Automobile & Parts

 

1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Automobile harness and automobile electronic connector are main bodies of automobile circuit, and automobile circuit will not exist without harness. Harness refers to the assembly of connecting circuit formed by harness bundling after the contact terminal punched with copper material has compression joint with wire and cable, and then its outside is remolded and compressed with insulator or applied with metal shell. Industrial chain of harness includes wire and cable, connector, processing equipment, harness manufacturing and downstream application industries. Harness is widely applied in automobiles, household appliances, computer and communication equipment, as well as various electronic instruments and meters.
The product in this project will supply the complete automobile's automatic control system accessories and service for the nearby finished vehicle enterprises in Songyuan City and Jilin Province.
1.1.2 Market Prospect
In 2015, production and sales volume of Chinese automobiles exceeded 25 million. It is estimated that, future Chinese automobile industry will constantly increase at growing rate higher than domestic GDP. This enables China to become the target market grabbed by global automobile parts manufacturers. In addition, the transnational companies transfer a large number of labor intensive products in the parts industry to low cost countries and regions. Chinese has the competitive advantage of low cost of labor force, enabling foreign parts manufacturers to choose the most feasible practice of transferring the production base to China. In this way as a branch of automobile parts, automobile automatic control system accessories industry will also obtain one huge market.
Domestic automobile inventory reached 67 million in 2015. According to the latest predication of Development Research Center of the State Council, the inventory will reach 131.03 million automobiles by 2020. Considerable development of domestic automobile market has laid a foundation for the development of automobile automatic control system accessories industry. At present, the development of Chinese automobile parts has 4 major trends: 1. International industry speeds up transfer, and conducts active acquisition and reorganization; 2. Automobile parts enterprises positively implement systematic development, modular manufacturing and integrated supply. Automobile parts industry has distinct cluster development features; 3. Global purchase of parts will be a tendency, but in the short coming days, China will be still based on export and international main theme. As the organizational structure of automobile parts industry changes, an increasing number of finished vehicle plants will implement global purchase of parts.
The product in this project will supply the complete automobile's automatic control system accessories and service for the nearby finished vehicle enterprises in Songyuan City and Jilin Province. In addition, the project will take automobile after-sales repair and maintenance market as the leading sales market to gradually open up market, having broad development prospect.
1.1.3 Technical Analysis
The project product is produced with international advanced technology, full-automatic intelligent blanking compression equipment, ultrasonic welder, TSK loop detection table, and camera inspection tester, which can effectively increase product productivity. The produced harness product has reliability, durability and other performance, which can meet the demand for producing several kinds of products of the same category to intensify the product market adapting ability.
1.1.4 Advantageous Conditions of Project Construction
(1) Policy condition
Ningjiang District has superior and favorable investment environment. District Committee and District Government adhere to "merchants, local economy and common people 'three-win'" principle, devote to the management of investment environment, exert themselves to build a social atmosphere that is close, comfortable, helpful and profitable to businessmen, and constantly optimize soft investment environment, which has successively issued a series preferential policies, such as Preferential Policy for Investment Attracting of Ningjiang District, Songyuan City and Reward Measures for Investment Attracting of Ningjiang District. In addition, they provide "one-stop" high quality, enthusiastic and thoughtful service for investors in terms of investment attracting and certificate handling service, and give more preference and more comprehensive high-quality service for significant investment projects and the projects with big industrial driving force according to "one discussion for one significant project" principle.
(2) Location advantages
Ningjiang District of Songyuan City is situated in the central of Songliao Plain where is the place of Jilin Oilfield, having abundant resources. It faces Daqing Oilfield with a river laid between, which has been called Town of Oil, Granary, Meat Warehouse and Town of Fishing. Ningjiang District is located at the junction of Jilin Province, Heilongjiang Province and Inner Mongolia Province, and in the middle of Changchun-Harbin Economic Zone, which is one of central cites planned by Jilin Province, close neighbor of Heilongjiang Harbin-Daqing-Qiqihar Industrial Economic Corridor, and important traffic hub and logistics center connecting three provinces in the northeast of China as well as 8 cities and 14 counties of the Inner Mongolia Autonomous Region, containing a population of over 31 million. The district has 5 railways and 6 national and provincial arterial highways. It takes 120 minutes from downtown to Changchun Airport or Harbin Airport. It has ideal location advantages and ample resources advantages.
(3) Technical advantages
This project has full-automatic blanking compression equipment, ultrasonic welder, loop detection table, camera inspection tester and other advanced technical advantages. The product is produced with international advanced technology, full-automatic intelligent blanking compression equipment, ultrasonic welder, TSK loop detection table, and camera inspection tester, which can effectively increase product productivity. The produced harness product has reliability, durability and other performance, which can meet the demand for producing several kinds of products of the same category to intensify the product market adapting ability.
(4) Talent advantages
A great number of excellent enterprises have stationed in the park, where also has a batch of employees and research and development experts with high professional quality. In addition, with the park developing gradually, it is sure that more related experts and technicians will enter, assisting production technology of project products and process development. Songyuan Vocational Technical Institute was established by combing the original Songyuan Branch Institute of Jilin Normal University, Jilin Oilfield Staff and Workers University and Songyuan Rural Technical Specialized College for Adults, reserving a large number of related technological talents for smooth implementation of the project.
 (5) Industrial advantages
Jilin Province has superior automobile industry advantages. Based on the regional advantages of this region and especially Ningjiang District, automobile automatic controlling accessories are in huge demand, and Ningjiang District has complete infrastructure, smoothly intersected urban and rural road network, complete service facilities, hotels, restaurants and entertainment facilities, and world-class modern scientific and technological communication network and financial institutions. The city has strong ability of water supply and power supply, thus fully ensuring the electric demand of large industrial projects. The automobile and related industries have enormous potential.
1.2 Project Construction Contents and Scale
1.2.1 Product Scheme and Scale
The project has estimated annual production capacity of over 20 million sets of various automobile harnesses, 80 million sets of automobile electronic connectors; over 100 sets of 10t-30t injection molding machines in mold injection workshop, and 2.5 billion various stamping terminals; connector workshop has more than 30 full-automatic pressing machines with annual production capacity of 200 million pressing connectors.
1.2.2 Construction Contents
The project proposes to cover an area of 50,000 m2 , including building area 38,000 m2 , in which production workshop 28,000 m2 , research and development center 2,000 m2 , logistics warehouse 7,000 m2 , office and staff dormitory 1,300 m2 .
1.3 Total Investment of the Project and Capital Raising
1.3.1 Total Investment of the Project (see Table 1)
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
13000.00
65
 
2
Interest incurred during construction
 
 
Capitalized interest
3
Circulating capital
7000.00
35
 
 
Total Investment of the Project (1+2+3)
20000.00
100.00
 
Note: "RMB10,000" in the Table shall be RMB.
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
Table 2: List of Major Indexes for Forecast of Financial Benefits        
No.
Name
Unit
Index
Remarks
1
Business income
RMB10,000/a
51800
Normal year
2
Total profit
RMB10,000/a
10000
Normal year
3
FIRR of all investments
%
30
After income tax
4
FNPV (Ic=10%)
RMB10,000
32500
After income tax
5
Period for recovery of all investments (after tax)
a
4.3
Including 2 years of construction period
6
ROI
%
37.50
After income tax
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 Social Evaluation
In China, automobile industry develops rapidly. Under the big background of key support of automobile industry development of Jilin Province and Municipal Government , after this project is completed, it will increase the market competitiveness of the company product, speed up enterprise development, drive the development of automobile-related industries in Songyuan City and economy of the zone, and provide job opportunities for the society, having significant social benefits. According to the current sales situation, and analysis of production technology and raw material supply situation, this project is regarded to have advanced and reliable technology, mature process, guaranteed product quality, broad market prospect, and high added value, adequate raw and accessory materials for production, many sales channels, guaranteed capital recovery, and significant economic benefits, and comply with the national investment policy. In addition, this project has scientifically solved environmental protection problem, which will not cause environmental pollution, having obvious social benefits.
1.5 Cooperative Ways of the Project
Joint venture, and other methods can be discussed in person.
1.6 What to be Invested by Foreign Party
Capital, and other methods can be discussed in person.
1.7 Construction Site of the Project
Yadahong Industrial Concentration Zone, Ningjiang District, Songyuan City.
1.8 The On-going Condition of Project
The project has been set up. The early stage work and preparation of project feasibility study report have been completed.
2. Introduction to Partner
2.1 Basic Conditions
Name: Yadahong Industrial Concentration Zone, Ningjiang District, Songyuan City
Address: Northeast of Urban Area, Songyuan City, Jilin Province
Legal Representative: Meng Xianghe (Legal Representative)
2.2 Overview
Yadahong Industrial Concentration Zone was established in June 2003 with the approval of People's Government of Songyuan City, and upgraded as provincial-level Industrial Concentration Zone in September 2005. Total planning area is 28.2km2. Initial zone has completed infrastructure investment 100 million yuan, hardened road surface 30km, built water supply and drainage facilities 34km, and power transmission and transformation line 18km, installed 2,000 capacity computerized telephone lines and broadband network lines, possessed complete infrastructure, and realized "seven accesses and one leveling" standard. Since the establishment, the zone has adhered to the policy of "high starting point planning, high standard construction, high quality service, high efficiency management", and concept of "the most open thinking, most preferential policy, most flexible mechanism and fastest development". According to the policy of "uniform planning, step implementation, and rolling development ", it follows the development concept of depending on the construction of complete functions, industrial cluster and outstanding features, takes oilfield supporting industry as leading industry, mainly develops four major pillar industries, including mechanical processing, petroleum chemistry, biological pharmacy, and new building materials, creates first-class industrial concentration zone, and strengthens the core competitiveness of regional economy. Through several years of development construction, Yadahong Industrial Concentration Zone has become the important carrier of project development and investment attracting, platform that promotes private enterprises in the zone to gather together, and new economic growth point with the biggest potential, which has been listed as characteristic park under key development in "the Eleventh Five-Year Plan" of Jilin Province by the provincial government.
2.3 Contact Method
Contact Person of Project Unit: Liu Xin
Tel: 0438-3183311
Fax: 0438-3183388
   
Contact information of city (prefecture) of project
Contact Unit: Economic and Technical Cooperation Bureau
Contact Person: Han Baidong
Tel 0438-2706617   13514384757
Fax 0438-2706617
E-mail 870550387@qq.com
 
 
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