EXTRA LARGE-SIZE BEARING PROJECT
Project Cooperation Content
¡¡¡¡On the basis of current LYC Extra Large-Size Bearing production lines, with addition about 10 sets key production equipments and inspection instruments, the production capability and process level of LYC extra large-size bearing are improved rapidly, in order to meet the requirements of country major construction project, rolling mill, oil well rig, mining machine, large-scale engineering machine, dock loading, power engineering and defense engineering.
Project Actuality
¡¡¡¡LuoYang Bearing Corporation Group began to produce extra large-size bearing in 1958, now it has been over 40 years production history and LYC has become the major research, developing and production base. LYC is very proud that LYC gets the forehand of extra large-size bearing in China, for example the largest size slewing bearing with OD 5.44M, the heaviest slewing bearing with 16.9T, the slewing bearing with OD 810MM and thickness 10MM. By the end of 2001, the ¡¡¡¡major capability data of LYC extra large-size bearing as follows:
Annual output: 8,047 sets Annual production value: 68.15 million Yuan
Annual sales revenue: 89.88 million Yuan Annual profit: 35.81 million Yuan
Production types: 522 Equipment quantity: 295 sets
Employees: 877 Covering area: 30262M2
Workshop area: 24947M2 Total assets: 59.08 million Yuan
Equity: 39.64 million Yuan (by the end of Aug.2002)
Original value of fixed assets: 35.82 million Yuan
Equity of fixed assets: 13.16 million Yuan
Market Analysis and Development Forecast
¡¡¡¡Along with China’s entry to WTO, the Chinese Economy will come to a new developing period, the heavy chemical-industry representing metallurgy, petrochemical industry, electric power (include wind electric power generation), large engineering machinery, aviation and spaceflight etc. national defense engineering and equipment-manufacture will play an important role of development, this is also an important embodiment of a country’s national economy strength. It is estimated that the market demand will be hopeful to break through 100 thousand sets, the production value reach to 900 million Yuan during the 10th five-year plan. And LYC current market percentage with extra large-size bearing product such as slewing bearing, rolling mill bearing, spherical roller bearing is 22%, 7%, 32% respectively, so the developing space of LYC is great. According to the requirements of LYC development layout in the 10th five-year plan, the extra large-size bearing basically maintain its former productive capability, exert itself to solve the bottleneck problem on technology, improve product level, try to reach to the original designed-capability (15..3 thousand sets) so as to make LYC’s extra large-size bearing manufacture level, production level, productive capability outclass other manufacturers in the same industry.
Project cooperative method
¡¡¡LYC prepare to provide the ground, workshop and water, electricity gas etc. supporting facilities, and become a shareholder with the reconstructed overall assets, employee, technique and immaterial assets.
Project financial analysis
¡¡¡¡The project of technical reconstruction will newly increase the total investment of fixed assets 29 million Yuan (include foreign currency 1.62 million USD), It will newly increase annual sales revenue 32.21 million Yuan, and profit 1.91 million Yuan, the profit rate of investment is 12.1%, the profit- tax rate is 18.9%, and the forecast investment payback period is 6.85 years.

Unit: Collecting funds cooperation office of Luoyang Bearing Group Corporation Ltd.
Add: 96, Jianshe Road, Luoyang, Henan, China.
P. C. : 471039
Tel: (86 379)4985666 4985742
Fax: (86 379)4985666
Http://www. lyc. com. cn
E-mail: lycrzb@yahoo. com. cn