Processing Equipment Manufacture

 1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

The products of the project are “interior decorative parts of flame-retarding prepreg, honeycomb core and sandwich structure for railway vehicles”. The material has high rigidity, when it is used as the structural material of train, it can reduce application of braced frame; its modular parts can help workers in rapid installation; it has high fire resistance, and can be used in the entire train system, help increase the training running speed, reduce energy consumption and track abrasion, and transport more goods. At present, Germany, Japan and France have successfully applied honeycomb sandwich structure composite in Shinkansen and other high-speed railway vehicles. Main application of composite in the railway vehicle is window frame and middle roof plate.

1.1.2 Market Prospects

With Chinese national economy developing and urbanization process accelerating, Chinese rail transit will still develop rapidly in the coming 5-10 years, providing broad market space for the development of rail transit equipment industry. Last year, construction mileage of city subway and light rail's planned lines in China reached 2,600km, and planned amount of construction investment will reach 1.27 trillion yuan. It is estimated that, during the 13th Five-year Plan, CRH demand will reach over 1,300 trains, so the development of Chinese rail transit equipment manufacturing industry is faced with a significant strategic opportunity. According to the statistics, in 2014, the actual expected annual CRH delivery quantity was about 350 trains, worth about 70 billion yuan. In 2015, annual CRH delivery quantity was 450 trains, worth 90 billion yuan.

The products of the project are “interior decorative parts of flame-retarding prepreg, honeycomb core and sandwich structure for railway vehicles”. The material has high rigidity, when it is used as the structural material of train, it can reduce application of braced frame; its modular parts can help workers in rapid installation; it has high fire resistance, and can be used in the entire train system, help increase the training running speed, reduce energy consumption and track abrasion, and transport more goods. At present, Germany, Japan and France have successfully applied honeycomb sandwich structure composite in Shinkansen and other high-speed railway vehicles. Main application of composite in the railway vehicle is window frame and middle roof plate.

1.1.3 Technical Analysis

(1) The mass of honeycomb and foam structure is 30% lighter than the traditional aluminium structure, totally meeting the requirement for light railway vehicle, and composite has high fatigue strength and low notch sensitivity, greatly increasing the safety performance.

(2) Advanced composite surface is rich in resin that has good corrosion resistance, weather resistance as well as inflaming retarding, low toxicity and low smoke generation performance, thus lengthening the service life of vehicles (aging resistance also means reduction of repair times), and increasing security.

(3) Advanced composite has very strong designability, interior decoration can be designed as more fluent and beautiful appearance to increase the passenger's comfort. Application of composite can reduce or even eliminate structural support, increase train space, help assembly and lower internal noise.

(4) Integration of composite parts is an effective way to reducing cost. Among vehicles in medium-batch production, application of advanced composite instead of aluminium products can reduce cost by about 40%, and greatly shorten the development cycle from product development to batch production.

Technical source: AVIC Composite Corporation Ltd. is an important new material research, development and application unit subordinate to AVIC, the products have been widely applied aerospace and other national defense and war industry fields, having world leading advance technology, 1 thousand of patented technologies of scientific and research achievements, and powerful technical R&D advantage. In this project, AVIC Composite Corporation Ltd. uses its proprietary patented technologies and capital to seek enterprises with market channels to cooperate in Changchun.

1.1.4 Advantageous Conditions of Project Construction

(1) Policy condition

The railway transit equipment industry is one of the five important development directions in the high-end equipment manufacturing industry determined in the Decision of the State Council on Accelerating the Cultivation and Development of the Strategic Emerging Industries. In order to implement the relevant decisions of the State Council, we should further determine the industrial upgrading direction and key transformation points, accelerate the promotion of the transformation of the industrial development model, improve the core competitiveness of the industry, accelerate the support for the innovative development project of “advanced railway transit equipment and key parts”, guide and support the enterprises to conduct the research and development of the common technologies, key engineering technologies and important equipment technologies of the industrial foundation, improve the industrial technological innovation capacity and promote the industrialization of the innovative achievements, support the construction of some public service platforms of development, design, test and validation, certification and test, etc. and create the good external environment of innovative service.

Since Changchun New Area was founded, a series of policies such as Policies on Promoting the Development of the Strategic Emerging Industries, Policies on Promoting the Innovative Development of Science and Technology, Policies on Accelerating the Assembly of the High-level Personnel and Policies on Supporting the Innovative Development of Changchun New Area, etc..

(2) Related technical advantage

The construction site of the project, located in Changchun New and High-tech Development Zone, under Changchun New Area, has the obvious location and transport advantages. Changchun New Area is located in the core hinterland of Changchun-Jilin-Tumen Development and Opening Pilot Zone and geographical center of Northeast China and the important node of Harbin-Dalian Economic Belt and China-Mongolia-Russia Economic Corridor. In the district, Longjia International Airport is the national trunkline airport, some expressways such as Jingha Expressway and Hunwu Expressway, etc. meet here, some trunkline railways such as Jingha Railway and Hada Railway penetrate the whole district, Changchun-Manchuria-Europe International Freight Train has been opened and the sea, land and air 3D transport network has been preliminarily established, so it is convenient to have communication of personnel and goods with other regions of Northeast China, Beijing, Tianjin and Hebei and the surrounding countries of Northeast Asia. The new district, depending on the construction of Longjia International Airport and comprehensive railway freight yard, is building the international airport and international inland port, the “three major channels” to the west, north and south and incorporate to the major pattern of economic development in the world.

(3) Industrial development advantages

Changchun New Area, focusing on the building of the innovative industrial system with the advanced manufacturing industry, modern agriculture and modern service industry as the important points, insists in the coordinated and interlinking development of the four major development zones and preliminarily establishes the industrial development pattern with the prominent important points and distinctive characteristics: in the airport development zone, the emphasis is put on the development of the logistic industry, finance, leisure tourism and health endowment and other modern service industry as well as airport advanced manufacturing industry and it will be built into the pilot zone of airport economy and opening to the outside in Northeast China. In Beihu Development Zone, the emphasis is put on the development of the high-end equipment, photoelectric intelligent, biological medicine, fine food, new materials and energy industries to promote the construction of the international inland port of Northeast Asia, build the international inland port oriented to Northeast Asia and build itself into the strategic emerging industry pilot zone. In Changde Development Zone, the emphasis is put on the development of the health industry, fine food industry, strategic emerging industry and engineering mechanical industry, etc. to build the new urban area suitable to live in and open businesses; in the New and High-tech Zone, the emphasis is put on the development of the new and high-tech industry and high-end service industry to build the functional assembly zone of the new and high-tech industry and high-end service industry. The industrial pattern and development of Changchun New Area will provide the good industrial support for the project.

(4) Personnel and innovative resource advantages

In Changchun New Area are assembled a lot of colleges, universities and scientific research institutions such as Jilin University, Northeast Normal University, Changchun Institute of Optics, Fine Mechanics and Physics of Chinese Academy of Sciences and Changchun Institute of Applied Chemistry of Chinese Academy of Sciences, etc.; in the district, there are 3 national-level engineering labs, 2 national engineering technological research centers, 11 national-level key labs and 50 key labs above the provincial and ministerial levels. The district has 34 national-level innovative parks and bases such as National Patent Navigation Industry Development Experimental Park and National Innovative Personnel Cultivation Demonstration Base; in the district is assembled Changchun Northeast Scientific and Technological Innovation Center built by “1 academy, 4 institutes and 4 universities” including Changchun Branch of Chinese Academy of Sciences and Jilin University, etc., the special technological platforms of photo-electrics, new materials, new energy, biological medicine and ecological agriculture, etc. and public service platforms of governmental affairs, information, finance and personnel, etc. are built.

1.2 Content and Scale of Project Construction

1.2.1 Product Scale

This project proposes to annually produce 200,000 (for 200 high-speed railway vehicles) railway vehicle doors, windows, wallboards, roofs, floors, baggage racks, air conditioner air ducts and driving position instruments.

In addition, after this project is implemented, the construction unit will also continue R&D and production for new-type composite interior decorative parts for railway vehicles.

1.2.2 Construction Content

The project covers an area of 50,000m2, including building area 35,000m2. Specific construction items are:

(1) Aramid fiber paper honeycomb production workshop (three production lines) 20,000m2, investment 45.6 million yuan;

(2) Prepreg (two production lines), fiber glass fireproof inflaming-retarding low-density boards production workshop (one production line) 20,000m2, investment 34.8 million yuan;

(3) Environment-friendly accessories production workshop (one production line) 1,000m2, investment 9.4 million yuan;

(4) R&D laboratory center 4,000m2, investment 27 million yuan;

(5) Other auxiliary facilities (office facilities, warehouse, dormitory and canteen) 18,000m2, investment 45.2 million yuan;

(6) Infrastructure (mail room, parking lot and greening) and related supporting expenses, investment 28 million yuan;

Total area of new and transformed building is 2,1138m², newly purchase 708 sets of equipment.

1.3 Total Investment of the Project and Capital Raising

Total investment of the project is 250 million yuan, including construction investment 200 million yuan.

Table 1: Summary Table of Total Investment of the Project   Unit: 10, 000 Yuan

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

20000

80

 

2

Interest incurred during construction

 

 

 

3

Circulating capital

5000

20

 

 

Total investment of the project (1+2+3)

25000

100.00

 

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 400 million yuan, profit 80 million yuan, payback period 4.12 years (after tax, including 1 year of construction period) and ROI 32%.

Table 2: List of Major Indexes for Forecast of Financial Benefits

No.

Name

Unit

Index

Remarks

1

Sales income

RMB

10, 000/a

40000

Normal year

2

Total profit

RMB

10, 000/a

8000

Normal year

3

FIRR of all investments

%

29

After income tax

4

FNPV (Ic=10%)

RMB10, 000

14264

After income tax

(operation period 10 years)

5

Period for recovery of all investments (after tax)

a

4.12

Including 1 year of construction period

6

ROI

%

32

 

Note: "RMB10, 000" in the Table shall be RMB.

1.4.2 Social Evaluation

Under the big background of energy crisis and environmental pollution, the power-driven railway vehicle is used as an important traffic tool for people, and its light weight is of great significance for energy conservation, emission reduction and environmental protection.

1.5 Cooperative Ways

Joint venture.

1.6 What to be Invested by Foreign Party

Capital.

1.7 Construction Site of the Project

Northeast Core Zone of Changchun High-tech Development Zone

1.8 The On-going Condition of Project

Cooperative plan for the project has been prepared.

2. Introduction to Partner

2.1 Basic Conditions

Name: Changchun High and New-tech Industrial Development Zone

Address: No. 1357, Jinhu Street, Changchun City, Jilin Province

2.2 Overview:

Changchun New Area is 17th state-level new area which was established under the approval of the State Council on Feb. 3, 2016. It is next to the main urban area of Changchun City, its main part is located in the northeast of Changchun City, its approval area is around 499 square kilometers, and its jurisdiction covers four zones, including Changchun National Hi-tech Industrial Development Zone, Changchun North Lake Science and Technology Development Zone, Changchun Airport Economic Development Zone, and Changde Economic Development Zone.

The OVERALL PLAN OF CHANGCHUN NEW AREA approved by the state has defined the strategic positioning, function layout, key task and development goal of the new area. Its strategic positioning is to create an innovative economic development demonstration area, a key engine for the new round of revitalizing Northeast China, an important platform of Tumen River regional cooperation and development and an advanced area of system and mechanism reform. Its function layout is to build “Two Axes, Three Centers and Four Bases”: “Two Axles” means Harbin-Changchun Strategic New Industry Development Axis, Changchun-Jilin High-end Service Industry Development Axis, “Three Centers” means science and technology innovation center, international logistics center, international communication and cooperation center and “Four Bases” means high technology industry base, advanced manufacturing industry base, airport economic industry base and health & pension industry base. Its strategic task is to promote innovation and entrepreneurship level, strengthen endogenous driving force of development, greatly develop innovative industry system, accelerate the cultivation of three leading industries of advanced equipment manufacturing industry, modern service industry and modern agriculture, build a green and intelligent new urban area, promote urban modernization and internationalization level, promote Changchun-Jilin-Tumen interactive development, accelerate the integration process of Changchun, Jilin and Tumen, actively integrate into and serve “the Belt and Road” construction, accelerate the creation of “Silk Road”, new platform in north line, new door and new passage, and achieve the transition from new area to international free trade zone. Its development goal is strive to fundamentally complete the construction of three dimensional transportation network in the new area, preliminarily clear the external logistics passage for land and maritime joint transportation, increasingly perfect the public service facilities, achieve major breakthrough in reform, innovation and opening cooperation, greatly promote innovation driving capacity and fundamentally create innovative modern industry system by 2020.

Changchun National New and High-tech Industrial Development Zone is one of the first national-level new and high-tech zones approved and built by the State Council in 1991. In recent years, the zone has been listed on the top of 56 national-level new and high-tech zones in the whole country in the evaluation of comprehensive economic indexes. In February, 2016, Changchun New and High-tech Zone is put under the jurisdiction of Changchun New Area. The emphasis is put on the development of 1 base and 5 parks, that is, New and High-tech Industrial Base; Creativity and Software Industrial Park, Animation Industrial Park, Photo-electro-mechanic Industrial Park, Medicine Industrial Park and Automobile and Parts Industrial Park and efforts are made to actively develop the automobile industry, photoelectric information, biological medicine, cultural creativity and urban service industries, etc.

Changchun National New and High-tech Industrial Development Zone is one of the first national-level new and high-tech zones approved and built by the State Council in 1991. In recent years, the zone has been listed on the top of 56 national-level new and high-tech zones in the whole country in the evaluation of comprehensive economic indexes. In February, 2016, Changchun New and High-tech Zone is put under the jurisdiction of Changchun New Area. The emphasis is put on the development of 1 base and 5 parks, that is, New and High-tech Industrial Base; Creativity and Software Industrial Park, Animation Industrial Park, Photo-electro-mechanic Industrial Park, Medicine Industrial Park and Automobile and Parts Industrial Park and efforts are made to actively develop the automobile industry, photoelectric information, biological medicine, cultural creativity and urban service industries, etc.

The zone is generally oriented to be the demonstration zone of upgrading of the traditional industries and transformation of the functions of the development zone-transformation from the development zone upgraded from the traditional industries to the strategic emerging industry and focused on the industries to the comprehensive urban area; comprehensive new ecological and livable urban area in the southwest of Changchun City-important door and comprehensive urban area with the balanced work and living in the southwest of Changchun City. In the spatial layout, the emphasis is put on the development of 1 base and 5 parks, that is, New and High-tech Industrial Base; Creativity and Software Industrial Park, Animation Industrial Park, Photo-electro-mechanic Industrial Park, Medicine Industrial Park and Automobile and Parts Industrial Park and efforts are made to actively develop the automobile industry, photoelectric information, biological medicine, cultural creativity and urban service industries, etc., comprehensively perfect the matching urban functions, improve the matching level of the public service facilities, perfect the urban infrastructural construction, accelerate the construction of the modern intelligent urban rails, strengthen the construction of urban green parks, build the convenient living network covering education and training, medical institutions, business and shopping centers, bank outlets and high-end community, etc., comprehensively improve the comprehensive urban service capacity, gradually enhance the environmental improvement and build a new modern urban area with the complete functions and suitable to open businesses, tour, live and work in.

Changchun New and High-tech Industrial Development Zone is planned to have had the urban construction land of 43km2, accommodating the population of 0.4 million by 2020; the urban construction land of 47.85km2, accommodating the population of 0.5 million by 2030.

2.3 Contact Method

Contact Person of the Project: Zhang Jingjing

Tel: 0431-85543189    15043189222

 

Contact Method of Project City (Prefecture):

Contact Unit: Economic and Technological Cooperation Bureau of Changchun City

Contact Person: Bo Zhanlin

Tel: 0431-82763933  82765252

Fax: 0431-82763933

E-mail: cc82763933@163.com

Website of City (Prefecture): http://www.ccmbc.com/

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