1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

An industrial park is a specific development entity that plans industrial positioning within a specific area, using land as a carrier, attracting domestic and foreign enterprises of specific types and industrial clusters to land by providing infrastructure such as housing and construction, as well as comprehensive supporting services. Through the high aggregation of factors such as industry, capital, technology, and labor, it generates agglomeration effects, enhances industrial competitiveness, and radiates to the periphery of a specific area.

This project relies on the aviation supporting advantages of Jiangji Mechanical Equipment Manufacturing Co., Ltd. and Jilin Airlines, actively introduces well-known domestic and foreign aviation parts manufacturing enterprises to settle in the park, and creates a comprehensive aviation parts industrial park integrating production, research and development, warehousing, sales and other functions, enhancing regional cooperation and accelerating industrial agglomeration.

1.1.2 Market prospect

(1) Current situation of the aerospace industry

Worldwide, the revenue scale of the aerospace industry continues to grow, with the proportion of commercial aerospace revenue increasing year by year, demonstrating a strong trend towards marketization. At the same time, the air passenger service is gradually recovering, although still affected by the COVID-19 pandemic, overall showing a positive recovery trend. In 2021, the global aerospace industry's revenue scale was $386.4 billion, a year-on-year increase of 4.1%. From the perspective of the composition of the global aerospace industry, the development of the global aerospace industry is still dominated by the satellite industry. In 2021, the global satellite industry accounted for 72.3% of the aerospace industry; The non satellite industry accounts for 27.7%. The global passenger traffic volume slightly recovered in 2021. The International Civil Aviation Organization's analysis of the economic impact of COVID-19 on civil aviation shows that the number of passengers worldwide reached 2.3 billion, which is 49% of the pre-pandemic level (2019) and an increase from the 60% decline in 2020. The global aerospace market size in 2023 is $570 billion (+7.4% year-on-year), of which the global commercial aerospace market size is $445 billion (+5% year-on-year), accounting for 78% and dominating the market. The global aerospace market size in 2024 is $596 billion.

In China, the development of the aerospace industry has achieved remarkable achievements that have attracted worldwide attention. In recent years, civil aviation has vigorously promoted the construction of airport and route networks, and has laid out and constructed four world-class airport clusters and hub airports in regions such as Beijing Tianjin Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu-Chongqing. At the same time, it has supported the construction of central and western and regional airports through policies, funds, and other aspects, resulting in a more balanced airport system structure. In terms of aerospace, by 2023, China’s aerospace industry will have completed nearly 70 space launches, becoming a new milestone in China’s aerospace industry. And significant breakthroughs have been made in the development of carrier rocket engines, solid fuel rockets, and reusable spacecraft. Significant achievements have been made in promoting China's major aerospace flagship projects such as manned spaceflight and Beidou, building large-scale space infrastructure, and advancing the construction of constellations such as remote sensing satellites and communication satellites. With the advancement of technology and the development of society, the aerospace industry is constantly changing and innovating, with commercialization, democratization, miniaturization, intelligence, and other new trends becoming the future development.

In 2023, China launched 67 rockets, of which 13 were private commercial rockets and 12 were successfully launched into orbit, accounting for 18% of the total successful launches for the year. Breakthroughs have been made in key technological fields such as liquid oxygen methane engines and reusability for commercial launch vehicles, filling the gaps in related fields. Currently, China has 1059 satellites in orbit, of which 492 are commercial satellites, accounting for nearly 50%.

In addition, according to statistics from the China Aerospace Industry Quality Association, from 2015 to 2020, China’s commercial aerospace output value exceeded 376.42 billion yuan to trillion yuan, with an average annual growth rate of 22%. The size of China’s commercial aerospace market exceeded 2.3 trillion yuan by 2024.

The aerospace industry is not only a symbol of technological progress, but also brings enormous business opportunities to multiple related industries.

(2) Current situation of the aviation parts industry

The aviation parts industry can be subdivided into multiple fields, mainly including aircraft structural components, engine components, avionics system components, onboard equipment components, etc. Each sub field has its unique technical requirements and manufacturing processes. For example, the structural components of the aircraft body involve multiple parts such as wings, fuselage, and tail wing, which have different requirements in material selection, technical implementation, and other aspects. Engine components involve high-precision and high reliability parts such as turbines and blades, and their manufacturing process requires advanced CNC machining technology and special welding technology.

The structure of the aviation parts industry chain is complex, with upstream industries mainly including aluminum alloys, titanium alloys, stainless steel and other metals and composite materials, high-end CNC machining equipment manufacturing, cutting tools, cutting fluids, rail oil and other main and auxiliary material industries, as well as fuel and power industries such as water and electricity. The midstream is the aviation parts manufacturing industry, mainly engaged in manufacturing materials into precision parts and assembling parts into components to deliver to the host factory. The downstream includes military and civilian aircraft main engine manufacturers and subcontracting factories, while the end users include military and civil aviation enterprises, aviation enterprises, etc.

Aircraft have characteristics such as high stability, high speed, high safety, and multiple use requirements, so the design, manufacturing, processing, and assembly of aircraft components have extremely high process requirements and technical barriers. The manufacturing process of aviation components is complex and highly specialized, and varies according to the structure, requirements, uses, performance, and other requirements of each subsystem.

On April 17, 1951, the Revolutionary Military Commission of the Central People’s Government and the Government Administration Council issued the Decision on the Construction of the Aviation Industry, marking the official birth of China's aviation manufacturing industry. According to data, from 2019 to 2023, the market size of China’s aviation equipment industry has grown from 93.4 billion yuan to 139 billion yuan, the market size of China’s aviation equipment industry exceeded 150 billion yuan in 2024 and the aviation manufacturing industry has entered a period of rapid development.

In terms of aerospace, aerospace equipment occupies a leading position in high-end manufacturing. The complex international situation requires continuous strengthening of national defense modernization construction, and the demand for aerospace equipment will continue to grow. In terms of commercial aerospace, 2015 was the first year of China’s commercial aerospace development, and the Chinese aerospace industry shifted from being led by the state to opening its doors to private capital. Private enterprises can take the lead in business model innovation, advanced technology application, cost reduction and efficiency improvement, effectively forming industrial complementarity with state-owned groups. Private enterprises in the aerospace manufacturing industry are facing unprecedented development opportunities. The commercial aerospace industry in China maintains a high-speed growth trend, with a huge market gap, and there is enormous development space for the commercial application of aerospace components.

In recent years, under the active guidance of national policies, the market size of China’s aviation parts manufacturing industry has continued to expand. In 2018, the market size of China’s aviation parts industry was 23.05 billion yuan, and in 2023, the market size was 40.13 billion yuan, with a compound annual growth rate of about 11.72%. The rapid development of military and civilian aviation equipment in our country has led to a rapid increase in the demand for supporting new and existing equipment, and the expansion of production capacity in host factories is constantly accelerating. Due to the increase year by year in the proportion of aircraft process equipment purchased from external private enterprises by various host manufacturers, the aviation parts market in China has been continuously growing.

The composition and distribution of aviation components and aviation process equipment manufacturing enterprises in China are related to the industrial layout of the domestic aviation industry. Affected by factors such as economic system and industrial development, the military industry has a relatively short opening time and strict industry access requirements. China’s aviation parts and aviation process equipment manufacturing has formed a competitive pattern dominated by internal supporting enterprises of host factories, effectively supplemented by research institutes, private enterprises, and joint ventures.

Advanced composite materials have the characteristics of light weight, high specific strength, high specific modulus, corrosion resistance, fatigue resistance, thermal insulation, sound insulation, and shock absorption, making them ideal materials for manufacturing aerospace vehicles. To achieve a breakthrough in the use of composite materials, it is necessary to apply composite materials to large components such as aircraft bodies and wings, and develop towards large-scale, integrated, and structurally functional integration. However, at the same time, higher technical requirements have been put forward for the application of composite materials in aviation components. Due to weak foundations and lack of technological accumulation, there is a significant gap between China’s aviation composite parts manufacturing industry and that in Europe and America, and there is still considerable development space for China’s aviation composite parts manufacturing enterprises.

For the flexibility of production and manufacturing, aviation component and aviation process equipment manufacturing enterprises gradually develop towards flexible manufacturing through the overall creation of software and hardware systems in order to enhance operational efficiency and competitiveness, driven by the need for continuous technological innovation and research and development. The establishment of flexible production lines makes it easy for enterprises to expand and adjust their research and development and production processes, which helps to upgrade and transform according to new technologies and processes, thereby supporting more intensive research and development activities, effectively improving research and development innovation capabilities, and maintaining the enterprise’s technological leadership position.

(3) Analysis of the aviation industry of Jilin City

In 2017, Jilin City was designated as one of the first comprehensive demonstration zones for the general aviation industry in China, with obvious advantages in aviation maintenance support, aviation education and training. Jilin Aviation Maintenance Co., Ltd. is the only comprehensive aviation maintenance support enterprise in Northeast China and the largest aviation industry enterprise in Jilin Province. In recent years, with the completion and operation of new projects, its maintenance capabilities have been greatly improved. During the 14th Five-Year Plan period, Shenyang Aircraft Corporation and other major aircraft manufacturers plan to release supporting production capacity on a large scale to the society, providing a good development opportunity for Jilin’s aviation industry.

1.1.3 Technical analysis

This project is planned and constructed in the Economic Development Zone of Jilin City. The aviation industry in Jilin City is developing well, with the advanced aviation equipment manufacturing materials and mature construction technology, which can provide advanced planning concepts and high-quality raw materials for the project.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Special Plan for the Development of General Aviation in the 14th Five-Year Plan clearly states the need to promote the development of low altitude tourism. Support the cultural and tourism authorities to expand the coverage of scenic spots such as aerial tours and high-altitude skydiving, and establish a low altitude tourism network connecting scenic spots, resorts, theme parks, and other tourist destinations. Support local governments in developing “general aviation+tourism”, encourage the enrichment of low altitude tourism through sightseeing tours, themed tours, experiential tours, and other forms, and support the development of general aviation characteristic leisure agriculture and boutique tourism in poverty-stricken areas. Support the establishment of cross industry alliances, promote the integrated development of general aviation, tourism and the Internet, and create a new pattern of general aviation consumption. Support innovation in aviation sports. Strengthen collaboration with sports regulatory authorities, support the hosting of aviation sports events and exhibitions with international influence, and widely carry out mass aviation sports activities. Encourage enterprises to innovate general aviation consumer services, actively expand emerging consumer formats, develop general aviation derivative products, promote the creative economy of general aviation, and meet diverse general aviation consumer needs. Support the innovative development of aviation sports participants and promote the creation of aviation sports clusters and industrial belts in areas with good foundations. Encourage self use recreational flying. Fully leverage the role of local governments, encourage non-commercial general aviation activities, support private flights for mass entertainment, and accelerate the growth of consumer groups. Support the development of self use flying social organizations and create a favorable development atmosphere.

The Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration of China have issued the “Implementation Plan for Innovative Applications of General Aviation Equipment (2024-2030)”, which proposes that by 2027, China’s general aviation equipment supply capacity and industrial innovation capacity will be significantly improved, and new general aviation equipment with unmanned, electrified, and intelligent technological features will be commercially applied in urban air transportation, logistics distribution, emergency rescue, and other fields. By 2030, general aviation equipment will have been fully integrated into various fields of people’s production and life, becoming a powerful driving force for low altitude economic growth and forming a trillion dollar market scale. By 2035, a green aviation manufacturing system with integrity, progressiveness and safety will have been built. New energy aircraft will become the mainstream of development. The safety, environmental protection, economy and comfort of domestic large civil aircraft will reach the world-class level. New general aviation equipment with unmanned, electric and intelligent technical characteristics will be commercialized and applied in a large scale.

The Government Work Report of the State Council in 2024 proposes to vigorously promote the construction of a modern industrial system, accelerate the development of new quality productive forces, actively cultivate emerging and future industries, and actively create new growth poles such as bio-manufacturing, commercial aerospace, and low altitude economy.

The General Office of the People’s Government of Jilin Province proposes to create key parks for the development of the general aviation industry, relying on industrial foundations and resource advantages, and planning to build distinctive general aviation industrial parks. Develop and implement the development plan and three-year action plan for Jilin General Aviation Industry Park and the General Aviation Industry Park of Changchun New Area, strive to include Changchun Airport Economic Zone in the national pilot program, and make every effort to build a general aviation full value industry chain that integrates general aviation manufacturing, general aviation applications, training and other related supporting facilities.

(2) Resource advantages

Jilin City has great potential for resource development. The installed capacity of power sources in the city is 10 million kilowatts, with an additional 3.279 million kilowatts added during the 14th Five-Year Plan period, an average annual growth rate of 8.3%. Among them, coal-fired power generation accounts for 3.07 million kilowatts, accounting for 30.7%; gas power generation of 860000 kilowatts, accounting for 8.6%; wind power is 1.54 million kilowatts, accounting for 15.4%; photovoltaic power generation of 700000 kilowatts, accounting for 7%; 3.5 million kilowatts of hydropower (3.2 million kilowatts of conventional hydropower and 300000 kilowatts of pumped storage), accounting for 35%; 270000 kilowatts of biomass power generation, accounting for 2.7%; waste to energy generation of 58000 kilowatts, accounting for 0.6%; the installed capacity of new and renewable energy accounts for 60.7% of the total installed capacity. It is expected that by 2025, the power generation will have reached 20.63 billion kilowatt hours, and the total transformer capacity of urban and rural power grids will have reached 4891.1 megavolt amperes.

The available land area in Jilin City is 853 hectares, including 74 hectares of commercial land, 500 hectares of industrial and mining storage land, 179 hectares of residential land (including guaranteed land for affordable housing), and 100 hectares of other land (including land for public management and public services, transportation, water bodies and water conservancy facilities, and special land). There is a large stock of exploitable land resources, and newly added and reserved land can meet the needs of new projects. Land prices are at a low level among 41 cities in Northeast China. ‌‌

(3) Industrial advantages

Jilin City, as one of the first pilot areas for the opening of low altitude airspace and the first pilot cities for the comprehensive demonstration zone of the aviation industry in China, has obvious industrial advantages.

Jilin City has a number of well-known domestic carbon fiber backbone enterprises such as Jilin Chemical Fiber Group, Carbon Valley Carbon Fiber Co., Ltd., Guoxing Carbon Fiber Co., Ltd., Guoxing Composite Material Co., Ltd., and Jiyan High-tech Fiber Co., Ltd. The raw silk production capacity is 160000 tons, the carbon fiber production capacity is 49000 tons, and the specifications cover 1K-50K. The performance of small fiber bundle products is stable and reaches T700 level, and the quality of large fiber bundle products is the best in the world; The first phase of the T800 and T1000 high-performance carbon fiber projects of Carbon Valley Carbon Fiber Co., Ltd. has started trial operation; downstream composite materials and products such as woven fabrics, prepreg, extruded sheets, and carbon fiber felt have formed large-scale production capacity.

(4) Talent advantages

Jilin City has universities such as Northeast Electric Power University, Jilin General Aviation Vocational and Technical College, Jilin Electronic Information Vocational and Technical College, Jilin Industrial Vocational and Technical College, etc. These universities provide a continuous stream of talent support for enterprises. These talents not only possess rich practical experience, but also have high technical level and innovation ability. They are able to solve various technical problems in the production process, improve production efficiency and product quality. At the same time, these professional skilled talents can actively participate in the technological innovation and product research and development work of the enterprise, providing strong guarantees for the sustainable development of the enterprise.

At the same time, Jilin City has a large number of high-quality industrial workers. After training by enterprises and public welfare institutions, more than 10000 skilled talents are sent to the society every year, and more than 20000 people of various types are trained for the society. The labor resource advantages are obvious, and the proportion of skilled workers is at a high level in the urban agglomeration of Northeast China. The labor force is in a dividend period, and the labor cost is relatively low, which can meet the needs of various enterprises.

1.2 Contents and scale of project construction

1.2.1 Construction scale

The project covers a total area of 300000 square meters and aims to create a comprehensive aviation parts industrial park that integrates production, research and development, warehousing, sales, and other functions.

1.2.2 Construction contents

The total construction area of the project is 210000 square meters, including the aviation equipment manufacturing area, aviation parts warehousing and logistics area, commercial service area, enterprise comprehensive office area, aircraft maintenance and repair area, etc.

① Aviation equipment manufacturing area: mainly constructing the raw material warehouse, aircraft parts production plant, equipment research and development center, small-scale workshop, pilot workshop, finished product warehouse, waste disposal center, etc.

② Aviation parts warehousing and logistics area: mainly constructing the logistics transfer center, warehouse, etc.

③ Commercial service area: mainly constructing the commercial service center, product display center, etc.

④ Enterprise comprehensive office area: mainly constructing the office comprehensive service center, conference center, supporting service center, etc.

⑤ Aircraft maintenance and repair area: mainly constructing the repair workshop, recycling center, etc.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 1.2 billion yuan, including the construction investment of 960 million yuan and current funds of 240 million yuan.

1.3.2 Fund raising

Self-financing by the enterprise

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 1.3 billion yuan, its profit will be 250 million yuan, its investment payback period will be 8 years (after the tax, including the construction period of 2 years) and its return on investment will be 21%.

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

1.4.2 Social evaluation

Aircraft component manufacturing projects play an important role in the aviation industry. The investment and construction of this project will provide high-performance, high-precision, and high-quality aviation components for the domestic aviation industry, expand Jilin City’s leading advantage in aviation maintenance and supporting, promote the continuous improvement of precision machining product manufacturing level, and play an important role in filling the layout of the aviation industry chain, driving technological industry effects, promoting regional industrial transformation and upgrading, and stimulating local employment. The construction of the project not only helps to enhance the aviation industry level in Jilin City and even Northeast China, but also promotes the improvement and development of the entire aviation industry chain.

1.5 Cooperative way

Joint venture or cooperation, and other methods can be discussed in person.

1.6What to be invested by the foreign party

Funds, and other methods can be discussed in person.

1.7 Construction site of the project

Aviation Industry Park of Jilin Economic and Technological Development Zone

1.8 Progress of the project

It is in the planning phase.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of Jilin Economic and Technological Development Zone

Address: 499 Jiujiang Road, Jiuzhan Neighborhood, Jilin City

2.2 Overview

Jilin Economic and Technological Development Zone is located in the northwest suburbs of Jilin City. It was established in 1998 and promoted to a national level economic and technological development zone in 2010. The administrative jurisdiction covers an area of 93 square kilometers, with a built-up area of 20.4 square kilometers. The leading industries include new materials, fine chemicals, biology, medicine, etc. It is a national level carbon fiber high-tech industrialization base recognized by the Ministry of Science and Technology, a national level science and technology enterprise incubator for chemical new materials mainly based on carbon fiber, a demonstration base for new industrialization of carbon fiber and composite materials recognized by the Ministry of Industry and Information Technology, a national level patent industrialization pilot base recognized by the Intellectual Property Office, one of the first batch of national general aviation industry comprehensive demonstration zones approved by the National Development and Reform Commission, and a research and production base for large fiber bundle carbon fiber and products recognized by the Chemical Fiber Association. It is the most competitive agglomeration area of fine chemical industry in Northeast China.

2.3 Contact method

Contact method of the unit where the project is located:

Contact unit: No. 1 Investment Promotion Bureau of Jilin Economic and Technological Development Zone

Postal code: 132000

Contact person: Cao Jian

Tel: +86-432-66490821  +86-15044287009

E-mail: 476696151@qq.com

Contact method of the city (prefecture) where the project is located:

Contact unit: Investment Promotion Service Center of the Bureau of Commerce of Jilin City

Contact person: Jiang Yuxiu

Tel: +86-432-62049694   

    +86-15804325460  

E-mail: jlstzcjfwzx@163.com