Annual Output of 3000 Sets of New-Type Passenger Busws and Special-Purpose Passenger Buses Project

 

1 Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Special-purpose passenger bus mainly includes commercial vehicle, RV, blood collection vehicle, physical check-up vehicle, ambulance, command vehicle, construction vehicle, military police car, car ferry, aluminum bus, coach car, real estate show car and others which can meet diverse needs of different customers.

1.1.2 Market Prospects

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.

With the rapid development of the China's national economy and acceleration of infrastructure construction, China will need a lot of special-purpose passenger buses, and experts predict that in the next five or six years, special-purpose vehicle industry will usher in a development peak. This peak is not only embodied in the output of special-purpose vehicles, but also the product variety will be more and more reasonable, and product quality and technical level will be higher and higher.

The demand for RV, school bus, logistics special purpose vehicle, emergency command vehicle etc. special-purpose passenger bus market has already or is emerging. Seen from the market performance in recent years, passenger bus product is no longer a single passenger transportation tool, and special-purpose passenger bus is drawing more and more attention from the market and industry. Not only in China, has the export market also showed marvelous performance. In the domestic market, special-purpose passenger bus can be roughly divided into government special-purpose bus, school bus, logistics vehicle and engineering repair vehicle four types, among which, the market prospect of school bus is the best, and the variety of government special-purpose bus is the most.

With the highly attention attached by the nation to public health and electricity emergency security system, the demand for special-purpose passenger bus is increasing year by year, especially the blood collection bus, physical check-up vehicle, advertising publicity car, emergency command vehicle, ambulance and other special-purpose passenger bus, with passenger bus as the platform, shows rapid growth momentum.

1.1.3 Technical Analysis

In recent years, due to the increasingly high demand of the market for the technology content of special-purpose passenger bus product, a number of appropriate supporting systems that can meet special functions have been introduced, and the high-tech products and special (dedicated) devices are widely used in passenger dedicated car, such as electro-hydraulic device, automatic drainage system, wind lift rod, and mobile communications service, and communications technology.

Special-purpose passenger bus has high technical content, and it needs to integrate other areas’ scientific research fruits, which requires a reasonable integration of external resources. For example, traffic emergency command vehicle is a combination of different functions, and cross-platform product; its features include emergency communications, video conferencing, information collection and transmission, mobile office and computing center, on-site intercom, live broadcast, on-site glare lighting, electrical protection, warning etc. command and control functions, as well as the necessary living facilities, such as self-purification devices, self-help system, a new wind system and so on. It also requires the integration of maritime satellite communication technology, wireless communication technology, computer technology, image acquisition and transmission technology and other areas of scientific research fruits.

1.1.4 Advantageous Conditions and Necessity of Project Construction

1. Advantageous Conditions

（1）Policy conditions

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.

In recent years, occurrence of school bus accidents is frequent, and in the near future, China will introduce the implementation methods and standards related to school bus, which results in a prospering school bus market.

（2）Technical support

The enterprise has strong technical force, complete detection means, stable product quality, and flexible modes of operation; it also has advanced woodworking, stainless steel, aluminum body production equipment and techniques.

（3）Human resource support

Siping collects all kinds of talents, such as scientific research, engineering, survey and design, management, consulting service etc. JilinUniversity, Changchun University of Science and Technology, Changchun University of Technology, Northeast Normal University, JilinNormal University, Jilin Academy of Agricultural Sciences, Jilin Agricultural Engineering College, Siping Academy of Science and Technology provide talent guarantee for the development of Siping. A complete talent cultivation and growth system has been formed. Siping has obvious labor resources advantage, and the proportion of skilled workers possesses a relatively high level in northeast urban agglomeration. The labor force is in the dividend period, with relatively low labor cost and a large number of high-quality industrial workforce, which can meet various business needs.

（4）Geographical advantage

Siping is the core of the Northeast Asian region, and is the city with the shortest transport radius. Overlooking the 17.28 million square kilometers of Northeast Asia, 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. The radiated land area is 1.24 million square kilometers, accounting for 12.9 percent of the country's total, with a population of 107 million. 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, Daqing to Guangzhou Expressway, State Road 102 etc. intersect in Siping. Siping is adjacent to China’s FAW-Volkswagen Group, and is an intra-city of Changchun. It is more than one hour’s drive from ChangchunLongjiaAirport and ShenyangXiantaoInternationalAirport.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

Annually produce 3000 new-type passenger buses and special-purpose passenger buses. (See the Product Catalogue for details)

Table 1:                   product catalogue

1.2.2 Construction Content

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

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

Total investment of this project is RMB 500 million, 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

Because special-purpose passenger bus can meet the special requirements of different customers, different regions, different job content, while the special-purpose passenger bus ensures the functionality and quality of the equipment, thus the technical content is high, and the special-purpose passenger bus has features of multiple variety and small batch. In 2010, China's special-purpose vehicle market demand was 1.05 million--1.1 million sets, while the current domestic production capacity of special-purpose vehicles is only more than 300,000 sets. Seen from the product variety, the current type of special-purpose vehicle in the world has reached more than 7000 kinds, while in China, it is only more than 1000 types. Thus, the development prospect of special-purpose passenger bus is broad.

The launch of the project with an annual output of 3000 sets new-type buses and special-purpose buses will reduce the supply pressure of domestic special-purpose vehicles in China to a certain degree, accelerate the development speed of special-purpose passenger bus in China, and meet the rapid growth of demand for special-purpose school buses in China.

1.5 Cooperative Ways of the Project

Sole proprietorship, joint venture, or cooperation.       

1.6 What to be Invested by Foreign Party

Fund. Other methods can be negotiated face to face.

1.7 Construction Site of the Project

SipingSpecial-PurposeVehicleIndustrial Park

1.8 The On-going Condition of Project

The planning and land pre-stage work and infrastructure supporting constructions of “nine passing and one leveling” has been finished.

2 Introduction to Project Undertaker

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 leaders 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 further innovates 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