Changzhou, Jiangsu Province, is striving to become China's coating production base by increasing its output to 10 billion yuan (US$1.2 billion) by 2007.

According to forecasts by the Changzhou Science and Technology Bureau, sales of Changzhou coating base will reach 9.5 billion yuan (US$1.15 billion) with an annual growth rate of over 20 percent in two or three years.

The products of this new coating base are expected to take up 20 percent of the domestic market, and 5 percent of the global market in two years.

The goal will be achieved by taking concrete steps in the coming years as scheduled, said Zhang Yue, director of the bureau.

A strategy has been made by the local government to promote famous brands, new technology and key enterprises.

Zhang said the number of large enterprises will be increased to 50, including 20 with assets of more than 100 million yuan (US$12 million), among which at least 25 should focus on high-tech products.

While promoting the products of the coating base, the Changzhou government is also keeping an eye on ongoing research to create a mechanism to explore new technology.

Several provincial and municipal research centers are to be founded in Changzhou to bolster the technical strength of enterprises.

More than 3,000 staff are doing research in the coating base, working for independent institutions and labs of universities, which shoulder 76 national and provincial scientific programs.

Established in May this year, Changzhou coating base has grown into one of the largest coating bases in China, and its representative products are new environmentally safe liquid coatings, powder coatings, and solid coatings, which have won a large market share in China.

The base is playing a crucial role in China's coating manufacturing, with output of 230,000 tons every year, accounting for 10 percent of the country's total output.

Changzhou has attracted more than 200 enterprises to the coating base including about 50 raw material supplying factories, over 100 manufacturing factories, and scores of retailing agents and services firms.

Products of Changzhou manufacturing base have been used in the construction of some famous buildings in China.

(China Daily October 9, 2004)