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On the 21st of this month, Foshan International Purchase Center for Plastic Products was officially established in Gaoming Hecheng City, with a total investment of 1.5 billion yuan. Expected to be completed and operational by May 2014, the center aims to become the largest wholesale market for new materials in Guangdong and even southern China. This initiative marks a strategic move by both the Gaoming District government and local enterprises to strengthen their presence in the global market.
As part of Guangdong Province’s broader plan to accelerate the development of international procurement centers and enhance industrial competitiveness, the project has been included in Foshan City’s key construction projects. It is one of the eight international purchasing centers under development in the city. The center was built through collaboration between Gaoming’s leading plastics companies, signaling a shift in the industry’s strategy—from mere buying and selling to active participation in research, development, and market leadership.
Gaoming has long been a major player in the plastics and synthetic leather industries, boasting over 300 plastic-related companies. In 2011 alone, sales of synthetic leather products exceeded 12 billion yuan, capturing 70% of the provincial market and 11% of the national market. The district earned the title "China Synthetic Leather Industry Base" in 2005 and 2011, making it the only such base in Guangdong.
Despite its success, Gaoming’s plastics industry has faced challenges, particularly in terms of market control and pricing power. Most purchasing and sales activities have taken place outside the region, increasing costs and reducing profitability. Many companies source raw materials from Guangzhou and sell products through Shunde or Shenzhen, limiting their ability to influence pricing and tax revenue.
According to Zeng Tieqiu, president of the Gaoming Plastics Association, the cost of transporting raw materials from Guangzhou to Gaoming adds about 50–60 yuan per ton. Meanwhile, sales of over 10 billion yuan annually are largely dictated by external players. To address these issues, Gaoming companies are working together to establish a powerful international procurement center that will extend the industrial chain, expand domestic and international channels, and ultimately gain more control over market discourse.
Wan Jianhui, director of Guangdong Wanfang Investment Co., Ltd., emphasized the importance of creating a platform where Gaoming companies can access global markets and compete on equal footing. The center is not just a trading hub but a comprehensive facility including an intelligent operation management center, trading center, financial services center, quality inspection center, warehousing and logistics center, brand promotion center, e-commerce center, and exhibition center.
With a total investment of 1.5 billion yuan and covering 250,000 square meters, the center is expected to generate an annual transaction volume of 8 billion yuan within 10 years. It will also create around 1,300 to 1,700 jobs and stimulate related industries such as logistics, e-commerce, and services, contributing significantly to the local economy.
Looking ahead, the center aims to position Gaoming as a leader in high-end plastic products, targeting industries like furniture and automotive manufacturing. By focusing on finished products rather than raw materials, the center will directly engage with end-users and foreign buyers, enhancing the industry's global footprint.
This initiative reflects a broader effort across Guangdong to improve industrial competitiveness through innovation and market expansion. With strong government support and private sector collaboration, Gaoming’s plastics industry is poised for a transformative phase, setting a benchmark for other sectors in the region.
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