Railway Vehicles Aluminum Alloy Workpiece Production Project

Railway Vehicles Aluminum Alloy Workpiece Production Project

of Changchun City

 

1 Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Aluminium alloy is non-ferrous metal materialthat has the widest application in the industry, which has been used in great quantity in aviation, aerospace, automobile, rail transit, mechanical manufacturing, ships and chemical industry. Aluminium alloy has low density but relatively high intensity, close to or exceed high quality steel, and good plasticity, which can be processed into various section, having excellent conductivity, heat conduction and corrosion resistance, widely used in the industry, its usage amount ranks only second to steel. According to processing methods, aluminium alloy can be divided into wrought aluminium alloy and casting aluminium alloy.

1.1.2 Market Prospects

As one new transportation method of modern society, rapid transit railway is safe, rapid, economic, environment friendly and other extremely obvious advantages. After entering into new century, in order to meet rapid development of Chinese economy, Chinese railway industry has decided to take development of transit high-speed transit as one main direction for realizing modernization. Relying on independent innovation, Chinese rapid transit railway has owned rapid transit railway network with the largest scale and fastest operating speed around the world.

According to Middle and Long-term Railway Network Development Planning of Ministry of Railways, by 2012, Chinese railway operation mileage will reach more than 110,000km, "four-horizontal and four-vertical" special line of transit will be basically established. China will have established 100,000km of rapid transit railway transit network by 2012, and total demand of CRH will reach 4,500-5,000 trains. By around 2015, China's 19 large-scale cities will plan to construct 70 rail transit lines with total length of about 2,100km and total investment of over 800 billion yuan. China will become the largest railway and urban rail transit market in the world. Facing this enormous market, one railway equipment manufacturing industrial chain involves more than 20 fields are being updated.

At present, the application of aluminium alloy workpiece in railway vehicles has become extremely broad. In the future, as long as aluminium price can further dropped, mechanical strength of aluminium alloy is further increased, and new type of aluminium alloy with special performance has increased, then its advantage of light material will be more distinct, thus attracting railway vehicles production manufacturers to expand the application and investment in research and forming one kind of virtuous cycle, so the application scope of aluminium alloy in railway vehicles will be further extended, having broader prospect.

1.1.3 Technical Analysis

Casting aluminium alloy has good processing performance, which can be cast and produced with pressing die, hard die, green sand, dry sand die and fired die gypsum casting die, and can also be formed with vacuum casting, low pressure and high pressure casting, extruded casting , semi-solid state casting, centrifugal casting and other methods, and produced into various casting with different purposes, varieties, specifications and performance.

At present, the manufacturing technology and process of aluminum alloy workpieces are mature and the project is planned to choose the most advanced international production technology.

1.1.4 Advantageous Conditions of Project Construction

1. Advantageous conditions

(1) Policy conditions

Jilin Provincial Government has issued Opinions on Accelerating Development of Railway Vehicle Industry including 28 support measures and preferential policies. Several Opinions of the State Council concerning Accelerating Revitalization of Equipment Manufacturing Industry lists this industry into 16 key development fields, railway vehicle industry has also become the landmark project of Jilin Province in revitalizing equipment manufacturing industry and new economic growth point. Opinions include development direction and objectives, vigorous supporting rapid development of the backbone enterprises, focusing on promoting the construction of rail equipment industrial park, vigorously support the supporting industry, constructing excellent development environment, etc. seven aspects.

(2) Technical personnel support

The production technology used in this project mature and reliable, occupying a leading position in China. This technology is featured by light weight, small scale, large capacity and high reliability. The scientific and technological resources are abundant, it 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, etc.

(3) Good investment environment

The project was established in Changchun Rail Transit Equipment Industrial Development Zone, which was established on the basis of Changchun Luyuan Economic Development Zone and approved by Jilin Provincial Government on June 12, 2010. After construction of this development zone 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.

The development zone has advantageous geological position and convenient traffic, belonging to the traffic hinge in the northwest of Changchun City; the infrastructure is completed, the Development Zone's infrastructure construction including road, communication, electricity supply, heat supply, gas supply, water supply and drainage has been completed; service environment is excellent, the Development Zone follows the concept of "I serve for your development" to simplify handling procedures, increase service efficiency, and provide the stationed enterprises with full tracking service from negotiation, site selection, procedures handling to construction, production and operation.

(4) The existing facilities can serve for this project construction to save the investment

This project shall be implemented in the existing development zone, where has complete public utilities, "six accesses and one leveling" (six accesses mean power supply, water supply, water drainage, heat supply, communication and road; one leveling means the factory is level), infrastructure conditions. Good exterior supporting facilities can provide solid foundation for the project construction, and save construction investment.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

1. Production Scale and Project Scheme

Annual output of 8,000 railway vehicles aluminum alloy workpieces.

2. Consumption of Raw Materials and Public Works

Main raw materials: aluminium section 350T, aluminium angle 500T, PVC plastic 15T, annual consumption (converted into standard coal) of electricity is 118T, water 1.29T, and heat 407T.

1.2.2 Construction Content

Overall planned area: 1 hectare, completed in 2 phases in 2 years. Build the production area, office living area, dynamic warehouse area, purchase production, detection and test equipment. The project implements design to save energy 50% in strict accordance with public building energy conservation design standard. Waste water, waste gas, waste and greening shall be designed in strict accordance with the requirements.

1.3 Total Investment and Funds Raising of the Project

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

Total investment of this project is RMB 90 million, including the construction investment of RMB 63 million, and no 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: "10,000 yuan" in the table refers to RMB.

1.3.2 Funds Raising

It is proposed to raise funds RMB 900 million. The equity financing is mainly considered and it is input in the mode of the project capital.

1.4 Forecast of Economic and Social Benefits

1.4.1 Major Indexes for Forecast of Economic Benefits (details as per Table 2)

Table 2:        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

Rail transit equipment industry is sunrise industry in China, our country will invest huge amount of money in railway transport cause, bringing about broad development prospect. It is estimated that, by the end of 2012, Chinese rapid transit railway will reach over 110,000km, 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.

The railway vehicles aluminium alloy workpieces produced after this project is operated have high performance, excellent quality, and strong environmental protection property, which can ensure normal operation of rail transit and safety of passengers, having excellent social benefits.

In addition, annual operating income of this project can reach 150 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.

1.5 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 has been completed.

2 Introduction to Project Undertaker

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

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