Nine Beidou satellite navigation companies have signed cooperation contracts with Hainan's Lingshui county to build a satellite navigation industry cluster in the area, according to a Xinhua report on Monday.

The satellite navigation companies, including Beijing Autosoft JiTong Information Technology Corp, Beijing Be Communications Co Ltd and Harbin Land Survey and Mapping Ltd, will establish their headquarters, or research and development centers in Lingshui county to promote research, production and marketing of satellite navigation systems.

Lingshui Li autonomous county, located on southeastern Hainan island, is making endeavors to develop itself as an influential Beidou satellite navigation industry base in the country.

"Application of Beidou satellite navigation systems is expanding rapidly in China and the satellite navigation and location-based services are becoming an emerging industry that is embracing a golden era," said Yu Xiancheng, president of China GNSS & LBS Association.

He said that Hainan has many advantages in developing the satellite navigation industry, especially its geographical location and environment. Yu said after the nine companies settle in Lingshui, they will further boost the restructuring of Hainan's industries.

Last year, the total output value of the satellite navigation industry witnessed a year-on-year growth of 20.4 percent to reach 255 billion yuan. The sector has recorded an annual growth of more than 20 percent for seven consecutive years, according to official statistics.

Mai Zhenghua, Party chief of Lingshui county, said that Lingshui will provide high-quality personalized services for enterprises seeking development in the county.

"Any projects that meet the requirements set by the government will enjoy preferential taxation, finance and land policies," said Mai.