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On the 21st of this month, the Foshan International Purchase Center for Plastic Products was officially established in Hecheng Town, Gaoming District, with a total investment of 1.5 billion yuan. Set 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 significant step forward for Gaoming's plastic industry, which has long been a key player in the national plastics and synthetic leather sectors.
The project is part of a broader effort by the Guangdong provincial government to accelerate the development of international procurement centers, aiming to enhance industrial competitiveness through improved production and service industries. The center has been recognized as one of Foshan City’s eight key international purchasing centers, and it is jointly developed by leading local plastic enterprises in Gaoming. This collaboration signals a shift in strategy for the region’s plastic industry, moving from simple purchasing and sales toward research, development, and value-added manufacturing.
Gaoming has long been known as a major hub for synthetic leather and plastic products. With over 300 companies in the sector, the district saw sales of synthetic leather alone exceed 12 billion yuan in 2011, capturing 70% of the provincial market and 11% of the national market. It was awarded the title of "China Synthetic Leather Industry Base" in 2005 and 2011, making it the only such base in the province. Despite its success, the industry has faced challenges in terms of pricing power and market control, often relying on external markets for both raw materials and distribution.
According to Zeng Tieqiu, president of the Gaoming Plastics Association, many local companies source raw materials from Guangzhou and sell their products through Shunde or Shenzhen. This not only increases costs but also limits their ability to set prices. As a result, Gaoming has struggled to retain tax revenue and gain full control over its supply chain.
To address these issues, several major plastic companies have joined forces to build the Foshan International Plastics Purchase Center. Led by Guangdong Wanfang Investment Co., Ltd., the center aims to strengthen Gaoming’s market influence by extending the industrial chain, expanding domestic and international channels, and gaining more control over pricing and distribution.
The center will serve as a comprehensive platform, featuring eight core areas including an intelligent operation management center, trading center, financial services, quality inspection, warehousing, brand promotion, e-commerce, and exhibition spaces. With an expected annual transaction volume of 8 billion yuan within 10 years, the project is anticipated to create over 1,500 jobs and stimulate growth in supporting industries such as logistics, e-commerce, and services.
In addition to boosting the plastics industry, the center is expected to contribute significantly to the local economy by promoting the development of the tertiary sector, including catering, hospitality, and logistics. It represents a strategic move for Gaoming to transition from a traditional manufacturing base to a more integrated, globally connected economic hub.
With the support of both local and provincial governments, the Foshan International Plastics Purchase Center is not just about improving trade efficiency—it’s about securing Gaoming’s position as a leader in the global plastics and materials industry.
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