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Jiutai Circular Economy Industrial Park Project of Changchun City
2017/03/23     Source:

1. Introduction to Project

1.1 Background of Project

1.1.1 Introduction to Project

Circular economy, that is, achieving waste reduction, recycling and harmless in the economic development, so that the economic system and natural ecosystems material can be cycled, maintaining the natural ecological balance. With the efficient use of resources and recycling as the core, "reduction, reuse, resource-based" as principle, conforms to the concept of sustainable development of economic growth model, it is a fundamental change of traditional growth model, which is "mass production, large consumption, and a large number of abandoned"

The project focuses on auto parts and engineering machinery and mechanical and electrical products re-manufacturing, scrapped cars and household appliances recycling dismantling, renewable resources, processing and utilization of renewable resources and logistics distribution center and public service platform and other related industries.

1.1.2 Market Analysis

1China 's current car ownership and scrap recycling

According to statistics, at the end of June 2015, China's civilian motor vehicle ownership reached 271 million, of which 163 million are cars, car ownership accounted for 15% of the world's total vehicle, the number of cars ranks number Two in the world after the United States. Residents holding a small car driver's license has reached 180 million people, is nearly 20 times than 10 years ago. Family-owned car ratios are also historically high. There are 25 private cars in every 100 households in China, of which 63 are in Beijing and over 40 per 100 households are in Guangzhou and Chengdu. 35 cities across the country has more than one million vehicles, and more than 2 million vehicles in Beijing, Chengdu, Shenzhen and other ten cities.

The new car spurred the increase of the number of old scrapped cars. According to incomplete statistics, in 2014, the national scrapped car recycling and dismantling account for 2.2 million, the recovery rate of 1.42% of vehicle ownership. The number of end-of-life vehicles has been quite large, even more than the total number of cars in some developed countries; but from the recovery ratio (the amount of scrap car recycling and the amount of car ownership) analysis, China's scrap car recycling ratio has been wandering in the low, with foreign countries, the recovery rate of 6 ~ 8% gap.

2Future industry development prospects

Scrap car recycling and dismantling industry shoulder the historical mission and responsibility of protecting environment, utilizing waste, conserving resources, and protecting people's property and life safety, as well as road safety. "13th Five-Year Plan" period, the scrapped car recycling and dismantling industry will uphold the development philosophy, put forward by the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China, "innovation, coordination, green, open and shared", usher the prospering industry development and make contribution to build a energy-saving and environment-friendly society.

In recent years, as the world economy is generally sluggish, the domestic economic faces downward pressure, and the market demand recovery power is insufficient, China's steel industry is still in the structural adjustment in order to deal with the problem causes by steel production capacity decline, scrap prices sluggish. Although to a certain extent, this situation will have negative impact on the scrapped car recycling and dismantling industry, but the operating difficulties and development opportunities coexist. There are some positive factors affecting scrapped car recycling and dismantling industry. First, the Government implement the mandatory phase out of the yellow standard car to the closing stage, which will further promote the development of scrap car recycling dismantling industry. Second, the market price of dismantling materials rebounded, dismantling reusable parts re-use is expected to enhance, driving the economic growth of dismantling car recycling companies.

With the development of automotive technology, safety standards and environmental standards continue to escalate during "13th Five-Year" period,  "senior" cars will be more and more recycling and dismantling. Modern dismantling base platform upgrades, low old parts recycling and re-manufacturing, bringing unprecedented business opportunities for the automotive recycling and dismantling industry. According to the information forecast, by 2020 China's car ownership will exceed 220 million. In terms of scrap rate is 5%, China's auto scrapped from 2013 to 1.87 million to 11 million in 2020, scrap car dismantling market will grow 5 times in 8 years, with a huge space for development.

1.1.3 Favorable Conditions for Project Construction

1Policy Advantage

Since the year of 2015, Jiutai Industrial Concentration Zone has been working closely around the Jiutai District Center, focusing on construction projects, linking the theme of economic construction and urban development, innovating working ideas, improving the way of investment promotion, improving responsibilities, and optimizing the investment environment. Establishing a strong sense of pro-business, the region improves administrative efficiency and service quality, grasps the soft environment, and strives to create a good business investment environment. Then, the service sector to strengthen the service functions, effectively deep into the settled enterprises, visit and do some surveys, really help enterprises to solve some practical problems.

2Location Advantage

Jiutai Industrial Concentration Zone is located in the center of Chang-Jilin Economic Zone. It has jurisdiction over Yingcheng Street Office, Tumenling Town, Xiying Town and Jiujiao Subdistrict Office. The resident population is 11.14 million, 12,066 hectares. Concentrated control area of 375.74 square kilometers, the starting area of 7 square kilometers with 10 to 15 years so to build area of 30 square kilometers.

3Industrial Base Advantage

The Jiutai Industrial Concentration Zone has extended the key projects such as Guangze Dairy Industry, Jinluo Group, Huaneng Jiutai Power Plant, Tianjing Maize and Haiber Pharmaceutical, etc., which extend the industrial chain for the concentrated area, cultivate the industrial clusters, expand the industrial scale, and improve the regional economic aggregate to provide a good industrial base. At the same time, Jiutai industrial concentration area in previous years on the basis of financing results, continue to intensify efforts to track coordination, and rely on national policies for construction funds. Relying on land resources, tap potential, make use of subsidence area policy, packaging and arranging the mortgage guarantee of state-owned construction land for the national bank loans.

1.2 Construction Contents and Scale of Project

1.2.1 Product Scheme and Scale

Construction Site of Project is located in 5, 6 community, Yingcun, Jiutai Industrial Zone, Changchun City. The total area of planning is about one million square meters, 500,000 square meters in the early stage and 500,000 square meters in the latter.

1.2.2 Construction Contents

Around the auto parts and engineering machinery and mechanical and electrical products re-manufacturing, scrapped cars and household appliances recycling dismantling, renewable resources, processing and utilization of renewable resources and logistics distribution center and public service platform and other related industries to industrial incubator.

1.3 Total Investments and Funds Raising of Project

Total investments of project is 3 billion yuan. The total investment includes 2.5 billion yuan for construction investment and 500 million yuan for working capital.

Table 1Summary List of Total Investments of Project       Unit: 10,000 Yuan

Serial No.

Name of Expense

Investment Amount

Percentage to Total Investment

Remarks

1

Construction Investment

250000

84

 

2

Interest Incurred in Construction Period

 

 

 

3

Working Capital

50000

16

 

 

Total Investments of Project1+2+3

300000

100

 

1.4 Financial Analysis and Social Evaluation

1.4.1Major Financial Indicators

The project does not take into account property income, and the annual     comprehensive sales revenue is expected to reach 300 million yuan, the annual profit in the project will achieve 80 million yuan. The investment payback period will be 6 years (after tax, including the construction period of 1 year), and profit margin of Investment is 16.67%.

Table 2List of Major Indicators for Financial Benefits Forecast

Serial No.

Name

Unit

Indicator

Remarks

1

Operating Income

10,000 Yuan/a

30000

Normal Year

2

Total Profits

10,000 Yuan/a

8000

Normal Year

3

Financial Internal Rate of Return of All Investments

%

9

After income tax

4

Financial Net Present ValueIc=10%

10,000 Yuan

280000

After income tax

operation period of 12 years

5

Payback period of All Investments

A

6

Including construction period of one year

(after tax)

6

Profit Margin of Investment

%

16.67

 

Note: the "10,000 Yuan" in the table refers to RMB.

1.4.2 Social Evaluation

The implementation of this project can adapt to the industrial development plan of Changchun City, which can promote the development of local economy, provide jobs, promote the progress of deep processing products technology, realize industrial upgrading, optimize the industrial structure, promote local economic development, and attract high-end scientific and technological talents and international advanced technology into the park, with very significant social benefits. It breaks through and masters a number of core technologies, develops a number of independent intellectual property rights of technology and products, incubates a number of high-tech enterprises, and forms a number of competitive technology brand.

1.5 Cooperative Way of Project

Joint venture and cooperation

1.6 What-to-Be-Invested by Foreign Party

Investment method can be negotiated face to face.

1.7 Construction Site of Project

Jiutai industrial concentration area

1.8 Project Progress

In business invitation.

2. Introduction to Partner

2.1 Basic Conditions

Project UndertakeJiutai Industrial Concentration Zone Management Committee

Address: No. 217 of Gongnong Street, Jiutai District

2.2 Overview

Jiutai Industrial Concentration Zone is located in the center of Chang-Jilin Economic Zone. It has jurisdiction over Yingcheng Street Office, Tuziling Town, Xiying Town and Jiujiao Subdistrict Office. The resident population is 111,400, with 12066 hectares of land. In the concentration zone, the control area is 375.74 square kilometers and the starting area is 7 square kilometers; with 10 to 15 years or so, it will build area of 30 square kilometers.

In 2015, the total number of projects in the region is 244, combining 34 industrial enterprises, 3 foreign-invested enterprises, with total investment of about 24 billion yuan and fixed asset investment of 27.88 billion yuan. After the establishment of centralized area, it introduced 65 projects with a total investment of 15.18 billion yuan and 4 billion yuan in fixed assets investment. The platform actually settled 21 projects, introduced 3.5 billion yuan of funds, with fixed investment of 1.85 billion yuan. According to the statistics, there are 19.11 square kilometers of state-owned construction land in the Yingcheng area, 9.85 square kilometers of the state-owned forest farm and the original enterprise. The comprehensive management of the subsidence area can theoretically sort out 9.26 square kilometers of state-owned construction land. There are used 2.58 square kilometers, including: ecological animal husbandry park of 1.02 square kilometers, Liujie Industrial Park of 0.42 square kilometers, building materials industrial park of 0.27 square kilometers (building materials market of 0.133 square kilometers, steel of 0.1 square kilometers, Yu Shen Brick of 0.037 square kilometers ), Jinluo of 0.85 square kilometers and 0.02 square kilometers of Tianxiang Coal. The remaining 6.68 square kilometers of state-owned construction land include: 2.7 square kilometers is residential areas for 1,500 households to be moved to. The current theoretically available land is the 3.98 square kilometers of state-owned construction land, but not the net. Loan mortgage land is 238.8 hectares, with a total of 17 cases, but the loan has been used for construction of airport development zone .

In 2016, it plans to complete the GDP of 7.5 billion yuan; industrial output value of 10.5 billion completed; full-caliber financial income plan completed 480 million yuan; the actual use of domestic investment plan completed 750 million yuan; fixed asset investment plan completed 1.7 billion. In attracting investment, it carries out professional investment attraction targeted to agricultural products, equipment manufacturing, energy, pharmaceutical and other industries. At the same time, it focuses on the existing big projects settled in the concentrated zone, and realize investment attraction through their introduction. It encourages enterprises in zone to dock with foreign capital, guiding leading enterprises to actively dock with and cooperate with foreign enterprises through scale expansion and other forms, and to ensure that business investment achieves tangible results.

2.3 Contact Methods

Project Undertaker: Jiutai Industrial Zone Management Committee

Address: No. 217 of Gongnong Street, Jiutai District

Contact Person: Ji Shouqiang

Telephone0431-82353908   13604399766

 

Contact Methods of Project City (Prefecture)

Contact UnitChangchun City Economic and Technological Cooperation Bureau

Contact PersonBo Zhanlin

Telephone0431-82763933  82765252

Fax0431-82763933

Emailcc82763933@163.com

Website of City/Prefecturehttp://www.ccmbc.com/

 

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