Chinese city, GaoYao, has unveiled plans to establish a 50 square kilometre automotive component development area as part of its so-called 'strategy of four 50 km2.'

Twenty square kilometres will be developed in the first phase including two industrial bases - Jingshen and Jintao - focusing on the supply and distribution network of autoparts with the integration of metals, machine-building, chemistry and logistics.

GaoYao City People's Government Mayor, Liang Jing, heading a business delegation from the GaoYao region, outlined the proposals at a meeting this week in Brussels with European automotive supplier body CLEPA.

"We highly welcome the cooperation with European entrepreneurs in building a Sino-European Auto Part Industrial Park," said Liang, adding investors would be given "favourable conditions" for land prices, land-use rights of 50 years and taxes, notably a 15 % income tax for high and new technology enterprises.

"Infrastructure and skills are key success factors for the automotive supply industry," said CLEPA CEO, Jean-Marc Gales.

"CLEPA members are leaders in innovation and will no doubt qualify for the preferential conditions in the GaoYao supplier park."

The GaoYao supplier park project is located along a 200km expressway to Guangzhou, close to 20 auto manufacturing plants such as FAW Volkswagen Foshan and PSA in Shenzen.

The automobile industry in Guangdong forecasts an output of 4.5m units before 2015 in the province, while within a three-kilometre radius from GaoYao, there are 30 brand retailers and 160 auto marketing centres.

These are "easily connected to the Pearl River Delta industrial sites by expressway or waterway," said a CLEPA statement.