¡¡Project
Construction of Bearings Production Line Used in Manufacturing Passenger
Car Bearings Content of Cooperation Project
¡¡¡¡It is planned
to produce 1 million sets of hub bearings for the passenger cars of the
second and the third generations at the beginning. The capital construction
items: the turning line with NC lathes as the principal equipment; the
importing technology and the production line of component's surface heat
treatment hardening; the importing automatic bearings production line
of grinding and assembly. The new building with an area of 8,000 square
meters will be constructed. The total investment of the project is 253
millions yuan. The investment for fixed assets of the above projects is
RMB 178 millions yuan (including US¡ç 8 millions), of which
the foreign fund of RMB 124.6 million yuan will be used and another part
of the fund (RMB 53. 4 millions yuan) will be raised by the enterprise
itself. Market Forecasting
¡¡¡¡The automobile
industry is an important pillar of our national economy. During the period
of the 8th Five-Year Plan, the State Council made the policy of the vitalization
of the automobile industry through the development of the passenger car
industry, therefore our automobile industry developed rapidly in the recent
years, many new types of the national passenger cars have made to meet
different demands of the market, such as: 150 thousands Buick cars and
200 thousands Model B5 Santana cars per year. Others also will put into
production, as: Model C3V6 Audi cars, etc. As Chinese big bearings factories
have not capability to make new types of hub bearings, the original generation
bearings are limited to match with new cars. At present such new hub bearings
have to be imported totally. According to Chinese cars market's forecasting,
the needs of new hub bearings of the second and the third generations
will reach to 2.8 millions sets in the future 5-10 years. Considering
the demands for maintenance and repair bearings, the amount of new bearings
will increase 4.4 millions sets. Due to the lower labor cost in cur country,
we will have a certain shares in the international bearings market. So
the markets of bearings for cars prospects are very considerable. Condition of the construction project
¡¡¡¡The project is
to be constructed in the Luoyang High & New Technology Industry Development
Zone where the matching facilities such as water supply, power supply,
gas, transportation, communication etc. are well completed. It is also
provided necessary equipments, staff and relative techniques and market
resources. Financial Analysis of Project
¡¡¡¡After it is put
into operation, the project will have the sales revenues of RMB 320 millions
yuan. The newly-added profit will be RMB 50 millions yuan, the time of
returning investment will be 5.2 years.
