Railway Vehicles Decorative Material Production Project

Railway Vehicles Decorative Material Production Project of Changchun City

 

1 Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Railway vehicles decorative materials include interior decorative sheet of phenolic aldehyde glass reinforced plastic transit, die pressing resin moulding products, injection moulding and other casing materials, interior and exterior coating. Decorative materials can decide the appearance, interior comfort and beauty level of railway vehicles. With the increase of people's demand of beauty appreciation, varieties of railway vehicles decorative materials have become more and more, product quality and performance has been also constantly enhanced and improved.

1.1.2 Market Prospects

Rail transit equipment industry is sunrise industry in China. In the near future, our country will invest huge amount of money in railway transport cause, bringing about broad development prospect for rail transit equipment industry. It is estimated that, by the end of 2015, Chinese rapid transit railway will reach over 150,000km, forming basic framework of "four-horizontal and four-vertical" rapid transit railway network including Beijing-Harbin, Beijing-Shanghai, Beijing-Guangzhou, channel along the sea, channel along the river, Shanghai-Kunming Channel, East Longhai and Qingdao-Taiyuan, which connect all provincial capitals and big cities with over a population of more than 500,000, covering over 90% of population in China. Principal products of railway vehicles represented by CRH will enter into demand peak time, thus promoting the development of all links in railway vehicles industrial chain. Decorative materials have broad market prospects as the important supporting products of railway vehicles.

Viewed from the coating of railway vehicles, overhaul of rail wagon should be implemented once every 8-l0 a according to Rail Wagon Workshop Repair Regulations, that is to say, complete coating will be required; according to Railway Vehicle Utilization and Maintenance Regulations, sectional overhaul of railway vehicle should be implemented once every 2-2.5 a, and factory overhaul once every 8-l0 a; according to Internal Combustion and Electric Locomotives Sectional Overhaul Management Regulations, overhaul of diesel locomotive should be implemented every 700,000-900,000km, and electric locomotive 1,600,000-2,000,000km. However, Chinese railway vehicle is featured by long operating mileage, complicated and diversified climate and environment on the way and rigorous application conditions, therefore, according to the actual circumstances, factory overhaul of general railway vehicle should be implemented once every operation of 6 a on average, causing considerable demand of repair and renovation coating. It is calculated according to the typical coating consumption of newly manufactured vehicles and vehicle maintenance, China's total coating consumption of railway vehicles in 2010 was about 42,000t, including about 20,000t coating for newly manufactured vehicles and about 22,000t coating of maintenance and renovation. With the application and popularity of new type of high performance coating system, unit vehicle coating consumption will continue descending, but it is estimated that, in the coming five years, annual average total consumption of railway vehicle coating can still be about 40,000-50,000t.

The railway vehicles equipment industry is the sunrise industry of our country. It is predicted that the high-speed railway will have been more than 0.11 million km by the end of 2012, the main railway vehicles products with the high-speed motor train unit as the representative will enter the peak time of demand so as to promote the development of all the links in the railway vehicles industry chain. The decorative materials, as the important matching products of railway vehicles have the broad prospect in the market.

1.1.3 Technical Analysis

In order to avoid fire hazard, railway vehicles decorative materials must reach fire rating A. In addition, because of many passengers in railway vehicles, passengers and luggage are hard to avoid scraping or knocking with plates for facade decoration, railway vehicles facade decorative materials should have good scratch resistance and dirt resistance; they are not easily pasted or scrawled. Even if there is slight strain, it should be easily cleaned. Environmental protection is another important technological requirement for railway vehicles decorative materials in recent years. As far as railway vehicle interior decoration coating, in order to ensure clean air and people's safety in the limited space of transit, the requirements for discharge of harmful substances or radiation release will become stricter. In addition, operation environment of railway vehicle is relatively complicated, exterior coating should be resistant to humidity, mildew and high temperature. One of the important features of decorative materials is beautiful appearance; therefore, railway vehicles decorative materials are required to be colorful and diversified, having elegant texture, elastic gloss and certain decorative effect.

The above new requirements of railway vehicles decorative materials hasten the introduction and development of new technology of railway vehicles decorative materials. Take railway vehicles coating as example too:

China's high-speed locomotive products have appeared bubbling and cracking in locomotive body in the stage of trial operation; paint film of locomotive head, chassis and bogie was broken by broken stone, not only impacting the locomotive's appearance quality, but also shortening the service life, for this reason, China has introduced elastic coating system. Glass transition temperature of elastic coating base stock is low, the stock is in highly elastic state at normal temperature, and the molecular structure consists of linear long chain macromolecule. Small amount of cross bonds exist among linear macromolecule, in which chain segments are able to move or rotate under normal temperature, belonging to gentle and irregular coil structure. Elastic coating of locomotive mainly includes elastic epoxy modified unsaturated polyester putty, elastic epoxy finish and elastic polyester modified acrylic acid polyurethane finish. Elastic coating system of locomotive and passenger car outer wall is generally epoxy modified polyurethane primer+elastic epoxy modified unsaturated polyester putty+polyurethane mid-coating+acrylic acid polyurethane finish. Elastic coating system of chassis, bogie and pilot is generally epoxy modified polyurethane primer+elastic polyester modified acrylic acid polyurethane finish (total thickness of coating is above 200μm). In the aspect of construction, elastic epoxy modified unsaturated polyester putty can be painted thicker to get better thixotrophy character; it is not easy to appear dripping. Elastic polyester modified acrylic acid polyurethane finish has big construction viscosity, so high pressure air-free coating machine and "wet on wet" spray painting technology should be used for coating.

1.1.4 Advantageous Conditions of Project Construction

(1) Obvious location advantages

This project is located in Changchun Rail Transit Equipment Industrial Development Zone, which is 3km from downtown, 10 minutes driving from Harbin-Dalian rapid transit railway passenger station, and 30 minutes driving from ChangchunLongjiaInternationalAirport. Ring expressway and Changchun-Baicheng Highway, Changchun-Nong’an Highway and other national and provincial highways as well as the Fourth Ring Road of ChangchunCity traverse in the area, and the area has special railway line, developed road network and convenient traffic, belonging to the traffic hinge in the northwest of ChangchunCity, so the location advantages are obvious.

(2) Complete infrastructure

This project is located in Changchun Rail Transit Equipment Industrial Development Zone, which has invested a total of 1 billion yuan and completed infrastructure construction including road, communication, electricity supply, heat supply, gas supply, water supply and drainage, the area of Nine Accesses and One Leveling can reach 10km², the area of standardized industrial plant is 50,000m², and the reserved development area for railway vehicles supporting enterprises is 4km². Land formalities have been settled, infrastructure has been completely put into place, and the enterprises can construct as soon as they enter.

(3) Solid scientific and technological resources

Changchun Rail Transit Equipment Industrial Development Zone where this project is located in has established long-term cooperative relationship with 23 colleges, universities and institutes including Jilin University, Northeast Normal University, Changchun Vocational Institute of Technology, Changchun Institute of Biological Products of Ministry of Health and Changchun Academy of Agricultural Sciences. Furthermore, as the national manufacturing base of moving machinery, ChangchunCity has solid foundation and distinct features in automobile, railway vehicles and other relevant industries, as well as the advantaged strength in moving machinery's industrial development atmosphere, humanity environment, technical support and talent reserve, thus providing strong scientific and technological support for the development of this project.

(4) Privilege of governmental support

Changchun Rail Transit Equipment Industrial Development Zone where this project is located in offers the enterprises a series of preferential policies including "having priority in meeting land utilization demand and arranging interest subsidies or interest-free loans", "the enterprises enter the park can enjoy expenditure subsidy of technological research and development, support of project land as well as infrastructure construction including water, electricity and heat, preferential income tax of high and new technology enterprises, and deduction of investment in business establishment investment.

(5) Strong technical support

With the help of its market, information, talents, network and other aspects of advantageous resources, China CNR Corporation assists Changchun City Government to introduce core technology enterprises and key part production enterprises into Luyuan Development Zone, provide technical support for the part supporting enterprises that have entered into the Development Zone, properly ensuring the technical level of the production of railway vehicles decorative materials.

(6) Fast and convenient support

As early as in August 2008, CNR Changchun Railway Vehicles Group Co., Ltd. was settled in this Development Zone, which has registered capital 480 million yuan, mainly produces and export CRH, urban rail transit, metro, railway vehicle, etc. After this project construction is completed, aluminium section production enterprises and Railway Vehicles Group will be settled in the same Development Zone, they can very conveniently keep supporting cooperation each other to save logistics transportation costs and order receiving and dispatching time.

(7) Excellent service environment  

Changchun Rail Transit Equipment Industrial Development Zone can provide this project with full tracking service from negotiation, site selection, procedures handling to construction, production and operation. In addition, the Development Zone plans 14km² of living service area, which can meet the production and living demand of enterprises, build good service environment for enterprises and provide convenience for the project's future development.

2. Necessity of Project Construction

Rail transit equipment industry is sunrise industry in China. It is estimated that, by the end of 2012, Chinese rapid transit railway will reach over 110,000km, principal products of railway vehicles represented by CRH will enter into demand peak time, thus promoting the development of all links in railway vehicles industrial chain. Decorative materials have broad market prospects as the important supporting products of railway vehicles, so this project construction is very necessary.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

Annual output of 800,000m² high-speed railway vehicle decorative materials.

1.2.2 Construction Content

Total planning area of this project is 5 hectares, the construction of production area, office living area and dynamic warehouse area will be completed in 2 phases in 2 years, and production, detection and test equipment will be purchased.

1.3 Forecast of Economic and Social Benefits

1.3.1 Major Indexes for Forecast of Economic Benefits (details as per Table 1)

Table 1:      List of Major Indexes for Forecast of Economic Benefits

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

1.3.2 Analysis of Social Benefits

Part of railway vehicles decorative materials will discharge harmful substances and cause certain pollution to the environment. For example, VOC discharged from solvent coating in railway vehicles coating discharge will cause environmental pollution. According to the statistics, the content of nonvolatile matter of solvent akyld resin build paint widely used in rail wagon at present is usually reach over 65%, but the actual VOC discharge still reaches 400-500 g/L, and VOC discharge of some railway locomotive and passenger car finish is higher. Railway vehicles decorative materials produced in this project are certain to comply with the national requirements on environmental protection. The project adopts advanced technology (for example, use water-based coating), possibly reduces harmful substances in the materials and reduces environmental pollution. The environmental protection benefits arising therefrom are enormous. In addition, railway vehicles decorative materials will enable inside and outside of transit to be more beautiful and comfortable, increasing the transit's visual and sensual effects and enabling the passengers to be more comfortable on a trip. The decorative materials produced in this project will promote the standardized production of China's railway vehicles with the responsible attitude for railway vehicles production enterprises and the taking passengers. In addition, annual operating income of this project can reach 500 million yuan, which can bring about tremendous benefits for the local government. The demand for labor force after the project is put into production can significantly improve problem of employment of the surrounding common people and properly solve the employment difficulty of the local people, having obvious social benefits.

1.4 Total Investment and Funds Raising of the Project

1.4.1 Total Investment of the Project (see Table 2 for details)

Total investment of this project is RMB300 million, including the construction investment of 0.21 billion yuan.

Table 2: Summary Table of the Total Investment of the Project Unit: 10 thousand yuan

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

1.4.2 Funds Raising

It is proposed to raise funds RMB300 million, the equity financing is mainly taken, it is input in the mode of project capital and the debt funds and interest in the construction period of the project are temporarily taken into no account.

1.5 Cooperative Ways of the Project

Sole investment, joint venture, cooperation or other methods can be discussed in person.

1.6 What to be Invested by Foreign Party

Sole investment, joint venture or other methods can be discussed in person.

1.7 Construction Site of the Project

3km, Changchun-Baicheng Highway, Changchun City.

1.8 The On-going Condition of Project

Planning, land and other preliminary work and Nine Accesses and One Leveling infrastructure supporting construction have been completed.

2 Introduction to Partner

2.1 Basic Conditions

Name of project undertaker: Changchun Luyuan Economic Development Zone

Legal address: 3km, Changchun-Baicheng Highway, Changchun City

Legal representative: Hou Wei

Corporate ownership form: State-owned

2.2 Overview of Project Undertaker

Changchun Luyuan Economic Development Zone is a provincial development zone established by getting the approval of Jilin Provincial Government on June 30, 2003, which enjoys the preferential policy of provincial development zone and has four functional areas of advanced manufacturing, logistics trade, food and medicine and railway vehicles. The development zone is adjacent to Changchun downtown, the traffic is convenient and fast, Beijing-Harbin, Changchun-Baicheng Railways and Changchun-Baicheng, Changchun-Zhengzhou provincial high-speed highways cross through the border. Changchun Ring Expressway has two exits within the border. It takes 40 minutes driving from ChangchunLongjiaInternationalAirport to the Development Zone. Changchun, Southern Changchun and Datun Railway Freight Depots are less than 10km from the Development Zone.

At present, the Industrial Development Zone has 17 main plant's supporting enterprises including school-run welding and riveting factory of Changchun Passenger Car Plant, Changchun Hexin Boiler Manufacture Co., Ltd., Railway Vehicle Accessory Plant of Changchun Hexin Boiler Manufacture Co., Ltd. and Changchun Yan'ao Electric Company. The railway vehicles functional division (Changchun Rail Transit Equipment Industrial Development Zone) in Luyuan Economic Development Zone has planning area of 51km², including finished automobile assembly area 5km², detection maintenance area 3km², industrial supporting area 29km², and living service supporting area 14km². After construction of this division is completed, annual production capacity of 1,000 CRHs, 1,200 urban rail passenger cars and 500 railway vehicles as well as annual production value of 50 billion yuan will be realized, it will become one high-speed transit and urban rail vehicle manufacturing, export and maintenance base that tops in production capacity, product level, test detection capacity and maintenance capacity in the world.

At present, CNR Railway Vehicles Group and Railway Vehicles Co., Ltd. have established the first CRH finished automobile production line in traffic equipment manufacturing industrial park, national engineering laboratory of high-speed transit system integration and dynamic test line of CRH and high-speed urban rail transit. The planned construction land covers an area of about 2.5km², and total investment is about 3.9 billion yuan. Total building area of the first CRH production line is 270,000m². The applied production equipment are nearly 800 sets, which reached the designed mass production scale in October 2010, and the production capacity of Phase 1 is 576 automobiles/year; the national engineering laboratory of high-speed transit system integration and dynamic test line of CRH and high-speed urban rail transit were completed in September 2010 and put into operation. Research, development and test of high-speed transit of CNR Group will begin in traffic equipment manufacturing industrial park. The second CRH finished automobile production line of CNR Railway Vehicles Group was formally constructed in April 2010, the project has investment 1.3 billion yuan, total building area of 210,000m², 415 sets of production equipment, and designed annual production capacity of 384 CRHs, reaching the designed production scale in April 2011. CNR Railway Vehicles Group has annual production scale of 120 trains (960 vehicles) in traffic equipment manufacturing industrial park.

Wang Zheng, male, Member of Committee, Luyuan District, Changchun City, Jilin Province, and Secretary Party Working Committee of Luyuan Economic Development Zone.

2.3 Contact Method

Postal Code: 130113

Contact Person: Ma Mingxing (Director) of the Economic Cooperation Bureau of Lvyuan District, ChangchunCity

Tel: 0431-87886789

 

Contact Person of the City (Prefecture) of the Project: Lou Huimin

Tel: 0431-82715338

Fax: 0431-82715338

E-mail: cc82715338@126.com

Website: www.ccmbc.com