A phenomenon known as "proximity effect", where neighboring companies form tight-knit partnerships, is occurring in Rudong county, Nantong, East China's Jiangsu province, and has strengthened industrial chains in the county.

Examples of this phenomenon are Jiangdong Electronic Materials Co Ltd and Jiangdong Alloy Technology Co Ltd. The two enterprises are situated less than 100 meters apart, enabling a seamless flow of resources and collaboration.

An aerial view of Jiangdong Electronic Materials Co Ltd and Jiangdong Alloy Technology Co Ltd. [Photo/Nantong Daily]

Each day, Jiangdong Alloy Technology transports 80 metric tons of copper wire and rods directly to Jiangdong Electronic's copper foil production workshop. "Our copper foil production line operates basically nonstop, with minimal downtime. Proximity to our raw materials greatly enhances production stability," said Liu Shitao, general manager of Jiangdong Electronic.

In return, Jiangdong Electronic helps Jiangdong Alloy Technology to achieve the efficient utilization of production waste material. "We recycle around 100 tons of waste material each month, saving nearly 2 million yuan in costs annually," said Chen Aihua, general manager of Jiangdong Alloy Technology.

Due to this collaborative effect, a comprehensive industrial chain for new materials has been established in the Rudong Economic Development Zone. Centered around Nantong Hanvo New Materials Technology Co Ltd, numerous downstream customers are clustered within a 5-kilometer radius.

"Our independently-developed ultra-high molecular weight polyethylene fiber, cut-resistant yarn, and core yarn products all complement each other in the supply chain. We also supply about 1,000 tons of yarn to nearby small and micro-sized enterprises annually, while our 4 million pairs of glove cores are exclusively provided to our neighbor companies," said Wang Jingjing, the company's general manager.

According to Wang, being close to the company's downstream partners allows these businesses to develop tailored products for the market's specific needs. One such success is their newly-launched MetalQ gray fiber product, which has already secured multiple domestic and international patents.