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Qingdao to build a large-scale hardware and electrical machinery market
Qingdao is set to develop a large-scale hardware and electrical machinery market, with the Qingdao Wanxing International Hardware City project progressing in three phases. The first phase has already opened, while the second phase is expected to be completed this year, and the third phase will start next year. The entire development is scheduled for completion by 2015, aiming to accommodate around 2,000 merchants. According to an official from the project, the market will not only fill a gap in Qingdao’s professional hardware market but also become the largest and most comprehensive hardware and electrical machinery market on the Jiaodong Peninsula.
Located across Jimo and Chengyang districts, the project spans 580 mu (approximately 386,000 square meters) with a total investment exceeding RMB 1 billion. The decision to build such a large-scale market was driven by the need to address the lack of a professional trading hub in Qingdao, despite being one of China's key hardware manufacturing centers alongside Shanghai and Tianjin. While other cities have established large-scale markets, Qingdao previously had only small, informal ones near transportation hubs like the Sifang Bus Station.
The new market aims to serve industrial and architectural hardware needs, targeting nearby high-tech zones, advanced manufacturing companies, and logistics operators. Unlike smaller, unorganized markets, Qingdao Wanxing implements unified planning, investment promotion, and management. This includes financial support for merchants through direct collaboration with banks, reducing risks and improving access to credit. Since its opening, dozens of businesses have already benefited from these services.
The first phase, launched in 2010 and opened in March 2011, covers 150 mu and features 50,000 square meters of building space. It hosts over 500 dealers and more than 200 merchants, with an investment rate of 90%. The range of products includes tools, machinery, cables, electric equipment, abrasives, bearings, and more. With over 1,000 product varieties, it attracts leading brands and serves a wide regional market, generating annual sales of about 1 billion yuan and profits of 150 million yuan.
Currently, construction on the second phase is well underway. Located south of the first phase, the site shows active work, including column structures and slab pouring. The second phase, covering 220 mu and 170,000 square meters, will add over 900 shops and extend the existing hardware and electromechanical area. Expected to be completed by the end of 2014, it will boost annual turnover to 2 billion yuan, generate 300 million in profits and taxes, and create 2,500 jobs. The project also plans to introduce e-commerce and expand into daily-use hardware.
The third phase, planned for 2015, will focus on auto parts and cover 120 mu with 80,000 square meters of space. It will include 300 shops and a two-story frame structure. Alongside commercial spaces, residential, hotel, and office buildings will be developed, along with an online trading platform. Once completed, the market will offer a full range of services, including wholesale, retail, display, communication, warehousing, logistics, and e-commerce, making it the largest integrated hardware market in the Jiaodong Peninsula.