Processing Equipment Manufacture

1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
By now, the mineral resources have been continuously developed, the resource pressure has become more and more prominent and there have been great contradictions between the rough mineral separation and the reduction of resources, so the fine mineral separation process is urgent in the market, the development of the mineral separation equipment shall be adjusted at the proper time and it shall be developed to be finer and the improvement of utilization of ores will be the key development point of the manufacturers in the future. At present, most of the mineral separation equipment is the gravity separation equipment and flotation equipment, but the utilization of such equipment is generally low and it is difficult for it to meet the requirements, and the mobility in the construction of the comprehensive movable mineral separation station is poor, which cannot meet all the mineral separation environmental conditions. The mineral separation movable station shall make great efforts to take the splicing technology in the future so as to adapt to all the equipment and strengthen one’s own operability. The development of the mineral separation process is, in fact, synchronous with that of the equipment and the production technology will influence the quality of the whole mineral separation industry. The mineral separation equipment will be more obviously developed to be large in the future. The development of the large equipment can greatly improve the equipment level of the mineral separation manufacturers of our country so as to increase the comprehensive economic benefits. The large ore equipment can not only reduce the capital construction investment but also decrease the covering area and power consumption, more facilitating the achievement of automation. All the international mineral separation equipment has been developed to b e large, which has obtained the good technical and economic indexes. In recent years, the great achievements have been made in the research on some large ore grinding, magnetic separation and breaking equipment, etc. in our country.
The coal preparation equipment produced in the project is the maching equipment dividing the raw coal into the different quality and specifications of products by use of the physical and chemical methods. It can remove the impurities in the coal, including gangue and 50%-70% of sulfur, improve the quality of the coal products, increase the coal varieties, reduce the invalid transport, increase the thermal efficiency, save the energy and reduce the emission of SO2, NOx and smoke. The country has attached great importance to the development of the coal preparation technology and equipment. The dry and water saving coal preparation technology with the low investment and machining cost developed has become the trend.
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
With the continuous and accelerated mining for nearly 200 years, the coal resources have been gradually reduced. The relevant data show that the exploitable years of coal of our country are 114 and the occupation of coal resources of our country per capita is 70% of that of the world, so our country is more urgent to study the coal preparation technology, save the nonrenewable resources and improve the output rate than most of the countries in the world. At present, most of the countries attach great importance to the coal washing, especially the developed countries. The average preparation proportion of raw coal in the world is about 50% now and it is even more than 80% in some countries. Although some countries in Europe have closed nearly all the coal mines, some coal preparation factories are still used to process the imported coal. Generally, for the traditional coal preparation engineering machinery products, people pay much attention only to the performances of the products and neglect the energy consumption of the products. In order to make better use of the coal resources, protect the ecological environment and alleviate the intension of the railway transport, the country proposes to greatly develop the coal preparation industry. Therefore, the coal preparation industry will have a bright prospect in the future. The coal preparation industry cannot be developed without the special coal preparation equipment. However, viewed from the actual conditions, the coal preparation technology of our country has not reached the advanced level by now. Since the reform and opening, although good achievements have been made in the development of some coal preparation equipment such as large heavy media cyclone and micro-bubble flotation column, etc., the production technology is not mature and the equipment market is basically occupied by the foreign manufacturers because the production technology of our country is still at the starting stage.
In recent years, the country have started to pay much attention to some problems of energy saving, environmental protection and reduction of consumption, etc. and the environmental protection and energy saving technologies in the coal preparation engineering machinery products have been more and more in the favor of users. The characteristics of the mineral resources of our country have determined the careful mineral separation after the mining. In addition, it will promote the development of some mineral separation equipment enterprises of our country. The analysts of the mechanical industry point out that with the rapid development of the iron and steel industry of our country, some new mineral resources will be developed and the quantity of ores will be sharply increased every year, so great achievements will be made in the development of the mineral separation machinery in the future. In recent years, the engineering machinery enterprises have been aware of the bright market prospect and importance of the energy saving products. They have improved the design and production technologies of the products. They are brave to make innovation. The cost of the new environmental protection and energy saving equipment is quickly declining with the increasing of the industrial scale and the technical progress. Therefore, the sales of a great number of energy saving and environmental protection products will become the main stream and the project is facing the bright market prospect.
Viewed from the market orientation, the Coal Preparation Equipment Industrial Base of Xi’an District has the products 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 one’s own technology of the enterprise in the park. The coal preparation equipment produced is the matching equipment dividing the raw coal into the different quality and specifications of products by use of the physical and chemical methods. It can remove the impurities in the coal, including gangue and 50%-70% of sulfur, improve the quality of the coal products, increase the coal varieties, reduce the invalid transport, increase the thermal efficiency, save the energy and reduce the emission of SO2, NOx and smoke.
1.1.4 Advantageous Conditions of Project Construction
(1) Policy advantage
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, so the large coal preparation equipment development project as the support has the sufficient development prospect and advantageous conditions.
(2) Resource advantage
The mine equipment manufacturing has entered the new period of rapid development. Liaoyuan City owns Liaoyuan Mining Industry Group and a lot of raw coal mining and excavation enterprises as well as a great number of non-coal mines, so the mineral resources are rich, the coal mining years are more than 20 years, the building stone has the rich reserve and high grade; the local annual cement output reaches more than 1.2 million tons; the power resources are rich; therefore, it has the advantages of developing the resource industry for the fine punching die development project and the cost advantage is obvious. First, there are a lot of high-quality labor force resources and the average salary of the workers and staff is only 2/3 of the salary level of some developed cities such as Changchun. Second,, the water resources are rich and the water price is low. The power price of the big industrial users is low. Third, the land price is low. On the whole, the production cost of Liaoyuan City will be more than 40% less than that in the developed cities.
(3) Platform 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 advantageous platform has been created for the external enterprises and the development space for the large coal preparation equipment project will be greatly assured.
(4) Location advantage
Liaoyuan City is located in the central belt of the economic corridor of Shenyang City, Liaoning Province and Changchun City, Jilin Province, only 100km from Changchun City, 210km from Shenyang City, 500km from Dalian Port and 400km from Yingkou Port, with the obvious location advantage. In recent years, the urban matching facilities of Liaoyuan City have been gradually perfected, with the obvious traffic advantage. 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.
(5) Personnel advantage
In order to accelerate the transformation of the economic development mode and achieve the objectives of economic and urban transformation, Liaoyuan Municipal Government has unswervingly regarded the strategy of strengthening the city via personnel as the main one of the economic development and the introduction and gathering of the personnel as the foundation for competition and important factor of transformation, it has made great efforts to build the personnel and policy system and build the new personnel and policy advantages. The domestic famous experts and provincial famous experts transferred to the key project enterprises of the city with the funds and technologies and resolving the critical problems will be given the governmental allowance of 2000 yuan/month/person and 1000 yuan/month/person, respectively; the full-time doctors or masters in some specialties urgent to have in the key enterprises will be given the governmental allowance of 2000 yuan/month/person and 1000 yuan/month/person, respectively. The high-level innovative and entrepreneurship personnel introduced will enjoy some relevant welfare such as education and training, free physical examination, paid leaves and academic investigation, etc. Liaoyuan City will attract a great number of high-end personnel via a series of policies and measures. In addition, 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. Therefore, the implementation of the project has the obvious personnel advantage. 
(6) Industrial basis advantage
Liaoyuan City has been the important production base of the mine equipment manufacturing industry of Jilin Province, with the history of more than 50 years of production of the mine equipment. The records show that the “Zhanxiang” and “Liaozhong” products of Liaoyuan Heavy Machinery Factory were famous in the country in 1950s. There are some medium-sized equipment manufacturing enterprises and 70 small equipment manufacturing enterprises producing the matching products for Liaoyuan Mining Group and a lot of large enterprises out of the city and the scale production of the large underground coal mining machines and development machines has been achieved. The city owns the multiple products with the mine equipment manufacturing patent technologies and a lot of technical personnel. All these have laid a solid foundation for the 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 it as one of the key continuous industries. With the cultivation for more than 20 years, the mine equipment manufacturing industrial system with the large electric hauling development machines, coal mining machines and matching electric control equipment, mine machinery washing equipment and hydropower equipment, etc. as the main part in a certain scale and level has been basically established.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Build the large coal preparation equipment production base and the new high and fine discharge shaping equipment, automatic welding equipment, numerical control machining production line and complete machine assembly line, etc., with the annual output of 2000 sets of coal preparation equipment.
1.2.2 Construction Content
Building area of 0.1 million m2 for the new construction and reconstruction.
1.3 Total Investment of the Project and Capital Raising
The total investment of the project is 400 million yuan, including the fixed-assets investment of 200 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     20000    50          
2    Interest in the construction period    1000    2.1    Capitalized interest      
3    Current funds    19000    47.9          
    Total investment of the project (1+2+3)    40000    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 business income of the project in the normal years is 400.89 million yuan, the profit is 80.665 million yuan, the recovery period of all the investment (after the tax) is 6 years and the investment profit rate is 20.12%.
Table 2: List of Major Indexes for Forecast of Financial Benefits
No.    Name    Unit    Index    Remarks      
1    Business income    10, 000 yuan/a    40089    Normal year      
2    Total profit    10, 000 yuan/a    8066.5    Normal year      
3    Internal financial yield rate of the investment    %    17    After the income tax      
4    Net financial value (Ic=10%)    10, 000 yuan    45378    After the income tax
(operating period of 10 years)      
5    Recovery period of all the investment (after the tax)    a    6    Including the construction period of 1 year      
6    Investment profit rate    %    20.16         
Note: “RMB10, 000” in the Table shall be RMB. 。
1.4.2 Social Evaluation
The coal-soot atmospheric pollution caused by the direct combustion of a large amount of raw coal has seriously restricted the continuous and healthy development of the national economy of our country and brought big hidden troubles for people’s health. With the further growth of the coal production and consumption, the environmental problems caused by the coal will become more serious. In order to improve the environment, increase the coal utilization and reduce the pollution to the environment, emission has become the key. Therefore, a lot of developed countries have attached great importance to the development of the coal preparation technology and equipment and continuously improved the coal preparation rate. The implementation of the project can improve the coal utilization, to some extent, reduce the emission of SO2, NOx and smoke and decrease the environmental pollution caused by the coal, with the strong social benefits.
1.5 Cooperative Ways of the Project
Joint venture and cooperation
1.6 What to be Invested by Foreign Party
The foreign party invests the funds, with the details discussed in the face-to-face talks.
1.7 Construction Site of the Project
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 itme 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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