Lianshi town in Nanxun district, Huzhou, Zhejiang province, has established a cosmetics manufacturing chain since 2020, with the sector's output value rising more than 40 percent this year.
The expansion started in 2020 when Jiaheng, a cosmetics producer, set up operations in Lianshi. To meet the company's need for local suppliers and reduce logistics expenses, the town surveyed local businesses along the supply chain and identified 22 potential companies for targeted investment. Over 15 of these firms could offer supporting services to Jiaheng.
The strategy has helped attract cosmetics equipment, raw-material, packaging, and contract-manufacturing businesses. Equipment maker Heze Technology now exports about 60 percent of its products to markets including Europe, the United States, Japan, and South Korea.
Lianshi has since developed a supply chain covering equipment, raw materials, packaging, contract-manufacturing, and brands. Existing companies have also helped introduce new investors.
Local authorities have set up dedicated service teams to assist companies with land use, approvals, construction, and production-related issues. In one recent case, officials coordinated with a gas supplier, designers, and contractors to install a natural-gas system in an operating factory without halting production.
This year, Lianshi has signed nine projects, each involving investment of more than 100 million yuan ($14.88 million), with combined planned investment exceeding 9.9 billion yuan.
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