Executive Yuan approves trial launch of industrial park renewal plan

February 29, 2008

The Executive Yuan has approved a trial program for the renewal of industrial parks, according to a Central News Agency report.

The renewal plan, entitled the "Industrial Park Renewal Demonstration Plan", will be implemented as a cross government agency endeavor starting this year until 2010, according to Chen Chao-yih, Director General of the Industrial Development Bureau (IDB) under the Ministry of Economic Affairs (MOEA) .

Under the 'demonstration plan', two older, unused industrial parks will be chosen for renovations, which will be funded by various government agencies. The plan would eventually be extended to the nation's industrial parks.

Land for industrial use in Taiwan has been in high demand, said Chen, who noted several factors driving this demand: expansion of science parks, which have attracted more investment from manufacturers, and IDB efforts to help the private sector develop industrial parks such as the Taichung Precision Machinery Park.

Another factor driving demand has been a recent increase in the number of returning "Taishang" (Taiwanese companies abroad), many of which are manufacturers in traditional industries. The renewal plan aims to address the need for land by these manufacturers, said Chen.

The demonstration plan addresses the need for renewal of Taiwan's aging industrial zones. According to the IDB, which manages the nation's industrial parks, nearly half of Taiwan's industrial parks are over 30 years old. In addition, public facilities and daily needs at the parks are "insufficient", said Chen.

Renovations to the parks will be treated similarly to urban renewal projects, as the land and factories at the parks are privately owned, said Chen. The IDB hopes to choose two locations for the demonstration plan within the next three years.

The current draft of the Statute for the Establishment and Management of Industrial Parks will be revised following an assessment of the demonstration plan, so as to facilitate the continued implementation of industrial park renewal, according to Chen.

(Central News Agency)

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