Sector and Others

1 Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Aerial ladder fire engine is equipped with a retractable ladder, with a lift bucket turntable and fire-fighting equipment for fire fighters to climb up to put out the fire and rescue trapped people. It is applicable to fire fighting in high-rise buildings.
1.1.2 Market Prospects
The so-called 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”. 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.
Special-purpose vehicle industry in China develops rapidly, and the industrial structure, economies of scale and technology level has undergone profound changes; it has become an important direction of the transformation and upgrading of traditional automotive products and carriers. The international financial crisis attacked in 2008, and the international economy weakened. China's auto market was affected. But with a series of macro-economic control for expanding domestic demand and maintaining growth, especially under the driving of four trillion large-scale construction investments, a strong domestic market demand is formed. Large infrastructure construction project brings about a great deal of demand space and market increase to engineering vehicles. The total amount of highway construction is still great, and will drive the rapid development of engineering vehicles for constructing roads, special-purpose working vehicles for maintaining roads, and highway operation vehicles. The speeding of urbanization and improvement of urban functions will produce a greater demand for special-purpose vehicles used 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 promote the rapid development of box vehicles, thermal insulation and refrigerated vehicles, semi-trailer box vehicles etc. special-purpose vehicles. During the"12th Five-Year" period, China's special-purpose vehicle market will reach 2.8 million sets, and the market is expected to reach 5 million sets in 2020. Thus it will enter a period of rapid growth, and the Chinese special-purpose vehicle industry will usher in a broad space for development. At the same time, China's booming economy and trade provides good growth opportunity for the fire manufacturers, and ladders-style fire truck project is facing broad prospects for development.
1.1.3 Technical Analysis
The project is planned to introduce the technology of Korea Batista Company, which is at the international advanced level at present, and the industrialized production has been established. 
1.1.4 Advantageous Conditions of Project Construction
1. Good policy environment
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. 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.
2. With obvious regional and transport advantage
Siping is the core of the Northeast Asian region, and is the city with the shortest transport radius. 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. Thus the regional and transport advantage is very obvious.
3. 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.
4. With solid technological talents advantage
FAW-Siping Special-Purpose Vehicle Co. Ltd. is an old state-owned enterprise, engaged in producing all kinds of special-purpose vehicles. It already has 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
Annual output of 1000 sets of aerial ladder fire engines annually.
1.2.2 Construction content
The total planned area is 180,000 square meters, with construction period of two years. 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 500 million, including the construction investment of 350 million yuan.
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    35000    70          
2    Interest in the construction period            Temporarily not considered      
3    Current funds    15000    30          
    Total investment of the project(1+2+3)    50000    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    200000.00    Normal year      
2    Total profits     10,000 yuan /a    18200.00    Normal year      
3    All taxes     10,000 yuan /a    14700.00    Normal year      
4    Financial internal rate of return of all investments     %    29.5    After income tax      
5    Financial net present value(Ic=10%)    10,000 yuan    28000.00    After income tax      
6    Payoff period of all investments (after tax)    a    5.48    Including construction period of two years        
7    Investment profit rate    %    27.30    Normal year (after tax)     
Note: the “10,000 yuan” in the table is in RMB.
1.4.2 Analysis of Social Benefits
In recent years, our country has made significant achievements in economic development, but people's awareness of fire prevention is not enhanced together with economic growth. The number of fire occurrence has increased year by year. With the acceleration of urbanization process in China, more and more high-rise buildings appear in the city, and once fire occurs in the high floors of these buildings, the consequences will be very serious. The aerial ladder fire engines produced by this project are specifically for the fire problems in urban high-rise buildings. It effectively protects the house and property safety of urban residents. Thus it has very high social benefits. Meanwhile, the construction of this project requires a lot of labor force and professionals, thus it provides many employment opportunities for the society, and 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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