The African Growth of a Chinese Enterprise
Jiuhua Group was originally a trading company mainly engaged in domestic trade. After years of development in Africa, it has grown into a large-scale conglomerate enterprise integrating trade, production and processing, civil engineering, and decoration. Modern industrial parks with independent property rights and complete supporting facilities have been established in Lagos, Abuja, Caiji, and Uyo in Nigeria, with a total area of 200000 square meters. There are 7 factories including door industry, glass deep processing, aluminum alloy doors and windows, stainless steel production, iron art production, furniture, sofas, etc., which produce supporting buildings and decorations for industrial production.
Jiuhua Group has established a good brand image in Nigeria and has established close relationships with the government. By leveraging its years of resource accumulation in Nigeria, Jiuhua Group fully utilizes its role as an industrial investment platform and has formed strong alliances with multiple Chinese enterprises to help them enter Africa and jointly contribute to its development.
Deeply cultivating Africa for 20 years, serving domestic enterprises to develop in Africa
Nigeria is rich in natural resources and has broad development prospects. It was once rated as the "most attractive investment country in Africa" in 2014-2015. However, its domestic facilities and equipment such as electricity, communication, transportation, and ports are relatively outdated, and electricity production can only supply 40% of residents' daily needs. Industrial electricity needs generators to be maintained; The transportation capacity mainly relies on highways, railways, waterways, and aviation, but has not been effectively developed.
At present, Nigeria is actively carrying out infrastructure construction in various fields, and there is a huge demand for foreign investment. However, foreign enterprises or organizations are not very familiar with the local investment environment, which to some extent hinders and affects the smooth inflow of direct investment.
Jiuhua Group has been deeply involved in Africa for 20 years. With its own advantages, it integrates supply and demand resources, creates service platforms, and assists China's advantageous production capacity in investing in Africa. It has facilitated the signing of investment agreements in Nigeria by China Energy Construction Group, Chaoyang Heavy Machinery Group, Beijing Huiersanji Green Chemical Technology Co., Ltd., Panjin Chemical Co., Ltd., and others.
Jiuhua Group has a deep understanding of Nigeria's economic development needs, possesses relevant capabilities in government public relations project research, procedure handling, infrastructure undertaking, market development, and has close connections with domestic industry strength enterprises, giving it a natural platform advantage.
Strong alliance with complementary advantages, creating an economic industry chain
The Jiuhua Group's independent property rights industrial park project is self funded, with sufficient investment funds in the future; The funds for joint investment projects such as power plants, cement plants, and oil refineries will be raised by Jiuhua Group and cooperative units in proportion, with China Export&Credit Insurance Corporation providing foreign exchange risk protection.
In terms of operational management, Jiuhua Group focuses on strong alliances and complementary advantages. The group undertakes infrastructure construction projects for cooperative projects based on independent property rights industrial parks; The cooperating party is responsible for providing professional technical personnel and production equipment support. The two form a strong alliance to achieve complementary advantages.
At the same time, we will build an industrial chain for economic development. While integrating resources and leveraging platform functions, Jiuhua Group promotes upstream and downstream linkage of individual industries, such as using infrastructure to drive cement manufacturers to invest and build factories, and using power plants to drive the layout of the power grid industry, thereby achieving the goal of building an industrial chain and objectively promoting the overall prosperity of the local economy.
Promote local infrastructure improvement and economic development
The projects promoted by Jiuhua Group in Nigeria have greatly improved the local infrastructure construction. The original annual power generation in Lagos, Nigeria was less than 2000 megawatts, which cannot meet the local production and living needs. Jiuhua Group and China Energy Engineering Corporation jointly build a 90+350 MW power plant project in Nigeria, with an installed capacity of 90 MW during the project period and 350 MW during the second phase, corresponding to the power generation capacity. After the completion of the project, it can alleviate the power shortage in Lagos area, improve the power structure of the local power grid, and enhance the reliability and safety level of the local power grid supply.
The original selling price of cement in Nigeria was about $150 per ton, which was expensive and seriously hindered the development of local infrastructure construction. After the completion of the cement plant project in cooperation with Chaoyang Heavy Machinery Group, Jiuhua Group will build Nigeria's largest cement production line with an annual output of 2.5 million tons. After production, it is expected that the cement price will be around $100/ton, which will greatly reduce the price and effectively promote the development of local infrastructure.
The refinery project jointly operated by Jiuhua Group, Beijing Huiersanji Green Chemical Technology Co., Ltd., and Panjin Chemical has an annual crude oil refining capacity of 3 million tons and 5 million tons respectively. After the project is put into operation, it will greatly enhance the local petroleum refining and processing technology, improve the process flow, and increase the original conversion utilization rate.
The project also provides employment opportunities for the local area. Based on the needs of the infrastructure construction stage and the implementation and operation stage after the completion of various projects in the industrial park, it is expected to provide about 9000 job opportunities for the local area, help solve the employment problem of surplus labor force, and increase residents' income.
The project has promoted local economic development. The total investment of the project is 2 billion US dollars, which can bring direct economic benefits of over 20 billion US dollars to the Nigerian government. It is of great significance to increase Nigeria's foreign exchange income and promote regional economic development.
At present, Jiuhua Group has started the construction of Guinea Industrial Park, and the civil engineering of the project will be completed and delivered in June 2019. After the completion of the industrial park, it will replicate the development model of Nigeria, rely on the industrial park, cooperate with large enterprises in various fields in Guinea, develop industrial investment, and help Guinea's infrastructure construction.