News Release
Shandong Provincial Government and The Carlyle Group Sign Memorandum of Understanding to Promote Investments; Carlyle Designates Shandong Province As One of Its key Investment Areas in China
Shandong, China – The Department of Foreign Trade and Economic Cooperation of Shandong Province (SDFTEC) under the Shandong Provincial Government and global private equity firm The Carlyle Group today announced that they have entered into a Memorandum of Understanding (MOU) to enhance trade co-operation and stimulate investment in the province.
As part of the agreement, Carlyle will designate Shandong Province as one of its key investment areas in China. Carlyle will dedicate resources, capital and expertise to the region to promote and develop sustainable, long-term commercial enterprises. In return, SDFTEC will assist Carlyle by proactively recommending opportunities in Shandong for strategic co-operation and investment.
“Shandong, with its excellent geographic location, well-developed infrastructure and skilled workforce, is among the top Chinese provinces in terms of development potential. We hope this MOU will speed up the development of Shandong into a world-class business magnet that will attract large enterprises and opportunities,” said Lv Zaimo, Director General of Department of Foreign Trade and Economic Cooperation. “We will also elevate our current co-operation with The Carlyle Group to an even higher and broader level. With Carlyle’s commitment to China and global expertise across major industries, our co-operation will benefit Shandong and the local communities through opening the province for investments, creating jobs as well as improving operational excellence and management standards of the local enterprises.”
Shandong Province ranks second among Chinese provinces based on both population and gross domestic product. Its GDP has grown at an average annual rate of 14.3% over the last five years. Profits generated from the industrial sector lead the nation at more than RMB 320 billion in 2007.
“The development of Shandong Province is of critical importance to China,” said William E. Conway, Jr., Co-Founder of The Carlyle Group. “To date, we have made two investments in Shandong, and we are both pleased and proud to strengthen our close relationship with Shandong Province. We look forward to creating value, promoting Shandong Province as a favorable investment destination and developing strong and lasting partnerships with companies and industries in Shandong Province. We will also help leading Shandong companies to expand overseas through investments and partnerships.”
To further the partnership, SDFTEC will help Carlyle build relationships within Shandong, while Carlyle will provide reciprocal support for SDFTEC in the United States. Carlyle will also actively promote the investment potential of Shandong Province to investors outside China.
Carlyle’s investments in Shandong Province to date include a significant joint venture investment by Veyance, one of Carlyle’s U.S. portfolio companies, to produce world-class industrial conveyor belts. Veyance was previously a unit of global tire manufacturer Goodyear Tire & Rubber and is the largest producer of conveyor belts in the world. Carlyle has also invested in Capland Center, a mixed-use development project in Qingdao that will be one of the city’s landmarks, in partnership with a local developer Capland Property Development Group.
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