sino-German Resource Regeneration Base

Demonstration Projects

Introducing the third generation household waste treatment technologies, the Sino-German Resource Regeneration Base Project is jointly operated by ZhongDe Metal Group Co., Ltd., Guangdong Rising Assets Management Co., Ltd. and ALBA Group. This project was co-witnessed by Chinese President Xi Jinping and German Chancellor Angela Merkel during Xi’s visit to Germa-ny in March 2014 and is the only one signed by both China and Germany in the field of environmental protection within the ten economic cooperation projects.

The design capacity of the demonstration project in Jieyang is 1,000 tons of urban household waste. Upon completion, it will be the first demo factory in China to adopt the third generation household waste treatment technologies. In the future, with Jieyang as a lighthouse project, German green fuel technologies will be comprehensively generalized in the province and across the country.

The first-stage cooperative program will also include the plan-ning of an environmental protection industrial park, establishing a production base for integral environmental protection equip-ment based on mechanical equipment manufacturing as the main body. It also includes setting up a training base for manage-ment personnel of the third generation household waste treat-ment technology and a household waste disposal R&D center, and formulating new industrial standards. At present, quite a few German environmental protection equipment producers have held talks about entering the park. The project plans to carry out trail operation in the first half year of 2018.

12 Sino-German Metal Eco CityDemonstration Projects

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A New Generation of Energy Giant

Polytechnik Biomass Power Generation Project

Cooperation between Chinese Manufacturer and German Pioneer of Pipe Technology

Bauku Intelligence Pipe Network System Project

Founded in 1956, Polytechnik Luft- und Feuerungstechnik GmbH is one of the world's leading suppliers of advanced combustion solutions, heat and power plants, and emission control systems with its parent plant in Weissenbach. It has an excellent reputa-tion and track record as a reliable provider of plants and services from engineering to the installation and commissioning of turn-key plants. With subsidiaries in Hungary, Switzerland, France, Poland, Russia, Romania, Belorussia, Australia and New Zealand, 98% of the business activities of Polytechnik is in other countries. Polytechnik does continuously research and development, and supplies the most advanced Biomass energy technique for the customers. Now the equipment has been installed in over 3000 power plants.

On September 30, 2016, Polytechnik Luft- und Feuerungstechnik GmbH and Guangdong Deming Technology Co., Ltd. signed the joint venture contract in Jieyang, deciding to co-build a joint venture company, establish the production base and develop the Chinese market together. Polytechnik is going to transfer all of the technologies and patents to the joint venture company, and send engineers for training so as to participate in the production management and operation of the joint venture company.

bauku Troisdorfer Bau- und Kunststoff GmbH plays a leading role in the intelligent pipe industry around the globe. It is the first company in the world to manufacture PE and PP twined pipes as well as relevant pipe equipment.

Together with Baotou Shenrun New High-tech Materials Co., Ltd., it founded Guangdong Bauku Intelligence Pipe Network System Co., Ltd., which is its first investment project in the Asia-Pacific region. The gross investment of this project amounts to RMB 1.8 billion.

This project comprises of three parts, namely “Bauku 4.0” digital factory, Bauku Asia-Pacific Research Institute of Intelligence Pipe Network System and pipe equipment manufacturing center. It’s planned that after the completion of the whole project, a total of 60,000 tons of PE and PP twined pipes as well as pipe fittings will be produced every year. The phase I of this project was put into operation at the end of 2015, of which the annual output is designed to be 10,000 tons and the annual output value is esti-mated to be RMB 500 million.

13The 1st Sino-German SME Cooperation Zone in South China Demonstration Projects

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One of the Top 500 Companies in Germany

Menrad Optics (Asia) Manufacturing Site

Filling the Industrial Gap by the Globally Unique Technology

DeVeTec ORC Plants Manufacturing ProjectThis project was jointly invested by DeVeTec GmbH and Guangdong Degao Metal Fur-niture Co., Ltd. It has a total investment of RMB 600 million, of which RMB 300 million is for Phase I. The joint venture went into operation in October, 2016, and it’s expected to produce and sale more than 400 ORC waste heat power generation machines every year and earn an annual output value of RMB 1 billion in three years. Provided the output power of each set is 200 kW, then the total installed capacity would be 200,000 kW and the power generated every year would be about 1,200 GWh. Meanwhile, the consump-tion of standard coals would be reduced by 480,000 t/a and the emission of CO2 would be cut by over 1,200,000 t/a.

With the globally unique ORC (Organic Rankine Cycle) technology, DeVeTec generates power by combining the use of low-temperature waste heat with steam expansion en-gine. The ORC efficiency can be as high as 18%, increasing 50% of that prevailing in the Chinese market. The waste heat power generation technology of DeVeTec fills the gap of waste heat power generation at 250~600 ℃.

MENRAD the vision is a world-leading high-end optical spectacle frame man-ufacturer founded in 1896 by Ferdinand Menrad. With a history of 120 years, it has been handed down to the fourth generation of the family. As one of the Top 500 German enterprises, the company is committed to providing var-ious stylish and high-end optical spectacle frames for customers of all ages. It operates many authorized brands, including JAGUAR, DAVIDOFF, JOOP! and MORGAN, as well as the MENRAD brand it owns. Its sales network covers more than 100 countries and regions in the world.

This project is jointly invested by Jieyang Rongcheng District Huifeng Eye-glass Trading Co., Ltd. and Menrad the vision. Its investment is planned to be about RMB 300 million and its annual sales volume is expected to reach RMB 1 billion.

14 Sino-German Metal Eco CityDemonstration Projects

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Guardwin, Smart Living Creator

Guardwin Robot and Automation Project

Develop a New Path of Production and Marketing for High-End Tools

Bestir Precision Tools Production ProjectBestir Precision Tools Production Project is a cooperation project between Foshan BE-STIR Hardware Tools Manufacturing Co., Ltd. and TENOVA-LOI Thermprocess GmbH. The automatic heat treatment line of intelligent mesh belt furnace forms the core technology of the project, which could achieve the intelligent, high-quality and clean heat treatment and the high-speed automatic six-station cold heading forming technology.

With a history of more than 100 years and a world-renowned brand, TENOVA-LOI is one of the biggest manufacturers of industrial furnaces. Relying on introducing complete sets of high-end mesh belt furnaces for industrial heat treatment, and German high-speed and fully automatic cold heading technology, this project will manufacture high-end industrial and professional hardware and tools to meet the needs of domestic customers in the field of aviation, military industry and precision manufacturing, as a substitute of the high-end tool imported from Europe and America. With a history of 100 years, Bestir was founded by Mr. Wen Kesten in Indonesia in 1930 and it had set up a production base in Taiwan. As a world-famous professional manufac-turer of hand tools, Bestir is specialized in manufacturing mid-to-high-end profes-sional and industrial tools. The products are sold in China and exported to the countries and regions in Southeast Asia, Middle East, Russia, Europe and America. The project was put into trail operation in March, 2016.

Guangdong Guardwin Automation Co., Ltd., located in the MEC, is a private scientific enterprise, which works on the scientific research, manufacturing and sale of automa-tion equipment, with a total investment of RMB 500 million. The company is expected to achieve an annual output value of RMB 2 billion. Guardwin specializes in providing advanced testing solutions and automation equipment for companies in the field of computer, communications, consumer electronics, electrical appliances and automobile, offering various services to customers. The company focuses on the R&D of new projects and the introduction of new technology, with extensive experience in machine vision, robot, mechanical design and fully-automatic assembly line customization. For the pur-pose of actively advancing technological transformation of traditional manufactur-ing, the company is able to offer custom-ized technological transformation plans for companies.

Settling down in the MEC, Guardwin will actively introduce the advanced industrial automation technologies from Germa-ny. It has signed a strategic cooperation agreement with the high-tech institute of BTU to introduce related industrial automation technologies such as 7-axis robotic arms, autonomous cars, Industry 4.0 solutions and etc

15The 1st Sino-German SME Cooperation Zone in South China Demonstration Projects

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Create a “Smart Factory” of advanced molding in Eastern Guangdong

Delight Precision Mould Intelligent Manufacturing Project

Aspire to become a leading expert of water treatment in China

Guangdong Desun Environmental Technology Project

Delight Precision Mould Manufacturing Project is conducted by Guangdong Delight Precision Mould Co., Ltd. Delight is formerly known as Jieyang Liangliang Mould Co., Ltd., which was special-ized in the mould design and manufacturing for 18 years. With the support of Sino-German (Jieyang) SME Cooperation Zone, this project has been carried out in the MEC (Sino-German SME Cooperation Zone).

The project will build a plant with an area of over 10000 m² for the design, development and production of precision mould. A batch of advanced precision processing equipment will be purchased from Germany, Switzerland and Japan. The company has registered several trademarks, such as Liangliang Mould. The products could satisfy the standards for mould design and man-ufacturing in the countries and regions of Europe, America and

Asia, etc. They are mainly sold in Eastern Guangdong, Shanghai and Shenzhen domestically, and are exported to Germany, Spain, Poland, Italy, Brazil, India, Algeria and Venezuela, etc.

At the moment, the company has completed the first phase of the information engineering construction, realizing the digitali-zation and networking of the management of orders, equipment, products, product quality and logistics. Delight works with Jieyang ZhongKe Institute of Metal Technology and cooperates with Fraunhofer-Gesellschaft and other relevant R&D institutions from Germany and other European countries to jointly create three centers, including mould manufacturing center, mould design center and mould training center. The project is currently in the pilot phase.

Relying on MEC’s advantageous platform for Sino-German cooperation, Guangdong Desun Environmental Technology Co., Ltd. has introduced the most advanced core technology of waste water treatment from Germany and employed German technical consultants, senior specialists and renowned professors in the field of environmental protection and water treatment. Desun has already established strategic cooperative partnership with ANDRITZ GROUP, which is a leading manufacturer of water treat-ment equipment in Austria. Through the strategic cooperation, Desun could provide operation and management services on waste water treatment system in the aspect of new construction, technological transformation and post processing for the cus-tomers, and also provide complete water treatment solutions for the domestic environmental projects. Desun focuses on waste water treatment in the area of municipal waste water, rural do-mestic waste water, landscape water, electroplating waste water, printing and dyeing waste water, etc. In the respect of treatment technology of printing and dyeing waste water, Desun has been strongly supported by German committee of printing and dyeing waste water treatment to develop a zero discharge technology of printing and dyeing waste water with high efficiency and low energy consumption. Moreover, Desun has already developed

multifunctional exhaust gas treatment technology and now more than ten sets of equipment have been put into operation in the Surface Treatment Center of MEC.

Furthermore, at the 2nd China-Germany SME Conference, draw-ing support from the platform of the MEC, Desun has signed a strategic cooperation agreement with ANDRITZ GROUP. Accord-ing to the agreement content, both companies will give full play to their own advantages to develop close cooperation on waste water treatment projects.

16 Sino-German Metal Eco CityDemonstration Projects

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Supporting Facilities

17The 1st Sino-German SME Cooperation Zone in South China

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Industrial Exhibition Hall

Four Centers

Production Facilities

Floor Space: 82,37492 m² Total Investment: RMB 500 millionConsisting of the Comprehensive Service Center, R&D Center, Indus-trial Design Center and Financial Service Center, it has the function of administrative and comprehensive service as the government service hall. This project is expected to establish a national and worldwide preceding R&D platform for technology transfer, provide a one-stop service and optimize resource allocation for resident enterprises and institutions.

Planning: 1,000 exhibition stands are planned to be set up by three phases. Standard stands and special stands are provided for choice.Phase I: 45 exhibition stands that cover an area of 600 m².Equipped with meeting room, multifunction hall, conference center, Chinese and western style restaurants, The Industrial Exhibition Hall is designed for the members of the Sino-German Metal Eco City to display their products, technology and equip-ment. It offers consulting and liaison service to Chinese enter-prises interested in visiting, inspecting and cooperating with the resident enterprises; and also, it assists German and European enterprises in expanding business in China.

18 Sino-German Metal Eco CityProduction Facilities

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Zero-Wastewater-Discharge Surface Treatment CenterLand Area: approx. 533,000 m2 Planned Investment: over RMB 3.5 billionThree Phases Planning: Developed as the first zero-wastewater-discharge electroplating base in China, it will be built with five func-tional areas of electroplating production, technical support and service, wastewater treatment, chemicals warehouse and office and living facilities, and is expected to be finished by 2020.Phase I Project: Covering a land area of about 133,000 m2, 11 standard factory buildings that can accommodate 44 standard work-shops, a hazardous chemicals warehouse and an electroplating technology R&D center will be built.Technology Introduction: By making use of the German “Mechanical Negative Pressure Evaporation” technology, U.S. Dow membrane concentration technology and China’s leading early warning and automated control system, the reuse rate of the treated wastewater which is up to standard can reach 99.64%.Current Situation: The Phase I electroplating base has been finished and 36 enterprises have entered the electroplating base. It is expected that, after all of the enterprises go into production, nearly 3000 jobs will be created; the total amount of electroplating waste-water discharge, COD emission, ammonia nitrogen emission and phosphorous emission in Jieyang will be reduced by 1,800,000 tons, 260 tons, 10 tons and 2 tons every year respectively, which will greatly contribute to the environmental protection in Jieyang and other regions in eastern Guangdong.

19The 1st Sino-German SME Cooperation Zone in South China Production Facilities

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Sino-German InnoHub International Incubator

International Cooperation Base of Science and Technology in the MEC

Sino-German Cooperative Innovation BaseFloor Space: about 300,000 m² Total Investment: RMB 1 billionActing as a demonstration project for transforming and upgrading Jieyang’s metal industry, it is planned to introduce 30 Chinese and German (European) SMEs to its Phase I buildings. It will focus on the development of advanced manufacturing industry and emerging industries, as well as bringing in Sino-German cooperative enterprises in the field of energy conservation and environmental protection, intelligent manufacturing, metal product processing and manufacturing, auto parts and sensors, etc. At present, more than 20 Chinese and German (European) cooperative enterprises have settled in the Base.

Floor Space: 8,452 m² Location: Building III of Sino-German Cooperative Innovation BaseEchoing the policy of mass entrepreneurship and innovation, the Sino-German Inno-Hub International Incubator (InnoHub) is jointly built by ZhongDe Metal Group and WISTA-MANAGEMENT GMBH. Upon its completion, it will be a sister unit of the Innova-tion and Business Incubation Center Berlin-Adlershof (IGZ), offering incubation service to small, medium and micro enterprises and teams.

In 2014, officially approved by the Department of Science and Technology of Guangdong Province, the MEC became the first “International Cooperation Base of Science and Tech-nology” at provincial level in Jieyang. It cooperates with Fraunhofer Institute for Pro-duction Systems and Design Technology IPK, WISTA-MANAGEMENT GMBH (the largest park developer and operator in Germany), and metal technology research institutions in Barcelona and Valencia, etc., introducing technologies, equipment and talents from Ger-many and other European countries and speeding up the process of internationalization of the MEC.

20 Sino-German Metal Eco CityProduction Facilities

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Sino-German Cross-Border E-Commerce Industrial Park

Sino-German University of Applied Sciences

Total Investment: RMB 1 billion Land Area: 80,000 m² Floor Space: 150,000 m²With the in-depth cooperation with e-commerce platforms such as Alibaba and JD.com, a Sino-European cross-border e-commerce platform and an exhibition area for German and European quality products will be set up to help German and European manufacturer and distributor to enter the Chinese market. Moreover, efforts will be made to establish a special customs supervised area. It’s hoped that 500 cross-border e-commerce enterprises will settle in the Cross-border E-commerce Industrial Park by the end of 2017.

It will be co-founded by Jieyang Municipal Government, Guang-dong University of Technology, the Metal Enterprises Union of Jieyang, Sino-German Dual System Education Investment Co., Ltd. and Esslingen University of Applied Sciences. The University will introduce the dual education system, to not only help to provide qualified technicians for the MEC, but also serve as a model for in-tegrating vocational school education into industrial production in China.

21The 1st Sino-German SME Cooperation Zone in South China Production Facilities

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Staff Community

MEC Culture Center

Phase I Land Area: 37,000 m² Floor Space: 150,000 m² Total Investment: RMB 400 millionThe project provides living facilities for its migrant workers. With a resident capacity of 11,414, there are 2,238 dormitories in 10 dormitory buildings, 224 apartments in 1 apart-ment building and some living supporting facilities, including basketball courts, gymna-siums, supermarkets and shopping streets. The Community is a green living community that perfectly integrates industry and city.

Floor Space: 5231.24 m²It is planned to cover showrooms, busi-ness areas and dining areas for the con-venience of business and visit. Not only will it show and spread advanced technol-ogy from Germany and other European countries and the culture of China and Germany (Europe) as a new complex in Jieyang, it will also carry out educational training.

Living Facilities

22 Sino-German Metal Eco CityLiving Facilities

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Living Facilities

Sino-German Expert Service Base

Construction Scale: The roads will be up to 19.445 km long altogether with a total investment of about RMB 2.4 billion.The east-west Sino-German Avenue is 6.291 km in length.The south-north Pearl Avenue is 7.174 km in length.The south-north Rhein Avenue is 5.98 km in length.Technical Standard: The roads will be two-way with six lanes, paved with asphalt con-crete and built in accordance with the technical standards for urban arterial road (design speed: 60 km/h).Function of Arterial Roads: The roads will improve the connection among the main roads that run through or pass Jieyang, such as China National Highway 206 (G206), Shantou-Meizhou Expressway and Guangdong Provincial Highway 335 (S335), and be-come the main connector linking the MEC and Yujiao Town with other key areas, as one of the important parts of the development poles in eastern Guangdong.

Land Area: 562,000 m² Total Investment: RMB 1.02 billionPlanned Projects: The Maritim Hotel, 200 apartments and culture village

23The 1st Sino-German SME Cooperation Zone in South China Living Facilities

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van Beethoven Nature ParkPhase I Land Area: 200,000 m² Total Investment: RMB 50 millionIt includes a service center, a Sino-German (European) culture exhibition area, a wetland mudflats area, outdoor themed activi-ties and a forest anion oxygen bar. Of the 600 trees planted in the featured “Tang Poetry - German Philosophy Zone”, 300 are with signboards of the poems of the Tang Dynasty, while the rest are with signboards of German philosophical proverbs. The Nature Park aims at creating an eco-friendly tourism zone with German and European style, and making the MEC to be a new “green city with workshops under the trees, households beside the factories, and a vast forest around the city”.

Ecological Facilities

24 Sino-German Metal Eco CityEcological Facilities

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Sculpture ParkPlanned Area: 41,500 m² Total Investment: RMB 350 millionThe Sculpture Park is an ecological public space integrating image display, leisure recreation and a beautiful landscape. The industrial culture of both China and Ger-many (Europe) will be presented by the sculptures, creating a metal-themed eco-park, thereby contributing to achieving a

new city that places particular emphasis on developing

urban ecology.

25The 1st Sino-German SME Cooperation Zone in South China Ecological Facilities

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The Metal Enterprises Union of JieyangThe Metal Enterprises Union of Jieyang (the MEUJ) was established in June 2012. It was co-established by Jieyang Metal Materials Association, Jieyang Hardware Chamber of Commerce, Jieyang Stainless Steel Products Association and Jieyang Rongcheng Steel Industry Association. With a number of 730 members and a total output value of RMB 56 billion, the MEUJ has accounted for about 70% of total output in Jieyang’s metal industry.

Established in September 2012 by the MEUJ, Jieyang Metal Industry Investment Fund, with the first raised fund of RMB 1 billion, is planned to raise a total of RMB 10 billion. It is the first industrial investment fund in China that was launched, self-raised and organized by the industry association (the MEUJ).

The objectives of the MEUJ are to promote a healthy and orderly development for Jieyang’s metal industry, and to achieve transformation and upgrading. By introducing advanced technologies and production methods at home and abroad, the MEUJ is de-signed to change the decentralized operation mode and backward development of the products in Jieyang’s metal industry, as well as to solve pollution problems in the metal industry, and finally to achieve sustainable development of the whole industry.

Background

26 Sino-German Metal Eco CityEstablishment of the Metal Enterprises Union of Jieyang

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ZhongDe Metal GroupZhongDe Metal Group Co., Ltd. (ZhongDe) was founded in 2013 and was headquartered in Jieyang City of Guangdong Province. It aims at becoming the developer, investor and operator of the Sino-German (European) high-tech industrial new city. The Sino-German Metal Eco City, invested and operated by ZhongDe, has become one of the two Sino-German SME Cooperation Zones in China, maintaining a sound momentum of development.

Under the new development pattern of exploring industrial trans-formation initiated by the Metal Enterprises Union of Jieyang, ZhongDe was invested and established by the first spontaneous, self-funded and self-built investment fund (Jieyang Metal Indus-try Investment Fund). Efforts will be made to develop a compre-hensive platform for cooperation between China and Germany, with great support from the national, provincial and municipal government.

Based on the national strategic initiatives of the Belt and Road and Made in China 2025, ZhongDe targets at Germany with rep-resentative offices all over Europe and devotes itself to accelerat-ing the marketization across China by innovation development. It adopts the mode of “Led by Party Committee, guided by govern-ment, dominated by association, invested by enterprises and a market-oriented operation”. ZhongDe strives to offer professional

and market-driven service platforms and an all-in-one solution to develop, operate and manage the Sino-German (European) high-tech industrial new city. Relying on the 10 representative offices in Germany, Spain, Austria, France and the Czech Republic, ZhongDe is able to keep abreast with the European market and cooperate with quality projects directly.

ZhongDe takes building the Sino-German (European) coopera-tion platform and advancing China to be an intelligent manufac-turing country as its own task, and insists on the value of open-ness, social responsibility, green development and intelligent innovation and manufacturing. With the entrepreneurship of “be firm as iron, be strong as steel, be true as gold”, ZhongDe will implement its strategic targets to establish five Sino-German (Eu-ropean) high-tech industrial new cites and five investment funds in Guangdong in five years. Furthermore, efforts will be made to build ten Sino-German (European) high-tech industrial new cites and ten investment funds across the country in ten years.

Core resources based on the construction of new urbanization will be integrated constantly to promote regional industrial up-grading and transformation, and push forward the development of economy and urban planning. ZhongDe endeavours to drive the development of new urbanization.

27The 1st Sino-German SME Cooperation Zone in South China Establishment of ZhongDe Metal Group

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June 2012The Metal Enterprises Union of Jieyang (the MEUJ) is jointly founded by Jieyang Metal Materials Association, Jieyang Hardware Chamber of Commerce, Jieyang Stainless Steel Products Association and Jieyang Rongcheng Steel Industry Associ-ation, with a number of 710 members.

October 2012The industrial investment fund launched by the MEUJ was successfully completed, RMB 1 billion was raised and Jieyang Met-al Industry Investment Management Co., Ltd. was established at the same time.

December 2012The Sino-German Metal Eco City officially started its construction.

February 2013China Southern (Jieyang) Metal Eco-city was officially renamed as the Sino-Ger-man Metal Eco City; China Southern (Jieyang) Metal Eco-city Co., Ltd. renamed as ZhongDe Metal Group Co., Ltd.; and its subsidiaries were successively set up.

April 2013The Metal Enterprises Union of Jieyang signed the MOU on Sino-German Voca-tional Education with German Federation of Trade Unions of Hessian and Thuringia, which extends the construction of the MEC into new fields of vocational training and talent education.

May 2013The MEUJ signed a cooperation agree-ment on the Construction of the Si-no-German Metal Industry Innovation Base in Jieyang with German Foundation for Family Business and Jieyang Municipal Government, and the construction of the Sino-German Metal Industry Innovation Base started.

June 2013People’s Government of Guangdong Prov-ince held an executive meeting to discuss and support the policy construction of the MEC. Soon afterwards, Approval Reply of the People’s Government of Guang-dong Province on the Establishment of the Sino-German Metal Eco City (Letter

No. 110 [2013] of the People’s Government of Guangdong Province) was released.

January 2014Three German Enterprises settled in the MEC and began construction, which leads the Sino-German (European) cooperative projects into a stage of substantive pro-cess.

March 2014Under the witness of Chinese President Xi Jinping and German Chancellor Angela Merkel, the cooperation agreement on the project of the Sino-German Resource Regeneration Base was signed by Jieyang Municipal Government, German ALBA Group and Guangdong Rising Assets Management Co., Ltd. Parallel to this, a representative office of the MEC was set up in Munich.

August 2014The second Dialogue about sustainable development between the Communist Party of China and the Social Democratic Party of Germany (SPD) was successfully

Development History

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1

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2

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28 Sino-German Metal Eco CityDevelopment History

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held in Jieyang. It is expected that the MEC will become the new urbanization pilot zone of Sino-German (European) cooperation.

September 2014ZhongDe Metal Group Co., Ltd. officially sponsored the German basketball cham-pion team – ALBA BERLIN.

October 2014Premier Li Keqiang and German Chan-cellor Angel Merkel attended the 7th German-Chinese Forum for Economic and Technological Cooperation. On the Fo-rum, ZhongDe Metal Group Co., Ltd. was the only company that successfully signed two cooperative agreements.

November 2014The representative office of ZhongDe Metal Group in Berlin and ZhongDe Metal Group GmbH in Stuttgart were succes-sively established.

December 2014As a demonstration industrial park on deepening reform and speeding up trans-formation and upgrading of Guangdong Provincial Committee and Government, the MEC was rated as “Influential Econom-

ic Park of the Year, Guangdong” in 2014.

May-June 2015The 1st Chinese-German SMEs Conference was successfully held in Jieyang. Granted by the Ministry of Industry and Informa-tion Technology of the People’s Republic of China, the MEC has become the first Sino-German SME Cooperation Zone in South China.

May 2015The representative office of the Metal En-terprises Union of Jieyang and ZhongDe Metal Group in Paris (France) was officially established.

September 2015The representative office of the Metal En-terprises Union of Jieyang and ZhongDe Metal Group in Vienna (Austria) was offi-cially established.

October 2015Chinese Premier Li Keqiang and German Chancellor Angela Merkel witnessed the signing of two cooperative projects—the Institute for Technology Transfer and the Zero-wastewater-discharge Electroplat-ing Project. This has made Jieyang as the only prefecture-level city that successfully

signed two cooperation documents.

January, 2016The 5th Sino-German SME Consultation Meeting was held in Jieyang, which helped to raise the profile of the Sino-Ger-man (European) SME Cooperation Zone and to make Jieyang the source of policy for SMEs between China and Germany (Europe).

January, 2016The first Shopping and Culture Festival was successfully held, which has orig-inated a cost-efficient and ecological shopping platform surrounded by natural elements.

June, 2016Themed on “The Belt and Road, Builds the Future”, the 2nd China-Germany SME Conference was held in Jieyang, thus the cooperation of SMEs between China and Germany (Europe) became normalization.

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29The 1st Sino-German SME Cooperation Zone in South China Development History

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ZhongDe Metal Group has set up offices in Beijing, Guangzhou, Berlin, Dresden, Munich, Stuttgart, Frankfurt and Dusseldorf, Spain, Austria, France and Czech Republic, etc. It aims to help European enterprises to enter the Chinese market and support the commu-nication and cooperation between the SMEs of China and Europe.

ZhongDe Metal Group Co., Ltd.:Tel.: +86-(0)663-333 3333Fax: +86-(0)663-876 5345Email: [email protected]

Subsidiary in BeijingTel.: +86-(0)10-5272 2030Email: [email protected]

Subsidiary in Guangzhou:Tel.: +86-(0)20 3896 9150

+86-(0)20 3896 9151 +86-(0)20 3896 9153

Email: [email protected]

ZhongDe Metal Group GmbHTel.: +49-711-18567233Fax: +49-711-18567234

Representative Office in SpainZip Code: 48008Tel.: +34 946855836Website: www.metalecocity.com/es

Representative Office in Austria

Representative Office in Czech Republic

Representative Office in France

Headquarters & Subsidiaries

30 Sino-German Metal Eco CityHeadquarters & Subsidiaries

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Subsidiary in Guangzhou

JieyangZhongDe Metal Group Co., Ltd.

Subsidiary in Beijing

China

Spain

France AustriaCzech Republic

Germany

Munich

Dusseldorf

Frankfurt

Dresden

Stuttgart

Berlin

Bilbao

Prague

Vienna

Paris

31The 1st Sino-German SME Cooperation Zone in South China Headquarters & Subsidiaries

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Sino-German Metal Eco City Jieyang, Guangdong, China

Tel: +86-(0)663-3333 333Fax: +86-(0)663-8765 633

www.metalecocity.com [email protected]

Edited by Corporate Planning Department of

ZhongDe Metal Group Co., Ltd.

Translated by Translation Team of Cooperate Office

of ZhongDe Metal Group Co., Ltd.

Publication Date: November 2016