Construction Project of Agricultural Machinery Industry Base in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Name

中国（云南）自由贸易试验区德宏片区农业机械产业基地建设项目

Construction Project of Agricultural Machinery Industry Base in Dehong Area of China (Yunnan) Pilot Free Trade Zone

Industry Involved

Machinery Manufacturing

Site

Import & Export Processing and Manufacturing Base, Ruili Industrial Park, Dehong Prefecture

Project Description

Relying on the advantages of Ruili along the border, the project is to build an agricultural machinery industrial base at the frontier of the port, and select the import and export processing and manufacturing base of Ruili Industrial Park, to produce agricultural products processing machinery such as walking tractors, wheeled tractors, small excavators and sugar making machines, and agricultural machinery accessories such as diesel engines. The project construction will improve the agricultural mechanization level in Yunnan Province and surrounding countries and regions, and create the birthplace of agricultural machinery technology and the radiation source of products in China.

Content

Construction scale: The main construction contents include agricultural machinery production and processing workshops, warehousing and logistics areas, comprehensive office areas, staff activity centers and other auxiliary facilities.

Construction period: 2020 -2021

Land area: The project is planned to cover an area of 300 mu, with a capacity building area of 216,000 square meters and a floor area ratio of 1.08.

Supporting Conditions

1. Rich mineral resources

There are more than 20 kinds of proven mineral resources in Dehong. Non-ferrous metals mainly include tin, lead, zinc, copper, tungsten and chromium, while ferrous metals include iron and nickel. The surrounding areas are rich in mineral resources, abundant in raw materials for agricultural machinery manufacturing and relatively low in transportation costs.

2. Promising market development potential

Myanmar is a country based on agriculture, and the development of rural areas and agriculture is the key to Myanmar's modernization and is of great significance to Myanmar's economic and social development. Agricultural mechanization is an important link of agricultural development in Thailand, and there is a great demand in the future. Therefore, Myanmar market and other markets in South Asia and Southeast Asia have great potential for development.

3. Cheap labor

As the first port of China's trade with Myanmar, Ruili has a high degree of economic exchanges with Myanmar. Also, Myanmar is rich in labor resources, and Ruili actively introduces Myanmar workers, thus resulting in lower labor prices.

4. Creating conditions for the construction of free trade zone

Dehong Free Trade Zone is located in the main urban area of Ruili City, which is the core and key area of economic development in Ruili City in the future. In the future, more products will be integrated into the Free Trade Zone, trade barriers will be further reduced, and trade share will continue to increase. The construction of the Free Trade Zone has injected new vitality into Ruili's economic development and created more convenient conditions for enterprises to "go global".

5. Trade port provides convenience

Ruili Port is China's largest land trade port with Myanmar, opposite to Muse, a national port in Myanmar. The Port, with the export of assembled small and low-cost agricultural machinery products as a main part, can provide a convenient channel for the sale of small agricultural machinery by making use of domestic and overseas resources and markets.

Investment Estimate and Fund Raising

The total investment is CNY 421.6694 million, including CNY 126.5094 million raised by enterprises, and CNY 295.16 million raised by financial institutions.

Preferential Policies Applicable

In addition to the national western development policy, the project can also enjoy the support policy of Dehong Pilot Free Trade Zone. The Trial Measures for Investment Promotion in Dehong Area of China (Yunnan) Pilot Free Trade Zone guarantees the production of enterprises from various aspects such as industrial support, talent support and investment factor guarantee, and strongly promotes the project construction.

Market Prediction (Analysis)

When agricultural machinery market enters the period of stock competition in China, enterprises must develop the international market if they want to achieve development. To enter the international market, small and medium-sized agricultural machinery products will be our "hard core" advantage. For example, South Asia and Southeast Asia countries, as developing countries, still have the agriculture as the core industry. Therefore, small agricultural machinery will usher in great development opportunities in these areas.

Profit Model and Preliminary Benefit Analysis

The annual realizable income of the project will be CNY 285 million:

1. After the completion of the project, the annual output of walking tractors will be 15,000 units, and the annual realizable sales revenue will reach CNY 52.5 million based on CNY 3,500/unit;

2. The annual output of wheeled tractors will be 10,000 units, and the annual realizable sales revenue will reach CNY 150 million based on CNY 15,000/unit.

3. The annual output of small excavators will be 50 units, and the annual realizable sales revenue will reach CNY 5 million based on CNY 100,000/unit;

4. The annual output of sugar making machinery will be 5,000 units, and the annual realizable sales revenue will reach CNY 5 million based on CNY 1,000/unit;

5. The annual output of internal combustion engines will be 20,000 units, and the annual realizable sales revenue will reach CNY 40 million based on CNY 2,000 /unit.

6. The annual output of other agricultural machineries and accessories will be 500,000 sets, and the annual realizable sales revenue will reach CNY 32.5 million based on CNY 65/set.

Risk Analysis

The project may face certain risks in terms of policy, construction, market, interest rate (exchange rate), and operation, so reasonable preventive measures should be formulated.

Cooperation Pattern

Joint venture, cooperation, equity participation, PPP, etc.

Contact Information

Contact Unit: Investment Promotion Bureau of Ruili City

Contact Person : Yao Chenghu

Tel.: 13988252077

Fax: 0692 -4141253