Processing Equipment Manufacture

1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
The mine equipment manufacturing industry is the pillar and advantageous industry in the priority of development, meeting the national industrial policies. Our city, with the history of more than 50 years of producing the mine equipment, is famous in the whole country. Our city has been the important production base of the mine equipment manufacturing industry of Jilin Province. The mine equipment manufacturing industry of Liaoyuan City has had the foundation. In recent years, with the rapid development of a number of key enterprises such as Liaoyuan Heavy Industrial Group, Liaoyuan Coal Mine Machinery Manufacturing Co., Ltd. and Jilin Yuanlongda Dies Co., Ltd., etc., the innovative capabilities of the enterprises have been continuously strengthened, which has greatly promoted the rapid development of the mine equipment manufacturing industry. For many years, Liaoyuan Municipal Committee and Government have attached great importance to the development of the mine equipment manufacturing industry and regarded the mine equipment manufacturing industry as one of the key pillar industries which shall be developed. In Xi’an District, the mine equipment manufacturing enterprises have a lot of technical personnel and the necessary conditions for the rapid development of the mine equipment manufacturing industrial group, all of which have laid a good foundation for the development of the mine equipment manufacturing industrial group. A lot of medium-sized equipment manufacturing enterprises such as Main Electromechanical Plant of Liaoyuan Mining Bureau, Liaoyuan Coal Machinery Factory and Liaoyuan Water Pump Factory, etc. and about 70 small equipment manufacturing enterprises have basically established the mine equipment manufacturing industry system with a certain scale and level, focused on the large electric hauling development machines, coal mining machines and matching electric control equipment, mine machinery washing equipment and hydropower equipment, etc., with the multiple mine equipment manufacturing patent technologies and products. The products of the project can achieve the continuous mining. Compared with the traditional intermittent mining process of the open-pit coal mine, the project can omit the complex process links, which will not only reduce the equipment investment of the links but also greatly decrease the production cost. In addition, the project can improve the coal recovery, reduce the environmental pollution and improve the safety in production.
The project will introduce the social capital for the common development via the businessmen invitation and capital attracting platform of the economic cooperation bureau.
1.1.2 Market Prospect
The energy structure of China with coal as the main part has determined the construction thoughts of the large coal mines all the time. Nowadays, in the big environment that the government has unprecedentedly paid much attention to the high efficiency and energy saving, it will be one of the key development directions of the energy construction of China to build the large open-pit coal mine. The insiders point out that with the country strengthening the construction of the mine resources, the mine construction in a large scale will undoubtedly provide the good market opportunities for all the major mine equipment manufacturers. The mine equipment production enterprises of China have successively taken measures to strive for the bigger shares in the mine construction cake. The large open-pit mine equipment is the national major technical equipment which is urgent to be domesticated and also the key field of revitalization of the equipment manufacturing industry.    
Viewed from the market orientation, the continuous open-pit coal mining equipment is sold at home and abroad. It is mainly domestically sold to Hebei, Inner Mongolia and Northeast China. 
Viewed from the market strategy, the brand planning strategy shall be established and the publicity of advertisements, news and public welfare activities shall be strengthened to make the brand mentioning rate reach more than 80%, the users’ loyalty for the brands shall be cultivated to make the brand improvement become the market effects, the in-depth distribution mode with the brands as the offensive points and the integrated resolution as the winning force shall be built in the future and the brand permeability and control force shall be strengthened. The brands shall be used to strengthen the network control, determine the core capabilities of brand distribution and technical service and establish the standard management mode to become the special system service supplier in the industry.
Viewed from the sales channels, the offices and distribution offices shall be built in the capital cities of all the provinces to make the products sold to Hebei, Inner Mongolia and Northeast China.
The project, with the intermediate investment scale, can integrate the current resources, with the short construction period and some advantages of labor force, manufacturing and cost, etc. Therefore, the differential low-cost market strategy can be taken.
1.1.3 Technical Analysis
The project takes the technology of the enterprise in the park. It makes use of the bucket-wheel excavator-rubber belt system to take the peeling from the hard rock, that is, the shoveling, pouring and piling process with the huge bucket, the single-bucket electric shovel-truck-semi-fixing breaking-rubber belt conveying process shall be taken, supported by some single-bucket electric shovels-trucks used for the peeling work of the residual hard rock. This is a typical comprehensive process system. All the processes are made according to the actual conditions to give play to the strengths, so it is expected to achieve the good comprehensive economic benefits.
1.1.4 Advantageous Conditions of Project Construction
1) Policy conditions
The country greatly supports the development of the old industrial base of Northeast China. Jilin Province, as the national old industrial base, will enjoy the support of some preferential policies in some aspects such as layout of the major projects, transformation of the value added tax and acceleration of depreciation, etc. Liaoyuan City, as one of the first resource-exhausted economic transformation cities, will enjoy the financial assistance policy and industrial support policy given by the country to the resource-exhausted cities, the preferences in some aspects such as financial credit, industrial layout and construction of major engineering projects, etc. and assistance and support in some aspects such as prevention, control and protection of ecological environment, etc. It is pointed out in Article 19 of the Opinions on Implementation of the Adjustment and Revitalization Plan of the National Equipment Manufacturing Industry of Jilin Provincial Government that the financial institutions should be encouraged to increase the support for the equipment manufacturing industry of Jilin Province and provide more and better services for the equipment manufacturing enterprises. In addition, Liaoyuan City is actively declaring for the national old industrial district and independent mine area of the urban area to strive for being listed in the movement and reconstruction plan of the national old industrial district and independent mine area of the urban area. All the policies will create the advantageous development environment for the development of the heavy mining and excavation equipment manufacturing projects and the advancing of the new industrialization steps.
After the country and Jilin Province have promulgated the policies on revitalizing and developing the equipment manufacturing industry, Liaoyuan City is actively seizing the favorable opportunities of the country promoting the economic transformation of the resource cities and expanding the investment to promote the internal demands and the opportunities of the echelon shift of the manufacturing industry in the world and the adjustment of the layout of the productive force of Jilin Province for developing the equipment manufacturing industry, give priorities to develop the mine equipment manufacturing industry, a pillar and advantageous industry meeting the national industrial policies and give play to the leading roles of the advantageous industry in the economic development in order to facilitate the smooth, healthy and rapid development of the mine equipment manufacturing industry, accelerate the steps of economic transformation, use the advantageous industry to drive the industrial structural adjustment and achieve the grand objective of the economic prosperity of Liaoyuan.
2) Location advantage
Liaoyuan City is located in the central and south part of Jilin Province and in the transitional belt from the remaining part of Changbai Mountain to Songliao Plain. It is named because the East Liaohe River is originated from here. The general geographical picture is “mountains accounting for 50%, rivers and lakes accounting for 10% and plains accounting for 40% of the total area”. It covers an area of 5140km2 and the complete urban area is 46km2. Under Liaoyuan City are Dongfeng County, Dongliao County, Longshan District, Xi’an District and 1 provincial-level economic development zone, with the total population of 1.3 million, including the population of 0.5 million in the urban area. Liaoyuan owns the rich natural resources and good agricultural foundation. Liaoyuan Coalfield, with the mining history of a hundred year, with the quite rich reserves of some ores such as limestone and wollastonite, etc. In 2005, Liaoyuan City was determined by the country as the pilot city with the economic transformation of the resource-exhausted city.
The National Highway No. 303 and Simei Rialway penetrate whole city. Liaoxi Railway, Changliao Expressway, Yingmei Expressway and Jicao Expressway have been built and Liaoxi Expressway is under construction. Liaoyuan-Changchun Expressway is very convenient and it takes only 40 minutes to Changchun and 1 and half an hour to Changchun Airport via the expressway. Liaoyuan are connected with Jilin, Meihekou, Tonghua and Shenyang, etc. via the highways. It takes only 7 hours from Liaoyuan to Dalian Port and only 3 hours to Shenyang Taoxian Airport via Hada Expressway, which is greatly favorable to transportation.
3) Personnel advantage
With the bankruptcy of the Turnout Factory and Main Electromechanical Factory of Liaoyuan Mining Bureau under the city, a great number of experienced senior technicians and administration personnel have successively laid off, which has provided the personnel reserve for the development of the mine equipment industry of our city. Liaoyuan Vocational Technical College and Liaoyuan Vocational Technical Training Center under the city have also trained a great number of professional personnel. All these above have provide the sufficient human resource support for the development of the mine equipment manufacturing industry and mine rescue equipment projects of Liaoyuan.
4)    Industrial basis advantage
In order to adapt to the demand for the urban development, Liaoyuan City has carried out the new round of adjustment of the general plan of the city, implemented the strategy of “gradual transfer-out” and “making plans and entering the parks” and established the strategic shift of some advantageous enterprises. The emphasis is to develop to the north of the urban area (Xi’an District). The adjustment of the urban plan has created the good conditions for the mine equipment manufacturing industry to attract the external enterprises at the high starting point and high standard. Liaoyuan City has implemented the building of Liaoyuan Clean Energy Industrial Development Zone, divided into two districts and two parks, that is, Dongximeng Industrial District with the planned area of 5.6km2, North Industrial District with the planned area of 14.67km2, Shengli Industrial Park with the planned area of 0.15km2 and Guxian Food Industrial Park with the planned area of 0.32km2, of which Shengli Industrial Park and North Industrial District focus on the development of the mine equipment manufacturing industry and Dongximeng Industrial District can bear some mine equipment manufacturing enterprises. With the advancing of the infrastructural construction of the two districts and two parks and perfection of the relevant matching facilities, the development space for the open-pit continuous coal mining equipment project of Xi’an District will be greatly assured.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Annual output of 120 sets of open-pit continuous coal mining equipment
1.2.2 Construction Content
The project covers an area of 0.1 million m2, including the building area of 0.09 million m2.
1.3 Total Investment of the Project (see Table 1)
The total investment of the project is 600 million yuan, including the fixed-assets investment of 390 million yuan.
Table 1: Summary Table of the Total Investment of the Project
                                                   Unit: RMB10, 000                                                     
No.    Expense Name    Amount of Investment    Proportion of Total Investment %    Remarks      
1    Construction investment     39000    66.66          
2    Interest in the construction period    2000    1.68    Capitalized interest      
3    Current funds    19000    31.66          
    Total investment of the project (1+2+3)    60000    100.00         
Note: “RMB10, 000” in the Table shall be RMB. 。
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
The annual business income of the project in the normal years is 450 million yuan, the profit is 196.80 million yuan, the recovery period of all the investment (after the tax) is 4.88 years and the investment profit rate is 32.8%.
Table 2: List of Major Indexes for Forecast of Financial Benefits
No.    Name    Unit    Index    Remarks      
1    Business income    10, 000 yuan/a    45000    Normal year      
2    Total profit    10, 000 yuan/a    19680    Normal year      
3    Internal financial yield rate of the investment    %    16.4    After the income tax      
4    Net financial value (Ic=10%)    10, 000 yuan    61980    After the income tax
(operating period of 10 years)      
5    Recovery period of all the investment (after the tax)    a    4.88    Including the construction period of 2 years      
6    Investment profit rate    %    32.8         
Note: “RMB10, 000” in the Table shall be RMB. 。
1.4.2 Social Evaluation
After the project is built, the internal personnel of the project are introduced from the large companies in the same industry and the developed coastal regions. With the assistance and teaching of the local persons around the city, with the experience but who do not know the details of the new technology or master the new technology, the local technicians will become more skilled, update the thoughts and grasp the new technology more quickly. In addition, the project can attract the college and university students of the relevant specialties coming back to the hometown for opening businesses, so the personnel can be reserved. With the arrangement of the local relevant surplus labor force via the multiple channels, the interests of the workers and staff will be really maintained and the local employment pressure will be reduced. In addition, the company is actively adjusting the product structure to strengthen the development of the new industry and the autonomous innovation capabilities. With the introduction of the personnel, the development input will be increased and the technical transformation will be accelerated to finally build the fine punching dies with the high accuracy and long life. The energy saving and emission reduction will be carried out well to intensify the core competitiveness of the enterprises. The personnel of wisdom and valor are invited, the management personnel are absorbed, great efforts are made to develop the market, the marketing modes are innovated and the market potential is excavated to increase the market share of the products. Therefore, it will not only promote the healthy development of the same type of market but also transform the economic development mode.
1.5 Cooperative Ways of the Project
Sole investment, joint venture and cooperation
1.6 What to be Invested by Foreign Party
The foreign party invests funds, with the details discussed in the face-to-face talks.
1.7 Construction Site of the Project
Centralized Industrial Zone, Xi’an District, Liaoyuan City, 1076 Renmin Street, Liaoyuan City, Jilin Province
1.8 The On-going Condition of Project
The project cooperation proposal has been established.
2. Introduction to the Partner
2.1 Basic Conditions
Name: Centralized Industrial Zone, Xi’an District, Liaoyuan City
Address: 1076 Renmin Street, Liaoyuan City, Jilin Province
Legal Representative: Wang Shaojun
2.2 Overview
The Centralized Industrial Zone of Xi’an District, Liaoyuan City is the provincial-level economic development zone approved and built by the Provincial Government in 2005, enjoying some of the provincial-level administration authorities. It is located in Xi’an District, Liaoyuan City, with the planned area of 20.74km2. It takes only 1-hour ride from the Centralized zone to Changchun and Siping and 2-hour ride to Shenyang. The exit of Liaoyuan-Changchun Expressway is located in the centralized zone. Among the two districts and two parks, 3 districts and parks own the special railway lines, with the relative location advantage for bearing the industrial transfer and output of production elements. The centralized zone will create the bright, opened and preferential policy environment, high-efficiency, convenient and good-quality service environment, opened, just and fair legal environment and civilized, good-faith and warm human and cultural environment for the investors with the sincere services. The centralized zone will make the customers feel at home and obtain the maximum investment returns with the lowest investment cost. The centralized zone can compare its own with the preferential policies on the investment at home or choose the better to implement. While enjoying the current preferential policies of the centralized zone, the enterprise can enjoy the preferential policy of “discussion on one item once”. In addition, some resources and information of economy, technologies and minerals existing in Xi’an District can be shared with the enterprises.
The park is the new space with the most vigor and potential for the economic development of a county and the important platform of inviting businessmen and attracting funds and industrial gathering. In the implementation of the development strategy of building the new city in the north of Liaoyuan, Xi’an District regards the building of the big park as one of the development strategies. In December, 2010, according to the actual conditions of development of Xi’an District, the committee and government of the district re-planned Liaoyuan Clean Energy Industrial Development Zone (original Liaoyuan Healthy Industrial Development Zone) into the centralized industrial zone including “2 districts and 2 parks” with Dongximeng Industrial District, North Industrial District, Guxian Food Industrial Park and Shengli Industrial Park as the main part, with the planned area of 20.74km2, that is, Dongximeng Industrial District, located in Dongmeng Village and Ximeng Village, with the area of 5.6km2, including the starting area of 1.42km2, mainly planned to develop some industries of equipment manufacturing, new materials, photoelectrons, new building materials, light industry and textile, etc. The North Industrial District is located in Fuqiang Village and Fengshou Villagem, with the planned area of 14.67km2, including the starting area of 2.69km2, mainly planned to develop some industries of clean energy sources and equipment manufacturing, etc. Shengli Industrial Park is located in Shengli Village and Steel Tube Factory, with the area of 0.15km2, mainly planned to develop the mechanical equipment manufacturing industry. Guxian Food Industrial Park is located in Guxian Village and North Ring Road, with the area of 0.32km2, mainly planned to develop the food and medicine industries.
The districts and parks are the important carriers of the industrial development and the windows opened to the outside. Furthermore, they are related to the reserve strength and life of the economic development of the whole zone. At present, the industrial and economic development of the development zone takes on the good situation and the development pattern of 2 districts and 2 parks has been preliminarily established.
2.3 Contact Method
Contact Person: Ge Yao
Tel: 0437-3635345
Fax: 0437-3635345
Contact Method of the City (Prefecture) of the Project:
Contact Unit: Liaoyuan Economic and Technical Cooperation Bureau
Contact Person: Cui Shiwei
Tel: 0437-3528822    13766066922
Fax: 0437-3528822
Website of City (Prefecture):

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