State-owned conglomerate China South Industries Group Corp. (CSG) is expected to set up the headquarters of its motorcycle division in Chongqing City, southwest China, as part of its efforts to integrate such assets, according to a local official.

CSG has chosen a land lot of about 13.33 hectares in Chongqing's Xiyong Micro-electronics Industrial Park for the motorcycle headquarters, said insiders, adding that the industrial park is near the city's motorcycle fitting bases like Bishan County and Sanxikou Village and has lured a certain number of multinationals like Microsoft Corp. and Hewlett-Packard.

The headquarters is expected to open for business two years from now, best of all, mainly engaged in R&D and management, instead of manufacturing. As for CSG's other actions of asset reshuffle, Chongqing Jianshe Motorcycle Co., Ltd., Jinan Qingqi Motorcycle Co., Ltd. and China Jialing Industrial Co., Ltd. (Group) inter-exchanged their senior executives in September 2009.

In addition, CSG and its subsidiaries are capable of putting out over 6 million motorcycles a year, compared with Chongqing city's output of 11 million units last year.