A new situation in the hardware industry will gestate

The track of the western development strategy is gradually emerging. Especially in the southwest regions of Sichuan and Chongqing, with the restructuring of China's regional economy, including the German Bosch Group and the Swedish bearing manufacturer SKF, they have eyeed the opportunity for investment here. Driven by a series of leading companies, this is quietly brewing a new situation in the hardware industry.

The development of the western region is a policy of the Central Government of the People's Republic of China. Its purpose is to use the remaining economic development capabilities of the eastern coastal areas to increase the level of economic and social development in the western region and consolidate national defense. In February 2012, officials from the National Development and Reform Commission interpreted the plan for the 12th Five-Year Plan for the Development of the Western Region and clarified the basic ideas for strategic deployment.

Just as the country further clarified the opening of the Western Conference, companies with sensitive business sense, such as the Bosch Group and SKF, and other world-famous hardware leading companies have come and heard.

The Bosch Group took a fancy to Chengdu. Previously, Bosch Group has invested 137 million US dollars (about 880 million yuan) in Chengdu Economic Development Zone to build China's second Bosch chassis control system production base and R&D center, which is also Bosch's largest production base in China. Subsequently, Bosch placed a project with an annual output value of 2 billion yuan in Chengdu. Immediately thereafter, Bosch continuously added additional investment projects in Chengdu. In June and September 2012, Bosch Power Tools Southwest Production Base project and Bosch Packaging (Asia Pacific) R&D center project with a total investment of 120 million yuan were placed in Chengdu.

In more than a year, Bosch has consistently delivered three projects to the same city in high density, which is unique in Bosch's history of foreign investment.

The Swedish SKF, the world's largest bearing manufacturer, has set its sights on Chongqing’s two rivers. On November 28, 2012, Swedish company SKF announced the establishment of a new company in Chongqing as its headquarters in the southwest. According to the analysis, SKF's location in Chongqing Liangjiang has two factors: First, it has taken a look at Chongqing's automotive, CNC machinery and electrical equipment industry clusters and a huge market; Second, Liangjiang New Area is the only country-level new development zone in inland in terms of policies and taxes. There is more support on the company and it is a big plus for the company.

The large number of industries entering the southwestern market has on the one hand released a strong signal of seizing new opportunities in the west. On the other hand, considering the economic strength of Sichuan and Chongqing itself, Chengdu, as an engine city for the development of western China, has huge potential for economic growth in Chengdu. And the development of space, strong innovation capability, unique cultural temperament, rich experience in hosting international conferences, and excellent government services were selected as the venue for the 2013 “Fortune” Global Forum; Nanchuan District, Chongqing Municipality, is working hard to build tighter western China. Firmware production base, 400 million yuan in investment in fastener production projects are under construction; Wan Guan Hardware & Electrical City, Jinfu Hardware & Electrical City, Qingbaijiang Hardware & Electromechanical City, Changji Mechanical & Electrical Trading Market, Hualing Electrical & Mechanical Plaza Large-scale Hardware & Electrical Machinery Market and Domestic & Overseas Hardware & Electrical Group was stationed in Chengdu and the industrial cluster effect was achieved at one go.

Under the strategy of the country continuing to deepen the development of the western region, driven by the leading hardware companies, Sichuan and Chongqing will become the new growth pole of the Chinese hardware industry.