The Dajin Group of China, one of the prominent companies in the country keen on spreading its wings overseas, has said it plans to invest Dh80 million ($21.78 million) in the GCC region over the next two years. The investments will focus on manufacturing, logistics and trading projects.

Feasibility studies for a Dh36.7 million 10,000 tonnes per year foundry in Qatar have been completed and approval from Chinese stae authorities obtained, Sun Xudong, board chairman, Shanxi Dajin International (Group) Company, was quoted in the Dubai press as saying.

Several business groups have shown an interest in the venture, the Chinese official said.

"Our plant will manufacture high-grade products for applications in the critical energy, petroleum and related sectors," Sun said. The group chairman added that the flanges plant would be the first of several other ventures in the region, including a submersible pump making unit and an electric motor assembly operation, both likely to be set up in the UAE.

The group has set up a commodities logistics centre in Sharjah. The operation Ñ established in October 2001 Ñ recorded a Dh7.5 million turnover. It plans to stage a semi-permanent exhibition of various Chinese household items at Chinamex in Sharjah and at the new Expo Centre complex coming up nearby, the press reports said.

Dajin last year recorded revenues of over $350 million. The group, which forms part of the state sector, has 23 subsidiaries, and also acts as the holding company for several other firms, the latter belonging to both the state and private sectors.

One of the features of business development in the GCC, particularly in the UAE, has been the expanding chinese role.