Chinese government lends weight to footwear export drive
The Chinese footwear production giant, Shenda Shoe Enterprise, is one of 16 so-called 'super enterprises' that are to be given extra help by the government, as part of the country's drive to establish Chinese brands as a viable proposition with overseas consumers over the next ten years.
Under a charter signed recently by the general secretary Mr Jiang Zhe Min and prime minister Mr Zhu Rong Ji, the 16 businesses will benefit from unspecified preferences that are likely to include additional tax breaks and overseas marketing support.
In recent times, Shenda has invested Rmb360 million ($43.48 million) in new Research and Development facilities in Guangzhou and Dongguan plus another Rmb420 million ($50.7 million) in Shanghai .
With six production lines, the company is capable of producing 16 million pairs of shoes every year. These are distributed in the domestic market via a 2,000-strong chain of outlets, focused on the 'Shenda' brand.
The director of the board of Shenda group, Mr. Zhu Xiang Gui, said that until 2005, annual sales income is expected to 10 billion yuan ($ 1.21 billion).
