Annual Output of 5,000 Sets of Refrigerator Wagons Project

 

1 Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Refrigerator wagon is closed box truck used to transport frozen or fresh goods. It is special-purpose refrigerator wagons installed with refrigeration units and polyurethane insulated compartment. It is often used to transport frozen foods (refrigerator truck), dairy products (dairy products truck), fruits and vegetables (fresh products truck), vaccines and drugs (vaccine truck), etc.

1.1.2 Market Prospects

The development of special-purpose vehicles and the development of the national economy can not be separated. Special-purpose vehicle is directly involved in national economic construction, and the two complement each other; whether for transportation or construction operations, it plays an important role in promoting the development of economic construction. At the same time, the rapid economic development will drive the rapid development of special-purpose vehicles, and provide a broad platform for special-purpose vehicles. Especially in recent years, with the rapid development of the national economy, the rapid development of infrastructure construction, the rapid development of China's automobile industry, as well as the synchronous acceleration of China's industrialization and urbanization, special-purpose vehicle market will remain high demand. Before 2020, China will remain at the development stage of simultaneous acceleration of industrialization and urbanization, with features of large-scale investment, long industrial chain, high processing degree, many intermediate products, an long growth period, and because the distribution of our country’s resources is very uneven, the development of special-purpose vehicle industry faces opportunities.

In the past decade, the Chinese special-purpose vehicle industry undergoes rapid growth, with sales of 2.179 million sets in 2010. Currently, there are nearly 8000 special-purpose vehicle varieties in the world, which accounts for 90% of cargo-loading trucks. China has 5000 special-purpose vehicle varieties, which accounts for 56% of cargo-loading trucks. During the “12th Five-Year” period, China's special-purpose vehicle market will reach 2.8 million sets, and the market is expected to reach 5 million sets in 2020. It will enter into a period of rapid growth, and the Chinese special-purpose vehicle industry will usher in a broad space for development.

Meanwhile, with the rapid economic development of our society, and improvement of people's living standards, food supply has increasingly high demand for timeliness and quality. At present, China has annual output of meat of 72.6 million tons, 61 million tons of fruit, 48.55 million tons of aquatic products, more than 10 million tons of frozen food, cold drinks of over 10 million tons, dairy products of about 6 million tons, vegetables of nearly 560 million tons. Because related technologies are backward, almost 1 million tons of fruits are rotten, or disposed of through depreciation. About 4 million tons of fish caught are rotten, 30% of the vegetables are rotten in transit transport and storage, with the annual loss and waste of up to 75 billion yuan. Thus, the current development status of our country’s refrigerated transport industry can not meet the huge market demand for low-temperature logistics. Highway refrigerated transport, with its flexibility and convenience, has become an important part for the transport of perishable goods, and in developed countries, the ratio of road refrigerated cargo transport has reached 65%--85%, while in China, it is only 25%. Information shows: during the "12th Five-Year" period, the market inventory of refrigerator wagons market in China is expected to reach 150,000 sets, and refrigerator wagons project is facing broad market prospects.

1.1.3 Technical Analysis

The project is planned to introduce the technology of Shanghai Bingxiong Special-purpose Vehicle Co., Ltd., which is mature, and the industrialized production has been established.

1.1.4 Advantageous Conditions of Project Construction

1. Time of factory establishment is early, with advantage in talents, technology and market share

FAW-Siping Special-Purpose Vehicle Co. Ltd., the project undertaker is an old state-owned enterprise. It is a company engaged in producing all kinds of special-purpose vehicles. Till now, it already has over 40 years’ history. In the 40 years’ production history, it has accumulated large amount of production experience, owned certain number of advanced production equipments, and reserved a batch of technological talents. At the same time, Siping collects all kinds of talents, such as scientific research, engineering, survey and design, management, consulting service etc. JilinUniversityetc. colleges provide talent guarantee for the development of Siping. A complete talent cultivation and growth system has been formed. The company produces almost 200 types of special-purpose vehicles and the company is the leading enterprise among the special-purpose vehicle companies of China. For  many times, it won recognition and awards of the national, provincial, city and relevant departments. Among them, semi-trailer series product is named “China Top Brand” and “fine products of China”. It also won “gold prize” and “silver prize” among the consumers’ trustable domestic vehicles by the China Consumer Association. The enterprise is awarded such honorary titles as “star enterprise of China”, “enterprise with quality management prize” and “customer satisfaction enterprise” etc.

2. Good policy environment

The strategy of revitalizing the northeast old industrial base of China and the “12th Five-Year” plan for automobile and auto parts industry of Jilin Province provides policy support and development opportunity for Siping to develop special-purpose vehicle industry. At the same time, Jilin Provincial government approves the planning for revitalizing special-purpose vehicles proposed by Siping government. In the next step, it will further integrate local special-purpose enterprise resources, support the overall development of special-purpose vehicles, and construct the world-famous production, exhibition and sales base of special-purpose vehicle industry, which will be the biggest in North China. Under the current situation of financial crisis, the nation has listed automobile and logistics industry into the “ten revitalization industries”, and special emphasis is given to developing advanced suitable technology and light weight products with independent intellectual property rights, and the nation will give tax support to it.

3. With obvious regional and transport advantage

Siping is the core of the Northeast Asian region, and is the city with the shortest transport radius. The geometric center is in Siping, in the south, it directly reached the Round-Bohai Economic Rim, in the north, it reaches Russia, in the east, it borders the KoreanPeninsula, and in the west, it reaches Mongolia. Siping is located at the junction of Liaoning, Jilin and Inner Mongolia three provinces, the center of northeast automotive industry belt, and is accessible to Heilongjiang, Jilin, Liaoning and Inner Mongolia. It is the nearest place and necessary path to coastal ports and the Round-Bohai Economic Rim from Jilin, Heilongjiang and eastern Inner Mongolia. Siping has convenient transportation extending in all directions, with criss-crossed highway and rail network; it is an important node in the Ha-Da transport artery. Beijing-Harbin Railway, Harbin-Dalian high-speed railway, Harbin to Sanya Expressway, Changchun to Shenzhen Expressway etc. intersect in Siping. Siping is adjacent to China’s FAW-Volkswagen Group, and is an intra-city of Changchun, thus it has obvious regional and transport advantage.

4. With solid industrial foundation

At the beginning of founding the new China, many ministries of the nation have established in Siping harvesters, blowers, loaders, passenger buses and joint, grease and other enterprises. The first combine harvester in new China was born in Siping, and Baishan brand passenger bus spread across the country. After the reform and opening up, after years of development, a new industrial system has been constructed, and at present, three key industries have been formed: equipments manufacturing industry led by special-purpose vehicle, passenger bus, construction machinery, heat exchangers, automotive parts; new energy industry led by oil, natural gas, thermal power, wind power, biomass power generation, and solar energy power generation; agricultural products deep processing industry led by gain deep processing, livestock products deep processing etc. Among them, special-purpose vehicle industry is among the foremost industry that Siping will establish. Thus, it has good prospects for development and broad space for development.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

Introduce the technology of Shanghai Ice Bear Special-Purpose Vehicle Co., Ltd., with the annual production capacity of 5000 sets of refrigerated vehicles, postal vehicles, mobile communications vehicles, medical evacuation vehicles, and fire propaganda vehicles.

1.2.2 Newly build site and purchased equipments

Construct production area, office and residential area, storage area, purchase production, inspection and test equipments.

1.2.3 Occupied area and construction period

The total planned area is 240,000 square meters, with construction period of two years.

1.3 Total Investment of the Project (see Table 1 for details)

Total investment of this project is RMB one billion, including the construction investment of 400 million yuan and basic current funds of 100 million yuan, and no debt fund or interest in the construction period is taken into account.

Table 1: Summary Table of the Total Investment of the Project Unit: 10 thousand yuan

Note: “10 thousand yuan” in the table refers to RMB.

1.4 Forecast of Economic and Social Benefits

1.4.1 Major Indexes for Forecast of Economic Benefits

Table 2    List of Major Indexes for Forecast of Economic Benefits

Note: the “10,000 yuan” in the table is in RMB.

1.4.2 Analysis of Social Benefits

With the rapid socio-economic development and continuous improvement of people's living standards, the types of storage and transportation of goods continues to grow. Some of the goods are easily affected by outside temperature, humidity and other conditions thus are rotten during storage and transport process. The refrigerator wagons produced by this project can always maintain the original quality and use value of perishable goods. During the transit process, it is not easy to occur rotting, and number shortage, thus improving the security of transport of goods, and achieving the best economic transport. This kind of refrigerator wagon put the perishable goods under low temperature conditions needed for freshness preservation, and has a huge role on human life and socio-economic development.

Especially in recent years, food safety issues are emerging in an endless stream. This project can help people eat safe, secure, fresh food to some extent, thus it has great social benefits. At the same time, the project has a total investment of 200 million yuan, and in order to achieve the production scale, a lot of labor force and professionals are needed, which also solve part of the employment problem for the society.

1.5 Cooperative Ways of the Project

Joint venture, cooperation, share participation or other methods; can be talked face to face.

1.6 What to be Invested by Foreign Party

Entire investment or part of the investment is in the form of cash, and other methods can be talked face to face.

1.7 Construction Site of the Project

It is to be built in Siping Special-Purpose Vehicle Industrial Park of Jilin Province.

1.8 The On-going Condition of Project

Project proposal has been compiled.

2. Introduction to Partner

2.1 Basic Conditions

Name of project undertaker: Siping Special-Purpose Vehicle Co., Ltd.

Legal address: No.2659 of Yanchang Road, Tiedong District, SipingCity

Legal representative: Li Yinhua

Corporate ownership form: limited liability

2.2 Overview of Project Undertaker

Siping Special-Purpose Vehicle Co., Ltd., formerly known as FAW Siping Special Auto Plant, was founded in 1956, and in 1964 it started to develop and produce special-purpose vehicles. Till now, it has had more than 40 years of production history. The company produces almost 200 types of special-purpose vehicles and the company is the leading enterprise among the special-purpose vehicle companies of China. In 1991, the company entered the area of national mechanical and electrical products export production enterprises with foreign operating right approved by the state in 1992. In the past 40 years, there have been more than 20 provincial and ministerial leader to visit the company, and for hundreds of times, it won recognition and awards of the national, provincial, city and relevant departments. The original brand Jiefang (Xiongfeng) brand self-unloading vehicle, semi-trailer, tank truck, fuel truck and other products have been named “Famous Brand of Jilin Province”, and semi-trailer series products are named “China Top Brand” and “fine products of China”. It also won “gold prize” and “silver prize” among the consumers’ trustable domestic vehicles by the China Consumer Association. The enterprise is awarded such honorary titles as “star enterprise of China”, “enterprise with quality management prize” and “customer satisfaction enterprise” etc.

In the 40 years’ production of special-purpose vehicles, the company has gone through three major technological innovations, has introduced advanced technology and equipment from the United States, Britain, South Korea consecutively, which enhances the manufacturing level and product quality of the company. In 1997, the company passed the ISO9001 quality system certification as the first one in the industry, and in 2003, it passed “3C” system certification as the first batch. The products of the company are listed into Inspection-free Product of Jilin Province.

The Company completed the restructuring and reorganizing in 2007, and was renamed FAW Siping Special-Purpose Vehicle Co., Ltd. After restructuring, it inherits and retains the main body of the original company, and makes further innovations to operating concept. Relying on the overall advantages and strong support of the FAW Group Corporation, it expands the technology platform, expands the field of production and sales markets, and based on the development strategy of “being the strong and delicate one”, and in line with the operating guideline of “stabilizing domestic market, expanding into international market”, the company carries on all-around system reform, resets the organizing structure of the company, implements the important measures of recruiting technical personnel and management elites, which promotes the steady and rapid development of the company, makes the company continue to be the designated automotive R & D and test base of FAW Group and the designated production enterprise of FAW Group Corporation Import and Export Enterprise. At the same time, the enterprise also has an independent export right of special-purpose vehicles.

The company currently employs 360 people, including 12 people engaged in engineering and technical work (8 with junior titles, and 4 with senior titles), and 22 people have junior and senior titles. The average technical grade of staff is grade 12; currently, the company has all kinds of equipments of 560 sets; it currently has construction area of 44,000 square meters, with total assets of 100 million yuan; the current production capacity is 5000 sets of special-purpose vehicles of mixed varieties, and special vehicle supporting assembly of nearly ten thousand pieces.

2.3 Contact Method

Postal Code: 136001

Contact Person: Liu Zijun

Tel: 13944412168

Email: liuzijun66@126.com

 

Contact Method of the City (Prefecture) of the Project

Contact Person: Song Qingxin of Siping Economic and Technological Cooperation Bureau

Tel: 0434-3266196  13844482608

E-mail: 13844482608@126.com

Website: http://investsiping.com