Can I Relocate My Existing Factory to an Anhui Industrial Park?
Yes, relocating an existing factory to an Anhui industrial park is not only possible but increasingly common. As of 2025, over 340 foreign-invested manufacturers have completed relocations to Anhui’s 34 provincial-level industrial parks, attracted by land subsidies averaging 30–40% below coastal rates and tax holidays that can reduce effective corporate income tax to 15% for qualified high-tech firms. The key is meeting park-specific criteria and navigating the shěng nèi bān qiān (intra-provincial relocation, 省内搬迁) or cross-provincial transfer process, which typically takes 6–12 months from application to production restart.
Eligibility and Requirements for Factory Relocation
Before you can move your factory, the park authority will evaluate your existing operation against several thresholds. The most common requirements include minimum registered capital (usually ¥10 million for a 外商独资企业, WFOE, wàishāng dúzī qǐyè), minimum annual output (often ¥50 million or more), and environmental compliance records. Parks also favor industries aligned with their “core ten” sectors: new energy vehicles, integrated circuits, smart home appliances, AI, biopharma, new materials, high-end equipment, low-altitude economy, quantum information, and modern supply chains.
- Land use ratio: Most parks require a floor area ratio of ≥1.0 for multi-story factories or ≥0.8 for single-story.
- Employment generation: A minimum of 100 local employees is typical for light manufacturing; 300+ for heavy industries.
- Environmental grade: Operations must meet at least Class II emission standards (some parks require Class I for chemical processes).
- Technology level: If you hold valid patents or software copyrights, you qualify for the “high-tech enterprise” (gāo xīn jì shù qǐyè, 高新技术企业) certification, unlocking a 15% CIT rate.
Foreign-owned factories are welcome, but you must register a new WFOE or branch in the park. You cannot simply transfer your existing corporate registration — a new entity is required, then assets and IP are transferred via a “relocation agreement” (bān qiān xié yì, 搬迁协议).
Relocation Process and Costs
The relocation process has six sequential stages. Average timeline from initial park inquiry to first production on site is 9 months, though some parks like Hefei Xinzhan High-Tech Zone have a “fast track” for strategic projects that cuts this to 5 months.
- Pre-feasibility assessment (2–4 weeks): Park officials audit your factory’s profile, environmental rating, and production flow.
- Letter of Intent & due diligence (1–2 months): You sign a non-binding LOI; park provides land survey, utility pricing, and incentive package.
- New company registration (3–6 weeks): Register a WFOE or joint venture in the park. Notarization and translation of home-country documents may take extra time.
- Land lease & construction approval (2–4 months): For new-build factories. If you lease existing space (available in 70% of parks), this step is 2–3 weeks.
- Asset relocation & customs clearance (1–3 months): Moving equipment — especially used machinery — requires customs paperwork to avoid import duties on “used goods.” Parks like Wuhu Tongjiang have a bonded logistics center for temporary storage.
- Commissioning & permits (1 month): Environmental acceptance, fire safety, production licenses, and final inspection.
Costs to budget: relocation of heavy machinery averages ¥200–500 per ton for within Anhui, or ¥800–1,200 per ton from a coastal province. Customs brokerage for used equipment runs ¥5,000–15,000 per shipment. Many parks offer a relocation subsidy of ¥100–250 per square meter of workshop floor, capped at ¥2 million.
Incentives and Support Packages
Anhui’s industrial parks compete aggressively for anchor tenants. Below is a comparison of incentive offers from three major parks as of Q1 2025.
| Park Name | Land Subsidy (per m²) | Rent Free Period | Tax Holiday (CIT) | Relocation Grant (max) | Worker Training Subsidy |
|---|---|---|---|---|---|
| Hefei National High-Tech Zone | ¥150 if output >¥800/m²/yr | 12 months in standard factory | 15% for 5 years (high-tech) | ¥1.5 million | ¥2,000 per employee, cap 300 |
| Wuhu Economic Development Zone | ¥120 (available for all) | 18 months for first 5,000m² | 2 years exempt, 3 years half (25%) | ¥2 million | ¥1,800 per employee, no cap |
| Ma’anshan Yushan High-Tech Zone | ¥100 + 50% land tax refund | 24 months for heavy equipment | 15% for 3 years (all manufacturers) | ¥800,000 | ¥1,500 per employee, cap 200 |
In addition, the provincial government offers a “relocation speed bonus” of ¥500,000 if the factory restarts production within 6 months of land transfer. For foreign-funded projects exceeding $20 million in fixed assets, a further 5% capital subsidy applies.
Decision Framework: Which Park Should You Choose?
Your choice of park depends on your industry, scale, and timeline.
If your factory is in heavy manufacturing (steel, petrochemicals, automotive parts): Choose Ma’anshan Yushan High-Tech Zone. It offers the longest rent-free period and has existing supply chains for metallurgy and casting. The land tax refund is unique among Anhui parks.
If you are in high-tech or R&D-intensive production (semiconductors, biopharma, AI hardware): Choose Hefei National High-Tech Zone. Its proximity to the University of Science and Technology of China and its 15% CIT for 5 years make it ideal for IP-heavy firms. The worker training subsidy also helps attract skilled talent.
If you are a mid-size manufacturer with tight cash flow (output ¥20–100 million): Choose Wuhu Economic Development Zone. The 18-month rent-free period and uncapped training subsidy reduce upfront costs. Wuhu also has reliable rail freight connection to Shanghai for export.
If your factory uses hazardous chemicals or needs special environmental permits: Avoid parks in city centers. Instead, look at Chizhou Jiangnan Industrial Cluster or Xuancheng Modern Industrial Park, which have designated chemical zones with Class I discharge permits. Relocation here may take 12–18 months due to stricter EIA procedures.
Common Pitfalls in Factory Relocation
Cost: A ¥500,000 CNC machine could incur ¥75,000 (15% duty + 13% VAT) if ruled “used machines not allowed.”
Fix: Apply for a “pre-import inspection” (miǎn yì jìan yàn, 免役检验) at the park’s customs office before shipping. Obtain a Certificate of Second-Hand Equipment Origin from your home country. Park authorities often assist with the paperwork.
Cost: For a 200-person factory, average severance liability can exceed ¥2.4 million.
Fix: As part of the relocation agreement, offer a retention bonus (liú rèn jiǎng, 留任奖) of ¥2,000–5,000 per employee who agrees to relocate. Draft a collective contract amendment with the trade union. Parks like Hefei provide free labor law consultation for relocation projects.
Cost: A factory consuming 2,000 m³ water/day may be forced to pay ¥8/m³ (vs. ¥3.5 standard) for additional supply, adding ¥3 million to annual operating costs.
Fix: Request a Utility Capacity Guarantee from the park before signing the land lease. Ask the park authority to include a clause guaranteeing minimum water and power supply. Consider installing rainwater harvesting and solar panels to reduce grid dependency.
NEXT STEPS
- Conduct a Park Readiness Assessment — Compare your factory’s profile against the top 5 Anhui industrial parks tailored to your sector. Read our full guide: Anhui Industrial Parks Overview: Which Zone Suits Your Factory?
- Prepare a WFOE Relocation Budget — Get a detailed cost estimate including land, customs, labor, and incentives. Use our Factory Relocation Cost Calculator to model 3 scenarios.
- Engage a Licensed Relocation Agent — Partner with a local government relations firm experienced in 外商独资企业 (WFOE) relocations. We recommend reviewing the WFOE Setup Guide for Anhui Parks to understand entity registration steps specific to your industry.
— Anhui Gateway —
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