Automobile and Engineering Machinery Parts Manufacture Base Project
1. Project Organizer
Hefei Economic & Technological Development Area (HETDA).
2. Background
The 20 years in future will be the strategic opportunity period of the China’s development. The development of automobile industry has a close relationship with national economic growth, and Chinese automobile industry will rapidly grow in the period. In 2003, 4 million automobiles were sold in China, and it was predicted by experts that the amount would achieve 5 million in 2005. China’s economic growth will bring a good market condition to the main Chinese automobile producers. At the same time, the automobile parts industry will also enter into a new development times.
Automobile industry is a major part of machinery industry, a pillar industry of Anhui Province. A productive system has been formed to produce both trucks and passenger coaches of light, medium and heavy type. At present, Anhui automobile industry has formed four producing centers: Ankai, Jianghuai (JAC), Yangtze (the First Automobile Manufacturer), and Changhe. Among the automobile products in Anhui, Ankai bus takes the lead in the world, and mini-bus and light truck have the first class technology in China. Ankai bus and JAC light truck are at the top of list of output and sale in China. Hefei Jianghuai Automobile Manufacturing Co. Ltd (JAC) is among top 5 local automobile manufacturers. JAC, Ankai, and Changhe are all located in HETDA.
The three engineering machinery companies (Hitachi Excavator Co., Heli Forklift Co., and TCM Forklift Co..) are all located in HETDA also.
As the automobile and engineering machinery sector ranks the first among the three pillar sectors in Hefei (29.4%), the development potential and industrial chain advantage of which are obvious.
The General facts about the development of Hefei’s automobile and engineering machinery sector are following:
Annual Production ability: 200 thousand automobiles, 18 thousand forklifts, 5 thousand excavators.
Output in 2004: 187 thousand automobiles, 15 thousand forklifts, 4000 excavators.
Domestic market share:
Light trucks of JAC with sales income listed No.2 in China. The production and sales of its chassis are listed No.1 in China.
Ankai Co. takes 6.5% of the domestic market of Luxury passenger buses and coaches, who is listed No. 10 in China.
Changhe Co. takes 8.62% of the domestic market share of mini vehicles, which is listed No. 5 in China.
Heli Forklift Co. takes 45% of the domestic market share, which is listed No. 1 in China.
Hitachi Excavator Co. takes over 20% of the domestic market share, which is listed No.4 in China.
Industrial output value: The automobile and engineering machinery sector achieved industrial output value of RMB 17.04 billion, among which automobile sector achieved 13.1 billion.
Industrial output value of the supporting auto parts: In 2004, it realized industrial output of RMB 7.8 billion, among which local supporting companies realized industrial output value of 1.2 billion.
According to the present development situation and the trend in future of Anhui Province’s and Hefei’s automobile and engineering machinery sector, the conditions to build the automobile and engineering machinery parts base in Hefei are ready. Using the local industrial advantage and recourse, developing the group superiority, the high-standard automobile and engineering machinery parts base would mainly supporting the local enterprises, and face to all the country. The market potential should be tremendous.
3. Content and Scale of the Project
Responsible for the surrounding infrastructure construction of the parts manufacture base, HETDA invites both international and domestic enterprises come to invest in the base, especially the big parts suppliers. The base’s industrial development would emphasizes two directions: one is to supply primary parts for the automobile and engineering machinery enterprises, such like engines, lamp, bearing, seat, automobile machine tool, glass, and metal panel, etc., another is to produce hi-tech automobile electronics products and systems, such like control system, hydraulic pressure system, sound, IC parts, GPS, communication and warning system, ABS, and automobile service system (selling, repair, guarantee, and credit, etc..), etc..
According to HETDA’s industrial programming in 2010: the automobile sales will be 36 billion RMB. To mainly support the development of the key enterprises like Changhe, JAC, and Ankai, etc., achieving the annual production scale of 600,000 automobiles in all types. To mainly support Hitachi, Heli, TCM, achieving the annual production scale of 43,000 engineering machines, the annual output value of 9 billion RMB. The sale of the automobile and engineering machinery industry will be over 10 billion RMB. The scale of HETDA’s Automobile and Engineering Machinery Parts Manufacture Base will be the output value of 8-10 billion RMB, and the export of 0.2 billion USD.
4. Project Market Analysis
At the junction of the centuries, there are two trends in the international economic field: economic globalization and global application of IT. In the automobile parts industry, there is also a trend: the separation of automobile parts industry from integrated automobile industry. The integrated automobile enterprises carry out the global purchase of necessary parts, not confined to the purchase of products from the enterprises of their own group. The automobile parts enterprises sell their products to the integrated automobile enterprises in the world, not confined to the sale of their products to the integrated automobile enterprises of their own group. This global change has brought new opportunities to automobile parts industry in the world. The annual global purchase of automobile parts is as much as hundreds of billion dollars. China is supposed to have an order because it has cheap labor force.
Hefei’s development goals: Main automobile production enterprises would be larger and stronger, and the supporting auto parts industry be promoted to develop. By 2010, annual automobile production quantity will achieve 0.6 million, forklift 30 thousand and excavators 13 thousand. The total industrial output value will be improved to RMB 45 billion, with one or two higher position in the city list in this aspect.
Hefei’s supporting industry development goals: The share of local supporting parts industry will rise to 50% from 15% of 2004, with industrial output value of RMB 13 billion rising from 1.2 billion of 2004. (The scale of HETDA’s Automobile and Engineering Machinery Parts base will be the output value of 8-10 billion RMB, and the export of 0.2 billion USD.)
5. Modes of Cooperation
The cooperator can adopt modes of joint venture, cooperation, or sole-capital.
6. Contact Details
Contact person: Sun Hong Fei
Add: Investment Promotion Center, Hefei Economic & Technological Development Area (230601)
Fax: 0086-551-3812940 Tel: 0086-551-3811070
Email: sunhongfei@hetda.com Website: http://www.hetda.com
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