Light Industry & Textile Tourism


1. Introduction to the Project
1.1 Project Background
1.1.1  Product Introduction
Taonan's textile and garment industry was founded in the early twentieth century, renowned for its wool textile production base in Jilin Province, with early start, all varieties, and large scale; main products are woven worsted fabrics, mainly sheep cashmere, angora, cattle cashmere, crude woolen fabrics, blankets felt, wool clothing series of brand clothing. The project relies on the existing foundation of textile and garment industry in Taonan, improves facilities, carries on upper stream and downstream products development and construction of fabrics dyeing production area, fabric processing zone, textile machinery manufacturing area, product exhibition and sales and logistics area etc.
1.1.2 Market Prospects
The year 2013 is the transformation year of national economy for the long-term stability and sustainable development. In the face of complex domestic and international situation, the economy has shown steady development situation. In 2013, the 1221 wool textile enterprises above designated size realized main business income of 228.7 billion yuan, an increase of 13.54%; total profit of 14 billion yuan, an increase of 29.71%, 18.69% higher than 2012; annual per capita profit of 49,200 yuan / person , 20.59% higher than the average level of the textile industry.
With improvement of people's living standards and the emergence of the domestic high-end clothing brands, the domestic market demand for worsted fabrics will grow rapidly. During the "Twelfth Five-Year" period, with China's sustained economic growth, people realized income doubling through sharing the fruits of China's economic growth, thus increasing spending on luxury goods. Plus the improved space of China's rural market, it is expected that the annual growth in the domestic market demand for worsted fabrics can be maintained around 15%.
Taonan City is located in the right-wing if Horqin Grassland, one of the world's three major natural prairies, with unique advantages in raw materials resources. It is both national quality fine-wool sheep base and the textile city of Jilin Province in the northwest. The annual output of wool in the local place and surrounding areas can reach more than 50,000 tons, and the net wool production is also more than 20,000 tons, with cashmere production reaching 220,000 tons. The city has four crude textile enterprises, one refined textile enterprise, five garment processing enterprises, and the main products are worsted wool, woolen, tops, flakes, suits, coats, sweaters and so on. Worsted wool fabric production capacity is 2.2 million meters, crude wool production capacity is up to 5 million meters, and clothing production capacity is 2 million (sets).
Products are sold all over the domestic and foreign markets, including the domestic market: Northeast, Hebei, Henan, Inner Mongolia, and the south of the Yangtze River; Overseas Markets: USA, France, Japan etc. 48 countries, extending to the world’s five continents. Its main sales targets: the domestic textile enterprises fabrics, supporting equipments account for about 25% of total production; clothing, textile products account for about 35% of total production; military support products account for 15% of total production; self-sold products account for 13% of total production; exports account for 12% of total production.
1.1.3 Technical Analysis
This project uses domestic mature technology and processes.
1.1.4 A dvantageous Conditions of Project Construction
(1) Policy advantages
In the “12 th Five-Year development plan of textile industry”, it clearly states that as a "traditional pillar industry of national economy, an important livelihood industry, and an international industry with clear competitive advantage," the Chinese textile industry should seize the opportunities of the western development strategy, moderately develop cotton, wool, silk, ethnic and cultural products and other special industries. It also proposed to continue to promote industrial cluster development; in addition to the industrial park scientific planning, strengthening basic construction of textile industrial park, creating a good investment environment, and guiding business park cluster development with the associated high-grade enterprises, but also should speed up the construction of production and service system associated with leading industry, public service system, textile raw materials and products professional market, and raise requirements for professional support services capacity and efficiency.
Jilin also introduced related policies to support the development of the western development strategy, and actively promotes industrial development. The project area, Taonan City, also implemented that for projects with fixed assets investment of over 100 million yuan, construction area covers an area of more than 50% of floor area, and investment intensity reaching 2,000 yuan / square meter, according to project land area of business, it will implement "auction" price 125 yuan / square meter to pay land transfer fee. Local finance supports business transformation and new product development according to the same amount of local land transfer support. From the date of reaching full production capacity and paying corporate income tax (city level under the current tax law retained part of the implementation), three years before the financial investment through the zone for new product development and technological innovation. During the two years, the corporate income tax (according to the current tax law retained partial execution city level) Development of financial investment by 50 percent for new product development and technological innovation, construction, all involved administrative fees are waived. Business consultation is fees charged by the minimum standards, such as support from the development policy and intermediaries.
(2) The advantages of the industrial base
Taonan City has been known for wool textile production base in Jilin Province. It owns solid foundation and complete textile industry. In the 1980s and 1990s of last century, it is the heyday of development of textile industry in Taonan. Technology, equipment, materials, personnel and other textile production factors begin to flow in Taonan, and the former First Wool Textile Plant of Taonan, the Second Woolen Mill etc. five woolen mills make the cluster prototype of Taonan textile industry begin to appear, which is vividly compared to “five golden flowers” of the national textile industry, which made a great contribution to the economic development and popularity upgrade of Taonan. Of which, the First Wool Textile Plant of Taonan was the second category large state enterprise, and is the fourth largest woolen business in the country. In the early 1990s, during the transition period from planned economy to market economy, shocked by the international and domestic market, Taonan textile industry suffered a heavy blow, and was dropped to the bottom, but the industrial base of Taonan textile industry is unmatched elsewhere.
In recent years, through restructuring, selling, leasing of the textile enterprises, the assets of textile enterprises have been revitalized; at present, the textile industry cluster advantage of Taonan reappears, and the comparative advantages of factors of production is obvious. It currently owns Xinghe Wool Textile Co., Glorious Wool Textile Co., Ltd., Northern Wool Textile Co., Ltd., Sanli Wool Textile Co., Ltd., Red Sun Wool Textile Co., Taojia Industrial Fabrics Co., Fubon Textile Co., Ltd. seven above-scale enterprises, and products cover washed wool, wool tops, plush to carded, combed fabrics, from blankets, carpets, industrial fabrics to many styles and varieties of sweaters, wool pants. All kinds of animal fibers can be processed into different styles of industrial products in Taonan. Main products are woven worsted fabrics, mainly sheep cashmere, angora, cattle cashmere, crude woolen fabrics, blankets felt, wool clothing series of brand clothing, which are sold in 48 countries and regions, expanding to the world's five continents. Taonan textile can annually produce crude textile of 3.8 million meters, 2 million meters of worsted wool fabric. The “Kim” woolen produced by Hengsheng Textile wins famous trademark and famous brand title of Jilin Province.
(3) The advantages of main raw material resources
Taonan City is located in the right-wing of Horqin Grassland, one of the world's three major natural prairies, with unique advantages in raw materials resources. It is national quality fine-wool sheep base. The annual output of wool in the local place and surrounding areas can reach more than 50,000 tons, and the net wool production is also more than 20,000 tons, with cashmere production reaching 220,000 tons. Thus there is a greater processing and value-added space.
(4) Human resources advantage
Taonan's textile and garment industry was founded in the early twentieth century, renowned for its wool textile production base in Jilin Province, with early start, all varieties, large scale. After decades of accumulation, the current textile and apparel industrial scale of Taonan has been ranking the first in the Northeast region, and it has trained a large number of managerial personnel familiar with operation and management, professional and technical personnel, as well as industrial workers with proficiency in the operation skills.
Textile industry is a labor-intensive industry. The low cost and abundant labor force is one of the key factors in winning of textile enterprises. Taonan city has very rich labor resources, lower prices, and has good technical level. The original industrial workers are 18,000 people, and less than 5,000 people are engaged in the former professional jobs, and there are a number of laid-off workers ready to provide manpower to support the development of the textile industry.
5) Location Advantage
The park is located in Taonan Economic Development Zone, and the site surroundings have complete public facilities, with the "six connections and one leveling" (ie, six connections refer to power supply, water supply, drainage, heating, telecommunications, roads, and one level refers to the plant leveling) infrastructure, and the favorable external support facilities provide a solid foundation for the project, and save construction investment. The plant site has very convenient transportation; the necessary production resources conditions are complete.
1.2 Construction Content and Scale
The Park has planned an area of 200,000 square meters, mainly composed 4 zones, including textile printing and dyeing zone, fabric processing zone, textile machinery manufacturing area and products exhibition and sales logistics zone.
(1) Textile production area (cover an area of 70,000 square meters)
① Election wool, scouring, topmaking plants, with investment of 430 million yuan;
②100,000 combed textile factories, with investment of 740 million yuan;
③100,000 carded textile factories, with investment of 700 million yuan;
(2) Fabric processing zone (cover an area of 30,000 square meters)
①300 million pieces (sets) / year premium brand clothing factory, invested 250 million yuan;
②150 million pieces (sets) / year household textile products processing plant, with investment of 200 million yuan;
(3) Textile Machinery Manufacturing District (covering 60,000 square meters)
500 (sets) / year textile machinery factory, invested 500 million yuan;
(4) Product sales and logistics area (cover an area of 40,000 square meters)
① Wool trade market, with investment of 65 million yuan;
② Fabric wholesale market, with investment of 35 million yuan;
③ Clothing, textile products wholesale market, with investment of 25 million yuan;
④ Logistics center, with investment of 45 million yuan.
1.3 Total Investment and Funds Raising of Project
The project has total investment of 2990 million yuan, with construction investment of 2540 million yuan.
Table 1:         list of total investments of project
Name of Expense
Investment Amount
Percentage to Total Investment%
Construction investment
Interest incurred in construction period
Working capital
Total Investment of the Project(1+2+3)
Note: the “ten thousand yuan” in the table is in RMB.
1.4. Financial Analysis and Social Evaluation
1.4.1 Main Financial Indicators
The project will realize annual sales income of 3055 million yuan, profit of 886.35 million yuan, the payback period of 5.37 years (after tax, including construction period of two years), the investment profit margin of 30%.
Table 2    List of major indicators for financial benefits forecast
Sales income
ten thousand yuan/a
Normal year
Total profit
ten thousand yuan/a
Normal year
Financial internal rate of return of all investment
After income tax
Financial net present value(Ic=10%)
ten thousand yuan
After income tax(operation period of 10 years)
Payoff period of all investments (after tax)
Including construction period of 2year
Profit margin of investment
Note: the “ten thousand yuan” in the table is in RMB.
1.4.2 Social Evaluation
The project can accelerate Taonan "three transformation" process, stimulate employment, stimulate economic growth and improve the visibility of Taonan. At the same time, it will create the country's leading textile service industrial park, which will also promote the sustainable development of upper stream and downstream related industries, and have immeasurable social benefits for accelerating the western development process.
1.5 Ways of Cooperation
Sole proprietorship.
1.6 What to be Invested by Foreign Party
Funds: 100% foreign investment, other ways can be interviewed.
1.7 Construction Site
Jilin Taonan Economic Development Zone.
1.8 Project Progress
Already planned construction site.
2. Introduction to Partner
2.1 Basic Conditions
Name: Taonan Economic Development Zone
Address: No. 1 of Tiedong, Taonan, Jilin Province
Legal representative: Zhang Wenju
2.2 Overview
Taonan Economic Development Zone is an industrial cluster established in November 2005 by the Provincial Development Office. In accordance with the industrial layout and functions positioning, the development zone is divided into industrial zone, trade and logistics area, management service area and living area four districts. To ensure the guidelines of planning for the development zone, combined with the actual situation of the provincial department of land, we formulated "Economic Development Plan of Taonan Economic Development Zone during 2005-2015" in stages; through extensive consultations and careful argument, the current municipal development has passed this development plan and asked the development zone to earnestly implement and operate it.
2.3 Contact Methods
Contact Unit: Taonan Economic and Technical Cooperation Bureau of Jilin Province
Contact person: Gao Xuezhong
Tel: 0436-6352099 15844613195
Fax: 0436-6352099
Address: Development Mansion, Taonan, Jilin Province
Zip Code: 137100
Contact methods of the project city (prefecture):
Contact unit: Baicheng Economic and Technical Cooperation Bureau
Contact person: Liu Lin
Tel: 0436-5081011 13943687990
Fax: 0436-5081011
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