1. Introduction to the Project
1.1 Project Background
1.1.1 Product Background
The all-aluminum alloy trailer, that is, the main parts of the trailer except the axle and spring board are the aluminum alloy structures, including the frame, hub, carriage, platform, leg and suspension, etc. The aluminum alloy trailer is still new in our country and it has not been popularized. However, both the transport industry and the trailer manufacturing industry think that the aluminum alloy trailer will necessarily successfully replace the steel trailer and become the main stream in the market. The light aluminum alloy trailer has the good market prospect.
1.1.2 Market Prospect
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.
The data show that 70% of the heavy trailers in the developed countries have achieved the full aluminizing by now, but it is less than 2% in our country and the market is not saturated.
Viewed from the market preservation, the total quantity of trailers in our country approaches 60 million. In 2009 and 2010, the annual increased quantity is about 0.25 million. Viewed from the highway transport mode of our country, the long-distance expressway transport and big-power and big-tonnage semi-trailer will be the mainstream type. The dumping truck transport will be the development trend in the future. It is predicted that the trailers will grow at the rate of not less than 15^% in the future years. According to the types of transported goods, 75%-80% of the total trailers (tank trailers, container trailers and other types of trailers account for 20-25%) can be the carriage or bin bar aluminum alloy trailers. Once people realize and accept the aluminum trailers and obtain the advantages of the aluminum alloy trailers from the logistic economy (which has the high ton kilometer expenses will be dropped out in the logistic economy and such a light truck will undoubtedly bring remarkable benefits for you in the ton kilometer expenses) and its development will taken on the explosive growth.
Viewed from the economic benefits, because the aluminum alloy semi-trailer is 3.5 tons less than the all-steel semi-trailer, so it can carry 3.5 tons of goods than the all-steel semi-trailer in each operation. Calculated according to 0.15 million km in the whole year, the aluminum alloy carriage, making use of its light advantage in the running can create more benefits of 0.15-0.18 million yuan. It will also greatly save fuel in the empty operation. The data show that 0.7KG gas can be saved every 10000km when the truck load is reduced by 1KG, that is to say, carrying the same weight of goods, the aluminum alloy trailer consume much less fuel.
Viewed from the investment cost, the all-aluminum alloy trailer has the investment cost 40% more than the steel trailer. Although the all-aluminum alloy has the high investment cost, the good characteristics and light advantage of the aluminum alloy trailer make its recovery period greatly reduced. The operating life of the all-aluminum alloy carriage can reach 10 years, that is, it can create more 1.5-1.8 million yuan within 10 years. 10 years later, all the aluminum alloy of the carriage can be recycled and it can be reclaimed according to the list international nonferrous metal aluminum price on the day in the year. On the whole, the energy conservation and consumption reduction roles of the aluminum alloy semi-trailer are obvious and the input-output income is really remarkable.
On the whole, the project has the broad market prospect.
1.1.3 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.
1.1.4 Technical Analysis
The project is planned to take the aluminum alloy materials to replace steel as the technology of car body panels and structural frames.
1.2 Content and Scale of Project Construction
1.2.1 Product Plan and Scale
The project is planned to have the annual productivity of 8000 trucks, including 7000 all-aluminum semitrailers and 1000 modified vehicles, with the annual output value of 1.8 billion yuan.
1.2.2 Construction Content
The project is planned to cover an area of 0.1 million ㎡, the construction land of the project is 80000㎡ and the building area is 48000㎡ and 5 new production lines are built.
1.3 Total Investment of the Project and Capital Raising
The total investment of the project is 800 million yuan, including the construction investment of 640 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     64000    80.00          
2    Interest in the construction period                  
3    Current funds    16000    20.00          
    Total investment of the project (1+2+3)    80000    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 758.99 million yuan and the profit will be 228.57 million yuan, with the investment recovery period of 3.5 years (after the tax, including the construction period of 1.5 year) and the investment profit rate of 28%.
Table 2: List of Major Indexes for Forecast of Financial Benefits
No.    Name    Unit    Index    Remarks      
1    Business income    10, 000 yuan/a    75899    Normal year      
2    Total profit    10, 000 yuan/a    22857    Normal year      
3    Internal financial yield rate of the investment    %    25    After the income tax      
4    Net financial value (Ic=10%)    10, 000 yuan    573.39    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    %    28         
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, other modes can be interviewed.
1.6 What to be Invested by Foreign Party
Funds, other modes can be interviewed.
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 with the approval of Jilin Provincial Government in 2001. 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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