1. Introduction to the Project
1.1 Project Background
1.1.1 Product Background
The project mainly produces the aluminum alloy car body materials. The resource consumption and environmental pollution have become the global problems and the whole world is paying attention to the automobile energy conservation and emission reduction. It has become the common concerns of the governments, scientific and research institutions, automobile manufacturers and transport companies to reduce the weights of vehicles, decrease the fuel consumption and improve the transport efficiency and benefits, etc. Aluminum is the second largest metal only inferior to steel. Aluminum alloy has a series of good characteristics such as small density, low weight, high strength, good elasticity, good anti-impact performance, corrosion resistance, easy color application on the surface, good processing and shaping properties and high recycling property, etc. and it has been gradually and widely applied in the automobile industry. Because a large amount of aluminum alloy has been adopted in the automobile manufacturing to make the total mass of the vehicle reduced so as to decrease the fuel consumption; because of the low fuel consumption and low weight, there is a little exhaust emission of the vehicle and the pollution is decreased; the recycling rate of the old-fashioned and unsuitable vehicles is high and the aluminum automobile parts can be basically recycled; the energy needed for recycling is low and aluminum can be recycled for times.
1.1.2 Market Prospect
At present, if all the car body stamping parts are aluminum, the car can be thought as all-aluminum car. The aluminization of the vehicles in China has been just started and there is a quite big gap to that in the developed countries, so we must strive to catch up with them. The average aluminum use of the passenger cars of China is less than 120kg/car, it approaches 150kg/car in a developed country and the aluminum use in the cars in the Europe is 150kg/car in 2004. It is predicted that the average aluminum use in the passenger cars will have been 180kg/car by 2020 and it will have become the industry with the rapidest growth. If the average aluminum use in the cars of China will have reached 170kg/car by 2020, 6% less than that in the US and Europe, the aluminum use in the passenger cars in China will have been 3330kt (the output is calculated according to 19.6 million cars). It can be seen that the growth potential of aluminum use in the cars is really great.
The data show that the sales price of the 2015F-150 all-aluminum pick-up in the market is only 395 USD more than that of the 2014 version, that is, about 2400 yuan RMB more than that of the steel car, but the oil expenses saved by the aluminum car during the operation is dozens of times that of the steel car. Furthermore, the social benefits brought about by the emission reduction are not counted. Therefore, the annual demand for the aluminum alloy car body sheets for manufacturing such a car is 350kt. It can be seen that the building of the aluminum car body sheet (ABS) project will bring about not only high economic benefits but also huge social benefits. Therefore, the implementation of the project is the general course of development.
1.1.3 Technical Analysis
The project takes the technology of the investment enterprise or introduces the advanced foreign technology.
1.1.4 Advantageous Conditions of Project Construction
(1) Policy condition
The automobile manufacturing industry in the national “13th Five-Year Plan” is still one of the 5 major pillar industries in our national economy and great efforts will be made to develop the light cars. In addition, depending on the good foundation of the automobile parts industry of Jilin Province, the government of the zone will continue exercising the investment promotion policy of “discussion on one item once” for the investment enterprises of the automobile manufacturing industry.
(2) Personnel advantages
The human resources needed for the construction of the project can be available in the local area. There are rich human resources in our city. In the urban area, there are vocational schools, which can train the personnel according to the demands of the enterprises. Our city, with the good industrial development foundation, is only 1h ride to Changchun City, a famous “City of Colleges and Universities” and “Automobile City” in the whole country, so the personnel demand can be met.
(3) Industrial foundation
In Liaoyuan City, there has been a cluster of aluminum processing enterprises in a certain scale. There are 11 aluminum alloy and relevant enterprises, including 6 backbone enterprises, 2 companies listed in the market and 2 enterprises with the output value of more than 1 billion yuan, 3000 practitioners, annual output of about 0.5 million tons of aluminum alloy and deep-processing products and annual output value of more than 3.9 billion yuan. Liaoyuan City has the good location advantages and market environment of developing the aluminum refined and deep-processing. The industrial bases related to aluminum processing in the surrounding include Changchunn Railway Vehicle Base, Changchun Automobile Manufacturing Base, Shenyang Automobile Manufacturing Base, Shenyang Aviation Manufacturing Base, Shenyang Equipment Manufacturing Base, Qiqihar Freight Car Base, Northeast Oil Production Base, Green Food and Medicine Production Base and Changchun Photoelectric Information Industry Base, etc. Neighboring Tongliao-Huolinhe Coal Power and Aluminum Integration Industrial Base in Inner Mongolia, Liaoyuan City has the material supply advantages and good logistic advantages.
(4) Infrastructural conditions
Around the site chosen for the project are the complete public facilities, “7-connection and 1-leveling” infrastructural conditions and good matching facilities, which have provided the solid foundation for the project construction and saved the project construction funds.
(5) Transport advantages
Liaoyuan has the advantageous location conditions and its capabilities bearing development have been continuously strengthened. Liaoyuan is located in the central belt of two major economic areas, that is, Changchun and Shenyang, 100km from Changchun in the north, 200km from Shenyang in the south, with the No. 303 National Highway and Simei Railway penetrating the whole area, constituting the comprehensive transport system extending in all directions with Liaoxi Railway, Changliao Expressway, Yingmei Expressway, Jicao Expressway and Liaoxi Expressway under the construction as well as Liaochang Railway to be started and becoming the new channel to the sea and overseas in the hinterland of Northeast China.
1.2 Content and Scale of Project Construction
1.2.1 Product Plan and Scale
The project is planned to have the annual output of 100kt/a sheets.
1.2.2 Construction Content
The project is planned to cover an area of 0.2 million ㎡ and the construction land of the project is 0.16 million㎡, with the building area of 0.145 million ㎡ and a new hot continuous rolling line and 1 single-frame irreversible cold rolling machine and other finishing equipment with the complete matching facilities will be built.
1.3 Total Investment of the Project and Capital Raising
The total investment of the project is 1.15 billion yuan, including the construction investment of 900 million yuan.
Table 1: Summary Table of the Total Investment of the Project
No.    Expense Name    Amount of Investment    Proportion of Total Investment %    Remarks      
1    Construction investment     89999    78.26          
2    Interest in the construction period                  
3    Current funds    25001    21.74          
    Total investment of the project (1+2+3)    115000    100.00         
Note: “RMB10, 000” in the Table shall be RMB.
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
After the output of the project is reached, the annual sales income will be 1.264 billion yuan and the profit will be 500 million yuan, with the investment recovery period of 3.5 years (after the tax, including the construction period of 1 year) and the investment profit rate of 22%.
Table 2: List of Major Indexes for Forecast of Financial Benefits
No.    Name    Unit    Index    Remarks      
1    Business income    10, 000 yuan/a    126400    Normal year      
2    Total profit    10, 000 yuan/a    50000    Normal year      
3    Internal financial yield rate of the investment    %    17    After the income tax      
4    Net financial value (Ic=10%)    10, 000 yuan    602.43    After the income tax (operating period of 10 years)      
5    Recovery period of all the investment (after the tax)    a    3.5    Including the construction period of 1 year      
6    Investment profit rate    %    22         
Note: “RMB10, 000” in the Table shall be RMB.
1.4.2 Social Evaluation
The project construction fully supports the industrial structural adjustment of Liaoyuan City, further accelerate the reconstruction of Northeast Old Industrial Base and the rapid development of the industry of Liaoyuan City, promote the economic development of Liaoyuan City, increase the regional economic aggregate and the employments and reduce the social employment pressure. In addition, after the project is completed, it will prominently play the roles of reviving Northeast Old Industrial Base and optimizing the industrial layout of automobile parts of Jilin Province.
1.5 Cooperative Ways
Joint venture
1.6 What to be Invested by Foreign Party
1.7 Construction Site of the Project
Jilin Liaoyuan Economic Development Zone
1.8 The On-going Condition of Project
The cooperative proposal has been established.
2. Introduction to Partner
2.1 Basic Conditions
Name: Management Committee of Jilin Liaoyuan Economic Development Zone
Address: 1633 Caifu Road, Liaoyuan City
2.2 Overview
Jilin Liaoyuan Economic Development Zone is the provincial-level development zone founded in 2001 with the approval of Jilin Provincial Government. It now covers an area of 66.26km2, with the total population of 40716. It has preliminarily established the industrial structure dominated by some industries of processing of aluminum extrusion profiles, new energy, medicine health, textile socks and automobile parts, etc. and gathered a great number of big enterprises with the high technical contents, strong driving capabilities and good growth such as Midas Aluminum Industry Co., Ltd., Liyuan Aluminum Industry, etc. Since the 3rd Plenary Session of the 6th Municipal Committee of the Communist Party of China, Liaoyuan Economic Development Zone, basing itself on its own actual conditions and insisting in the differential development, intensive development and cluster development, has scientifically built the special parks and made great efforts to develop the special industries and achieve the centralization and cluster of advantageous industries.
2.3 Contact Method
Investment Promotion Bureau of Liaoyuan Economic Development Zone 
Contact person: Song Yang
Tel: 0437-3292088 
Fax: 0437-3292081

Contact Method of the Project City (Prefecture):
Contact Unit: Liaoyuan Economic and Technological Cooperation Bureau
Contact Person: Cui Shiwei
Tel: 0437-3528822    13766066922
Fax: 0437-3528822
Website of the City (Prefecture):


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