Special Purpose Vehicle Industrial Park Construction Project

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Park planning

Construction objectives: focus on promoting the special Vehicle Industrial Purpose Park "one belt, one axis, six districts”, focus on building five platforms, create the Special Purpose Vehicle Industrial Park into a pillar industry in Siping City, and drive the rapid development of the city's economy; carefully create the largest special vehicle production base, auto parts production base, and the European special vehicle exhibition center in the Northeast, thereby enabling the park to become the new economic growth point in Siping City.

Planning scope: Siping Special Purpose Vehicle Industrial Park is located in northeastern part of Siping, between Harbin-Dalian passenger line and State Road 102. It starts from Yongjun Road in the south, Ji-Shuang Highway in the north. The short-term planned area is 10 square kilometers, and long-term planned area is 20 square kilometers.
The partition of functions:SipingSpecialPurposeVehicleIndustrial Park is divided into special vehicle manufacturing zone, auto parts processing zone, special purpose vehicles business district, logistics and warehousing zone, research and innovation area, and comprehensive service area.

Planning period: 2011 -2020 (short-term of 2011 -2015, the recent, long-term of 2016 -2020).

Park orientation: learn from the advanced experience of domestic, European and even the world special purpose car production, based on the product technology and proximity advantage of the FAW Group, through the introduction of strategic partners, the introduction and digestion and absorption of advanced production technology and marketing concepts, change current product structure, adopt differentiated development strategy, make R & D efforts to develop dedicated high-end car products, and return to the leading position of SipingCity in the country in special purpose automotive industry; build world-famous, domestic first-class eco-dedicated auto industry park. Create SipingCitySino-EuropeDedicatedAutomobileIndustrial Park into a window for the European special vehicles to enter the Chinese market, platform for technology transfer and technical cooperation of European special vehicles, the Chinese exhibition center of European special vehicles, and China and Asian special vehicle production base.

Direction of development: for the development of the park, on the basis of integration of resources of existing special purpose vehicles and spare parts production enterprises, introduce European special purpose vehicle production company’s brand, technology and management concepts, quickly enhance the overall level of Siping special vehicle industry. Under the government policy support and guidance for dedicated automotive industry, based on domestic and foreign market demand, focus on special engineering automotive, working special vehicle, special vehicle for improving the urban functions, construction, sanitation, communications, public security, airports, financial as well as all kinds of commercial transportation, urban construction and the services special purpose vehicle as the main products, and actively develop multi-series, wide-area and full-variety special vehicle products covering road maintenance, fire safety, travel and leisure, wild life services, engineering work, the transport of bulk materials, high-voltage transmission, refrigeration and heat insulation, large-tonnage mining self-unloading vehicles, improve the level of product technology and comprehensive performance-price ratio, and guide enterprises to develop special vehicles suitable for enhancing the urban services, participation in market competition of high value-added products in the east and middle area. Based on Fenjin Special Purpose Vehicle Co., Ltd., FAW Siping Special Purpose Vehicle Co., Ltd., Hongzui Special Purpose Vehicle and other enterprises in announcements in the area, focus on creating Siping Special Vehicle Group etc. 2-3 group-style dedicated automobile manufacturing companies, consolidate and occupy the northeast special purpose vehicle market, with Southeast Asia, the Middle East, Africa, Eastern Europe and other regions as breakthrough point, open international markets.

1.1.2 Market Prospects

(1)Industrial development situation of special purpose vehicles at home and abroad.
In Western developed countries, the development of dedicated automotive market is more mature, the percentage of special purpose vehicles to ordinary truck is more than 70%. The product involves all aspects of the national economy; the degree of meeting users’ personalization of the product is high, and product feature is obvious. First, labor division of chassis, upload specialization is obvious; second, production of transport products has a high degree of concentration; third is with many varieties, small batch production; fourth is number of manufacturers is big and scale is small. Due to extremely expensive labor costs of the above-mentioned countries and regions, the work that can be finished by machinery will be done mechanically, and the main features of dedicated automotive products are reflected in the rich variety, advanced technology, and the loading and unloading of the common transport products is basically finished by the driver by using escort handling machinery independently. The Industrial organization model of the foreign special purpose vehicles: special vehicles factory purchases chassis, and assembly special-purpose vehicles. In Europe, the U.S., the delivery of truck is chassis based rather than the vehicle-based, and customers are basically dedicated special vehicles factory. Japanese special-purpose vehicles have a relatively special relationship with chassis manufacturers, and the phenomenon of holding each other’s stock is very common. And non-automotive companies organize special vehicle production. Such as some companies engaged in aircraft manufacturing, shipbuilding, railway vehicle manufacturing are also involved in the production of special vehicles. Users also undertake special vehicle production. Some transport operators buy the chassis to produce special purpose vehicles. The main machine factory sets up the branch factory for the production of special vehicles. Japan's Toyota and other auto companies have dedicated special vehicle factories.
The dedicated automotive industry in China started in the late 1950s and early 1960s; after nearly 50 years of development, it has begun to take shape. At present, special purpose vehicle production accounts for about 56% of the total output of the truck, involving about 5000 varieties, and has become an important part of China's automobile industry. The dedicated automotive products range from transportation, urban construction, sanitation, municipal affairs, petroleum, chemical, medical and health, banking, military, culture and entertainment etc. each area of national economy. At present, China's special purpose vehicles have made great achievements in product structure, product technology, process equipment, product production and sales, new product development and new technology applications, and has an important position in the economic and social development.

China's special purpose vehicles have made great development in product variety, quality, output and technology level, gradually narrows down the gap with developed countries, has been basically had the ability to participate in international competition.

（2）Future development trend of special purpose vehicle industry of China

During the"12th Five-Year" period, in the dual role of policy and market, China’s special purpose vehicle industry will present four trends.

1) Strong momentum of localization. ChangchunCity, as a MotorCity, although the car has long become the first pillar industry, special car, however, has always been a "short board". To change this situation, ChangchunCity plans to add production capacity of special purpose automobile of 100,000 sets in the next five years, create it as the domestic special purpose automobile manufacturing base, and strive to account for 10% of the country's total output. Changchun’s building a special vehicle manufacturing base is a microcosm of the current special purpose vehicle industry in China showing the geographical trend. In Liangshan County of Shandong Province, SuizhouCity of HubeiProvince, this trend is equally clear. LiangshanCounty makes efforts to build the production base of “China trailer (special car)”, has brought together more than 100 kinds of special automobile production enterprises, formed industrial chain from parts matching to the vehicle assembly. The Suizhou positions itself as "Special Purpose Vehicle Capital", and relying on the basis of decades of development, it has formed unique regional development advantage. In 2010, the number of special-purpose vehicles in Suizhou exceeds 50,000 sets, ranking the first in the country.

In addition, Liaoning, Ningxia, Fujian, Zhengzhou, Tianjin etc. are building their own dedicated car production base. Many experts said that during the "12th Five-Year" period, with the completion of dedicated automotive production base, the regional development trend of special-purpose vehicles in China will become more obvious, and industrial cluster effect will significantly increase. But what each local government should be alert is that, under the circumstance that the overall level of development of special purpose vehicle industry is not high, the market order is easily disrupted by some disqualified small enterprises, and it is difficult to form an effective cluster edge.
2) The collectivization trend is evident. Synchronous with regional development, the collectivization trend of special purpose vehicle industry will become more apparent. After decades of development, the domestic special purpose automotive industry has emerged China International Marine Containers "carrier class" enterprise. Especially with CIMC’s acquisition or holding Cowger, Jumbo, Sanctum, and other enterprises, and gradually establishing new special-purpose vehicles and trailers production base, CIMC has owned over production bases in the northeast, north China, east China, central China, northwest, and become the world's largest special-purpose vehicles (trailers) manufacturing group.

In addition to CIMC such a rising star, the traditional brands in the domestic auto industry, such as Jinpai – FAW Jiefang, Dongfeng, Heavy Duty Truck, Shaanxi Auto and other VO- Vehicle Operations are expanding their business in special-purpose vehicle field. Last year, CNHTC jointed with Warwick Special Purpose Vehicle Company of "Special Purpose Vehicle Capital" to set up heavy duty truck Warwick, and develop tank car; FAW Group, after many years of research and development, successfully developed China's first urban fire fighting vehicle with independent intellectual property rights.
After development during the "10^th Five-Year" and "11^th Five-Year", China's special purpose automotive industry has formed a number of characteristic enterprises, and the Special Purpose Vehicle Group, with CIMC as the representative, is burgeoning. China Aircraft, Weapons etc. central enterprises are also increasing the efforts to Special Purpose Vehicle Group. During the "12th Five-Year" period, the special purpose vehicle industry will continue to support and encourage the development of enterprise groups.

3) High-tech will become the hot sport of the industry. With the changes in the composition of the overall national economy, the market’s demand pattern for special-purpose vehicles varieties will change accordingly. The demand for ordinary dump truck will be gradually reduced with the constant improvement of the infrastructure, demand for vans, semi-trailer as well as the demand for city matching service vehicles will greatly increase. With the intensification of competition in the market, the increase in product cost, the competitive advantage of labor-intensive products to compete on price will be further weakened, and alternative economic growth based on technological innovation will become the new mode of economic growth in the special purpose vehicle industry. In addition, the market demand for high-tech high value-added products will greatly increase, and this trend will increase the enthusiasm of special purpose vehicle enterprises to develop high-tech, high value-added products.

In Hubei Suizhou, the "Special Purpose Vehicle Capital", enterprises marriage with universities and research institutes is becoming a trend. At present, more than 90 special purpose automotive manufacturing enterprises in the city has carried on research cooperation with more than 100 colleges and universities, and research institutes. With science and technology as support, SuizhouCity continues to promote hi-tech of special purpose vehicles, promote sustained and healthy development of special-purpose vehicles. “Alloy high-performance heavy-duty vehicle brake "is a new product jointly developed by local Quanli Casting Company and Wuhan University of Technology. It not only fills the gap in the industry, solves the technical problem of heavy automobile brake failure, but also exported to the United Kingdom, the United States, Italy, Australia and other countries massively. In addition, the "three-axis air airbag suspension semitrailer tanker car" jointly developed by Chusheng Company and Wuhan University of Technology, “road monitoring car” jointly developed by Heli Company and WuhanUniversity, etc. has greatly improved the science and technology level of industries related to special purpose vehicle.

In Liangshan, a number of dedicated auto companies also invite professor at prestigious institutions to establish “academician workstation”, develop and produce high technology content, high added value special-purpose vehicles and key parts. In Changchun, the urban firefighting vehicle independently developed by FAW will shine in this year's International Firefighting Auto Show; it not only draws the attention of domestic enterprises in the field, but also attracts the attention of many of the world's top firefighting vehicle manufacturers.

4) Species diversity. The dedicated automotive product is designed for special purposes; with the development of socio-economy and technology, due to the breadth and professionalism of the dedicated car service, it forms the multiple-variety characteristics of special-purpose vehicles. At present, the pace of development of special-purpose vehicles varieties is fast, functional requirements are more and more detailed, and degree of specialization is higher and higher. Due to different characteristics of various sectors, in the special purpose vehicles and chassis development trend, the demand for specific variety is different. In the future, new varieties of special-purpose vehicles will be mainly concentrated in the two sectors of urban construction and services, and high-grade highway transportation and management. Special purpose vehicle market will appear the coexistence of multiple hot spots at the same time, thus forming the diversification of the market.

(3) The main problems in the development of special purpose vehicle industry in China
1) Blind expansion of investment and redundant and low-level construction. China's economy in recent years runs in good shape, the national economy grows steadily, the special purpose vehicle industry has achieved an unprecedented development, enterprises generally have good efficiency; in addition, the state sets low accession conditions for new enterprise; on the one hand, after primitive accumulation of capital, the original business carry on plants modernization and reconstruction, and actively transform the technology and equipment, expand production scale; after a certain accumulation of capital, the enterprises will make large-scale investment in fixed assets, “extensively carry on long-term investment with short-term loans”; on the other hand, a large number of non-automotive capitals transfer to the automotive industry, the industry has accumulated a large amount of capacity, and domestic enterprises invested too little in product research and development, marketing, and enterprise management, causing serious low-level redundant construction; in the future, for a long period of time, the market competition of low value-added products will become more intense. In addition, the domestic special automobile production enterprises prevalently have the idea of becoming big, not strong, causing that the company is big but not strong, and products are many but not advanced, and comprehensive competition strength is poor.

2) The slow development of high-tech and high value-added products. Companies over-rely on foreign technology, with poor self-development capacity. Of the existing dedicated automobile manufacturing companies, about 70% enterprise products are identical, basically focusing on dump truck, van, trailer, tank car (pink tank, oil tank), and added value of product is low. A batch of special purpose auto products with high tech and high added value, such as aircraft refueling car, aircraft tractor, aviation food car etc. airport vehicles, and sewage sludge washing car, bridge inspection vehicle for urban construction can not get rid of the situation of relying on import, due to limited investment in product research and development and market development. The development of high-tech, high value-added product is slow, which plays a negative role for driving the overall enhancement of whole car technology of China.

3) Development and production of domestic special purpose car chassis can not meet the development needs. In accordance with China's relevant policies and regulations, the special-purpose vehicles in China, especially the working type special purpose vehicles are developed and produced on the basis of second-class chassis, resulting in poor system matching of special-purpose vehicles, and the specific functions can not take full advantage of its functions. Because working type special purpose vehicle has small variety, small batch, and the main vehicle plant is unwilling to invest too much capital in R&D for dozens of even several chassis, and ordinary enterprises have no conditions and the strength for R & D and production. Similar foreign products, as long as they meet the requirements of safety and environmental protection, a wide range of changes to the chassis can be done according to need. This difference, to some extent, hampers china's special purpose vehicle’s development to a higher level.
4) Management thinking falls behind the situation development. On the level of enterprise, after the majority of enterprises complete the accumulation of original qualifications, the firm size has risen to a certain level, but business leaders continue to follow the traditional family type, centralized enterprise management thinking, and can not keep up with the development requirements of modern enterprises; in the corporate strategy, they adhere to the idea of emphasizing production, ignoring market and technology, and enterprises lack a strategic concept.

On the industry level, the management of the automotive industry is in transition period, the traditional automotive product management system is not perfect. Existing policies, such as the NDRC announcement management system, the CNCA compulsory product certification system, environmental protection department’s environmental protection directory system; the multiple management systems bring many constraints to the development of special purpose vehicle enterprise; in addition, the formulation and revision of standards and regulations can not keep up with the progress of product development, and have considerable arbitrariness in implementation, and lack scientific management.

1.1.4 Advantageous Conditions of Project Construction

(1) The policy conditions.

The national strategy of revitalization of the northeast old industrial base and automobile and spare parts planning of JilinProvince during the "12th Five-Year” period provide policy support and development opportunities for Siping special purpose vehicles industry. At the same time, Jilin Provincial government agreed to Siping municipal government’s proposal of revitalization of the special purpose vehicle industry planning; in the next step, it will integrate the local resources of special vehicle, support the development of special vehicle industry as a whole, construct the largest in north China, the world's leading special purpose car industry production and exhibition base.

(2) Industrial base advantage.
Special purpose automotive industry is the traditional industry of Siping City; the city's original six qualified special-purpose vehicles manufacturers of the city has relatively concentrated distribution, after many years of accumulation, it has formed improved production conditions and strong production capacity. In addition, SipingCity has many small and medium-sized enterprises (SMEs) without qualifications, and the share is large; these enterprises are mostly for car modification, and have complete infrastructure and mechanical processing equipment, and have close collaboration with qualified special purpose vehicle enterprises. At the same time, Siping also undertakes the product market of the FAW Group to varying degrees, which provides a solid foundation for the development of special-purpose vehicles in Siping. At present, the number of dedicated automobile production enterprises has grown to 35, and those with the production catalog are FAW Special Purpose Vehicle, Fenjin Special-Purpose Vehicles, Hongzui Special-Purpose Vehicles, Xiongfeng Special-Purpose Vehicles, North Special-Purpose Vehicles, Gongzhuling Jinyou Special Purpose Vehicles and Gongzhuling Car Modification Plant, the products include railroad car, tank car, dump truck, crane truck, special vehicles and others, with full range, and the annual production capacity of whole vehicle has reached   25,000 sets. The variety of special-purpose vehicles increases continuously, and brand awareness continues to increase, is equipped with good conditions for the vigorous development of special-purpose automotive industry.

(3) Talents and technology advantage.
Siping City special-purpose vehicles and parts industry has 50 years of development history, with a large number of professional and technical personnel, management personnel and a considerable number of auto industry workers; after years of accumulation, it has strong dedicated automotive product research and development capabilities, and a variety of independent researched and developed new products have been recognized by domestic and foreign markets. Currently, Siping automotive industry has a considerable number of engineering and technical personnel and strong technical innovation ability, with enterprise engineering and technical personnel accounting for 8.5% of the total number of employees. Fenjin Special Purpose Vehicle Company, Fangxiang Machinery Co., Ltd., Huiyu Instrument, Gongzhuling Anbao Company, Gongzhuling Bearing Factory has provincial level enterprise technology center. In addition, a large number of enterprises have established good technical cooperation relationship with FAWTechnologyCenter, Automotive Engineering College of Jilin University, etc. colleges and universities and research institutions. These resources play an important role to improve product quality, boost enterprise development.

(4) Existing production conditions
In Siping, automobile and parts industry begins to take shape, which provides resources for the settled enterprises in the park; the park planning and site selection has been completed; the design layout of the park, planning of roads, drainage and other public facilities have been completed.

(5) Location advantages
Siping City is located in the hinterland of Northeast Asia, located in the overlap zone of Changchun, Shenyang two major economic circles, and located in a strong position to undertake economic radiation; it is an important node in the city on the Ha-Da economic artery, and a major transportation hub; Harbin-Dalian high-speed railway will be opened to traffic in this year; with highway, railway leading in all directions, it is one of the best choices for northeast and even the country to develop special-purpose vehicles industry.

1.2 Content and Scale of Project Construction

1.2.1 Layout and scale of park construction

(1) Park structural layout
The park is located in the northeast part of the urban area of Siping; in the east, it borders Dongji Street; in the west, it borders the proposed Botanic Garden Street, in the south, it leads to Yongjun Road; in the north, it leads to Ji-Xi Highway; the planning range is 5.45 km long from north to south, 1.84 km wide from east to west, planning area is 10 square kilometers (980 hectares).

According to the land characteristics and the overall structural relationship, the overall structural layout of the park is determined to be: one belt, one axis, and six functional areas, referred to as “one belt, one axis and six areas".

"One belt”: the natural rivers and both sides of coastal zones located in the park will be planned as eco-green landscape belt, through integrated design of landscape and surrounding functional areas, it can not only enhance the environmental conditions in the park, become the mark of ecological industrial park; at the same time, the eco-green landscape belt does beneficial division and separation to the industrial zone in the north, and the commerce, comprehensive service area in the south.

“One axis”: refer to the industrial park axis formed by the main road Dongsheng Street that runs through the whole industrial park from south to north; with the axis as the middle axis, each functional area is distributed on the two sides of the axis. According to the future development condition of the park, along this axis, it can develop to the east and west two directions.

Six areas: from south to north, it starts from Yongjun Road to the planned Ji-Xi Highway. From east to west, it starts from Dongji Street to the Botanic Garden Street; along the axis of Dongsheng Street, there is special purpose vehicle commercial area, comprehensive service area, logistics and warehousing area, research and innovation area, the special purpose vehicle manufacturing district, and auto parts processing zone, a total of six functional areas.

(2) Function planning of the park
Around "building a world-famous, domestic first-class dedicated automobile industry park” construction and development target, it will require implementation of the differentiation of the automobile industry development strategy, improve the modern service system, introduce advanced management mode, emphasize industrial features; around the dedicated automobile industry chain and industry cluster, realize integration of research, production, sales and special car service, and make efforts to build five platforms:
- Manufacturing platform
- R & D platform for innovation
- Modern logistics platform
- Business trade platform
- Integrated service platform

Corresponding to the five platforms construction of the park, on the basis of park industry and function division, six functional districts will be planned. To be specific:

1) Special purpose vehicle manufacturing district:
Special purpose vehicle manufacturing district is used for special vehicles converted manufacturing, special purpose automobile production, special vehicle manufacturing.

Special purpose vehicle manufacturing district, based on the existing special purpose car manufacturers in Siping City, introduces domestic and foreign well-known special-purpose vehicles manufacturers, adopt joint ventures and the introduction of technology, make efforts to increase cooperation with the European special purpose vehicle companies and brands, focus on the development of high-end automotive industry with high-tech content, high added value.

2) Auto parts processing zone:
Auto parts processing zone is used as parts processing and production area equipped for auto and special purpose auto.

Auto parts processing zone, on the basis of the size of the existing auto parts industry in Siping City, will further expands the scale of the industry, increase product variety and matching share, introduces dedicated auto parts R & D and production enterprises, and based on the supporting needs of dedicated auto parts, guide enterprises to actively carry out technical R & D and equipment modification, and meet the demand for special purpose vehicle parts in northeast region as well as the country.

3) Special purpose vehicle commercial area:
Special purpose vehicle commercial area is for imported special-purpose vehicles, domestic special purpose cars, auto parts display, presentation, sales and after-sales service, trade negotiations, business processing, and market information exchange.

Special purpose vehicle commercial area introduces and cultivates domestic and foreign professional special purpose car and auto parts operating and trading companies, do well the cultivation work of special-purpose vehicles and auto parts trading, strengthen business invitation and investment attraction, speed up to establish a commercial platform for special purpose vehicle, used vehicles, spare parts, etc. full range of products.

4) Logistics and warehouse area:
Logistics and warehouse area is a warehousing and logistics service area for raw materials, purchased supporting parts of the park, chassis of special purpose vehicles and imported special purpose cars, semi-finished products, parts.

In the park, most raw materials of various enterprises are stored in the logistics and warehouse area, and a small amount of and special material is stored in the factory of each enterprise; the special vehicle parts in the park will try to adopt direct-station logistic distribution method. In the park, the externally supplied spare parts of enterprises can directly come into the logistics and warehouse area, externally purchased car parts, chassis are mostly stored in the logistics and warehouse area, and small amount is stored in the factory of enterprises; the complete vehicles produced by the park are stored in the factory of enterprises, and are directly sent to users; large amount will be stored in the logistics and warehouse area, and be sent by professional third-party logistics. Imported special purpose cars and special-purpose vehicles by domestic companies of other places will be delivered to special-purpose vehicles companies or users through the logistics and warehouse area.

5) Research and innovation area:
Research and innovation area is used for the special purpose vehicle technology research, development of new products, inspection and testing of special purpose vehicles and related products, technical training, technical exchanges guarantee service.

The research and innovation area integrates of R & D resources of enterprises, introduces domestic and foreign automotive R & D, design, testing and certification bodies to enter the area. Through government guidance, market operation, cooperation and win-win, provide support and help for enterprises in the area and domestic and foreign special car and spare parts enterprises to carry on technical research and development, technology update, the introduction of core technology.

6) Comprehensive service area: park administrative agency, municipal service guarantee agency, property management service organization, financial institution, cultural and sports facilities, recreational facilities, health facilities, residential area for park staff, commercial integrated services, catering and accommodation, telecommunications and postal service and so supporting services and living area.

1.2.2 Construction Content

1) In the park, planned road grid is three vertical and three horizontal, along with the existing urban outer ring road, on the main road, red line width is 50-70 meters, the total length of planned roads is 37.66 km; total road area is 1.44 square kilometers. Meanwhile, implement water drainage engineering, power engineering, heating engineering, gas engineering, telecommunications and other infrastructure construction.

2) In addition to the municipal infrastructure, accelerate the process of building in starting period, coordinate arrangements for all types of construction, multi-point and simultaneously concentrate on forming the basic outlook of the park as soon as possible; according to the principle of "economies of scale", realize appropriate completion in advance; through the rolling development, gradually increase the park attractiveness.
1), the construction of one 66KV substation.
2), the construction of one peaking boiler room.

Other constructions:
* Construction of the auto parts area and the standardized plant of special purpose vehicle manufacturing area.

* Construction of R & D and innovation building, and testing center, buildings of testing centers.

* Construction of storage warehouse in the logistics and warehousing center, the venue and logistics enterprise business houses.
* Construction of display buildings and grounds in business center, the commercial houses of commercial enterprises.
* Establish the park management office; buildings and places of the integrated service agency; construction of cultural and sports facilities; construction of employees living apartments; construction of health buildings.

1.3 Forecast of financial and social benefits

1.3.1 Analysis of financial benefits

Siping City Special Purpose Vehicle Industrial Park, according to the overall requirement of "laying a solid foundation, creating an environment, gathering elements, cluster development", till the end of 2012, plans to invest about 10 billion yuan, produce various types of special vehicles of 50000 sets, including luxury car of 2000 sets, middle grade car of 8000 sets, and low-grade car of 40,000 sets; realize production value of 4 billion yuan, and tax will increase to 850 million yuan, gradually become important support in economic development of Siping, and promote the GDP in the region to grow by 0.5%.

Till the end of the "12th Five-Year" in 2015, the industrial park will have a total investment of 20 billion yuan, produce various kinds of special purpose vehicles of 100,000 sets, including luxury car of 10,000 sets, middle-grade car of 20,000 sets, and low-grade car of 70,000 sets. Industrial output value will reach 15 billion yuan, and tax will reach 1.8 billion yuan.

It is expected in 2020, the special purpose vehicle industrial park will have total investment of 60 billion yuan, total industrial output value will reach 100 billion yuan, and it will basically form the international advanced special purpose vehicle industrial cluster with reasonable industrial layout, optimization of industrial structure, coordination of specialization, advanced technology and production equipments, and become an important economic growth point.

1.3.2 Analysis of Social Benefits

From the view of social and economic environment, the construction of the park can play a good role to promote and facilitate the economic construction of Siping City; Siping City Special Purpose Vehicle Industry Park construction can make full use of the local industrial base, the regional conditions and the talent and technology advantage, maximally meet the needs of domestic and foreign markets, and it is in line with the general requirements of the country and Jilin Province for scientific development and changing pattern of development, in line with Jilin Province’s policy guidance for the implementation of the “three actions”. It has high technological content, good market prospects, thus the park construction is necessary.
Through the analysis of the special purpose car market, and construction and development conditions of SipingCity, the construction of the park has good policy support and good construction conditions. The market prospects are good; the construction of the park can create good economic and social benefits, can promote the investment attraction of SipingCity, and promote regional economic development.

Meanwhile, through links of the interests of local businesses and their employees, it can promote the enterprise development in the radiation area, promote employment, and promote local people to get rich, realizing enterprise efficiency increase, and employees’ income increase.
Construction of the park will increase 25,000 new jobs, indirectly increase employment for 20,000 people, and can directly increase employment opportunities and income of the people. In the construction of the park, by professional and technical training, it can recruit a large number of laid-off workers and surplus rural labor, expanding employment opportunities, promoting the transfer of rural surplus labor. At the same time, it will drive the development of related industries, has a good role in promoting the development of various sectors of the logistics, financial services, trade, services. It can indirectly lead to the rapid development of upstream and downstream industries, attract automotive-related manufacturers to settle in the park (such as automotive electronics manufacturers, manufacturers of automotive beauty products, automotive electrical manufacturers, etc.), form the real automobile industry chain extension and development. Therefore, the park's construction is of great significance for structural adjustment, improving efficiency, promoting employment, expanding opening up; thus the social benefits are significant.

1.3.2 Analysis of ecological benefits  

In the park layout, infrastructure, building construction, and industrial process, fully implement clean construction and production. Put ecological environmental protection as an important guiding ideology of planning, minimize the impact on the regional ecosystem. The development and construction of the park will improve local environmental quality. The construction of a large area of green space is conducive to purifying the air, conserving water, and improving the environment. Planning and construction fully focuses on environmental protection and landscape ecological construction, formulate a special environmental protection and landscape ecological construction plan, which will greatly improve the ecological environment of the area, so as to carry on resource development and construction under the premise of causing no harm to the environment. This is an advanced ecological and economic development model, and the implementation of this plan will promote regional sustainable development, and lay the foundation for the park to build the future industrial tourism base in SipingCity.

The construction of the park will combine industrial ecology landscape and natural landscape to create a harmonious modern eco-industrial park, and create a modern space that is suitable for industry, starting business and living.

1.4 Total Investment and Funds Raising of the Project

1.4.1 Investment estimate

The infrastructure construction of SipingCitySpecialPurposeVehicleIndustrial Park adopts the overall planning combined with orderly promotion. In accordance with regulations of “municipal engineering budgeting quota of JilinProvince”, infrastructure will adopt the method of phased construction, practice the rolling development and gradually improve, and reserve space for the future development of the park.

SipingCitySpecialPurposeVehicleIndustrial Park has planning area of 10 square kilometers, and after the infrastructure project of the park is completed, it will reach the standard of "seven connections and one leveling". Siping Municipal People's Government invested heavily in infrastructure construction of the special purpose vehicle industrial park during the "12th Five-Year" period, mainly in water, electricity, roads, communications networks, the standardized plant construction; by estimate, the total investment is expected to be 20 billion yuan. Among them, land acquisition, site preparation plans to invest 2.64 billion yuan, infrastructure plans to invest 1.595 billion yuan, exhibition research and development center plans to invest 1.45 billion yuan, supporting life and office area of 4.875 billion yuan, standardized plant of 400 million yuan, 150 million yuan for sewage treatment plant, civil air defense project of 80 million yuan, social welfare investment of 307.5 million yuan, new renovation and expansion investment of 6.491 billion yuan, and the perspective investment enterprises in the park will invest 2.012 billion yuan. Detailed investments are shown in the table below.

Table of estimated total investment of the project

Unit: 10,000 yuan

1.4.2 Funds-raising

The project's total estimated investment is 20 billion yuan, sources of funding plans to adopt public offering of corporate bonds, supported fund of Siping City Finance, funds raised by the enterprise, applying for loans to the Development Bank, Agricultural Development Bank as well as major commercial banks, of which: the City Department of Finance intends to invest in the industrial park with start-up capital of 1.5 billion yuan, and 5 billion yuan will be raised by the enterprise and the project unit, the public issuance of bonds is 1.3 billion yuan, and applying for loans to the State Development Bank, Agricultural Development Bank and other commercial banks of 10.2 billion yuan. Through business invitation and investment attraction, introduce 2.018 billion yuan fom 16 international and domestic well-known private automobile and high-end auto parts manufacturing companies. With 24 newly constructed, renovated, expanded automobile and auto parts enterprises, the expected investment is 6.5 billion yuan.

1.5 Cooperative Ways of the Project

The enterprise can participate in park construction in the method of financing, BT method, or establish factory in the park.

1.6 What to be Invested by Foreign Party

Capital, other methods are negotiable.

1.7 Construction Site of the Project

The park is located in northeast of Siping, between Ha-Da passenger line and State Road 102; it starts from Yongjun Road in the south, and leads to Ji-Shuang Highway in the north.

1.8 The On-going Condition of Project

The project site selection has been finished, and investment attraction and recommendation is being carried on.

2. Introduction to Partner

2.1 Basic Conditions

Name of project undertaker: Siping Municipal People's Government
Legal address: No.1 of Zhengxin Street, Siping City
Legal representative: Shi Guoxiang (Mayor)

2.2 Overview of project undertaker

SipingCity is located in the heart of the Northeast Asian region, the hinterland of Songliao Plain,the junction of Liaoning, Jilin, Inner Mongolia three provinces (regions). It covers an area of 14,000 square kilometers and has a population of 3.4 million; the urban area is 1075 square kilometers, the urban population is 650,000; it governs Gongzhuling City, Lishu County, Yitong Manchu Autonomous County, Shuangliao City, Tiedong District, Tiexi District, and Liaohe River Land Reclamation Management District; in the territory, there is one state-level development zone and five provincial-level development zones.

SipingCity is an important node city in two horizontal and three vertical Beijing-Harbin Economic Belt during the "12th Five-Year". It unique geographical location and transportation advantages; Siping has strong industrial base, abundant resources, and abundant elements, with obvious advantages for investment and starting business; Siping has a history, there are many ruins and monuments in it, is one of the cradles of the Manchu. Siping is also a hero city, during the war of liberation, the “four battles in Siping” is famous in home and abroad, known as "Oriental Madrid”.

In 2010, Siping was determined as the national experimental zone for sustainable development. Since the new century, it has won the titles of National Sanitary City, National Garden City, National Community Construction Model City, National Support Model City, advanced unit in Construction of Spiritual Civilization etc. titles, the fifth batch of China's financial eco-city, top 20 small and medium-sized 20 cities with the most investment potential, the fifth batch of China's financial ecological city, the first batch of the growth type entrepreneurship city etc. honors.

Introduction to legal representative: Shi Guoxiang, Male, Hui, member of Communist Party. Born in March 1961, master of political economics of the School of Marxism, PekingUniversity, native of Changchun, Jilin. In September 1981, worked in the Fourth Middle School of Jilin City, has served as minister of Learning Committee of Jilin City, deputy district chief of Jilin City Chuanying District, secretary of the Communist Youth League, director of Jilin City Housing Authority, acting district chief of Changyi District, Jilin City, deputy director of Jilin Province Construction Department, director of administration committee of Changbai Mountain Development Zone, vice secretary of Jilin Municiapl Committee, and director of Jilin Provincial Tourism Bureau. Currently, he serves as mayor and vice secretary of Siping Municipal Committee.

2.3 Contact Method：

Contact Unit：Siping Economic and Technical Cooperation Bureau

Contact Person： Director Liu Zijun

Tel：0434-3266438

Fax：0434-3266583

Email：liuzijun66@126.com

Website：http://www.investsiping.com

 

Contact person of city (prefecture) of the project: Rong Qingxin

Contact number: 0434-3266196    13844482608

E-mail: 13844482608@126.com

Attachments: 1. Diagram of planning of SipingSpecialPurposeVehicleIndustrial Park.

2. Diagram of road planning of SipingSpecialPurposeVehicleIndustrial Park

Attachments: 1.：

Diagram of planning of Siping Special Purpose Vehicle Industrial Park

 

Attachments: 2.：

Diagram of road planning of Siping Special Purpose Vehicle Industrial Park