1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The industrial park is a specific area in which the specific development entity plans the industrial positioning in a specific area, takes the land as the carrier, and attracts domestic and foreign-funded enterprises of specific types and specific industrial clusters by providing infrastructure such as housing construction and comprehensive supporting services, and produces agglomeration effects, enhances industrial competitiveness, and radiates to the periphery through a high degree of concentration of elements such as industry, capital, technology, and labor.

High-precision aluminum refers to the aluminum material with high purity and excellent performance obtained through a series of advanced smelting, refining and processing technologies, and has reached high standards in terms of composition, physical properties and mechanical properties. Because of its excellent performance, high-precision aluminum is widely used in aviation, aerospace, automotive, electronics, packaging and other fields.

Relying on the existing industrial foundation of Liaoyuan Longshan Industrial Development Zone, the project will build a high-precision aluminum upstream and downstream supporting industrial park, and introduce aluminum plates, precision die-casting, precision forging and other production and processing enterprises.

1.1.2 Market prospect

(1) The development trend of the aluminum industry

As the world's largest non-ferrous metal, aluminum is widely used in construction, packaging, transportation, electric power, aerospace and other fields, and is an indispensable and important basic raw material for the construction of the national economy, strategic emerging industries and the development of national defense science and technology industry. With the steady expansion of the scale of the aluminum processing industry, the global aluminum processing industry has extended from rough processing to deep processing, and the proportion of aluminum output has been increasing. However, due to the different stages of development of the aluminum processing industry in various countries, it has shown a differentiated development trend on a global scale. Developed countries such as Europe and the United States have developed the aluminum processing industry for a long time, so the overall level of technology and equipment is high, and it has entered a mature period of the market, and the expansion rate of industrial scale has slowed down significantly. Emerging markets such as Asia, South Africa and the Middle East are in a stage of rapid development, with the growth rate of industrial scale more than double that of Europe and the United States, and the overall strength is rising. In the field of low-and mid-end and some high-end products, it has gradually had the strength to compete with advanced factories in the West. However, the difficulty of alleviating overcapacity, the increasing pressure on environmental protection, the arduous task of expanding aluminum applications, the lack of resource guarantee capacity, and the insufficient ability to develop deep-processed products restrict the further improvement and development of the aluminum processing industry in emerging markets.

China is the world's largest consumer of aluminum, accounting for about 1/3 of the world's total consumption, and its downstream consumption is mainly concentrated in construction, transportation, electricity, machinery and other industries, of which construction and transportation account for the highest proportions, 28% and 18% respectively. After decades of development, China's aluminum processing industry has made remarkable achievements, gradually formed a relatively complete structural system, and become the world's largest aluminum processing country. With the rapid development of China's economy and the continuous breakthrough of high-tech in the aluminum processing industry, China's aluminum smelting and processing industry has developed rapidly.

From the perspective of the structure of aluminum, the proportion of aluminum profiles is the highest, followed by aluminum plates, strips and foils, and finally aluminum die castings.

Aluminum profiles are mainly used in the construction field and industrial fields, and can be divided into two categories: building profiles and industrial profiles. Building profiles are mainly used in the construction and real estate industry, and aluminum alloy doors, windows and curtain wall profiles account for the main part of the sub-variety consumption field of construction aluminum profiles. Industrial aluminum profiles are mainly used in four fields: transportation, mechanical and electrical equipment, durable goods, and electronic appliances.

Aluminum foil can meet the requirements of easy recycling, green environmental protection, water resistance and high temperature resistance and other aspects, and can completely block light, gas and moisture, waterproof, maintain umami, antibacterial and anti-fouling. At present, China's annual consumption of aluminum foil reaches 161,300 tons, and China has become the world's second largest consumer of aluminum foil after the United States, but it accounts for a relatively low proportion in the field of packaging, with China accounting for only 17%, which is still relatively low compared to 70%-75% in the United States, Japan and Europe. With the rapid development of diversified beverage varieties such as downstream tea beverages, functional drinks, carbonated beverages, etc., and the continuous improvement of beer canning rate, it is expected that the market capacity will continue to expand in the future.

The application of recycled aluminum optimizes the aluminum industry chain and forms a circular chain. Aluminum and aluminum alloy have high recycling value due to their wear resistance and corrosion resistance, extremely low loss in the process of use, and no loss of their basic characteristics after repeated recycling, and their application has been paid more and more attention in the context of “carbon neutrality” in recent years. According to SMM statistics, about 20% of China's recycled aluminum can be used to reproduce the corresponding grade of deformed aluminum alloy every year, achieving maintenance and recycling, and maintaining the value of scrap aluminum, while in the recycled aluminum product structure of developed countries, deformed aluminum alloy accounts for more than half.

From January to October 2024, China's high-precision aluminum consumption increased by 4.48% year-on-year to 42.189 million tons. Specifically, aluminum consumption in October was 4.8942 million tons, an increase of 4.60% year-on-year and 2.60% month-on-month.

(2) Development trends

① The lightweight of automobiles has driven a surge in demand for electrolytic aluminum

In the context of “dual carbon”, countries have vigorously encouraged the consumption of new energy vehicles, and the new energy vehicle industry has developed rapidly in the past decade. According to statistics, in 2023, the global sales of new energy vehicles reached 14.653 million, a year-on-year increase of 35.4%, of which 9.495 million new energy vehicles were sold in China, accounting for 64.8% of global sales. The global electric vehicle market is anticipated to maintain robust growth momentum in 2024, with sales reached approximately 17 million units.

Compared with traditional gasoline vehicles, new energy vehicles have a more urgent need for lightweight, which can not only reduce weight and extend mileage, but also optimize the dynamic performance of the body. Replacing the traditional steel structure with aluminum alloy structure can reduce the weight of the car by 30%-40%, reduce the engine by 30%, and reduce the wheel by 50%. The use of aluminum alloy is one of the important ways for automobiles to be lightweight and environmentally friendly, energy-saving, speed-up and efficient transportation. The main application components of electric vehicle aluminum include battery pack, subframe, fender, four doors and two covers, etc., which is larger than the range of aluminum used in fuel vehicles. According to SMM data, the amount of aluminum used in pure electric vehicles is 292kg, and the amount of aluminum used in non-pure electric vehicles is 206kg, and the consumption of aluminum profiles for new energy vehicles is 3~4 times that of traditional fuel vehicles.

The production and sales of new energy vehicles are booming, and the trend of lightweight body is constantly strengthening, driving the growth of high demand for electrolytic aluminum. According to the simple calculation of the amount of aluminum used in new energy vehicles of 250kg/vehicle, the global aluminum increase for new energy vehicles from 2023 to 2025 will be 0.92, 1.25, and 1.7 million tons.

② The rapid development of clean energy has become one of the main forces driving aluminum consumption

The application scenarios of aluminum profiles in the photovoltaic field are constantly expanding. Extruded aluminum is the most competitive optional material for manufacturing solar photovoltaic modules, and the battery panel frame pillars, support rods, tie rods, etc. can all be made of aluminum alloy, which is a new market for aluminum profile applications. The main products of aluminum in the photovoltaic field are photovoltaic frames and photovoltaic brackets, which mainly play the role of fixing and sealing solar cell modules, enhancing the strength of modules, and facilitating transportation and installation, and their performance will affect the life of solar cell modules. According to the raw materials used, solar frames can be divided into three categories: Aluminum profile frame, stainless steel frame, FRP profile frame. Because the aluminum profile has the characteristics of light weight, strong corrosion resistance, easy forming, high strength, easy cutting and processing, recyclable, etc., at present, it is the most common application in the solar frame.

With the rapid development of clean energy, the new infrastructure represented by photovoltaics is basically good. Since the Paris Agreement, the world has sounded the clarion call for carbon neutrality, and the new global photovoltaic installed capacity of has increased year by year. In 2023, 345.5GW of new global photovoltaic installed capacity was added, a year-on-year increase of 50%, of which 216.88GW of photovoltaic installed capacity in China was installed, an increase of 148% year-on-year. In the context of China's great attention to new energy, it is expected that the new installed capacity of photovoltaic will continue to grow steadily in the future.

The global demand for photovoltaics continues to explode, driving the demand for aluminum to rise. According to the statistics and calculations of the products of major photovoltaic module companies in the market, the photovoltaic aluminum consumption per GW is 9,000-11,000 tons, and according to the simple calculation of 10,000 tons/GW of photovoltaic aluminum consumption, the global photovoltaic aluminum increase from 2023 to 2025 will be 1.4, 0.9, and 1.1 million tons.

③ UHV pulls aluminum rod line consumption

The UHV project ushered in the climax of construction. UHV refers to the transmission technology of AC 1,000 kV, DC ± 800 kV and above, which has the comprehensive advantages of long distance, large capacity, low loss and less land occupation. Under the background of “double carbon”, China requires to strengthen the transmission of power from west to east and increase the proportion of clean energy consumption during the “14th Five-Year Plan” period, and the State Grid plans to build an ultra-high voltage project of “24 AC lines and 14 DC lines”, involving more than 30,000 kilometers of lines, 340 million kVA of substation conversion capacity, and a total investment of 380 billion yuan. As of 2022, the cumulative line length of China's UHV projects has reached 44,613 kilometers, and it is expected that the UHV power grid will continue to usher in incremental demand considering the demand for economic growth.

In the UHV power grid project, the transmission cable is mainly made of steel core aluminum stranded wire, which is a cable formed by stranding aluminum wire and steel wire. The steel core mainly plays the role of increasing strength, and the aluminum stranded wire mainly plays the role of transmitting electric energy. According to SMM's historical line data, the average aluminum consumption per kilometer of UHV AC lines is 63.43 tons, and the average aluminum consumption per kilometer of UHV DC lines is 55.17 tons. Using a simple calculation of 60 tons/km of UHV aluminum, the increase in UHV aluminum in China from 2023 to 2025 will be 240,000, 50,000 and 60,000 tons.

To sum up, the project relies on the existing industrial foundation of high-precision aluminum in Liaoyuan City, builds an upstream and downstream supporting industrial park for high-precision aluminum, and introduces production and processing enterprises such as aluminum plate production, precision die-casting, and precision forging, with broad market prospects.

1.1.3 Advantageous conditions of project construction

(1) Policy conditions

“Made in China 2025” proposes that the new material industry has received corresponding attention as the core area and important support for the transformation of the manufacturing industry. It clarifies that new materials are one of the ten key areas, and the new materials industry is divided into three key directions: advanced basic materials, key strategic materials and cutting-edge new materials, and in these three directions, the materials that need to be developed and the specific goals that need to be achieved in 2025 are refined.

The “Implementation Opinions of the People's Government of Liaoyuan Municipality on Promoting the High-quality Development of New Industrialization in Liaoyuan City (2024-2030) ”, proposing: Focus on the development needs of rail transit equipment, support Qixing Aluminum and other high-precision aluminum processing enterprises to accelerate R&D and innovation, expand product fields, increase product categories, and build a high-precision aluminum profile processing industry ecosystem in the north.

In 2020, the Office of the People's Government of Liaoyuan Municipality issued the “Implementation Measures for the Flexible Transfer of Industrial Land in Liaoyuan City (Trial)”, proposing; The supply of industrial land by means of flexible term, lease before transfer, combination of lease and transfer, and long-term lease shall be supplied by means of bidding, auction and listing in accordance with the law; In principle, the flexible transfer period of industrial land shall be 10, 20, 30 and 40 years. Enterprises are allowed to voluntarily choose the term of land use right transfer during the period. The “Implementation Measures” not only reduce the cost of industrial land in Liaoyuan City, but also improve the land supply system of Liaoyuan City.

(2) Resource advantages

In recent years, Liaoyuan City has continued to optimize and adjust the energy structure, comprehensively launched the construction of a clean energy heating demonstration city in the north, and carried out 47 clean heating transformation projects such as “coal to gas” and “coal to electricity”, which is expected to reduce coal consumption equivalent to 510,000 tons of standard coal. In addition, Liaoyuan City is rich in wind, solar, biomass and other resources, which provides energy guarantee for the construction of the project.

(3) Industrial advantages

In recent years, Liaoyuan City has laid out the innovation chain industrial chain around leading enterprises such as China FAW and CRRC Changchun Railway Vehicles Co., Ltd., and made every effort to build a high-precision aluminum processing industry ecosystem in the north, and the aluminum processing industry has completed the transformation from low value-added building profiles to high value-added industrial profiles. Among them, the steel of rail passenger cars has developed into an important industrial base for the manufacture of large-section aluminum profile parts for rail passenger cars at home and abroad. In 2023, the output value of “high-precision aluminum + rail train profiles” increased by 15.4% year-on-year, accounting for 8% of the industrial proportion.

Jilin Qixing Aluminum Co., Ltd. is the largest specialized manufacturer of aluminum alloy body materials for rail vehicles in China, with more than 80% of its products exported to more than a dozen countries and regions, and has undertaken the first localization project of China's high-speed trains, supporting all car body aluminum profiles for EMUs with a speed of 200 kilometers per hour; It has undertaken the first batch of export orders for aluminum profiles for rail car bodies in China, and provided all car body profiles for the Singapore Circle Line Metro undertaken by Alstom of France. Using the size advantage of the world's largest 235MN aluminum extrusion production line to produce super-large materials, the number of splicing of existing rail car body profiles can be reduced by more than 50%.

Liyuan Co., Ltd. is a comprehensive production enterprise integrating casting, extrusion and deep processing of aluminum products and aluminum products, and has long provided products and services for leading enterprises in the auto parts, building decoration, rail transit, solar energy, electronic power, aviation and petrochemical industries, and has successively provided bumpers and structural parts for high-end brand cars of many well-known manufacturers at home and abroad, including FAW Group.

(4) Talent advantages

The human resources section required for the local construction of the project is recruited locally. Liaoyuan City is rich in human resources, and there are vocational colleges in the urban area, which can train talents according to the needs of enterprises. Liaoyuan City has a good foundation for industrial development, and it only takes 1.5 hours to be away from Changchun, a well-known “university town” and “automobile city” in China, and the demand for talents can be met.

The “Implementation Opinions of the People's Government of Liaoyuan Municipality on Promoting the High-quality Development of New Industrialization in Liaoyuan City (2024-2030)”, proposing: Take the initiative to connect with the resources of universities, colleges, institutes, and enterprises, jointly establish key laboratories for industrial development, and promote the deep integration of “industry-university-research and financial incubation”. Focus on the upgrading of the industrial base, make up for the shortcomings of the “four basics”, implement the enterprise R&D investment guidance plan, encourage enterprises to play the role of the main body of innovation, increase R&D investment and “unveil the leader” to tackle key problems, and organize and implement more than 100 projects for technological transformation and transformation of major scientific and technological achievements every year. Promote the coupling development of manufacturing and digital economy, guide “chain master” enterprises to build characteristic industrial Internet platforms, and build a number of intelligent manufacturing demonstration factories and excellent scenarios. Implement the provincial and municipal talent policy 3.0 and 10 policies for master's and doctoral talents, encourage enterprises to introduce “Sunday engineers”, and set up “chief expert”, “science and technology correspondents” and “great craftsmen” studios to create a good environment for talent recruitment.

(5) Location and transportation advantages

Longshan District is located in the south-central part of Jilin Province, in the transition zone between the remaining veins of the Laoyeling Mountains of Changbai Mountain and the Songliao Plain in the west. Longshan District extends in all directions, the transportation is convenient, Liaoyuan-Kaiyuan, Liaoning-Yichun-Changchun Expressway and Siping-Baihe, Liaoyuan-Nadanbo Town first-class highway, Siping-Meihekou, Changchun-Liaoyuan, Liaoyuan-Xifeng Railway runs through the whole territory, 200 kilometers away from Shenyang in the south, 98 kilometers away from Changchun in the north, 90 minutes' drive to Changchun Longjia International Airport, and the railway can go directly to the capital Beijing.

1.2 Contents and scale of project construction

With an area of 200,000 square meters, the project is planned to mainly build workshops, R&D centers, and supporting projects.

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 2,000 million yuan, including construction investment of 1.6 billion yuan and current funds of 400 million yuan.

1.3.2 Capital raising

Self-funded by enterprises

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 800 million yuan, its profit will be 300 million yuan, its investment payback period will be 8.6 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 15%.

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

1.4.2 Social evaluation

Through the construction of the project, it can promote the upgrading of the high-precision aluminum industry in Liaoyuan City and promote the agglomeration of the high-precision aluminum industry in Liaoyuan; At the same time, it can drive the development of regional enterprises in related industries, provide employment opportunities, solve the employment of part of the labor force, and help maintain the prosperity and stability of society.

1.5 Cooperative way

Joint venture and cooperation, other ways are negotiable.

1.6 What to be invested by the foreign party

Funding, other ways are negotiable.

1.7 Construction site of the project

Longshan District, Liaoyuan City, Jilin Province.

1.8 Progress of the project

Foreign investment attraction.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of Liaoyuan Longshan Industrial Development Zone.

Address: A lively street in Shoushan Town, Longshan District, Liaoyuan City, Jilin Province.

2.2 Overview

Founded in 2005, Liaoyuan Longshan Industrial Development (Concentration) Zone is a county-level industrial development zone approved by the Development Office of the Provincial Government, located in the eastern part of Liaoyuan City, with a total land area of 12.5 square kilometers. Among them, the planned area of the starting area is 2.38 square kilometers. According to the “Development and Construction Plan of Liaoyuan Longshan Industrial Development Zone” prepared, the industrial positioning with the production of new energy vehicles and parts R&D and manufacturing, new material R&D and manufacturing, modern logistics, medicine and health, and food processing industry as the core has been determined.

The development zone vigorously develops strategic emerging industries, actively develops strategic industries with development potential such as new energy auto parts, and cultivates new economic growth points; absorb the city's machinery and equipment, medicine and health enterprises that “retreat from the city and enter the district”. At the same time, it actively adopts high-tech transformation to upgrade traditional industries, increase product varieties, improve the industrial chain and supporting systems, improve the industrial technology level and value-added capabilities, and build and cultivate pillar industries in the area. Focusing on the needs of industrial support, resource advantages and consumer demand in the surrounding areas, we will vigorously develop new materials and new energy industry chains to create differentiated brands and characteristic products; Focus on the construction and development of the new material R&D and manufacturing industrial park in Longshan Industrial Development Zone; Focus on the introduction of tax sources, science and technology, and people's livelihood projects with high science and technology content, low energy consumption, low emissions, high added value, and significant economic and social benefits. At present, 80 enterprises (including escrow areas) have settled in the development zone, including 20 enterprises above the designated size.

2.3 Contact method

Postal code: 136299

Contact person: Xing Tianbao

Tel: +86-437-3166166

     +86-13904377816

E-mail: lyslsqswj@163.com

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

Contact unit: Liaoyuan Municipal Bureau of Commerce

Contact person: Ai Jing

Tel: +86-18643787709

E-mail: lyjhjxmc@163.com