Processing Equipment Manufacture


1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Die is the basic technical equipment in the industrial production, which is called "Mother of Industry". 75% of industrial parts under coarse processing and 50% of parts under finish processing are molded with dies, and a majority of plastic products are shaped with dies as well. As the basic industry of national economy, dies involve machinery, automobile, light industry, electronic, chemical industry, metallurgy, building materials and other industries, having very extensive application scope.
Stamping die is a special technical equipment that processes the material (metal or non-metallic) into part (or semi-finished product) during cold stamping processing, which is also called cold stamping die (commonly known as cold stamping die). The basic parts include male die, female die as well as flange fixing installation. Stamping is a pressure processing approach that utilizes the die installed on the press at room temperature to apply pressure on the material, enable it to generate separation or plastic deformation, thus obtaining the required part. Stamping die is the essential technical equipment in stamping production, which belongs to technology-intensive product. Its design and manufacturing can directly decide stamping part's quality, production efficiency as well as production cost. The design and manufacturing technology level of die is one of the important signs that measures one country's product manufacturing level, determining the product's quality, benefit and development capacity of new product to a large extent.
The materials of manufacturing stamping die include steel product, hard alloy, zinc base alloy, low melting point alloy, aluminium bronze, and high polymer materials. At present, most of materials for manufacturing stamping die are steel products. Common work component material kinds of die include carbon tool steel, low alloy tool steel, medium carbon alloy steel, matrix steel as well as hard alloy.
According to the statistical data, dies can drive the relevant industries accounting for about l:100, that is, RMB100 million of die development can drive RMB10 billion of relevant industries. Processing products with dies can greatly improve production efficiency, save raw materials, reduce energy consumption and cost, and maintain high uniformity of the product. Dies have been applied in all industries due to its high production efficiency, good product quality, low material consumption and low production cost, which are directly used in high and new technology industries; in particular, it plays a supporting role that cannot be replaced by other industries in the manufacturing industry, exerting the radioactive influence on the development of regional economy.
1.1.2 Market Prospects
In recent years, with fast development of national economy and acceleration of Chinese industrialization course, as the foundation of manufacturing industry, die industry has enjoyed constantly increased market demand, and rapidly developed at about 15% growth speed. As the connection with the world continuously accelerates and market competition has gradually aggravated, people have got better understanding for the importance of product quality, cost and the development capacity of new product. as the most fundamental link in the entire industrial chain, die manufacturing has become increasingly important in terms of its position and functions.
The development of Chinese die industry offers power support for manufacturing industry, and the development of manufacturing industry boosts the development of die industry. For the automobile industry with the biggest application of dies, it is estimated that the average growth speed for development will be about 10% during the Twelfth Five-Year Plan, plus Chinese enormous motor vehicle inventory market and export market, Chinese automobile parts will maintain relatively high growth speed on the basis of RMB1.5 trillion of huge market as well. Electronic and information industry, railway traffic, aerospace, new energy, medical apparatus and instruments, building materials and other industries will also bring about tremendous market for dies. Therefore, dies have broad market demand and development potential.
In the aspect of international market, labor cost has continuously increased in the industrial developed countries, they are forced to transfer dies to the developing countries, notably China with relatively good technical foundation, in order to reduce production cost. The trend of purchasing dies in China by multinational corporations is still under development, and the extension of the international emerging market will have a brilliant future as well.
In recent years, under the policy support and guidance of the government, investment on die industry is relatively big, the enterprise's equipment level and strength have obviously improved, and production technology has stepped forward. However, the enterprises that can produce high-level dies still account for the small proportion. Generally speaking, the overall level of Chinese die industry is still relatively low. According to the production and demand situation of domestic dies, low and medium level dies have been supplied more than demand, and the self-sufficiency rate of high-tech dies represented by large-scale, precise, complicated dies with long service life is relatively low, only about 60%, and a large portion of them are imported. At present, increasingly more foreign capital is invested in Chinese die industry, meaning that Chinese die industry has welcomed a new round of development opportunity and is facing the challenge of foreign advanced technology and high quality products as well, thus competing for the market share with the foreign advanced dies manufacturing technology.
The development of Chinese die industry is unbalanced in regional distribution. The development in southeast coastal regions is faster than middle west regions, and south is faster than north, distributing like three-storey pyramid as a whole. Chinese die production is most concentrated in Pearl River Delta and Yangtze River Delta regions, the output value accounts for over 2/3 of the national die production value. Guangdong is the most leading die market and the largest die export and import province in China, the production value and sales volume of manufacturing industry account for over 40% of China, steadily ranking forefront in the national die industry. The second is Jiangsu and Shanghai. Northeast is situated at the bottom of the competition pattern of Chinese die industry, having relative backward level.
Comprehensively speaking, dies are featured by high content of product technology, big proportion of activated labor, high appreciation ratio, long production cycle, and intensive technology and capital, the industrial development is suitable for aggregate and production and cluster-type development in order to establish relatively strong cooperative supporting system. For the time being, Chinese die industry is in the key period of shifting toward high technology, high additional value and high quality, based on the different scale, low quality and incomplete standard of domestic die production enterprises, the implementation of this project can substantially adapt to the industrial development trend, having good development prospect. In addition, this project relies on strict management of the park, and gets the support of big production scale and excellent technical team, which has considerable industrial advantage. It can effective facilitate the optimization and upgrade of die manufacturing industry, establish the influential and creditable die manufacturing brand, promote the progress of die production technology, improve the competitiveness of die industry in the northeast, and play a positive role in driving regional economic development and product export and foreign exchange earnings.
The products of this project are mainly sold to Hebei, Inner Mongolia and the northeast regions.
1.1.3 Technical Analysis
This project adopts own technology in the park to conduct fast, automatic and continuous stamping with high-speed precision press, and the stamping production rate can be effectively increased. The frequency per minute of slide stroke of high-speed precision press is 5 times higher than that of ordinary press with similar tonnage, so high-speed precision press has high stamping precision, good surface quality and long service life of die. In addition, high-speed milling processing, electric spark milling processing, low speed wire cutting, grinding and polishing processing, numerically controlled measurement and other advanced technology are adopted.
1.1.4 Advantageous Conditions of Project Construction
(1) Policy conditions
The country vigorously supports the development of Northeast Old Industrial Base, as the national old industrial base, Jilin Province will get the country's preferential policy support in significant project layout, added-value tax transformation and accelerated depreciation; as one of the first batch of cities with exhausted resources and economic transformation, Liaoyuan City will enjoy the country's financial aid policy and industrial support policy for the cities with exhausted resources, preference of financial credit, industrial layout, and construction of significant engineering projects; Article 19 in Implementation Opinions of Jilin Provincial Government concerning Implementation of the Plan for National Equipment Manufacturing Industry Adjustment and Revitalization indicates to encourage financial institutions to provide stronger support for equipment manufacturing industry of Jilin Province as well as more better service for the enterprises of equipment manufacturing industry. In addition, Liaoyuan City is positively declaring the country’s old industrial parks in the city and independent industrial and mining area, and trying to be listed in the moving transformation plan of the national country city's old industrial park and independent industrial and mining area, thus creating superior development environment for equipment manufacturing industry of Liaoyuan City and promotion of new industrialization.
After the State and Jilin Province issued the policy for the revitalization and development of equipment manufacturing industry and for assisting a smooth, healthy and fast development of mine equipment manufacturing industry, accelerating economic transformation, driving industrial structure adjustment with advantageous industry and achieving the great goal of the economic take-off in Liaoyuan, Liaoyuan City actively seizes the favorable opportunity of national promotion of resource-based city economy transition and stimulating domestic demand by expanding investment, seizes the opportunity for developing equipment manufacturing industry brought by hierarchical transformation of global manufacturing and productivity distribution adjustment in Jilin Province, gives priority to the development of mine equipment manufacturing industry which is a pillar advantageous industry conforming to the national industry policy, and exerts the leading role of the advantageous industry in economic development. 
(2) Location advantage
Industrial Concentration Zone, Xi'an District, Liaoyuan City is situated in Xi'an District, Liaoyuan City, having planning area of 20.74km2 and accumulated investment of more than RMB6 billion. In the Concentration Zone, water discharge, rain water pipe network engineering, and communication engineering have been used, infrastructure building has been completed, the roads are accessible to traffic, basically completing the construction of "five accesses and one leveling", and having the relatively complete service functions.
In recent years, Liaoyuan City has gradually perfected city supporting facilities, getting the distinct traffic advantage. National Highway 303 and Siping-Meihekou Railway pass through the entire border. Liaoyuan-Xifeng Railway, Changchun-Liaoyuan Highway, Yingchengzi-Meihekou Highway, Jilin-Caoshi Highway have been constructed, and Liaoyuan-Xifeng Highway is being constructed, directly connecting Jilin, Siping, Meihekou, Tonghua and Shenyang. It takes only 1.5h from the Concentration Zone to Changchun Airport, and only 3h to Shenyang Taoxian Airport, greatly contributing to the transportation. 3 parks in 2 zones and 2 parks have special railway lines, having relative location advantage for undertaking industrial transfer and production factor overflow.
As the important industrial city in the southeast of Jilin Province, Liaoyuan City has abundant coal, iron, copper, lead, zinc, gold, silver, and cement limestone mineral reserves, and tremendous electric resources, providing sufficient raw materials and energy support for the implementation of the project. In addition, the Concentration Zone is encircled by Liaoyuan Vocational Technical College, Liaoyuan Vocational Technical Training Center, Liaoyuan Staff and Workers University and many other universities and colleges, having relatively abundant talent resources that can attract excellent students of universities and colleges, and supplementing and providing fresh knowledge and technology for the park.
(3) Platform advantage
In order to adapt to the city development demand, Liaoyuan City performed a new round of overall city planning and adjustment to implement strategies of "moving out step by step" and "planning to enter the park", and form strategic transfer of a part of advantageous enterprises, mainly developing toward north of downtown (Xi'an District). Adjustment of city planning created a platform with high starting point and high standard for die development project to attract the external enterprises. Liaoyuan City has implemented the construction of Liaoyuan clean energy industrial development zone that is divided into 2 zones and 2 parks, that is: Dongximeng Industrial Park with planning area 5.6km2, Northern Industrial Park with planning area 14.67km2, Shengli Industrial Park with planning area 0.15km2 and Guxian Food Industrial Park with planning area 0.32km2. Shengli Industrial Park and Northern Industrial Park mainly develop mine machinery manufacturing industry, Dongximeng Industrial Park can contain some enterprises in mine machinery manufacturing industry. The promotion of infrastructure construction and improvement of the corresponding supporting facilities in 2 zones and 2 parks can create a superior platform for the external enterprises, and powerfully guarantee the development space of die manufacturing project.
(4) Talent advantage
The park has a large number of experienced senior technicians and management talents from the original Turnout Plant and Electromechanical Plant of Liaoyuan Mining Bureau that went bankrupt, and these people have become the ample talent reserve for the development of manufacturing industry in the Concentration Zone. In addition, the Concentration Zone is encircled by Liaoyuan Vocational Technical College, Liaoyuan Vocational Technical Training Center, Liaoyuan Staff and Workers University and many other universities and colleges, having relatively abundant talent resources that can attract excellent students of universities and colleges, and supplementing and providing fresh knowledge and technology for the park.
The Concentration Zone has attracted a great many domestic and foreign enterprises to invest and establish plants, which has a group of administrative managers, technical workers and engineers with relatively high professional quality. As the Concentration Zone develops every day, it is certain that more relevant experts and technicians will enter here and jointly perfect the processing technology of precision stamping die.
(5) Industrial foundation advantage
Liaoyuan City has been the important production base of mine equipment manufacturing industry in Jilin Province, having a history of more than 50 years in production of mine equipment. It was recorded that, in 1950s, Zhanxiang Brand and Liaozhong Brand products of Liaoyuan Heavy Machinery Plant were renowned in China. The park has a batch of powerful key enterprises including Liaoyuan Heavy Industry Group, Liaoyuan Coal Mine Machinery Manufacturing Company and Yuanlongda Dies Co., Ltd. of Jilin Province. The innovative capacity of enterprises has been constantly enhanced, powerfully driving the rapid development of equipment manufacturing industry and having certain technological research and development level.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
This project takes metal or non-metallic materials as raw materials, utilizes modern technology to produce precision stamping die. Main products include high precision injection molding dies, aluminium die-casting dies, compacting dies and cold stamping dies.
1.2.2 Construction Content
The project covers an area of 30,000m2, including building area 20,000m2, which mainly construct office, plant workshop and warehouse. Purchase over 10 sets of large-scale numerically controlled processing centers, as well as various advanced processing and detection equipment, such as planing machines, milling machines, drilling machines, grinding machines and hydraulic machines.
1.3 Total Investment and Funds Raising of the Project
1.3.1 Total Investment of the Project
Total investment of this project is RMB200 million, including construction investment RMB122.74 million, interest in construction period RMB4.56 million, and circulating capital RMB72.7 million.
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    12274.00    61.37          
2    Interest incurred during construction    456.00    2.28    Capitalized interest      
3    Circulating capital    7270.00    36.35          
    Total investment of the project (1+2+3)     20000    100.00         
Note: "RMB10, 000" in the Table shall be RMB.
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
In normal year, this project has annual business income RMB180 million, profit RMB67 million, FIRR of all investments 20%, period for recovery of all investments (after tax) 4.98 years, and ROI 33.5%.
 List of Major Indexes for Forecast of Financial Benefits
No.    Name    Unit    Index    Remarks      
1    Business income     RMB10,000/a    18000.00    Normal year      
2    Total profit    RMB10,000/a    6700.00    Normal year      
3    FIRR of all investments    %    20    After income tax      
4    FNPV (Ic=10%)     RMB10,000    33634    After income tax (operation period 10 years)       
5    Period for recovery of all investments (after tax)    a    4.98    Including 2 years of construction period      
6    ROI    %    25.13    Normal year (after tax)     
Note: "RMB10, 000" in the Table shall be RMB
1.4.2 Social Evaluation
At present, die production technology level has become the important fact that impacts the improvement of independently innovative capacity of Chinese automobiles and high-level electronic products. The implementation of this project is helpful for improving the production technology of large-scale and precision stamping dies, and increasing the technological content and the additional value of stamping die, not only enhancing the overall level of Chinese die industry but also promoting the performance and independently innovative capacity of automobiles and high-level electronic products. While creating economic benefits, it can effectively guide the optimum development, optimization and upgrade of die manufacturing industry, increase international competitiveness, drive the development of upstream and downstream relevant industries, and make progress together through collaboration.
In addition, precision stamping die is in favor of improving the technological content of industrial products, reducing resource consumption and environmental pollution, enabling project construction to develop by coordinating with population, resources and environment, and realizing the benign interaction between new industrialization and sustainable development. This project meets the national significant policy of constructing "environment friendly and resource saving" project, as well as the significant strategic guidance of "paying equal attention to profit and environment" proposed by the Provincial Party Committee and Provincial Government.
Jilin Province has resources abundant mineral reserves and enough raw materials supply guarantee. The implementation of this project can fully use the resource advantage of our province to effectively change the status of low additional value of the products of our province, powerfully drive the provincial economic development, and optimize industrial structure. In addition, this project can provide the local area with many jobs to improve the local economy and people's living standard, having positive significance for maintaining the social stability and promoting social harmony.
1.5 Cooperative Ways of the Project
Joint venture, cooperation.
1.6 What to be Invested by Foreign Party
Foreign party will invest capital.
1.7 Construction Site of the Project
No. 1076, Renming Street, Liaoyuan City, Jilin Province.
1.8 The On-going Condition of Project
Project Cooperation Plan has been prepared.
2. Introduction to Partner
2.1 Basic Conditions
Name: Industrial Concentration Zone, Xi'an District, Liaoyuan City
Address: No. 1076, Renming Street, Liaoyuan City, Jilin Province
Legal Representative: Wang Shaojun
2.2 Overview:
Industrial Concentration Zone, Xi'an District, Liaoyuan City is the provincial-level economic development zone established in 2005 with the approval of provincial government, which enjoys part of provincial-level administration authority. It is located in the border of Xi'an District, Liaoyuan City, having planning area of 20.74km2. The Concentration Zone is only one-hour distance from Changchun and Siping, and two-hour distance from Shenyang. The exit of Liaoyuan-Changchun Highway is situated in Concentration Zone. 3 parks in 2 zones and 2 parks have special railway lines, having relative location advantage for undertaking industrial transfer and production factor overflow. The Concentration Zone will provide investors with the open-minded, open and preferential policy environment; efficient, rapid and high quality service environment for investors with sincere service; just, open and fair legal environment; as well as civilized, honest and enthusiastic human environment; enabling investors to feel at home and obtain the best return on investment with the lowest investment cost. The Concentration Zone can compare or choose the better preferential investment policies around the country to implement, which can implement the preferential policy of "one discussion for one case" while enjoying the existing preferential policy of Concentration Zone. In addition, the existing information of economy, technology and mineral product resources in Xi'an District can be shared with enterprises.
The Park is the new space with the most vigor and potential in the development of county economy, and the important platform for business and investment attraction and industry cluster. During implementation of Liaoyuan Northern New City Development Strategy, Xi'an District takes building of a big park as one of the development strategies. In December 2010, according to the actual development situation of Xi'an District, Municipal Party Committee and Municipal Government conducted new planning and layout for Liaoyuan Clean Energy Industrial Development Zone (original Liaoyuan Health Industrial Development Zone), which planed "2 zones and 2 parks" Industrial Concentration Zone mainly based on Dongximeng Industrial Park, Northern Industrial Park, Guxian Food Industrial Park and Shengli Industrial Park with planning area 20.74km2. Dongximeng Industrial Park is situated in the lots of Dongmeng and Ximeng villages, covering an area of 5.6km2, including starting zone area1.42km2, mainly developing equipment manufacturing, new materials, photovoltaic electronics, new building materials, light textile and other industries. Northern Industrial Park is situated in the lots of Fuqiang and Fengshou villages, with planning area 14.67km2 and starting zone area 2.69km2, mainly developing clean energy, equipment manufacturing and other industries. Shengli Industrial Park is situated in the lot of Steel Pipe Plant of Shengli Village, covering an area of 0.15km2, mainly developing machinery manufacturing industry. Guxian Food Industrial Park is situated in the lot of North Ring Road of Guxian Village, covering an area of 0.32km2, mainly developing food and drug industries.
The Park is the important carrier of industrial development and window open to the outside world, which even relates to the aftereffect and vitality of economic development of the whole zone. At present, the Development Zone enjoys a prosperous industrial and economic development, and the development pattern of 2 zones and 2 parks has been basically formed.
Wang Shaojun, Director of the Administration Committee of the Industrial Concentration Zone in Xi'an District of Liaoyuan City, male, Han nationality, member of the Communist Party in China, started his duty in the Industrial Concentration Zone in Xi'an District of Liaoyuan City in 2014 and is responsible for administering the complete work of the Administration Committee of the Industrial Concentration Zone in Xi'an District.  
2.3 Contact Method
Contact Person: Ge Yao
Tel: 0437-3635345
Fax: 0437-3635345

Contact Person of Project City (Prefecture): Cui Shiwei
Tel: 0437-3528822    13766066922
Fax: 0437-3528822
Website of City (Prefecture):

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