Trade Visits to Shandong Province, China and Seoul, Korea March 1-8, 2012 By Gord Landon, Regional Councillor

Objectives and Outcomes

Presentation to: Economic Development Committee May 1, 2012 Background

• Date: March 1 – 8, 2012 • Cities Visited: China: Qingdao, Zibo and Yantai Korea: Seoul • Business Meetings: 14 • Hi-tech Industrial Parks Visited: 5 Shandong Province, China City Profile Qingdao: - An important international trade port, naval base, industrial centre and marine transportation hub - One of the ten largest ports in the world - A model city for environmental protection - A marine science and technology centre

- Area: 10,654 sq kms - Population: over 8.7 million (2010) - GDP: RMB¥ 566.6 billion (2010) - GDP per capita: RMB ¥ 65,827 (2010)

- Key industries: home appliances and electronics, petrochemicals, automobiles and railway engines, shipbuilding and marine engineering, logistics

- Industrial zones: Qingdao Economic & Technological Development Area; Qingdao Free Trade Zone and Qingdao High-tech industrial Zone City Profile

Zibo:

- A transportation hub of the Shandong province - One of the 5 ceramic centres in China - Abundant in natural resources, petroleum and natural gas

- Area: 5,965 sq kms - Population: 4.5 million (2010)

- GDP: RMB¥ 231.7 billion (2008) - GDP per capita: RMB ¥ 51,426 (2008)

- Key industries: manufacturing, construction and services - Zibo National New & High-tech Industrial Park and other industrial parks City Profile Yantai:

- Second largest industrial city in Shandong province, next to Qingdao - Has 9 different sea ports - Tourism extremely popular, getaway destination for both domestic and international tourists

- Area: 13,739 sq kms - Population: 6.5 million (2008)

- GDP: RMB¥ 343.4 billion (2008) - GDP per capita: RMB ¥ 49,012 (20108)

- Key industries: tourism, agriculture and services - Foreign investment: more than 70 world top-500 companies and multinational companies including LG, Hyundai, Toyota, Honda and Henkel etc. 10 Sectors of Opportunities Identified and Businesses Visited

1. Bio-technology, Pharmaceutical/Medical Equipments - Qingdao Huanghai Pharmaceutical Co., Ltd.; Qingdao Bright Moon Seaweed Group Co., Ltd.; Qingdao Better Bio-technology Co., Ltd.; “WEGO” Holding Co., Ltd.

2. Animation - Qingdao International Animation and Game Industrial Park; Qingdao Guangdian Wireless Media Co., Ltd.

3. Aluminum Packaging - Zibo Denuo Aluminum Corporation

4. Tire Recycling/Production - Shandong Fuyu Bluestone Tire Co., Ltd.

5. Plastics - Dongda Polyurethane Co., Ltd. 10 Sectors of Opportunities Identified and Businesses Visited (cont’d)

6. Hi-tech - Lily Software (Shandong) Co., Ltd.

7. Electronic Device – Changzheng Education

8. Green Technology - Zibo Guoli New Energy Co., Ltd.; Yantai Power Solarenergy Co., Ltd.; Komee LED Lights

9. Industrial and Economic Development Zones: - Qingdao National High-Tech Industrial Development Zones - Yantai International Economic & Technical Corporation Co., Ltd.

10. Others: - Beddings/Embroideries - Qingdao Baoli Embroidery Co., Ltd. - Organic Food – Korea Importers Association 10 Sectors of Opportunities Identified 1. Bio-technology, Pharmaceutical/Medical Equipments - Qingdao Better Biotechnology Co. Ltd.  The largest marine biological and biopharmaceutical production base in Asia.  Products: collagen, glucosamine, chondroitin sulfate, etc.

- Qingdao Bright Moon Seaweed Group Co., Ltd.  The world’s largest Alginate manufacturer, and the pioneer in seaweed processing.  Products: seaweed based chemicals, pharmaceuticals, health foods and fertilizers, etc.

- WEGO  The world’s largest integrated health product provider  Products: medical instruments & pharmaceuticals; 12,000 employees, RMB 6.6 Billion sales  Opportunity to develop connections with pharmaceutical companies such as TEVA 10 Sectors of Opportunities Identified cont’d 2. Animation: - Qingdao International Animation and Game Industrial Park (Q-Park)  MQTV (Qingdao Guangdian Wireless Media Co., Ltd.  Seeking technology transfer and products  Have linked with Centennial College and Seneca

3. Aluminum Packaging: - Zibo Denuo Aluminum Corporation  Products: aluminum foil including household foil, pharmacy foil, and food soft packing foil etc.  20% of the world market  Opportunity to develop business relations with ALCAN 10 Sectors of Opportunities Identified cont’d

4. Tire Recycling/Production: - Shandong Fuyu Bluestone Tire Co., Ltd.  selling 10 million sets of tires a year, targeting to produce 15 million sets of high performance radial tires and 25 million sets of recycled tires in 3-5 years.  Linking with the Miller Group.

5. Plastics: - Dongda Polyurethane Co. Ltd.  Products: Blend Polyol, Pre-polymer, paving materials, and water-borne polyurethane.  Widely used in solar energy, heat preservation, construction, electrical and automobile industries.  Award-winning professional supplier  Opportunity to create partnership with Royal Plastics 10 Sectors of Opportunities Identified cont’d

6. Hi-tech: - Lily Software (Shandong) Co., Ltd.  Provides IT outsourcing services  Recently registered office in Markham: “iTopSpeed Information Services Inc."

7. Electronic Device: - Changzheng Education  A light pen that provides instant language translation  Opportunities for Canadian ESL students/teachers

 Local J. Addison School expressed interests in the product. 10 Sectors of Opportunities Identified cont’d

8. Green Technology: - Zibo Guoli New Energy Co. Ltd.  Battery for buses  Linked with YRT and the Miller Group

9. Industrial and Economic Development Zones: - Qingdao National High-tech Industrial Development Zone:  Bombardier currently located inside the Park  Attractive to hi-tech companies

- Yantai International Economic & Technical Cooperation Co., Ltd.

 Possible connection with York Technology Alliance 10 Sectors of Opportunities Identified cont’d

10. Other: Beddings/Embroideries: - Qingdao Baoli Embroidery Co., Ltd.  joint venture with USD 3,500,000 registered capital.  equipped with advanced professional embroidery machines, the company produces table cloths, curtains and beddings etc.

 Investigating to set up a subsidiary in Markham

Organic Food: - Korea Importer Association

 Exploring trade opportunities with local agricultural communities Summary

 Potential prospects and business needs identified.

- Continue communication with Lily Software which established office in Markham

- Economic Development to develop follow up mailing to businesses visited. Summary cont’d

 Opportunities of co-operation and bi-lateral trade

 Identify strengths of respective cities and provide recommendations for Markham’s 2012 China Trade Mission - Qingdao, Zibo, Yantai Summary cont’d  Proposed Trade Centre: - focus on business opportunities - include rooms for display of goods and meeting facilities - Letter of Intent signed - Interests from: Jason Kenney, Minister of Citizenship and Immigration; Ed Fast, Minister of International Trade Questions?