1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The straw feed baler features advanced performance and high-efficiency operation. It is suitable for baling various crop straws such as those of corn, rice, and wheat. The bales are of high density, which facilitates the rotation and transportation of bundled straws. This project is located in Jilin Lishu Economic Development Zone and is engaged in the production of intelligent straw feed balers.

1.1.2 Market prospect

(1) Development status of the baler industry

A baler is a mechanical device used to pack and bind materials like crop straws, forage, and waste cartons. The baling operation of crops can transform traditional harvesting, transportation, and storage methods, and boost the development of the energy market. For instance, in Inner Mongolia, forage is harvested and baled; in Xinjiang, cotton and sunflower are baled; in the Central Plains region, wheat and corn straws are baled; in the Northeast region, corn and soybean straws are baled; and in the southern region, rice straws are baled.

In recent years, the state and local governments have introduced a series of laws, regulations, and industry policies regarding agricultural modernization, agricultural mechanization, and agricultural machinery equipment manufacturing in aspects such as agricultural machinery purchase subsidies, land transfer, and straw utilization. These measures have effectively propelled the rapid development of China's agricultural machinery industry towards standardization, green development, and intelligence, creating a favorable external competitive environment and development opportunities for the baler industry.

Straw resources are important renewable resources, rich in heat energy as well as nutrients like carbon, nitrogen, phosphorus, potassium, and trace elements, and thus have extensive application value. As a strategic industry, it plays a significant role in various fields including papermaking, agriculture, energy, and panel manufacturing. In 2023, the national output of various crop straws was approximately 865 million tons, and the collectable resources amounted to around 731 million tons, with the collectable straw resources accounting for about 84% of the annual straw production. Balers are essential equipment in the comprehensive utilization of straw resources. With the increasing support for modern agriculture from the state, the area of planted crops is continuously expanding, and the quantity of straw is steadily rising, which will directly drive the growth in demand for balers.

The main raw materials of balers include steel, rubber, and plastic. The quality and performance of these materials directly impact the manufacturing quality and service life of balers. Therefore, the selection of raw material suppliers is of crucial importance to baler manufacturers. The mid-stream of the industry mainly involves the production and manufacturing of balers. The end-users of balers mainly include farmers, livestock industry practitioners, and straw collection and storage companies. By purchasing and using balers, these users can efficiently collect, process, and utilize crop straws, thereby improving agricultural production efficiency and resource utilization rates.

With the advancement of the domestic supply-side structural reform, the agricultural industrial structure has undergone major changes. Strategies such as "grain-to-forage" have been successively introduced. The livestock industry has entered a period of rapid growth, leading to a substantial increase in the demand for livestock machinery. The baler industry has also entered a new development stage following the general trend of the industry. In 2016, the incremental retention of the domestic baler market exceeded 10,000 units for the first time, and the market upgrade started to gain momentum. In 2018, the annual incremental retention of the baler market exceeded 33,000 units, achieving a 132% growth year-on-year, which was the largest increase ever. In recent years, the market has shown a steady upward trend. In 2023, affected by various factors, the overall market sales volume declined by approximately 25,000 units, and the overall market entered a consolidation period.

Looking ahead, with the continuous progress of agricultural modernization and the State's emphasis on green energy, the baler industry is expected to embrace new development opportunities. It is recommended that baler manufacturers continuously focus on technological innovation, enhance the intelligence and automation level of equipment to meet the market demand for high-efficiency and environmentally friendly balers. At the same time, they should strengthen cooperation with industries such as agriculture and energy to jointly develop comprehensive utilization plans for straw resources and promote the sustainable development of agriculture. 

(2) Analysis of the baler market prospect

After years of development, foreign baler technologies have become relatively complete in structure and mature. They will develop in multiple directions such as large-scale, intelligent, and electromechanical-hydraulic integration. Relying on their advanced manufacturing capabilities, they can produce products with more superior performance.

In addition, with the rise of "Internet +" and driverless technologies, these advanced technologies will gradually be applied to baling machinery. Domestic research institutes and large-scale enterprises in the industry have started to increase their R&D efforts on baling machinery, bringing certain opportunities for the development of balers.

With the continuous implementation of land-intensive management by the state, the development of the potential utilization value of straw resources, and the continuous improvement of China's manufacturing level, baling machinery will develop towards large-scale and high-efficiency. At the same time, with the development of science and technology in China and the continuous improvement of the intelligence level of the manufacturing industry, to reduce the burden on operators, simplify operations, and meet the need for real-time monitoring of complex system failures, the requirements for the intelligence level of machines are getting higher. Therefore, China's baling machinery will develop in the direction of continuously improving its intelligence level.

In conclusion, the development trend of baling machinery is evident. Driven by technological maturity and innovation, baling machinery has become not only more complete in structure but also more diversified and intelligent in function. In the future, with the further integration and application of technologies, baling machinery will be more efficient and intelligent, better meeting the needs of modern agriculture. Meanwhile, the active participation of relevant domestic enterprises and research institutions will accelerate this process and promote the development of China's baling machinery industry to a higher level. We have reasons to believe that in the near future, China's baling machinery will gain a place in the international market and contribute to global agricultural modernization. 

1.1.3 Advantageous conditions of project construction

(1) Policy advantage

The "Agricultural Technology Promotion Law of the People's Republic of China (Revised in 2024)" states that efforts should be made to strengthen agricultural technology extension work, promote the application of agricultural research achievements and practical technologies to agricultural production as soon as possible, ensure the development of agriculture, and achieve agricultural modernization.

The "Opinions on Doing a Good Job in the Key Work of Comprehensively Promoting Rural Revitalization in 2023" proposes to accelerate the research, development, and promotion of advanced agricultural machinery. Speed up the research and development of large-scale intelligent agricultural machinery equipment, small-scale machinery suitable for hilly and mountainous areas, and horticultural machinery. Support the integrated application of Beidou intelligent monitoring terminals and auxiliary driving systems. Improve the subsidy policies for the purchase and application of agricultural machinery, explore subsidy methods linked to the amount of work, and local governments should fulfill their legal expenditure responsibilities.

(2) Talent advantage

Siping is home to many universities, including Jilin Normal University, Boda College of Jilin Normal University, Jilin Agricultural Engineering Vocational-Technical College, Siping Vocational University, Hongzui Vocational and Technical College which is under construction, 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 society every year. Surrounding cities like Changchun, Harbin, and Daqing have numerous universities, which can provide over 500,000 high-level talents annually. These talents can provide technical support for the project construction.

(3) Location and transportation advantage

Jilin Lishu Economic Development Zone (North Area) is located at the junction of Gongzhuling City, Shuangliao City, and Lishu County. It is an important grain-producing area in Northeast China, an important business and logistics distribution center in the northern part of Siping, and an important node city in Siping's "one-core, three-belt" layout. It has convenient transportation and is well-connected, which is conducive to logistics and personnel exchanges. In addition, the development zone has complete infrastructure and an excellent investment environment, attracting many enterprises to invest and start businesses.‌

The development zone is 60 kilometers away from Siping City, 100 kilometers away from Changchun, the provincial capital. It is 10 kilometers away from the nearest exit of the "Changchun-Shenzhen" Expressway, 20 kilometers away from the nearest exit of the "Daqing-Guangzhou" Expressway, and only a little over an hour's drive from Changchun Longjia Airport. The "Yakeshi-Siping" National First-class Highway passes through the zone, and the under-construction "Ji'an-Shuangliao" Expressway has four entrances and exits in Lishu County.

1.2 Contents and scale of project construction

The project covers an area of 31,000㎡, with a construction area of 19,000㎡. It includes production workshops, raw material warehouses, a boiler room, a workers' canteen, a comprehensive office building, and production equipment, 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 330 million yuan, including the construction investment of 264 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 211.54 million yuan, its profit will be 63.46 million yuan, its investment payback period will be 7.2 years (after the tax, including the construction period of 2 years), and its return on investment will be 19.23%.

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

1.4.2 Social evaluation

The intelligent straw feed baler can quickly complete the collection, cutting, compression, and binding of straw through automated control. This not only significantly improves production efficiency but also remarkably reduces labor costs, supporting the large-scale and intensive development of agricultural production. Meanwhile, this equipment converts straw into feed, promoting the circular utilization of agricultural resources, reducing resource waste and environmental pollution caused by straw burning, and contributing to the improvement of air quality. In addition, the intelligent straw feed baler conducts fine-processing of straw, ensuring the quality and safety of the feed, and providing a strong guarantee for the development of the aquaculture industry. To sum up, the production and manufacturing of intelligent straw feed balers are of great significance for promoting agricultural modernization, enhancing agricultural production efficiency, and improving resource utilization rates.

1.5 Cooperative way

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

1.6 What to be invested by the foreign party

Capital, other methods can be discussed in person.

1.7 Construction site of the project

Jilin Lishu Economic Development Zone (North Area).

1.8 Progress of the project

Foreign investment attraction.

2. Introduction to the Partner

2.1 Basic information

Name: Jilin Lishu Economic Development Zone

Address: East Section, Fenghua Avenue, Lishu Town

2.2 Overview

In 2021, in accordance with the spirit of relevant documents of the Provincial Party Committee and the Provincial Government on the integration and optimization of development zones, Jilin Liaohe Reclamation and Management Area was integrated with Jilin Lishu Economic Development Zone, and afterwards named as Jilin Lishu Economic Development Zone. 

At present, Jilin Lishu Economic Development Zone consists of five areas, with a total planned area of 14.28 square kilometers. It focuses on building and developing four industrial clusters, namely, four industrial parks for agricultural and livestock products processing, medical and health, modern service industry, and plastic weaving. Among them, Lishu Development Zone covers an area of 3.3 square kilometers, mainly developing industries such as medical and health, intensive processing of agricultural and livestock food, and high-tech industries. Huojiadian Industrial Zone covers an area of 4.33 square kilometers, mainly developing industries such as rural tourism and modern logistics. The Gujiazi area covers an area of 6.65 square kilometers, mainly developing industries such as agricultural machinery manufacturing, plastic weaving processing, and new energy. It also develops industries such as food processing and modern service industry. 

Lishu County is located in the central western part of Jilin Province, with an east-longitude range of 123°45′-124°53′ and a north-latitude range of 43°02′-43°46′. It faces Gongzhuling City across the East Liao River in the east, borders Siping City in the south, adjoins Changtu County, Liaoning Province in the west, and is bounded by the East Liao River with Shuangliao City in the north. It has an area of 3,232 square kilometers. In 2020, Lishu County governed 15 towns, 6 townships, 3 sub-district offices, 304 villages, and 41 communities.

Jilin Lishu Economic Development Zone is located in the hinterland of the Songliao Plain and in the core area of the "Changchun Economic Circle". It is a provincial-level development zone in Jilin Province. Jilin Lishu Economic Development Zone consists of five areas, with a total planned area of 14.2865 square kilometers. 

2.3 Contact method

2.3.1 Contact method of the project unit:

Contact unit: Jilin Lishu Economic Development Zone

Contact person: Gao Fei

Tel: +86-13904355727

E-mail: 219512406@QQ.com

2.3.2 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