Sector and Others

1 Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Special-purpose engineering vehicle serves a variety of engineering. The main types of engineering vehicles are: concrete mixer, self-unloading truck, crane truck, paving locomotive, asphalt distribution truck, and road maintenance vehicle and so on. By end-use, engineering vehicles can be divided into: architectural engineering, mining engineering, construction engineering and municipal engineering etc.
1.1.2 Market Prospects
Special-purpose vehicles are closely related to the development of national economy. Unlike the sedan car, which is mainly used for private consumption, special-purpose vehicles are directly involved in the national economic construction, no matter for transportation or construction work, it plays a role in promoting the development of economic construction. With the deepening of China's reform and opening up, China's road construction, construction of key projects speeds up, and the special-purpose vehicle industry in China has ushered in a new development opportunity in recent years. Especially in recent years, with the rapid development of the national economy, the rapid development of infrastructure construction, as well as the rapid development of China's automobile industry, special-purpose vehicle is facing unprecedented opportunities. Economic construction also has a significant role in boosting the development of special-purpose vehicle, and it provides a vast market space for special-purpose vehicle. Especially before and after the global financial crisis, the engineering project with 4 trillion yuan investment increase investment into infrastructure construction, and the production and sales of engineering vehicle and self-unloading vehicles will gradually increase, and achieve extraordinary development. The market demand for engineering vehicle will be vast.
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 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.
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.
Currently, China's special-purpose vehicle market is in the stage of performance improvement, and the products mainly meet mid-end market demand. With the city's rapid economic development, the market demand of high-performance, high-quality high-end products market will further expand. With China's urbanization of new rural countryside, the demand for low-end products that can meet basic functions at low price will further expand. Thus the project is facing broad market prospects.
1.1.3 Advantageous Conditions of Project Construction
1. With solid industrial foundation
At the beginning of founding the new China, many ministries of the nation have established in Siping harvesters, blowers, loaders, passenger buses and joint, grease and other enterprises. The first combine harvester in new China was born in Siping, and Baishan brand passenger bus spread across the country. After the reform and opening up, after years of development, a new industrial system has been constructed, and at present, three key industries have been formed: equipments manufacturing industry led by special-purpose vehicle, passenger bus, construction machinery, heat exchangers, automotive parts; new energy industry led by oil, natural gas, thermal power, wind power, biomass power generation, and solar energy power generation; agricultural products deep processing industry led by gain deep processing, livestock products deep processing etc. Among them, special-purpose vehicle industry is among the foremost industry that Siping will establish. Thus, it has good prospects for development and broad space for development.
2. Good policy environment
The strategy of revitalizing the northeast old industrial base of China and the “12th Five-Year” plan for automobile and auto parts industry of Jilin Province provides policy support and development opportunity for Siping to develop special-purpose vehicle industry. At the same time, Jilin Provincial government approves the planning for revitalizing special-purpose vehicles proposed by Siping government. In the next step, it will further integrate local special-purpose enterprise resources, support the overall development of special-purpose vehicles, and construct the world-famous production, exhibition and sales base of special-purpose vehicle industry, which will be the biggest in North China. Under the current situation of financial crisis, the nation has listed automobile and logistics industry into the “ten revitalization industries”, and special emphasis is given to developing advanced suitable technology and light weight products with independent intellectual property rights, and the nation will give tax support to it.
3. With obvious regional and transport 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.
4. With solid technological talents advantage
FAW-Siping Special-Purpose Vehicle Co. Ltd. has already over 40 years’ history. In the 40 years’ production history, it has accumulated large amount of production experience, owned certain number of advanced production equipments, and reserved a batch of technological talents. At the same time, 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.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Introduce the German VW technology, construct high-end engineering vehicle project with annual output of 10,000 sets, the main products including self-unloading truck, mixer, and various types of tankers.
1.2.2 Newly build site and purchased equipments 
Construct production area, office and residential area, storage area, purchase production, inspection and test equipments.
1.2.3 Occupied area and construction period
The total planned area is 300,000 square meters, with construction period of two years.
1.3 Total Investment of the Project (see Table 1 for details)
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    65000    65          
2    Interest in the construction period            Temporarily not considered      
3    Current funds    35000    35          
    Total investment of the project(1+2+3)    100000    100         
Note: “10 thousand yuan” in the table refers to RMB.

1.4 Forecast of Economic and Social Benefits
1.4.1 Major Indexes for Forecast of Economic Benefits (See Table 2 for details)
Table 2    List of Major Indexes for Forecast of Economic Benefits
No.    Name     Unit     Index     Remarks       
1    Operating income    10,000 yuan/a    500000.00    Normal year      
2    Total profits     10,000 yuan /a    35000.00    Normal year      
3    All taxes     10,000 yuan /a    36600.00    Normal year      
4    Financial internal rate of return of all investments     %    28.6    After income tax      
5    Financial net present value(Ic=10%)    10,000 yuan     15000.00    After income tax      
6    Payoff period of all investments (after tax)    a    5.7    Including construction period of two years        
7    Investment profit rate    %    26.25    Normal year (after tax)     
Note: the “10,000 yuan” in the table is in RMB.
1.4.2 Analysis of Social Benefits
In the "12th Five-Year" period, the central government and local governments will invest in urbanization, the New Rural construction, and infrastructure construction. Especially in recent years, with the rapid development of the national economy, the rapid development of infrastructure construction, as well as the rapid development of China's automobile industry, the social demand for all kinds of engineering vehicles with special roles is great, and engineering vehicles play an important role in the process of economic construction. At the same time, engineering vehicles not only conserve resources, but also are very environmentally friendly, with good social benefits. In addition, the large amount of investment is needed in this project, and after achieving the production capacity, it not only plays a strong role in promoting local economic growth, but also provides numerous employment opportunities for local labor and thus the social benefits are very prominent.
1.5 Cooperative Ways of the Project
Joint venture, cooperation, share participation or other methods; can be talked face to face.
1.6 What to be Invested by Foreign Party
Entire investment or part of the investment is in the form of cash, and other methods can be talked face to face.
1.7 Construction Site of the Project
It is to be built in Siping Special-Purpose Vehicle Industrial Park of Jilin Province.
1.8 The On-going Condition of Project
Project proposal has been compiled.
2. Introduction to Partner
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 leader 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 makes further innovations to 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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