Huawei Technologies Company won a land auction for an industrial plot in Shenzhen, South China's Guangdong Province on Monday, at a reserve price of 298 million yuan ($46.6 million), with a floor price of less than 400 yuan per square meter, according to an announcement released by the Trading Center of Public Resources in Shenzhen.

The development shows Shenzhen's efforts to retain major industry and support the development of domestic enterprises, as well as promoting the development of new industrial clusters, analysts said.

The sale is not the first time that companies in Shenzhen gained land at lower floor price. On October 15, auto firm Shenzhen-based BYD won a piece of industrial land with a floor price of 343.55 yuan per square meter. Moreover, on February 9, the industrial land of Liding Semiconductor Technology Company was sold at a floor price of 261.34 yuan per square meter.

The announcement adds to a total gross floor area is 763,600 square meters, including 616,600 square meters of factory buildings, 55,000 square meters to be used as a cafeteria, 90,000 square meters for dormitories and 2,000 square meters for property service rooms.

Geographically, the site is located in Fucheng Street, Longhua District, which connects Huawei's two major headquarters, Huawei's global headquarter in Bantian Street and the company's headquarters located at Songshan Lake.

According to the announcement, the project is expected to start in 2023 and be completed in October 2025.

Global Times