Chinese investment in Ireland

Huge China trade hub planned for Irish countryside

Ireland gave phase one of a huge Chinese trading hub planning permission on Tuesday, paving the way for what would be one of the biggest developments in the struggling euro zone country.

Reuters,

1 May, 2012

China has expressed growing interest in Ireland's economy in recent months, with leader-in-waiting Xi Jinping choosing Ireland as the only European stop in an international tour in February.

Beijing's sovereign wealth fund has also signed a memorandum to explore investment opportunities in Ireland and Tuesday's decision will allow building to start on a complex that could eventually see Chinese manufacturers and traders display goods to international buyers in 3,000 demonstration halls.

The 1.4 billion euro ($1.85 billion) 'Europe China Trading Hub', set on 140 hectares of mostly agricultural land in the midlands county of Westmeath, aims to become Europe's largest source of Chinese branded goods, according to the site's Irish developers.

They said Ireland was chosen as the preferred location due to its European Union membership, English speaking workforce, attractive corporate tax rate and stable industrial relations environment.

Ireland's ultra low corporate tax rate, which it guards vigorously against pockets of opposition in Europe, has helped it attract large multinationals to the country from eight of the ten world's biggest pharmaceutical companies to tech giants like Google and Facebook.

Acting as a gateway between China and buyers from Europe and the US, the development will provide space for Chinese traders to display their products with a view to generating bulk orders which will then be delivered from China.

The developers say the goods traded will range from electric cars to fabrics and machinery, with a particular focus on the high-end market and that the hub could ultimately provide direct and indirect employment for 9,000 people, as well as bringing 1.5 million visitors to Ireland every year.

The site would also include shops, restaurants, pubs, a theatre, cinemas and a library.

The first phase, which will see just under a quarter of the overall development initially built, could be open for business by 2015, according to the head of the nearby Athlone Business Park which proposed the development.

Asked if it would be able to finance the project, John Tiernan said the response from the private backers and promoters behind the project all pointed to a positive outcome