The smart terminal precision module plant is under construction in Changjiang town, Rugao and is expected to start operating this year. [Photo/WeChat account: rugaofabu]

An agreement on the smart terminal precision module project was signed in Changjiang town, Rugao on Jan 16.

The project will receive more than 10 billion yuan ($1.45 billion) in investment from Guangdong-based Luxshare Precision, including 6.8 billion yuan for equipment purchases. 

The first phase of the project is expected to start operating in 2021, with an annual production capacity of 137 million sets of precision modules, generating 12 billion yuan in taxable sales revenue.

It will help Rugao penetrate the global cutting-edge sci-tech industrial chain, local media outlets reported.

In recent years, Rugao has attached great importance to developing its real economy by attracting large-scale industrial projects and boosting sci-tech innovation, said He Yijun, the city's Party secretary at the signing ceremony.

In 2020, the city signed 32 project deals, each worth at least 1 billion yuan. In addition, 72 projects, each worth at least 100 million yuan, started construction last year.

Changjiang town, where the new project is located, faces Zhangjiagang in Suzhou across the Yangtze River and has played an active role in merging Rugao into the Yangtze River Delta region.

Major transportation projects, including the Zhangjiagang-Rugao cross-river passageway and the high-speed railway along the Yangtze River, have magnified the town's strategic advantages.

Over the last year, the town has seen 20 major project deals signed, 8 projects start construction, and 17 projects be completed.