Sector and Others

1 Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Special-purpose vehicle means the vehicle installed with special equipment, with special functions, used for carry on special transport tasks or special operations and other specific purposes. In order to achieve different purposes, this kind of vehicle is installed with appropriate operating equipment in the chassis, such as peddle car, garbage truck, sweeper, sprinkler, environmental monitoring truck, cement mixer, crane, power station vehicle unit, repair vehicle, exploration vehicle, reservoir fracturing vehicle, scientific exploration vehicle, police car, fire engine, aircraft tractor, fuel truck, charging car, air compressor car, ambulance, medical facilities car, books car, television rebroadcast car, postal service car and snow removal vehicle etc. High grade special-purpose vehicles also include communications command vehicles, engineering vehicles, high-end ambulances, mobile service vehicles.
1.1.2 Market Prospects
With the synchronous acceleration of China's industrialization and urbanization, the Chinese special-purpose automobile market will remain high demand. Before 2020, China will remain in the development stage of simultaneous acceleration of industrialization and urbanization, with features of large-scale investment, long industrial chain, high processing degree, many intermediate products and long growth period. Besides, the distribution of resources in China is very uneven. The output of raw coal in central area is big, and the output of steel in the east is large. Thus the transport intensity is still high, and the development of special-purpose vehicle industry face opportunities.
Before 2020, the commercial vehicle market of China will remain around 9% annual average growth rate, which thus provides a good space for the development of special purpose vehicle. The market is expected to reach 5 million sets. The enormous infrastructure project will bring about vast demand space and market increment to engineering special-purpose vehicles. The total constructions of high grade highways remain high, which will drive the rapid development of vehicle for road construction, special operations vehicles for highway maintenance, and highway operation vehicles. At the same time, China's total energy consumption is huge, and the transport of energy supplies will expand the total demand for special-purpose vehicles.
Acceleration of urbanization, the improvement of urban functions will produce greater demand for special purpose vehicles in urban construction and service, such as construction, sanitation, gardening, electricity, communications, public security, judicial, airports, financial, and all types of commercial transportation; the rapid development of logistics will also greatly drive the rapid development of box vehicles, thermal insulation and heat preservation vehicles, semi-trailer box automobile and other special-purpose vehicles.
With the economic development and the enhancement of logistics efficiency, the demand structure and demand characteristics of the heavy special purpose vehicles will undergo significant changes, and the proportion of road cars will steadily grow. The development space of logistic and operating type special-purpose vehicle, mainly for road use, will be broader, and the proportion of engineering type vehicles will gradually drop to a relatively stable state.
Currently, China's special-purpose vehicle market is in the stage of performance improvement, and products mainly meet mid-market demand. Along with the rapid development of urban economy, the market scale of high-performance, high-quality and high-end products will be further expanded.
1.1.3 Technical Analysis
In recent years, there are increasingly high requirements for technology content and added value of special-purpose vehicle product in home and abroad. Some high-tech is widely applied to special-purpose vehicles, and some special-purpose chassis that can meet special function requirement is developed. No matter for hydraulic lifting device, nesting tripper, measurement device, machine operations, or refrigeration and insulation equipment, safety device, automatic control device, operating monitoring device; no matter the various types of tanks, pumps, valves, meters, etc. assembly, or all kinds of box, tank and other body structures, they are widely applied to special-purpose vehicle, and to a certain extent, it meets the multiple demand of customers for special-purpose vehicle products in the new situation. In this project, the special-purpose vehicle is scientifically and reasonably designed in function, structure, and appearance, and special attention is paid to individualized and user-friendly design.
1.1.4 Advantageous Conditions and Necessity of Project Construction
1. Advantageous Conditions
(1)Policy conditions
International special-purpose vehicle industry is accelerating the pace and intensity of the joint venture with China's special purpose vehicle industry. At the same time, to promote the faster and better development of automobile industry, the Chinese government has also introduced various policies and standards and regulations successively, including the national auto industry development policy, the national auto industry adjustment and revitalization planning etc. and these policies create conditions for the development of special-purpose vehicle industry.
At present, the technical level of the commercial vehicle products is low. This is mainly determined by the current actual situation: car purchasing capacity is low, drivers have low income, the value of transported cargo is low, standard is low, management is poor, road conditions are poor, and many commercial vehicles do not take the highway. With the continuous improvement of purchasing power, the value of transported cargo also rises with the increase of demand for high-quality, high value-added products. The accelerating introduction and enhancement of national energy efficiency standards and regulations, safety standards and regulations, formation of the national highway network result that the high-end car trend of commercial products is more and more obvious, and the upgrade of commercial vehicle products will put forward higher demand for special-purpose vehicles.
(2)Technical support
The special-purpose vehicle chassis that can meet special functional requirements has been developed successfully. No matter for hydraulic lifting device, nesting tripper, measurement device, machine operations, or refrigeration and insulation equipment, safety device, automatic control device, operating monitoring device; no matter the various types of tanks, pumps, valves, meters, etc. assembly, or all kinds of box, tank and other body structures, they are widely applied to special-purpose vehicle, and to a certain extent, it meets the multiple demand of customers for special-purpose vehicle products in the new situation.
(3)Human resource support 
Siping collects all kinds of talents, such as scientific research, engineering, survey and design, management, consulting service etc. Jilin University, Changchun University of Science and Technology, Changchun University of Technology, Northeast Normal University, Jilin Normal University, Jilin Academy of Agricultural Sciences, Jilin Agricultural Engineering College, Siping Academy of Science and Technology provide talent guarantee for the development of Siping. A complete talent cultivation and growth system has been formed. Siping has obvious labor resources advantage, and the proportion of skilled workers possesses a relatively high level in northeast urban agglomeration. The labor force is in the dividend period, with relatively low labor cost and a large number of high-quality industrial workforce, which can meet various business needs.
(4)Geographical advantage
Siping is the core of the Northeast Asian region, and is the city with the shortest transport radius. Overlooking the 17.28 million square kilometers of Northeast Asia, the geometric center is in Siping, in the south, it directly reached the Round-Bohai Economic Rim, in the north, it reaches Russia, in the east, it borders the Korean Peninsula, and in the west, it reaches Mongolia. Siping is located at the junction of Liaoning, Jilin and Inner Mongolia three provinces, the center of northeast automotive industry belt, and is accessible to Heilongjiang, Jilin, Liaoning and Inner Mongolia. It is the nearest place and necessary path to coastal ports and the Round-Bohai Economic Rim from Jilin, Heilongjiang and eastern Inner Mongolia. The radiated land area is 1.24 million square kilometers, accounting for 12.9 percent of the country's total, with a population of 107 million. Siping has convenient transportation extending in all directions, with criss-crossed highway and rail network, it is an important node in the Ha-Da transport artery. Beijing-Harbin Railway, Harbin-Dalian high-speed railway, Harbin to Sanya Expressway, Changchun to Shenzhen Expressway, Daqing to Guangzhou Expressway, State Road 102 etc. intersect in Siping. Siping is adjacent to China’s FAW-Volkswagen Group, and is an intra-city of Changchun. It is more than one hour’s drive from Changchun Longjia Airport and Shenyang Xiantao International Airport.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Introduce the German VW technology to build a project that annually produces 10,000 sets of all kinds of high grade special-purpose vehicles.
Table one:                product catalogue
Product name    Planned production scale    Purpose      
Communications command vehicle    2000 Sets    A kind of sound and video communications command vehicle used for emergent accidents      
Engineering vehicle    3000 Sets    Used for transport of engineering, evacuation, repair and even battle       
High-end ambulance    2500 Sets    Targeted to high-end medical treatment market       
Mobile service vehicle     2500 Sets    Suitable for the external mobile business and publicity of big communications companies      
1.2.2 Construction Content
Construct production area, office and residential area, storage area, purchase production, inspection and test equipments.
1.3 Total Investment of the Project (see Table 1 for details)
Total investment of this project is RMB 3 billion, including the construction investment of 2.1 billion yuan and basic current funds of 0.9 million yuan, and no debt fund or interest in the construction period is taken into account.
Table 1: Summary Table of the Total Investment of the Project Unit: 10 thousand yuan
No.    Expense Name    Amount of Investment    Proportion in the Total Amount of Investment%    Remarks      
1    Construction investment    210000    70          
2    Interest in the construction period            Temporarily not considered      
3    Current funds    90000    30          
    Total investment of the project(1+2+3)    300000    100         
Note: “10 thousand yuan” in the table refers to RMB.
1.4 Forecast of Economic and Social Benefits
1.4.1Major Indexes for Forecast of Economic Benefits (detailed in table 2)
Table 2     List of Major Indexes for Forecast of Economic Benefits
No.    Name     Unit     Index     Remarks       
1    Operating income    10,000 yuan/a    1000000.00     Normal year      
2    Total profits     10,000 yuan /a    131000.00    Normal year      
3    All taxes     10,000 yuan /a    75100.00    Normal year      
4    Financial internal rate of return of all investments     %    34.8    After income tax      
5    Financial net present value(Ic=10%)    10,000 yuan    4355261.00    After income tax      
6    Payoff period of all investments (after tax)    a    5.6    Including construction period of two years  (after tax)      
7    Investment profit rate    %    32.75    Normal year (after tax)     
Note: the “10,000 yuan” in the table is in RMB.
1.4.2 Analysis of Social Benefits
The application of special-purpose vehicle is broad. It widely services each sector of the national economy, such as road transport, project construction, oil field, mining, power, telecommunications, postal service, medical care, sanitation, agriculture, water, aviation, food, public security, fire protection, judicial and national defense construction and other industries. With the specialized nature of the special-purpose vehicles, it improves the efficiency of social development, reduces development costs, and promotes social progress. The project will annually produce 10,000 high-end special-purpose vehicles. It is able to meet the demand in the above sectors, and the quality is excellent.
1.5 Cooperative Ways of the Project
Sole proprietorship, joint venture, or cooperation.
1.6 What to be Invested by Foreign Party
Fund, other methods can be negotiated face to face.
1.7 Construction Site of the Project
Siping Special-Purpose Vehicle Industrial Park
1.8 The On-going Condition of Project
The planning and land pre-stage work and infrastructure supporting constructions of “nine passing and one leveling” has been finished.
2. Introduction to Project Undertaker
2.1 Basic Conditions
Name of project undertaker: Siping Special-Purpose Vehicle Co., Ltd.
Legal address: No.2659 of Yanchang Road, Tiedong District, Siping City
Legal representative: Li Yinhua
Corporate ownership form: limited liability
2.2 Overview of Project Undertaker
Siping Special-Purpose Vehicle Co., Ltd., formerly known as FAW Siping Special Auto Plant, was founded in 1956, and in 1964 it started to develop and produce special-purpose vehicles. Till now, it has had more than 40 years of production history. The company produces almost 200 types of special-purpose vehicles and the company is the leading enterprise among the special-purpose vehicle companies of China. In 1991, the company entered the area of national mechanical and electrical products export production enterprises with foreign operating right approved by the state in 1992. In the past 40 years, there have been more than 20 provincial and ministerial leaders to visit the company, and for hundreds of times, it won recognition and awards of the national, provincial, city and relevant departments. The original brand Jiefang (Xiongfeng) brand self-unloading vehicle, semi-trailer, tank truck, fuel truck and other products have been named “Famous Brand of Jilin Province”, and semi-trailer series products are named “China Top Brand” and “fine products of China”. It also won “gold prize” and “silver prize” among the consumers’ trustable domestic vehicles by the China Consumer Association. The enterprise is awarded such honorary titles as “star enterprise of China”, “enterprise with quality management prize” and “customer satisfaction enterprise” etc.
In the 40 years’ production of special-purpose vehicles, the company has gone through three major technological innovations, has introduced advanced technology and equipment from the United States, Britain, South Korea consecutively, which enhances the manufacturing level and product quality of the company. In 1997, the company passed the ISO9001 quality system certification as the first one in the industry, and in 2003, it passed “3C” system certification as the first batch. The products of the company are listed into Inspection-free Product of Jilin Province.
The Company completed the restructuring and reorganizing in 2007, and was renamed FAW Siping Special-Purpose Vehicle Co., Ltd. After restructuring, it inherits and retains the main body of the original company, and further innovates operating concept. Relying on the overall advantages and strong support of the FAW Group Corporation, it expands the technology platform, expands the field of production and sales markets, and based on the development strategy of “being the strong and delicate one”, and in line with the operating guideline of “stabilizing domestic market, expanding into international market”, the company carries on all-around system reform, resets the organizing structure of the company, implements the important measures of recruiting technical personnel and management elites, which promotes the steady and rapid development of the company, makes the company continue to be the designated automotive R & D and test base of FAW Group and the designated production enterprise of FAW Group Corporation Import and Export Enterprise. At the same time, the enterprise also has an independent export right of special-purpose vehicles.
The company currently employs 360 people, including 12 people engaged in engineering and technical work (8 with junior titles, and 4 with senior titles), and 22 people have junior and senior titles. The average technical grade of staff is grade 12; currently, the company has all kinds of equipments of 560 sets; it currently has construction area of 44,000 square meters, with total assets of 100 million yuan; the current production capacity is 5000 sets of special-purpose vehicles of mixed varieties, and special vehicle supporting assembly of nearly ten thousand pieces.
2.3 Contact Method
Contact Person: Zheng Xiaohui
Tel: 0434-6126057  18643455688

Contact Method of the City (Prefecture) of the Project
Contact Unit: Siping Economic and Technical Cooperation Bureau
Contact Person: Song Qingxin
Tel: 0434-3266211   13844482608


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