Automobile & Parts


1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
The products of this project are environment-friendly automobile parts, which have excellent processing property and easy molding property, belonging to new-type automobile environment-friendly products. Considering constant development of domestic automobile market, and incessant growth of requirements for automobile parts and accessories, the enterprise has decided to purchase land 50,000m2 in Jilin Gongzhuling Economic Development Zone, introduce the most advanced production lines and high temperature plate pressing production lines from abroad.
1.1.2 Market Prospects
As one of pillar industries of national economy, automobile industry plays a huge promotion role for the development of Chinese national economy. Chinese automobile production and sales scale has increased quickly in recent years. Automobile parts industry is the foundation of the automobile industry's development, and necessary factor that supports automobile industry to constantly and healthy development, causing big influence on the automobile's technical level, quality, performance and price. In particular, nowadays automobile industry is vigorously developing proprietary research and development and innovation, a strong part system is badly needed as support. China encourages automobile parts enterprises to conduct independent innovation and make them bigger and stronger to meet domestic demand for high-tech products, and participate in the international competition. In recent several years, as the company has continuously expanded its scale and gradually strengthened exploitation of domestic and international market, it has also obtained the opportunity and challenge for rapid development, mainly reflecting in: new product's development varieties are increasing, and further transforming into batch production. In addition, due to the increasingly higher requirements for products of the market, the complexity of product production has intensified gradually.
Therefore, in order to welcome the wonderful trend of the company development, we must grasp this opportunity to expand the production scale, constantly conduct proprietary research and development and innovation, overcome difficulties, meet the customer's increasing requirements for the product quality, delivery time and cost. The expansion of production scale, business development and increase of product requirements will directly lead to insufficient places for production in the company. For this reason, the company has proposed to construct a new factory at 300m from the intersection, East Shengli Road, Jinghe Street, Gongzhuling Economic Development Zone.
As Chinese automobile industry develops and Chinese automobile localization degree increases, the demand for parts in automobile industry has risen, especially the demand for top grade automobile parts is more urgent. At present, however, the internal decorative parts used by Chinese automobile factories have bear high price, poor environmental protection performance and other drawbacks. This project products use PP, PET and hemp fiber as materials to replace the present fiber boards, liquid powder boards and glass fiber boars generally used in automobiles now. The project products have absolute advantages in raw materials environmental protection and price, reaching the world's advanced level in technology.
The project is constructed according to the national industrial requirements by fully using local economic environment, natural environment and social environment. Its construction scale, construction plan and development tendency can conform to the local economic development situation. Therefore, the construction of this project is very necessary and appropriate, playing a positive promotion role for accomplishing energy conservation and environmental protection of automobile industry, and promoting the development of automobile industry, and making contributions for the development of Chinese automobile industry.
1.1.3 Technical Analysis
This project products are environment-friendly automobile parts, which have excellent processing property and easy molding property, belonging to new-type automobile environment-friendly products. Considering constant development of domestic automobile market, and incessant growth of requirements for automobile parts and accessories, the enterprise has decided to purchase land 50,000m2 in Jilin Gongzhuling Economic Development Zone, introduce the most advanced production lines and high temperature plate pressing production lines from abroad.
1.1.4 A dvantageous Conditions and Necessity of Project Construction
(1) Policy conditions
The Eleventh Five-Year Plan for National Economy and Social Development specifies to regard automobile manufacturing industry as one of five major pillar industries of Chinese national economy; Ministry of Communications indicated, in Several Opinions on Structural Adjustment of Road Transport Industry, to accelerate the development of compartment trucks, stick to the development theme and key point of transport capacity structure optimization, strengthen macroscopic readjustment and control, standardize market, intensify market supervision, and boost the development of compartment trucks; strive for a new situation of road freight market with safe, high-quality and efficient compartment transport by 2010; Outline of Development of Road Transport Industry takes the development of compartment truck and acceleration of ordinary convertible truck with compartment as major development object; in the current financial crisis, the State has listed automobile and logistics industries into Top 10 Revitalized Industries, especially emphasized developing the advanced and applicable technical and light products with proprietary intellectual properties. The country will give revenue policy support. Jilin Province has issued relevant policies supporting the development of special vehicles in order to positively promote the industrial development. The project location Tiedong District of Siping City carries out "one meeting for one case" investment promotion policy.
(2) Jilin Gerui Crane Manufacturing Co., Ltd. is an old state-owned enterprise and a professional crane production enterprise, which has a history of more than 10 years. During over 10 years of production history, it has accumulated rich production experience, owned some advanced production equipment, reserved lots of technical talents. At present, the company can produce nearly 10 kinds of cranes, leads the Chinese old and famous special automobile production enterprises, and has obtained many times of national, provincial and municipal rewards, and possessed stable market customers.
(3) The existing facilities can serve for the construction of this project, and save the investment. This transformation will be implemented in the existing factory area. The company covers an area of 100,000m2, having the leeway for transformation and extension. The construction cost is relatively low.
(4) The factory area locates in Jilin Gongzhuling Economic Development Zone, where has complete public utilities at its surroundings, "six accesses and one leveling" (accesses to power supply, water supply, water drainage, heat supply, telecommunication, road and site leveling) infrastructure conditions and good external supporting facilities, laying a solid foundation for the project construction and saving construction investment. The factory area has convenient traffic and complete resources for production.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scale
The project has annual production capacity of 8 million various environment-friendly automobile parts.
1.2.2 Content of Project Construction
The project covers an area of 100,000m2 and building area 20,000m2.
1.3 Total Investment of the Project and Capital Raising
Total investment of the project is 1.32 billion yuan, and construction investment is 1.2 billion yuan.
Table 1: Summary Table of Total Investment of the Project   Unit: RMB10,000
Expense Name
Amount of Investment
Proportion of Total Investment %
Construction investment
Interest incurred during construction
Circulating capital
Total investment of the project (1+2+3)
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 800 million yuan, total profit 255.81 million yuan, payback period 6.16 years (after tax, including 1 year of construction period) and FIRR 13%.
Table 2: List of Major Indexes for Forecast of Economic Benefits
Sales income
Normal year
Total profit
Normal year
FIRR of all investments
After income tax
FNPV (Ic=10%)
After income tax (operation period 10 years)
Period for recovery of all investments (after tax)
Including 1 year of construction period
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 Social Benefit Analysis
In the modern times with energy crisis and environmental pollution, the automobile is a necessary traffic tool for people's living and economic construction, and the biggest source of energy crisis and environmental pollution. Energy conservation, emission reduction and environmental protection will certainly become the pursuit for automobile design and manufacturing.
In 2008, the country levied fuel oil tax, greatly promoting transport vehicles to be lighter. Many compartment vehicles are equipped with light composite. Bearing members of the trailer are made of high strength steel. However, these measures make the vehicle cost much higher, impacting the user's economic benefit to some extent. The full-bearing structural design of this project can realize ideal energy conservation and environmental protection. This technology is the significant transformation for the structure of semi-trailer, which provides users with considerable economic benefits and brings about good social benefit for energy conservation, emission reduction and environmental protection.
1.4.3 Capital Raising
1.5 Cooperative Ways of the Project
Joint venture, and other ways can be discussed in person.
1.6 What to be Invested by Foreign Party
Capital, foreign investment 39%, and other ways can be discussed in person.
1.7 Construction Site of the Project
Jilin Gongzhuling Economic Development Zone, with factory area 100,000m2.
1.8 The On-going Condition of Project
The project has been approved.
2. Introduction to Partner
2.1 Basic Conditions
Name of Project Undertaker: Jilin Gerui Crane Manufacturing Co., Ltd.
Legal Address: Jilin Gongzhuling Economic Development Zone
Legal Representative: Wu Hailin
Ownership Form of the Enterprise: limited company
2.2 Overview
Jilin Gerui Crane Manufacturing Co., Ltd. was established in 2002, which is a professional enterprise engaged in research and development, design, production, installation and after-sales service of hoisting and environmental protection equipment; and high and new technology enterprise in Jilin Province; and is rated as Grade AA enterprise by Siping Branch of China Construction Bank. The company has standard modern management system, powerful technical talent team and excellent production operation team. The company's product research and development technology center cooperates with many colleges, universities and scientific research units, including Shanghai Jiaotong University, Beijing Materials Handling Research Institute, Jilin University and Changchun University of Technology, constantly introduces domestic and foreign advanced technology, takes excellent quality as a way of survival, bases on satisfactory service for customers, establishes and perfects standard quality management guarantee system, and strengthen the product quality monitoring and detection in the aspects of product research and development, design, production, installation and after-sales service. The enterprise has standard management specification, complete quality detection equipment and strict process regulations, which implements strict management control and after-sales tracking service for the product manufacturing quality, wining the approval of users. It has constantly increased the market share and enterprise popularity. The sales regions cover Northeast, North China and Inner Mongolia. The company has set up sales manager departments for city-level administrative regions. Over the years it has used Haige brand to provide numerous high quality products for industries of power, automobiles, building materials, metallurgy, mechanical manufacturing and environmental protection, and make certain contributions for the construction of national economy.
2.3 Contact Method
Postal Code: 136100
Contact Person of Project Unit: Ma Yuqi
Tel: 0434-6771107    15843449811
Fax: 0434-6771107
Website of Development Zone:
Contact Method of Project City (Prefecture):
Contact Unit: Gongzhuling Economic and Technical Cooperation Bureau
Contact Person: Zhou Kemin
Tel: 0434-6219312   13504441655
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