Shanghai firms set to sign contracts

Nov 12 2008 by Peter McCusker, The Journal

THE first of a pipeline of Chinese companies setting up in the North East arrive in the region today in a development which could eventually create hundreds of jobs.

Four Shanghai businesses will sign contracts to move into a business incubator unit at Gateshead’s International Business Centre.

The moves follow years of hard work by regional development agency One North East and its regional partners and is hoped to be the precursor of an influx to the North East by Shanghai businesses.

ONE chairman Margaret Fay, senior Chinese figures, the deputy mayor of Gateshead Joe Michinson and Tyne and Wear Development Company manager Paul Buie will officially open the Shanghai International Business Incubator.

Kevin Aisbitt, ONE investment and after care senior specialist for China, said today’s event was a testament to five years of hard work.

“The four companies who are moving to the region will be the first of many. The incubator unit can house 15 companies and we expect it to be full within the next two to three years.

“These companies will the first of a pipeline of companies we expect to arrive in the region from Shanghai.”

The businesses establishing bases in the region include those in the technology, design and health care fields.

One on-line gaming company arriving in Gateshead already has an established market for its product in France and is anticipating further expansion across Europe.

In 2002 ONE established an office in Shanghai as part of a strategic move to establish closer relationships with the Shanghai business community.

In recent years through a partnership with the Science & Technology Commission of Shanghai Municipality (STCSM) steps have been taken to encourage Chinese companies to move to the region. This is a policy that is being supported by the Chinese Government.

Mr Aisbitt added: “The Chinese see that we have a long term strategic view to this investment. They appreciate the knowledge and skills available in the region in the fields of energy, science and technology and healthcare.”

Shou Ziqi, chairman of the STCSM will join the North East dignitaries at the opening ceremony today.