The optical instrument and electronics industry will become one of Shanghai's key sectors as it develops advanced manufacturing and tries to differentiate itself from other cities, officials said yesterday.

The construction of an industrial park began yesterday in Fengxian district, a suburb of southern Shanghai, to attract foreign investment to participate in the industry's development.

The park is key to the city's development, and will be complimented by an industry development plan formulated by the municipal government, said Le Jingpeng, vice-chairman of the Shanghai Municipal Economic Commission.

"Development of the sector will help Shanghai position itself at the top end of the manufacturing industry, and especially upgrade the equipment production sector," Le said.

The industrial park in Fengxian is expected to cover 33 square kilometres and a total of 100,000 square metres of factory floorspace will be operational late this year.

The optical instrument and electronics industry is linked to a wide range of manufacturing sectors, such as auto-control systems, medical equipment and special meters.

Many countries have plans to develop their industry and China should co-operate with South Korea in this regard, according to Lee Sang-Zoon, an official from the South Korea Association for Photonics Industry Development.

The South Korean Government plans to develop Gwangju City on the southwestern coast into one of the leading centres for photonics technology by 2010.