Metallurgical


1. Introduction to the Project
1.1 Project Background
1.1.1 Product Background
The aluminum tanker whose tank is made of aluminum alloy, is mainly used for transport and storage of some oil derivatives (gasoline, diesel, crude oil, lubricating oil and coal tar, etc.) and transport of edible oil, etc.
1.1.2 Market Prospect
As the largest developing country in the world, China regards the control of greenhouse gas emission as one of the social development objectives in order to advocate the low-carbon economy in the whole society. Since 2009, our country has started the fuel tax reform, that is, the more the fuel of vehicles, the more the operating expenses. Such a reform has fundamentally promoted the commercial vehicles to take more environmental protection and energy conservation and light materials. Aluminum alloy materials, characterized as energy conservation and environmental protection, meet the relevant provisions of the national laws and regulations and adapt to the development trend of the governmental industrial policy guidance. By February, 2015, the preservation of motor vehicles of our country has reached 264 million and the oil consumption has reached 1.3 billion tons and China has become one of the major oil consumers in the world. With the economic development, the demand for oil products will be continuously increased, which creates good space for development of the oil transport enterprises. The aluminum alloy tanker, characterized as light weight and big load, etc., will have the huge market demand.
The data show that the comprehensive trend of the nonferrous metal has been weak since 2015, the price has been decreasing, especially in the third quarter, the aluminum price decreased to less than 10000 yuan and a lot of domestic zinc and nickel enterprises have successively reduced their output. Comparatively, the aluminum machining is prominent in all the nonferrous metals. In January-September, the total profit of the aluminum machining enterprises above the designated size in the whole country accounts for 54.5% of the total profit of the nonferrous machining industry. According to the expert’s introduction, the quantity of licenses of the all-aluminum tank trucks and all-aluminum container trucks is 3613 and 3571, respectively this year and the total quantity was 1700 last year. It is easy to see from it that the market of all-aluminum tank trucks and semi-trailers, etc. has the great development space. As far as the aluminum machining enterprise is concerned, the aluminum alloy plates of the all-aluminum car body are the key development direction in the market. In addition, compared with the traditional oil tank truck, the aluminum alloy oil tank truck has a lot of advantages:
(1)    High safety
First, the dangerous chemicals (explosives) are the inflammable and dangerous products, so safety is the important index weighing the oil tank truck. Because of the load is low, the aluminum alloy tank truck has the low center of gravity and it is uneasy to upset and it is safer; considered from the running safety, the aluminum alloy tank truck has the small inertia in the collision and the braking distance is reduced; second, it is the noncombustible material, it produces no spark, with the lower static accumulation, the aluminum alloy tank is favorable to the static conduction in time in the loading, unloading and transport of oils, which has reduced the probability of accidents; third, it produces less destruction of the road. The government always expects to reduce the road maintenance cost; fourth, it can absorb the energy produced in the collision via the deformation and it will not suddenly tear.
(2) Lower operating expense, low dead weight, high effective load and quick investment recovery
Because the aluminum alloy tank truck is lighter than the carbon steel tank truck, it reduces the fuel consumption and wearing of tires in the transport so as to reduce the routine operating expense and maintenance expense. The effective load is increased via the increasing of the dead weight of car body and the truck can reduce the times to transport the same quantity of goods.
(3) Good corrosion resistance and long operating life
It has the strong corrosion resistance. 15-20 years is the typical operating life of the aluminum alloy tank truck. On the surface of the aluminum alloy truck will be established a layer of compact aluminum oxide, which can effectively prevent the corrosion of the atmosphere and dampness and the oil tank truck will not be rusty to pollute the oil. It is unnecessary to spray paint or any protection layer, which saves the maintenance expense. It is easy and convenient to clean the tank and its surface can be kept to be bright and beautiful for long time.
(4) Good product performances and beautiful shape
The aluminum alloy profile bar is taken for the tank body, with the good elongation and high strength; the separate storage technology is taken to be compatible with the storage and transport of the multiple materials; the closed pouring system is taken, which increases the loading and unloading efficiency by more than 1 time, compared with the traditional one. The research shows that the truck has 60% of the fuel consumption come from the dead weight of the truck in the empty load. When the truck is lighter by 1T, it can save 0.6L gas every 10KM. The weight of the aluminum tank truck is reduced by 4 tons, so the fuel saving economic benefits in its whole operating period are really remarkable.
(5) Better fuel efficiency and reduction of CO2 emission, greener and more environment-friendly, meeting the national energy conservation and emission reduction policy, with the good economic and social benefits
The research report of the European Association of Aluminum Industry shows that the weight of the whole truck is in the normal variation relation to the fuel consumption of the single truck. When the total weight of a single truck is reduced by 1t, the truck can save 0.6L diesel when it is operated for 100km. Take the 45m3 aluminum alloy tank for example, its weight is 3t less than that of the carbon steel or stainless steel tank. According to half of the empty-load mileage, if the annual operating mileage is 120000km, it can save at least 1100L diesel and it is RMB 7000 yuan according to the current market price. In addition, according to the provisions of the road safety law of our country, the total weight of the truck shall not be more than 55t.
On the premise of the specified total weight, it is always to start from the lighter truck to improve the total transport quantity so as to increase its effective bearing force and obtain the better economic benefits. Started from the increase of the income, the aluminum alloy tank truck bears 3t more than the carbon steel tank truck. Calculated according to the mileage of 120000km/year, the transport cost is RMB 0.5 yuan/km.t, it can increase the annual additional income of about RMB 0.18 million yuan. It can be seen that the economic benefits of using the aluminum alloy tank are really remarkable.
Likewise, the research report of the European Association of Aluminum Industry shows that the whole truck (in the lifecycle)can reduce the emission of 28kg carbon dioxide when it uses 1kg aluminum alloy. It is calculated the weight of the truck can be reduced by 5t and the total emission of 140t carbon dioxide can be reduced if the aluminum alloy tank is taken; the US research shows the relational formula of every half km of fuel consumption Y and the car body weight X: Y=0.003X+3.3434, when the weight of the truck is reduced by 1000g, the fuel consumption is reduced by 7%-10%. In addition, the emission of carbon dioxide and nitrogen oxide will be also reduced, the environment will be greatly improved and the social benefits will be obvious.
(6) High reclaiming value
When a tank made of 5t finished aluminum alloy is abandoned, the tank reclaiming is only worth about 80000 RMB according to the aluminum price in the international market.
On the whole, viewed from the economic benefits, safety, environment or social benefits, the aluminum alloy tank has the indispensable advantages, so the implementation of the project is irresistible, with the good market prospect.
1.1.3 Technical Analysis
Aluminum, as the third richest element on the earth, has the rich reserve (8.23%). Aluminum alloy is the second widest applied metal inferior to steel and iron and its processing technology has become very mature. Some welding methods such as MIG, TIG, electric resistance welding and FSW, etc. can be used to weld aluminum alloy. In addition, aluminum alloy can be bended, punched and deep-drawn.
1.1.4 Advantageous Conditions of Project Construction
(1) Policy condition
During the 13th Five-Year Plan, Liaoyuan City will build the domestic High Refined Aluminum Processing Base, promulgate a series of preferential policies of inviting businessmen to open companies and regard the aluminum processing industry as one of the key points developed in the zone in the future. The investment promotion policy of “discussion on one item once” is exercised for the investment enterprises.
(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) Good 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 mainly to invest and build the capacity of 3000 aluminum alloy tank trucks, including 1500 aluminum alloy oil semi-trailers and 1500 aluminum alloy tank trucks; the main production equipment are introduced domestically and some key equipment such as aluminum alloy welding machine, etc. are purchased from overseas.
1.2.2 Construction Content
The project covers an area of 50000 m2, the construction land of the project is 35000 m2 and the building area is 30000 m2 and some workshops such as head small workshop, tank body workshop, chassis workshop, truck assembly workshop and surface treatment workshop, etc.
1.3 Total Investment of the Project and Capital Raising
The total investment of the project is 350 million yuan, including the construction investment of 250 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     25000    71.43          
2    Interest in the construction period                  
3    Current funds    10000    28.57          
    Total investment of the project (1+2+3)    35000    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 290.55 million yuan and the profit will be 87.52 million yuan, with the investment recovery period of 4 years (after the tax, including the construction period of 1.5 year) and the investment profit rate of 25%.
Table 2: List of Major Indexes for Forecast of Financial Benefits
 
No.    Name    Unit    Index    Remarks      
1    Business income    10, 000 yuan/a    29055    Normal year      
2    Total profit    10, 000 yuan/a    8752    Normal year      
3    Internal financial yield rate of the investment    %    20    After the income tax      
4    Net financial value (Ic=10%)    10, 000 yuan    961.63    After the income tax (operating period of 10 years)      
5    Recovery period of all the investment (after the tax)    a    4    Including the construction period of 1.5 years      
6    Investment profit rate    %    25         
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 of the project 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. 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
E-mail: 138755222@qq.com
Website:http://kfq.0437.gov.cn/lydz/index.htm;jsessionid=F8B9EDA1151E2C5DCF631DB9EBC3341D

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
E-mail: lysjhj@163.com
Website of the City (Prefecture): http://www.lysjhj.cn/



 

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