Hainan Daily, August 30, 2007

By Staff Reporter Wang Jun

It is the largest State-owned investment holding company in China at present. It has total assets of 146 billion yuan. It is one of the 53 national key enterprises directly under the leadership of the central government. And it is a "China Enterprise Carrier" with 55 subsidiary companies under it. That is the State Development & Investment Corporation (SDIC).
After 10-year's operation in Hainan, SDIC proves the driving force, control capability and influence of "large enterprise does big things" on the economic development of the island province. In the meantime, the two enterprises invested by SDIC in Hainan have become a model of such success.

SDIC Group
Today, SDIC Group President Wang Huisheng and top leaders of the group once again come to Yangpu. Yangpu's plan to establish a bonded port area has great similarity with the Pan-Beibu Bay regional strategic development of SDIC Group. SDIC is looking for higher-level and broader-range cooperation with the province. And all this is based on the sound cooperation foundation between the two sides.

Such a sound cooperation foundation is built on mutual benefits: Up to date, SDIC has invested 1 billion yuan of capital in SDIC Yangpu Port and SDIC Hainan Cement Co Ltd. In the past three years, Yangpu Port witnessed its annual handling volume having been quodrupled, from 1 million tons in 2003 to 4.26 million tons in 2006. SDIC Hainan Cement Co has an annual output of 2 million tons, accounting for one third of the total in the market of the province.

SDIC Yangpu Port
Cooperation started 10 years ago.

In 1997, Hainan Province was affected by the real estate-caused bubbling economy, investors retreated from the province one after another, and Yangpu Port suffered greatly from this, with its annual handling volume dropping to only 400,000 tons. Yangpu Port was in a dilemma of running in the red continuously.

In June 1997, SDIC Group invested heavily in Yangpu Port after having evaluated its unique location and resource advantages and development potential. Since then, the development of Yangpu Port is a proof of SDIC's capability to do big things and to do things big.

SDIC invested 430 million yuan in the second and third phase projects of Yangpu Port and increased the number of 10,000-ton berths from 2 in the first phase to 8.

In 2003, the port's annual handling volume surpassed 1 million tons for the first time.

In 2004, the port started to make profits, opening a new chapter in its development.

In 2005, SDIC added 400 million yuan more of investment in construction of the Yangpu third phase project, building 3 new bulk cargo berths each with a capacity of 20,000 tons and having a designed annual handling capacity of 4.1 million tons. After completion by the end of this year, Yangpu Port will see its total assets hitting 1.4 billion yuan and its total handling capacity reaching about 10 million tons.

SDIC Hainan Cement Co
When SDIC entered Hainan in 1997, the island province had no large-type and modern cement plant. The 4 million output was turned out by more than 10 high energy-consuming and high polluting small cement factories as well as imports from Guangxi. At present, the market demand in the province has reached about 6 million tons while SDIC Hainan Cement alone can produce 2 million tons.

In the past years, SDIC Hainan Cement has also played a model role in environment protection, and rational use of resources for the entire cement industry of the province.

SDIC invested 50 million yuan in a waste-heat electricity generation project, which plays an obviously positive role in reducing pollution, environment protection and energy saving. SDIC Hainan Cement also adopted advanced production techniques and processes to realize the goal of "zero emission" for its limestone mining. SDIC Hainan Cement ranks among the leading firms in terms of minimizing energy and electricity consumption.

Last year, SDIC Hainan Cement took over the Changchang Cement Factory in Ding'an County of the province, renovating the factory into a cement grinding station, taking its first step towards regrouping the small cement firms in the province.
Today, SDIC Group President said in the interview that Hainan's economy has entered the era of healthy, stable and fast development and Hainan has great similarity with SDIC's strategic development. He said that the strategy of "introducing big enterprises to do big projects" by the Hainan Provincial Committee of the Communist Party of China and Hainan Provincial Government will help build a win-win platform for economic development of the province. As a State-owned large enterprise, SDIC always adheres to the motto of "for capital contributor, for the society and for employees: and will be responsible for the country, for the local government and for the enterprise. He said: "In the past, we succeeded in doing this and in the future, we will continue to do so!"