MOU with City of Qinhuangdao Leads to Industrial Park Development in Terrace, British Columbia
The City of Terrace, British Columbia signed an $11.8 million agreement in the summer of 2014 to sell two portions of the Skeena Industrial Development Park in Terrace to Taisheng International Investment Services (Taisheng). The City of Terrace and the Kitselas First Nation are joint-venture partners in the park, which is located just south of the province’s Northwest Regional Airport, with the ports of Kitimat and Prince Rupert, and the Canadian National Railway line all nearby.
< Back to Success Stories
In the fall of 2013, a delegation representing the City of Terrace and the Kitselas First Nation traveled to China to sign a memorandum of understanding with the Qinhuangdao Economic and Technological Development Zone (QETDZ) located in Qinhuangdao, a city on the north coast of China. In mid-July, 2014, a deal was finalized between Terrace/Kitselas partnership and Taisheng, QETDZ’s Burnaby-based intermediary.
Through the development of a cluster of Chinese companies focusing on manufacturing and industrial services, QETDZ plans to build a manufacturing industrial park on the 480 hectare Skeena property, aiming to take advantage of BC's strategic location and to help Chinese manufacturers wishing to tap into the North American market.
“This industrial park will be manufacturing oriented, focusing on highly value-added industries which are able to create high economic profit, bring in more employment opportunities, and foster the local economy.” said Richard Zhang, Managing Director of Taisheng International.
More and more Chinese companies are choosing to set up in countries closer to their end markets, and Terrace is one of the first places in B.C. to be approached by Chinese manufacturers drawn by land that offers unfettered access to the North American marketplace with rail, highway and sea all in close proximity.
When the deal was finalized in July, Terrace Mayor Dave Pernarowski said, “Today’s agreement marks a major milestone for the City and Kitselas. Diversifying our local economy is a priority for Council, and this sale will pave the way for industrial development at the Skeena Industrial Development Park, create new employment opportunities and reduce our reliance on residential property and business taxes to fund services.”
“This deal, and the subsequent development of the Skeena Industrial Development Park, will benefit the Kitselas First Nation both through our Joint Venture Agreement with the City, and through the development of local jobs,” said Chief Joe Bevan of the Kitselas First Nation. “The sale of these lands will help secure a prosperous future for our nation and the region. Kitselas has been moving forward with economic development and we see this agreement as building on the momentum of the development at the Park.”
The Province of British Columbia’s trade and investment teams in Vancouver and China assisted throughout the deal which is expected to create an estimated 900 construction jobs and thousands of operational jobs in the region. “The Province’s Trade and Investment (TIR) office in Beijing was instrumental in introducing, supporting and facilitating QETDZ’s decision to invest in B.C.,” said Minister of International Trade Teresa Wat. “This is why having a network of trade representatives based in Asia is so important to our economy as we link international investors with opportunities throughout our province.”