Automobile & Parts

 

1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
With Chinese society continuously developing and people's living standard increasing constantly, automobile consumers have become more and more, bringing about a huge development opportunity for automobile bumper production industry. Modern vehicle bumper is mainly made from PP resin. In spite of strength, rigidity and decorative property of plastic bumper, in view of safety, it can play a buffer role when the automobile appears collision accident and protect front and rear vehicle bodies, but because of its poor antifreezing performance, poor corrosion resistance and frangibility, it cannot provide the vehicle with further protection. Manufacturing automotive front and rear bumpers with basalt fiber can solve antifreezing and corrosion resistance problems. Moreover, the excellent tenacity of basalt fiber can greatly increase the collision buffering power and the vehicle's safety. It will become the first choice for vehicle bumpers.
1.1.2 Market Prospects
With the resident's income and automobile production capacity increasing, family cars have entered ordinary families. At present, the demand for Chinese family cars is equal to global annual output. A new investigation showed that, in Chinese urban families, about 26 million families desire to purchase cars, equal to total output of global automobile manufacturers in a year. In 2014, Chinese automobile sales volume was 25.00 million, and exceeded 25 million in 2015. China has become the place where has the biggest sales volume of automobiles.
From January to December 2013, annual automobile production and sales volume is 22.1168 million and 21.9841 million respectively, a year-on-year growth of 14.76% and 13.87%. Passenger vehicles production and sales volume is 18.0852 million and 17.9289 million respectively, a year-on-year growth of 16.5% and 15.71%. This is the first time that Chinese automobile production and sales volume exceeded 20 million, and it has ranked top in the world for 5 consecutive years.
With automobile types increasing and production and sales volume growing, the demand for bumpers will increase accordingly. In addition, the automobile bumper belongs to the wearing variety among automobile parts, its market is mainly consisted of new vehicle supporting market and after-sales replacement market, in which supporting market (OEM) is decided by output of new vehicles, and after-sales replacement market is in direct proportion to automobile inventory. According to the statistics, in 2013, Chinese bumper market capacity was 56.24 million, a year-on-year growth of 14.5%. The increase of automobile bumper accessories and demand of spare parts market will bring about a big development opportunity to automobile bumper production enterprises.
The current automobile bumper is mainly made from polypropylene (PP), which has the least density in plastics, can float on the water, having good comprehensive performance including good thermal deformation resistance and low price, so it has been widely used in automotive interior and exterior decorative parts as well as functional parts in recent years.
In a lot of European, American and Japanese vehicles, the application proportion of PP can reach over 20%. For example, the automobile's air intake grating, dash board, dash board, control panel, glove box, air conditioner outlet, handle, loudspeaker cover plate, steering wheel, bumper, fender and car lamp body.
However, PP still has many disadvantages, such as its poor rigidity, bending resistance, precision dimension, weather resistance, antifreezing property, toughness and impact resistance.
As automobile safety structural parts, the bumper should be able to adapt to the temperature change, having strong rigidity, impact resistance and toughness. Furthermore, the regulation requests the bumper should be kept in good condition when an automobile occurs collision when running at the speed of 40km/h. Therefore, big safety trouble will appear is PP is only used in the bumper.
Overview of basalt fiber (BF)
Nowadays, the most typical reinforced material of polymer composite is glass fiber. This kind of fiber has low price, good strength and relative interface adhesion with matrix, but its production process can harm people's body, because the suspended substances generated during its production will strongly irritate people's respiratory tract, and cause people with sensitive skin to appear adverse reaction. Carbon fiber is often applied is the special and highly required circumstances, such as aerospace technology field, military field and sports field. However, the products made from carbon fiber cost much higher than that of glass fiber, and the adhesion between carbon fiber and matrix is not ideal. As for natural fiber, it has obtained some progress in application research and owned good mechanical performance and relatively low price, but it cannot provide stable fiber performance. Other reinforced fiber materials, such as aramid fiber and ceramic fiber, are also used, but not widely.
BF is a new-type material developed in recent years, which was initially developed and used by former Soviet Union in military field in 1950s. Its raw material was pure natural basalt. After it was melted at about 1500 , and produced through platinum rhodium alloy wire-drawing and bushing. Due to its simple raw material got from the nature, and zero pollutant emission during preparation, it is hailed as new century environment-friendly material. As early as in 2002, Basalt Continuous Fiber and Its Composite Project was listed in the National 863 Program. In 2004, BF was listed in National Torch Program and national-level technological small and medium enterprise innovation funds project by the Ministry of Science and Technology.
1.1.3 Technical Analysis
Considering the increasingly intense market competition, economic development and environmental requirements, a number of famous scientific research institutions in the world are apply themselves to the development of a new material, mainly aiming to use new padding or new-type fiber to reinforce plastics. In the technical journal of composite of August 2000, an article called Potential of Basalt Fiber Reinforced Composite summarized the significance and enormous potential development space of BF as a new, natural reinforced material.
The discovery of BF mineral source has attracted more and more attention. Because the foundation of BF is the basalt on the volcano eruption surface, including 45%-52% of saturated SiO 2 , so it has some excellent properties on the basis of the particularity of the raw material.
Table 1.1 below is the comparison of tensile strength, elasticity modulus and other comprehensive performance between BF and other mainstream fiber materials.
Table 1.1 Comparison of Comprehensive Performance between BF and Other Fiber
 
BF
E Glass Fiber
S Glass Fiber
Carbon Fiber
Aramid Fiber Fiber
Density (g/cm3)
2.65-3.05
2.54-2.62
2.46-2.57
1.78
1.45
Tensile strength (Mpa)
3000-4840
3100-3800
4020-4830
2500-6000
2900-3400
Elasticity Modulus (Gpa)
79.3-93.1
72.5-78
83-91
230-600
70-140
Elongation at Break ( )
3.1-3.2
4.7
5.3-5.6
1.5-2.0
2.8-3.6
Maximum operating temperature (℃)
650
350-380
300
500
250
In the table, we can see that, the density of BF is very nearly the same as ordinary glass fiber; the tensile strength can compete favorably with carbon fiber material; elasticity modulus is moderate; elongation at break may compare with that of aramid fiber; maximum operation temperature is higher than that of other fiber materials, and the high temperature oxidation resistance is remarkable. In addition, BF has excellent chemical performance, and very little mass loss in strong acid and strong alkali solution, so the comprehensive performance of BF is outstanding. In addition, the BF preparation process shows that, the market price of BF is not high, which has very high cost performance. Therefore, BF is another popular reinforced fiber material appearing after glass fiber, carbon fiber and aramid fiber. It has broad market space in some industrial fields like aerospace, automobile, road and bridge, and construction.
1.1.4 A dvantages of Project Construction
(1) Policy advantage
According to the National Twelfth Five-Year Plan for Development of Strategic Emerging Industries, new generation of information technology, organism, energy conservation and environmental protection, and high-end equipment manufacturing industries will become pillar industries. New energy, new material, and new energy automobile industries will become the guiding industries. Low carbon, energy conservation and environmental protection will be the largest characteristics of automobile bumpers. In addition, BF belongs to high-tech new-type reinforced material, which can meet the requirements for energy conservation and environmental protection, and more importantly, fill the blank of new materials research and development in present period when the automobile bumper market is in urgent need of transition, transformation and development, and open up a new field with promising prospects.
(2) Location advantage
Baishan City is situated in the center of Changbai Mountain, and has long been known as "3D Resources Treasury", "Changbai Forest Sea" and "Town of Ginseng". Changbai lava platform and Jingyu lava platform cover most of the regions in the city, laying a solid foundation for collecting raw materials due to the abundant mineral resources.
(3) Product advantage
Compared with traditional glass fiber and carbon fiber, besides high elasticity modulus and outstanding heat resistance, BF has properties of acoustical resistance and isolated vibration, as well as good insulation performance. BF is used as reinforced material to produce automobile bumpers, and has very strong performance advantage compared with traditional bumpers.
Compared with other kinds of fiber with high technology content, BF has its unique competitiveness and good cost performance due to its low cost, high performance and big market. The promotion and application of a new material will bring about a revolution of product upgrading and material industry; this is undoubtedly a new development blueprint. Mastering new materials means getting new subject target and new development opportunity.
At present, a few number of countries own BF manufacturing production technology, such as Russia, America, South Korea and China. China has huge demand for high performance reinforced fiber, and the demand exceeds supply. The technology is leading.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scale
Annual production capacity is 4 different vehicle bumper production lines and 3 million BF bumpers.
1.2.2 Content of Project Construction
The project covers an area of 10,000m 2 and building area 8000m 2.
1.3 Total Investment of the Project and Capital Raising
Total investment of the project is 100 million yuan, including construction investment 80 million yuan.
Table 1: Summary Table of Total Investment of the Project   Unit: RMB10,000
No.
Expense Name
Amount of Investment
Proportion of Total Investment %
Remarks
1
Construction investment
8000
80
 
2
Interest incurred during construction
 
 
 
3
Circulating capital
2000
20
 
 
Total investment of the project (1+2+3)
10000
100.00
 
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
After the project reaches the production capacity, it will realize annual sales income 150 million yuan, total profit 25 million yuan, payback period 5 years (after tax, including 1 year of construction period) and FIRR 20%.
Table 2: List of Major Indexes for Forecast of Economic Benefits
No.
Name
Unit
Index
Remarks
1
Sales income
RMB10,000/a
15000
Normal year
2
Total profit
RMB10,000/a
2500
Normal year
3
FIRR of all investments
%
20
After income tax
4
FNPV (Ic=10%)
RMB10,000
3998
After income tax (operation period 10 years)
5
Period for recovery of all investments (after tax)
a
5
Including 1 year of construction period
6
ROI
%
25
 
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 Social Evaluation
The project implementation will be influenced by the income and living standard of local residents. The project will drive the development of relevant industries, increase local financial income, enable the national economy level of Baicheng City to increase to some extent, and greatly change the living standard and quality of the residents in Baicheng City.
The influence of the project implementation on the employment of regional residents
After the project is finished, it will provide new jobs for the society. In addition, the project implementation will also drive the development of related industries. According to the primary estimate, it can create new jobs for 50 persons directly, and create indirect jobs for 100 persons, having great significance for the development of local economy.
1.5 Cooperative Ways
Sole proprietorship and joint venture
1.6 What to be Invested by Foreign Party
Negotiated by both parties.
1.7 Construction Site of the Project
Jiangyuan Industrial Economic Development Zone
1.8 The On-going Condition of Project
It has been listed in Jiangyuan project plan and basalt industrial park plan.
2. Introduction to Partner
2.1 Basic Conditions
Name: People's Government of Jiangyuan District
Address: No. 150, Jiangyuan Street, Baishan City, Jilin Province
2.2 Overview
Jiangyuan District is located in the southeast of Jilin Province and west of Baishan City, covering an area of 1348km 2. On June 5, 2006, with the approval of the State Council, Jiangyuan County was changed in Jiangyuan District of Baishan City, enjoying the preferential policy of "suitable priority for county or district". In 2013, the district estimated to accomplish GDP 14.3 billion yuan, tried to overcome the influence of adverse factors including coal mine production suspension for regulation and declination of building materials market. When 33 enterprises above the designated size in the district stopped production, the district adopted a policy for an enterprise, key support and other measures to propel the industrial economy to steadily operate in the adverse situation. It is predicted that, the district will accomplish annual total output value above the designated scale 26.82 billion yuan, added value 8.48 billion yuan, and profit 430 million yuan. In 2014, the district's expected target for economic and social development is: GDP growth above 8%, local financial income increase over 8%, social fixed assets investment increase over 12%, growth value of industry above designated size more than 8%, total retail sales of consumer goods increase over 12%, and reduction of 10,000-yuan industrial growth value energy consumption 3%.
2.3 Contact Method:
Contact Person of Project Unit: Zhou Yongli
Postal Code: 134700
Tel: 0439-3725303   
Fax: 0439-3725302
E-mail: jyjhj2010@163.com
 
Contact Method of Project City (Prefecture):
Contact Unit: Baishan Economic and Technical Cooperation Bureau
Contact Person: Liu Caixiu
Tel: 0439-3594265    18629751799
Fax: 0439-3594778
E-mail: lcx9881@sina.com
Website of City (Prefecture): www.cbs.gov.cn
 
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