1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

A baler is a mechanical device specifically designed to bale materials such as crop straw, forage, and waste cartons. By performing crop baling operations, it can revolutionize traditional harvesting, transportation, and storage methods, and also promote the development of the energy market.

Products developed by this project, such as the combined corn stalk and ear baler, self-propelled green and yellow forage baler, and silage wrapping and baling machine, have extremely broad market prospects. This is mainly due to their remarkable advantages in aspects such as forage storage, preservation, utilization rate improvement, and the promotion of the sustainable development of the breeding industry.

1.1.2 Market prospect

(1) Market status

Market status of the combined stalk and ear baler:

The combined corn stalk and ear baler project plays a crucial role in the process of agricultural mechanization, especially in straw processing and resource recycling. This equipment can not only harvest corn stalks and ears simultaneously but also effectively bale the harvested straw, thus significantly improving the efficiency of agricultural production and the utilization rate of resources.

Technical characteristics and development trend of the combined corn stalk and ear baler:

Large-scale, high-efficiency, and intelligent: Modern balers are developing towards large-scale, high-efficiency, and intelligent directions to meet the needs of large-scale operations, improve work efficiency, and reduce manual intervention.

Versatility: In addition to basic harvesting and baling functions, modern balers also have the functions of straw recycling and reuse, enabling the maximum utilization of agricultural resources.

Technical substitution: Large-scale, intelligent, and high-efficiency technologies have replaced traditional harvesting and baling technologies, reducing labor intensity and losses.

Market status of the green and yellow forage baler:

In recent years, the state and local governments have promulgated a number of laws, regulations, and industry policies related to agricultural modernization, agricultural mechanization, and agricultural machinery equipment manufacturing. These have promoted the rapid development of China's agricultural machinery industry towards standardization, greening, and intelligence, creating a favorable external competitive environment and development opportunities for the baler industry.

With the advancement of policies such as agricultural supply-side structural reform and "grain-to-forage" conversion, the rapid development of the livestock industry has driven the demand for balers. In 2023, the total sales volume of green and yellow forage balers reached 2,531 units, with a total value exceeding 612 million yuan and an average price of approximately 241,900 yuan. From January to August 2024, the total sales volume of green and yellow forage balers was 428 units, with a value exceeding 130 million yuan and an average price of approximately 315,000 yuan. These data indicate that the market demand for green and yellow forage balers is increasing year by year, and the market scale is continuously expanding. 

Market status of the silage film wrapping and baling machine:

Silage plastic film is a type of plastic film used for packaging silage. Silage refers to plants with high moisture content, such as corn and grass, harvested during the plant growth period. The main function of silage plastic film is to protect the nutritional components of silage, preventing it from being adversely affected by oxidation, fermentation, and mildew. Silage plastic film is usually made of materials such as polyethylene and has good weather resistance, heat resistance, and corrosion resistance. In agricultural production, silage plastic film has become an important packaging material and is widely used in fields such as animal husbandry and aquaculture.

Modern silage wrapping and baling machines adopt advanced control systems and automation technologies, such as PLC control systems and variable-frequency motors, thus improving production efficiency and stability. These technological advancements enable the equipment to operate stably in various working environments, meeting the needs of different users.

Policy support has played a positive role in the development of silage wrapping and baling machines. The government's support policies for agricultural mechanization have promoted the development and application of silage wrapping and baling machines.

(2) Market prospect analysis

After years of evolution, foreign baler technologies have reached a high level of maturity in structure and function and are developing towards large-scale, intelligent, and electro-hydraulic integration. Relying on advanced manufacturing industries, these technologies continuously produce products with better performance. At the same time, with the rise of "Internet +" and driverless technologies, these advanced technologies are gradually being applied to baling machinery.

Domestic research institutes and large-scale enterprises in the industry have also begun to increase their research and development efforts on baling machinery, bringing new opportunities for the development of the industry. Against the background of the country's implementation of intensive land management and straw resource development, domestic baling machinery is developing towards large-scale and high-efficiency directions. With the improvement of the intelligent level of the manufacturing industry, the demand for simplified operation and real-time monitoring is increasing day by day, and the intelligent level of baling machinery is also constantly improving.

At present, China's baler industry is in a stage of continuous development. Benefiting from national policy support and the requirements of the development of new-quality productivity, the continuous and strong development of the baler industry will become an inevitable trend.

Sustained implementation of the national agricultural machinery subsidy policy: The agricultural machinery purchase subsidy is an important policy to strengthen and benefit agriculture introduced by the Central Committee of the Communist Party of China and the State Council, and it is an important support measure clearly stipulated in the "Agricultural Mechanization Promotion Law". The subsidy policy has stimulated the sales of agricultural machinery, increased the enthusiasm for purchase, and guided industry supply and demand. Since the policy was introduced in 2004, the support intensity has gradually increased, the scope has continuously expanded, and the policy effects have continued to emerge.

In June 2024, the Ministry of Agriculture and Rural Affairs issued and implemented the "Implementation Opinions on Agricultural Machinery Purchase and Application Subsidies from 2024 to 2026", aiming to support farmers and agricultural production and operation organizations in purchasing and using advanced and applicable agricultural machinery, leading the coordinated development of the entire chain of agricultural machinery research, production, promotion, and application, and accelerating the development of new-quality productivity. In 2024, China's agricultural machinery subsidy budget reached a record high, increasing from 80 million yuan in 2004 to 24.6 billion yuan.

Market demand forecast:

(1) Changes in the labor market: As migrant workers flock to cities to find jobs again, the labor supply in rural areas has decreased, which has promoted the demand for agricultural mechanization, including the use of balers to replace manual labor.

(2) Environmental protection policies: The country continues to implement the green development strategy, and the prohibition of burning crop residues such as straw has promoted the demand for equipment such as balers for the recycling of these materials. 

(3) Support policies for the livestock industry: The government continues to support the development of the livestock industry, which involves expanding the scale of forage production and increasing support for the conversion of food crops into forage crops. These are all favorable conditions for the development of the baler market.

(4) Cyclical recovery of the breeding industry: After experiencing a downturn starting from the second half of 2022, the breeding industry is expected to recover during 2025, which will increase the demand for forage and further stimulate the growth of the baler market.

The market prospect of the silage wrapping and baling machine is very broad, mainly due to its characteristics of high efficiency, environmental protection and intelligence.

The silage wrapping and baling machine is mainly used for packaging silage. By baling the silage and immediately wrapping it with film, it can effectively prevent the forage from oxidation, fermentation, and mildew, thus maintaining the nutritional components and quality of the forage. This equipment has a wide range of application prospects in the animal husbandry and aquaculture industries, especially in the production process of silage, where it can significantly improve production efficiency and product quality. 

With the continuous development of the animal husbandry and aquaculture industries, the demand for high-quality silage is increasing. The silage wrapping and baling machine can provide high-quality silage to meet market demand. The government's support policies for agricultural mechanization also provide favorable conditions for the promotion of the silage wrapping and baling machine. With the development of artificial intelligence and automation technologies, the silage wrapping and baling machine will become more intelligent, improving production efficiency and operational convenience. Environmental protection regulations have increasingly higher requirements for the treatment of agricultural waste, and the silage wrapping and baling machine can effectively reduce forage waste and environmental pollution, in line with the trend of sustainable development. In summary, the market prospect of the silage wrapping and baling machine is very optimistic. Its high-efficiency, environmental-friendliness, and intelligent characteristics will enable it to play an important role in the animal husbandry and aquaculture industries, and with technological progress and policy support, the market prospect will be even broader.

1.1.3 Technical analysis

A baler is mainly used to compress and bale bulk materials (such as crop straw, forage, waste paper, etc.). Its working principle includes the following steps: compressing the materials into a compact shape through mechanical or hydraulic means, and then using materials such as ropes, wires, or plastic straps for baling.

‌A film wrapping machine is a device specifically designed for packaging items. It sends the items into the packaging materials (such as paper, plastic film, etc.) through a conveyor belt or robotic arm, and tightly wraps the packaging materials around the surface of the items through heat-sealing or adhesion.

1.1.4 Advantageous conditions of project construction

(1) Policy advantage

The State and local governments have introduced a number of policies to support agricultural mechanization and straw utilization. These policies include agricultural machinery purchase subsidies, land transfer, straw utilization, etc., which have strongly promoted the development of the baler industry and provided a good external environment and development opportunities for the baler project in Jilin Province.

(2) Industrial advantage

Baler enterprises in Jilin Province not only invest a large amount of resources in technological research and development but also establish complete technological research and development centers, conducting research and development around the comprehensive utilization of corn straw. For example, Jilin Tianlang has established a technological research and development center, focusing on the research of agricultural machinery equipment for the comprehensive utilization of corn straw, and forming a research and development platform integrating research, experimentation, development, introduction, and technological transformation.

(3) Location advantage

Siping is located in the southwest of Jilin Province, in the central hinterland of the Songliao Plain. It is an important transportation hub and logistics node city in Northeast China. It is at the junction of Liaoning, Jilin, and Inner Mongolia, and is the only way for Jilin, Heilongjiang, and the eastern part of Inner Mongolia to reach coastal ports and the Bohai Rim Economic Circle, enjoying unique geographical advantages.

The transportation facilities are also very complete. As a transportation hub city, Siping has a convenient railway, highway, and air transportation network. In terms of railways, Siping is the intersection of the Harbin-Dalian Railway and the Changchun-Tumen Railway, connecting the main cities and ports in Northeast China. In terms of highways, Siping has several expressways and national roads, such as the Beijing-Harbin Expressway and the Changchun-Shenzhen Expressway, facilitating traffic connections with surrounding areas. In addition, Siping is planning to build an airport to further enhance its air transportation capacity.

These transportation facilities and geographical location make Siping an important logistics center and transportation hub in Northeast China, promoting the development of the regional economy and the convenient circulation of people and goods.

(4) Talent advantage

Siping has many universities such as Jilin Normal University, Boda College of Jilin Normal University, Jilin Agricultural Engineering Vocational and Technical College, Siping Vocational University, the Hongzui Vocational and Technical College being established, Siping Medical College of Jilin University, and Siping Radio and Television University. Among them, Jilin Normal University is a key university in Jilin Province, with 16,302 full-time undergraduate students, 1,844 postgraduate students, 336 international students, and 15,131 adult education students. It can cultivate thousands of high-level talents for the society every year. Surrounding cities such as Changchun, Harbin, and Daqing have many universities, which can provide more than 500,000 high-level talents annually. These talents can provide technical support for the project construction.

Siping Economic Development Zone has a rich talent reserve and good talent introduction policies. In recent years, Siping has adhered to the development concept that "talents are the primary resource." Through the implementation of the "Talent Attack Plan" and the "Ten-Thousand College Students Staying in Siping Plan," it has successfully introduced more than 500 master's and doctoral talents and more than 11,200 college graduates. The Economic Development Zone of Siping also attaches importance to school-enterprise cooperation and realizes the seamless connection between the talent training achievements of colleges and universities and the talent needs of enterprises through "targeted" employment precise connection.‌

1.2 Contents and scale of project construction

The factory area of Jilin Construction Machinery Manufacturing Co., Ltd. will be revitalized. The project covers an area of 23,000m², and aims to build a production project with an annual output of 1,000 combined corn stalk and ear balers, 500 self-propelled green and yellow forage balers, and 200 silage wrapping and baling machines. 

1.3 Total investment of the project and capital raising

The total investment of the project is 100 million yuan, including the construction investment of 80 million yuan.

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 67 million yuan, its profit will be 19 million yuan, its investment payback period will be 7 years (after the tax, including construction period of 1 year), and its return on investment will be 18%.

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

1.4.2 Social evaluation

Promote agricultural modernization and mechanization: The production and use of balers and wrapping machines can advance the process of agricultural modernization and mechanization, enhance agricultural production efficiency, reduce labor costs, and contribute to the sustainable development of agriculture.

Facilitate the comprehensive utilization of straw resources: Balers play a vital role in the collection, processing, and utilization of crop straw. They help promote the comprehensive utilization of straw resources, reduce environmental pollution, and boost the development of a circular economy.

Enhance the treatment capacity of agricultural waste: The use of balers and wrapping machines can efficiently handle agricultural waste, minimize the environmental pollution caused by waste, and improve the level of resource utilization of agricultural waste.

Increasing employment opportunities: The production projects of balers and wrapping machines can drive the development of related industrial chains, create more job opportunities, and help address the issue of surplus rural labor.

Boost local economic development: The production project of balers and wrapping machines can stimulate local economic development, increase local fiscal revenue, and promote the development and upgrading of related industries.

Improve agricultural competitiveness: By improving agricultural production efficiency and resource utilization rate, the use of balers and wrapping machines can assist farmers in increasing the yield and quality of agricultural products, thus enhancing the market competitiveness of agriculture.‌

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation.

1.6 What to be invested by the foreign party

Capital, other ways can be discussed in person.

1.7 Construction site of the project

Siping Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Management Committee of Siping Economic Development Zone

Address: No. 1699, Kaifa Road, Siping Economic Development Zone

2.2 Unit overview  

Siping Economic Development Zone covers an area of 71.41 square kilometers. It mainly cultivates three leading industries: medical and health green food (big health), automobiles and equipment manufacturing, and modern services. There are currently 951 industrial and commercial registered enterprises in the zone. The economic development zone has 12 high-tech enterprises, 10 provincial-level specialized, refined, characteristic, and innovative enterprises, 12 provincial-level technology research and development centers, and 6 provincial-level science and technology small giant enterprises. It has 3 well-known trademarks in China, 5 provincial-level famous trademarks, 7 provincial-level famous brand products, and has obtained more than 100 invention patents.

The development zone enjoys superior transportation and geographical location, as well as a solid industrial foundation. As one of the old industrial bases in Northeast China, Siping has a solid industrial foundation in medical food, automobiles and equipment manufacturing, and modern services. Well-known domestic enterprises such as AVIC, Junlebao, Dayao, and Baixiang have invested in the zone. The infrastructure is complete. Investment elements such as water, electricity, gas, heating, heat, and communication are abundantly supplied and are at a low-price standard in the whole province. There is an ample talent reserve. Two institutions of higher learning within the jurisdiction can provide talent reserves for the development of enterprises, and various vocational schools can provide customized talent training for enterprises, ensuring the sustainable development of enterprises.

Siping Economic Development Zone has always adhered to high-starting-point planning and high-standard construction, forming a “12345” industrial spatial layout with clear positioning, distinct characteristics, division of labor, cooperation, and staggered development. It is committed to creating a leading area for high-end services in Siping, a core area for new industries, a pioneer area for kinetic energy conversion, and an important carrier area for comprehensive opening up, and becoming an eastern business and logistics economic center of Siping urban area and an eastern growth pole of the central urban area of Siping.

“One-Core Driving”: Taking areas such as Development Zone Avenue, Ziqi Avenue, Kaiyun Street, and Wanda Business Circle as the core, modern service industries such as commerce, finance, maker, and headquarters are arranged to create a central business core area and an urban appearance display area of Siping.

“Two-Wing Agglomeration”: On the south side, taking the Siping-Changchun jointly-built automobile industrial park as the carrier, the automobile and equipment manufacturing industry is arranged; on the north side, taking the medical and green food incubator as the carrier, the medical and health green food industry is arranged, achieving the coordinated development of the two wings.

“Three Major Plates”: Every effort is made to build three development plates of automobile and equipment manufacturing, medical and health green food, and modern service industries, building the “backbone” of the development of the economic development zone.

“Four-Zone Linkage”: Adhering to the integration and linkage concept of “establishing the zone with industry, revitalizing the zone with commerce, activating the zone with reform, and strengthening the zone with science and technology”, it strongly promotes economic construction to enter the “fast lane” of development.

“Five-Park Support”: The five parks, namely, the medical and health green food industrial park with a planned area of 11.16 square kilometers, the automobile and equipment manufacturing industrial park with a planned area of 21.43 square kilometers, the industry-city integration park with a planned area of 16.54 square kilometers, the municipal facilities supporting park with a planned area of 5.11 square kilometers, and the industry-education-health-care demonstration park with a planned area of 2.49 square kilometers, serve as the carriers of the industrial chain. At the same time, there are three incubation platforms for the medical industry, green food industry, and automobile and parts industry to undertake the landing of projects.

Adhering to the principles of “industrial supporting, complete facilities, policy support, and service-oriented”, and starting from the project needs, the development zone gives full play to the carrier function of project construction and meets the actual investment needs of enterprises in three ways. First, self-investment and self-construction. Obtain the land use right through transfer and form fixed-asset investment. Second, light-asset investment. Enter the incubation platform through lease to meet the needs of enterprises for rapid production and efficiency. Third, enclave economy. Through regional economic cooperation, transfer funds, technology, and projects to achieve complementary resources and tax sharing. 

2.3 Contact method

Contact person of the project unit: Economic Operation Service Bureau of Siping Economic Development Zone 

Contact person: Wu Lei

Tel: +86-13844403550

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

Contact unit: Economic Cooperation Bureau of Siping City

Contact person: Wen Dacheng

Tel: +86-434-3260536

E-mail: spjhjjhk@163.com