The Jiangsu provincial government signed a strategic cooperation framework agreement with China Merchants Group (CMG) in Nanjing, capital of Jiangsu province, on August 30. Nantong’s Haimen also signed a strategic cooperation framework agreement with CMG for developing the cruise industry.

The signing of the strategic cooperation agreement between Haimen and CMG marks deepening cooperation between the two sides. According to the agreement, both parties will play their roles in pushing ahead cruise manufacturing, cruise industry chain building and industrial cluster incubation.

China Merchants Group (CMG) is a leading state-owned enterprise based in Hong Kong, which was a pioneer in China's national industry and commerce. CMG’s business mainly focuses on infrastructure and equipment manufacturing and development and operation of urban industrial parks. By the end of 2017, the company had total assets of 7.3 trillion yuan ($ 1.06 trillion), 7.8 percent up year-on-year, ranking first among all the central SOEs. It owns two subsidiary corporations ranked as Fortune 500 companies.

Haimen has a comparative advantage in the marine equipment industry. It is situated near a river and the sea, and neighbors Shanghai. It is the only county-level city in Jiangsu province with such a favorable geographical position. During the 12th Five-Year Plan period, CMG’s manufacturing business took marine equipment as its key industry and expanded the business from the Pearl River Delta to the Yangtze River Delta. CMG selected Haimen as its focus point for development. In 2013, it set up China Merchants Industry Holdings Co Ltd (CMIH) and invested 10 billion yuan to build a marine equipment production base.

Since its establishment five years ago, the company has been orientated in technology and innovation and has constantly improved its innovation capability. Under the background of the market downturn, it optimized and upgraded its product structure, and promoted the high-end development of marine engineering equipment. It has become an advanced manufacturing enterprise in Jiangsu province, with taxable sales expected to exceed five billion yuan this year.

Luxury cruise manufacturing is an emerging industry that is prioritized for development in the nation’s manufacturing industry. CMG is carrying out the national strategies of maritime power and manufacturing power by actively pushing forward the transformation and upgrading of both high-end and luxury cruise manufacturing. CMG will build three bases in Haimen, including a luxury cruise manufacturing base, a luxury cruise equipment manufacturing industrial park and an international cruise city base.

At present, preparation for the luxury cruise manufacturing is in full swing, and has attracted a number of domestic and overseas professional and technical talents for research and development. A segmentation workshop and an intelligent processing workshop for luxury cruise manufacturing are nearing completion. The project of luxury cruise manufacturing is expected to launch this year.