E-commerce behemoth JD signs an agreement with Zhangjiagang on Aug 30 to set up an intelligent industry base. [Photo/WeChat account: zhangjiagangfabu365]

China's e-commerce giant JD will set up an intelligent industry hub in Zhangjiagang – a county-level city administered by Suzhou, in East China's Jiangsu province – to cover the Yangtze River Delta, under an agreement signed on Aug 30 between the company and the municipal government.

The first stage of the project, with total investment of 2 billion yuan ($309 million), will be located at Leyu town and will include an intelligent supply chain facility and intelligent manufacturing industrial parks. Plans are for it to develop into an intelligent sorting, warehousing and logistics center for JD's e-commerce platform and an intelligent manufacturing complex for its supply chain.

Han Wei, mayor of Zhangjiagang, said at the signing ceremony that his city's strategic location at the intersection of the Belt and Road Initiative route and the Yangtze River Economic Belt had led to the development of both a lucrative port and railways. Its position adjacent to rivers and the sea was continuing to attract top people, logistics firms and capital, Han added.

The escalating cargo throughput has seen Zhangjiagang rank among the top commercial performers in the country, while a thriving port-centered industrial cluster has been formed in the city. Leyu town, a significant magnet for growth in the city, is understood to be leveraging its riverside advantages to build a demonstration area for characteristic specialist industries.

Han said that JD's cooperation with Leyu would be mutually beneficial for everyone and would boost the development of Zhangjiagang's online retailing industry and intelligent logistics systems.

The mayor said he expected JD would increase its investment in intelligent manufacturing warehousing and logistics, as well as in intelligent supply chains and new consumption business forms, in Zhangjiagang.

He said the local authorities would do their utmost to help companies expand their operations in the city.