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Urumqi: Coal and culture powering growth

By Yu Tianyu (China Daily)
Updated: 2009-06-15 18:20

Workers are prospecting for coalfield in Urumqi.[Asianewsphoto]

Urumqi, the capital of Xinjiang Uygur autonomous region has become a vanguard in the national strategy to develop western China.

The capital composed of eight districts and one county has a population of 3 million people and 47 ethnic groups living in its 14,200 sq km area.

Local statistics show Urumqi's GDP reached 102 billion yuan in 2008, an increase of 15 percent over the year previous. Regional fiscal revenue was 12.7 billion yuan, a 32.8 percent rise, while urban per capita disposable income increased 8.3 percent to 12,317 yuan.

"With the capital's advantages in geography and resources, and also the country's policy preference for western regions, the capital is committed to promoting the region's new industrialization and modernization of industry," said Jierla Yishamuding, mayor of Urumqi.

"The priority for Urumqi's economic development this year is to further boost the integration of Urumqi and nearby Changji Hui autonomous prefecture, which is also in line with central government's strategy of expanding domestic consumption," he said.

The 21,800 sq km Zhundong - or eastern Junggar basin - coalfield in Changji prefecture has a proven reserve of 68.5 billion tons, which could actually be 390 billion tons, which would make it the largest in China.

There more than 40 enterprises working in Zhundong's coal, power and chemical industries, with over 60 additional projects worth a combined 490 billion yuan planned or under construction.

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Shandong Yankuang Group has invested 22.9 million yuan in coal exploration and will build a 500,000-ton synthetic ammonia plant and a 800,000-ton carbamide facility. It also plans to construct a 3 million ton coal-to-fuel plant.

Shenhua Group has invested 24.7 million yuan in coal exploration and will build two power plants - one 660,000 kW and another 2.6 million kW - together with China Guodian Corp. Sinopec plans a 1.2 million-ton alkene project in Zhundong.

To support development at Zhundong, a 256 km railway to Urumqi has been completed along with a 213 km-long water supply project and a reservoir with a capacity of 100 million tons.

By 2020, Zhundong will be an ultra-large power generating facility for the country's west-to-east electricity transmission project with high-voltage lines serving Henan and Sichuan provinces along with the Yangtze River Delta.

"The Zhundong energy base will attract more and more large enterprises to invest in Urumqi. The energy industry is now a pillar industry and an economic engine for the Urumqi-Changji region."

The area is also striving to become a center for manufacturing, export processing, service industries and cultural exchange. It is also playing a leading role in driving the development in other parts of Xinjiang, he added.

Development zone

Huang Yong, an official of Urumqi Economic and Technological Development Zone (UETDZ), said the zone is another engine powering Urumqi's growth.

UETDZ was approved for construction in 2004 and has become a crossroads for China's opening up to Central Asian countries.

Covering 4.34 sq km, UETDZ is 10 km from downtown Urumqi and is home to companies making wind power and other mechanical equipment, food and drink processing and export processing, Huang said.

Adjacent to the booming markets of Central Asia and central and eastern China, UETDZ has attracted over 1,000 domestic and international enterprises including Coca Cola, Tingyi, SK, Carlsberg and Yili.

In 2008, the output value at UETDZ was about 5.2 billion yuan, an increase of 35 percent, while fiscal revenue exceeded 1.5 billion yuan and trade surpassed $700 million.

"The UETDZ accounts for one-thousandth of the capital's total area, but it generates 5 percent of its GDP," Huang said.

Xinjiang Goldwind Science and Technology Co Ltd, China's second-largest supplier of wind turbines, grew up at UETDZ. It now not only has branches in many Chinese provinces, but is also developing well in Germany, the UK, Denmark and Kazakhstan Its production value was 6.8 billion yuan in 2008, which is expected to grow to 10 billion yuan this year.

Xinjiang IPAR Biological Scientific and Technological Development Co Ltd is using Uygur traditional medicine and theories to develop new drugs. The company's drugs and healthcare products have entered Central Asian markets and it also set up a joint venture with a local company in Kyrgyzstan.

Xinjiang Arman Industry Co Ltd founded by two Uygur brothers produces Muslim and organic food and is active in retailing.

The company brought ideas from Uygur medicine and food to ensure their products are natural and healthy. Among their 28 products, 12 have been granted the "green food" label from the Chinese governmen.

Urumqi was once a crucial part of the Silk Road and is now a gateway on the Europe-Asia Continental Bridge.