How a Mountainous County in Fujian Built a Multi-Billion Dollar Industry

Deep News
Yesterday

As the year-end approaches, new energy enterprises in the Songshan section of the Fuzhou Taiwanese Investment Zone are operating at full capacity. Inside the smart production workshop of Fujian Wanshun New Energy Automobile Technology Co., Ltd., robotic arms systematically handle components, producing a new energy vehicle battery cover in just 30 seconds through a six-step process. "Once products are loaded onto trucks, they can reach the expressway in 15 minutes and arrive in downtown Ningde in just over 30 minutes," said Ye Penghui, the company's safety and environmental officer. He noted that 95% of the company’s output supplies Contemporary Amperex Technology Co.,Ltd., and proximity to the client enhances response efficiency while reducing costs.

Soon, this efficiency is expected to improve further with the launch of a major project. Seizing strategic opportunities, Luoyuan County is focusing on key industrial projects like new energy to ensure a strong start for the 15th Five-Year Plan period. Why has this major project chosen Luoyuan? On a construction site less than 2 kilometers from Wanshun Technology, workers are conducting settlement monitoring—the final step before main construction begins. This 900-acre site will soon be handed over to Contemporary Amperex Technology Co.,Ltd. for development, with operations scheduled to commence in 2027. This is the site of the Luoyuan Times New Energy Battery Industrial Base Project (Phase I).

On January 2, 2025, the Fuzhou Municipal Government signed a strategic cooperation framework agreement with Contemporary Amperex Technology Co.,Ltd., concurrently finalizing the investment contract for the Luoyuan project. Why did the new energy industry leader choose Luoyuan? Five years ago, as the new energy vehicle sector surged, upstream and downstream enterprises recognized Luoyuan’s adjacency to Contemporary Amperex Technology Co.,Ltd. and began establishing operations there. In 2021, Luoyuan designated new energy as a key industry, developing industrial platforms in the Songshan section and Luoyuan Bay Economic Development Zone.

Huang Guoan, a member of the Luoyuan County Committee, explained that over the following three years, the county attracted 29 supporting projects across the new energy supply chain—including raw materials, structural components, and battery management systems—with total investments of 11.5 billion yuan. To support industrial growth, Luoyuan established a task force to expedite land approval and supply. Currently, the county has over 3,000 acres of available land and more than 400,000 square meters of industrial standard厂房. During the 15th Five-Year Plan period, an additional 20,000 acres will be allocated.

In August 2024, learning of Contemporary Amperex Technology Co.,Ltd.'s plans for secondary expansion, Luoyuan’s investment team immediately engaged in discussions. Leveraging its industrial foundation and park platforms, the county successfully attracted the global new energy leader. The Luoyuan Times project, developed by a wholly-owned subsidiary of Contemporary Amperex Technology Co.,Ltd., involves a total investment of 6.5 billion yuan and will establish an annual production capacity exceeding 40 GWh, with output value surpassing 10 billion yuan. This will create an innovation synergy between Ningde’s R&D headquarters and Luoyuan’s manufacturing.

"The deeper significance of this project lies in industrial leadership," Huang emphasized. Following its launch, the project has become a flagship for Fuzhou’s new energy sector, driving the formation of a complete industrial chain. Furongyuan, an electronic aluminum profile producer, supplies Wanshun Technology, which in turn supplies Contemporary Amperex Technology Co.,Ltd., creating an interconnected supply cycle. "As the industrial chain matures and product categories expand, logistics and communication costs within the park will decrease, further enhancing response efficiency," said Chen Ning, Director of the Economic Development Bureau of the Fuzhou Taiwanese Investment Zone.

During the 15th Five-Year Plan period, key supporting enterprises—such as those producing battery cell connection components, lithium battery materials, separators, and battery management systems—will also establish operations in Luoyuan. The arrival of this anchor tenant is fostering industrial clustering. The growth of new energy and other clusters has positioned Luoyuan as a new growth pole in northern Fuzhou. From 2020 to 2024, Luoyuan’s GDP increased from 31.6 billion yuan to 51 billion yuan, with growth ranking third in the city. Local fiscal revenue rose from 968 million yuan to 1.71 billion yuan, a cumulative increase of 76%, ranking first in growth.

As evening falls, the production workshop of Fujian Zhenlong Nano Plastic Products Co., Ltd. remains brightly lit, with finished PC isolation boards stacked high, awaiting packaging. "These boards offer insulation, chemical resistance, and tolerance to extreme temperatures, primarily used for isolating batteries in new energy products," said Li Shimao, the company’s deputy general manager. Despite it being after hours, Li calmly showcased several new energy-related plastic products. He mentioned that proximity to Contemporary Amperex Technology Co.,Ltd. influenced the decision to locate in Luoyuan. "I currently live in downtown Ningde and commute to Luoyuan on a regular schedule. I’m considering moving my family here."

"Making Luoyuan home" is becoming a common choice for non-local employees of new energy enterprises. The coastal new city near the industrial park now houses one-third of the county’s population, with supporting facilities—schools, hospitals, commercial areas, offices, and parks—continually improving. The mature industrial environment, convenient location, and affordable living costs make Luoyuan an attractive destination for major projects and a preferred location for local employment. Recruitment notices at many new energy firms target recent graduates. Li acknowledged the growing demand for high-quality talent and noted that "factory tours" are organized to help job seekers better understand roles and working conditions, dispelling outdated stereotypes.

In recent years, Luoyuan has implemented various measures to enhance local employment services, stabilize the job market, and support enterprises. Streamlined approval processes, including immediate certification upon land transfer and simultaneous construction commencement, are already in place. "We will further optimize the business environment to provide solid support for real economic development," said Dong Jingtai, Secretary of the Luoyuan County Committee. "Looking ahead to the 15th Five-Year Plan period, Luoyuan will emphasize industrial development, accelerate key projects like the Luoyuan Times base, cultivate leading enterprises, and build a multi-billion yuan cluster, advancing the large-scale development of Luoyuan Bay to establish the county as a pearl of the Minjiang Estuary and southeastern Fujian."

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