High-end Equipment Manufacturing Industrial Park in Shangdeng Area of Dali

Name

大理创新工业园区上登片区高
Shangdeng Area, Dali Innovative Industrial Park

装备制造产业园
Equipment Manufacturing Industrial Park

Industry Involved

Advanced Equipment Manufacturing

Site

Shangdeng Area

Overview

This area is planned to create the manufacturing project for the R&D and the production of new products such as compression machinery, environmental protection machinery, power equipment, metal processing, electrical appliances, precision forging and agricultural machinery.

Content

Its total planned land area is about 400 mu. The manufacturing project is mainly the production capacity transformation of new products such as compression machinery, environmental protection machinery, power equipment, metal processing, electrical appliances, precision forging and agricultural machinery.

Supporting Conditions

Location advantages: Dali Economic & Technological Development Zone, located in the mid-west of Yunnan Province, with plateau basin terrain, at the southeastern bank of the Erhai Lake. The climate here is pleasant, warm in winter and cool in summer, spring-like in four seasons, with abundant sunshine, wet season and hot season in the same period, with distinct dry season and wet season, and rich in wind energy.

Traffic advantages: Dali is located in the middle of the Western Yunnan Economic Zone, 337 km away from Kunming, with good location conditions. There are favorable transportation conditions such as railways, highways and airlines within its administrative region. Aviation: Dali Airport (located in Dali Economic Development Zone); Railway: Guangtong-Dali Railway and Dali-Lijiang Railway; Highway: Chuxiong-Dali Expressway, Dali-Baoshan Expressway and Dali-Lijiang Expressway. (it takes 45 minutes, 6 hours and 4 hours from Kunming to Dali by air, by train and by car respectively)

Production factors: Construction materials needed by the project construction can be supplied by local building material markets and nearby brickyards and cement plants. Other materials are available in Yunnan Province. Dali Prefecture possesses abundant water and electricity resources. Water and electricity issues can be solved in the nearby relying on the unparalleled geographical conditions and location advantage of Fengyi. There are abundant labor forces locally, and the manpower supply is in abundance. Local labor force price: RMB 18,000 / year on average.

Associated industries: This project is based on the existing automobile industry (Yunnan Lifan Junma Vehicle Co., LTD and Auto Parts Industrial Park).

Early preparations: This project is located in an open ground and has convenient traffic conditions. Construction materials can be purchased and mobilized conveniently. Water and electricity issues of the project will be solved by municipal utilities in an overall way. The overall construction conditions are favorable. Shangdeng Modern Equipment Manufacturing Industrial Park is listed as the key construction project of Dali Economic Development Zone. As the park has been equipped with complete infrastructure, the project can be implemented immediately.

Investment Estimate and Fund Raising

The total investment of the project is RMB 2 billion (modern standardized workshop and subsidiary facilities), among which 70% to 80% of the investment funds are self-raised by the enterprises and 30-20% are finance by the bank loans.

Preferential Policies Applicable

National preferential tax policies regarding Western Development and other national, provincial and municipal and park-level preferential policies concerning land utilization, financing and tax are applicable.

Market Prediction (Analysis)

Through “One Belt and One Road”, and Dali is integrating with the Bangladesh-China-India-Myanmar Economic Corridor, which is playing an important role together with the resources and platforms such as China-ASEAN Free Trade Area and Pan-Mekong Sub-region Economic Cooperation. Domestically, Dali is the transportation hub and logistics transit hub in five provinces in southwestern China. Internationally, with the implementation of the national strategy “One Belt and One Road”, the new channel facing Pacific Ocean and Indian Ocean will be built to connect South Asia, Southeast Asia, Europe and even Africa, South America, which will cover 45 countries and promote the establishment of a huge market with a population of nearly 2.8 billion.

Profit Model and Preliminary Benefit Analysis

Keeping to the national strategic initiative of “One Belt and One Road” and based on the existing automobile industry of Dali (Yunnan Lifan Junma Vehicle Co., LTD and Auto Parts Industrial Park), the project will change the location advantage of Dali into channel advantage to face overseas markets such as Southeast Asian, South Asian and African markets and domestic markets such as Yunnan, Guizhou, Sichuan and Tibet markets and about 2.8 billion people will be involved. It will continue the global machinery industrial transfer to construct a domestic advanced modern machinery base with optimal structure, advanced technology and reasonable plan, city-industry integration and industrial collaboration.

Risk Analysis

With high project investment, the higher financing cost brings the financial risk in the process of project development, construction and operation.

Cooperation Pattern

Sole proprietorship and cooperation

Contact Information

Contact Unit: Management Committee of Dali Economic Development Zone and Investment Promotion and Cooperation Bureau

Contact Person: Li Yuwen       Li Jun

Tel.: 0872 -2317937   0872-2317995

Fax: 0872-2310093

E-mail: lijunkorn@163.com