Annual Output of 2000 Sets of Environmental Health and Street Sprinklers Project

 

1 Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Environmental Health and Street Sprinkler is mainly suitable for flushing of various road surfaces, wood, green built, lawn greening, constructions of roads and factories and mines, as well as high high-altitude construction rinsing. It has functions of sprinkling, dust pressing, high and low-altitude sprinkling, pesticide spraying, and fence flushing etc.

1.1.2 Market Prospects

The so-called special-purpose vehicle means: “the vehicle installed with special equipment, with special functions, used for carry on special transport tasks or special operations and other specific purposes”. With the synchronous acceleration of China's industrialization and urbanization, the Chinese special-purpose automobile market will remain high demand. Before 2020, China will remain in 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 and long growth period. Besides, the distribution of resources in China is very uneven. The output of raw coal in central area is big, and the output of steel in the east is large. Thus the transport intensity is still high, and the development of special-purpose vehicle industry face opportunities.

Before 2020, the commercial vehicle market of China will remain around 9% annual average growth rate, which thus provides a good space for the development of special purpose vehicle. The market is expected to reach 5 million sets. The enormous infrastructure project will bring about vast demand space and market increment to engineering special-purpose vehicles. The total constructions of high grade highways remain high, which will drive the rapid development of vehicle for road construction, special operations vehicles for highway maintenance, and highway operation vehicles. At the same time, China's total energy consumption is huge, and the transport of energy supplies will expand the total demand for special-purpose vehicles.

Special-purpose vehicle is also the means of production and production tool, and is closely related to the development of national economy. Besides, it is directly involved in every aspect of national economic construction, and widely applied to each sector of national economy. At the same time, each industry needs special-purpose vehicle suitable for the features of the industry and that can meet the special functions of the industry. Therefore, not only for sanitation, or engineering construction work, etc., the participation of special-purpose vehicle can not be ignored. In the "12th Five-Year" period, the central government and local governments will focus on investment in the urbanization process, the New Rural Development, and infrastructure construction. Especially in recent years, the state continued to expand domestic demand, and with the gradual prosperity of economy, the market demand for special-purpose vehicle will expand greatly. However, with the aggravation of environmental pollution in China as well as strengthening of awareness of environmental protection, the Environmental Health and Street Sprinkler that plays an important role in the highway environmental protection will face broad space for development.

International special-purpose vehicle industry is accelerating the pace and intensity of the joint venture with China's special purpose vehicle industry. At the same time, to promote the faster and better development of automobile industry, the Chinese government has also introduced various policies and standards and regulations successively, including the national auto industry development policy, the national auto industry adjustment and revitalization planning etc. and these policies create conditions for the development of special-purpose vehicle industry. Therefore, in recent years, the special-purpose vehicle industry will usher in broad development space, and the Environmental Health and Street Sprinkler project will face good opportunity for development.

1.1.3 Technical Analysis

The project is planned to introduce the technology of Fulongma Environmental Health Equipment Co., Ltd., which is mature and at the domestic advanced level.

1.1.4 Advantageous Conditions of Project Construction

1.With 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.

2. With obvious regional and transport 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.

3. 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.

4. With solid technological talents advantage

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.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

Introduce technology of Fulong Sanitation Equipments Company; annually produce 2000 sets of Environmental Health and Street Sprinklers.

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 200 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 (See Table 2 for details)

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

After 30 years since the country's reform and opening up, tremendous achievements have been made in economic development, but it takes high energy consumption extensive economic growth mode, our country's environmental situation is deteriorating, and people’s awareness of environmental protection is relatively low. Especially in recent years, the energy consumption is huge, environmental pollution is serious and urban garbage piles.

The project launches Environmental Health and Street Sprinkler, which is clean and sanitary, and can effectively clean urban garbage, clean the road. Thus it has relatively good environmental protection effect, and can bring about good social benefits in energy saving and environmental protection. At the same time, this project has relatively big investment scale, and in order to achieve production scale, more labor force and professional talents will be needed, which provides a large number of employment opportunities 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 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 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