Wuding Titanium Products Intensive Processing Construction Project

Project Name

武定县钛系列产品精深加工建设项目

Wuding Titanium Products Intensive Processing Construction Project

Project

Industry

New Material Industry

Project Site

Lujin New Industrial Zone, Wuding County

Project Overview

For the project, the planned land area is 350 mu, and the investment estimate is RMB 1.05 billion. Taking aerospace, shipbuilding, marine engineering, chemical industry and other high-end industries as the main product research and development directions, taking biomedical, sports equipment, daily necessities, building materials, auto parts, packaging materials, anticorrosive coatings and other civil fields as the market development directions, and taking independently developed scientific and technological innovative products and dedicated functional products as the main development goals, the project is aimed at building a new titanium intensive processing industrial base with an annual output value of RMB 4 billion to achieve transformation of primarily processed titanium products. The project will target Urban Agglomeration of Central Yunnan as the core market, and effectively reach the consumption markets of more than 10 million people in Guangxi, Guizhou, Yangtze River Delta, Pearl River Delta and ASEAN, etc.

Project Construction

Content

The project adopts a layout of one core, three areas and two modules (one core: technology research and development core area; three areas: production & processing area, administrative office area, and product display area; two modules: warehousing & logistics module, living facility module).

As planned, the project covers a land area of about 350 mu. The core area of technology research and development is 20 mu; the production processing area is 200 mu, the administrative office area 20 mu, and the product display area 20 mu; the warehousing and logistics module is 70 mu, and the living facility module 30 mu.

Supporting Conditions

Wuding County has a developed highway network, and convenient water and land transportation. It is one of the intersections between the national north-south artery Beijing-Kunming Expressway and the axis of central Yunnan intercity high-speed railway circle and expressway circle.

Road: Beijing-Kunming Expressway runs across the county; National Highway 108 runs across 4 towns of the county; Wuding-Kunming Expressway has greatly shortened the mileages from Kunming, Wuding, Yuanmou and Yongren respectively to Panzhihua.

Waterway: The part of the Jinsha River that flows across the county is 34 km in 3 towns.

Aviation: It is a drive of 1 h and 30 min only from Wuding to Changshui International Airport. Wuding General Airport has been included in the national and provincial comprehensive transportation planning.

Lujin New Industrial Zone is located to the southeast of Wuding county seat, 14 km from the county seat, 44 km from Kunming West Third Ring Road, and 220 km from Panzhihua City. Beijing-Kunming Expressway (G5) runs across the middle of the zone and has an interchange exit in Lujin. The proposed Lufeng-Wuding Expressway is located in the south of the planning area. The northern part of the zone is from Kunming-Lufeng Secondary Road, so the transportation advantage is obvious.

In 2017, the county achieved a GDP of RMB 7.61 billion, an increase of 11.9%; a local fiscal revenue of RMB 580 million, an increase of 7.6%, fixed assets investment above designated scale of RMB 11.7 billion, an increase by 32.9%. The amount of investment attraction rose from RMB 1.543 billion in 2012 to RMB 9.21 billion in 2017, with an average annual growth of 34.3%; the per capita disposable income of urban residents and the per capita net income of farmers reached RMB 32,089 and RMB 9,178 respectively.

Investment Estimate and Fund Raising

Investment estimate: RMB 1.2 billion.

Fund Raising: joint venture, sole proprietorship or other.

Preferential Policies Applicable

The preferential policy refers to the Opinions of the CPC Wuding County Committee and the People's Government of Wuding County on Comprehensively Strengthening Investment Attraction. For major projects, the county government adopts the "one matter, one discussion" approach and guarantees one department-level leader as an organizer, one county-level department as a coordinator, one person in charge of implementation, one service group providing door-to-door service, one set of implementation programs, and one set of standard procedures for each project so as to further optimize the soft environment for investment attraction.

Market Prediction (Analysis)

Titanium is a material with excellent physical properties and stable chemical properties. Titanium and titanium alloys have high strength, small specific gravity, and resistance to seawater corrosion and marine atmosphere corrosion. After years of efforts by application researchers in titanium industry and marine engineering, titanium has been widely used in offshore oil and gas development, seaport construction, coastal power stations, seawater desalination, ships, marine fishery, ocean thermal energy conversion and other fields. Titanium and titanium alloys have good characteristics like low density and high specific strength. They play irreplaceable roles in reducing structural weight, improving structural efficiency, improving structural reliability, improving machine life, and adapting to high-temperature and corrosive environment. They are widely used in such fields as material chemical industry, water conservancy and electric power, aerospace, and metallurgical steel. Known as "space metal", "marine metal" and "smart metal", titanium is an important strategic metal in the 21st century. Nowadays, marine engineering has become one of the main civil application fields of titanium. According to the statistics of China Nonferrous Metals Industry Association, the annual output of titanium in China is about 50,000 t, and the total sales volume is about 44,000 t, of which 36,000 t are sold domestically. In China, processed titanic materials are mainly used in chemical industry, followed by aerospace, electric power and so on. In recent years, China’s titanium processing industry has been upgraded structurally, with the proportion of high-end titanium applications represented by aerospace application increase year by year as the demand for high-end products grows. In China, about 42% of titanium is used in the traditional chemical field, and the proportion of titanium used in aerospace is less than 20%, which is far below the international average of about 50%. According to China’s requirement of "independently developed and controllable" for military products, the domestication of aviation development will be certainly accompanied by a huge demand for high-performance titanium alloys. According to the general titanium content of foreign aero-engines, it is roughly estimated that the titanium consumption of a single WS-10 engine is about 2 t, so a double-engine fighter consumes about 4 t of titanium. It is expected that the titanium demand of the above four models will reach 7,000 t per year in the next three years, corresponding to a market scale of more than RMB 2 billion per year; in the next 10-20 years, the incremental demand for aviation titanium brought by new models will reach 30,000 t per year, corresponding to a market size of over 10 billion. The market prospect is promising.

Profit Model and Preliminary Benefit Analysis

As expected, the completed project will reach an annual processing capacity of 10,000 t titanium alloys and titanium alloy ingots. In the early stage of the project, the annual output value is expected to reach RMB 4 billion through the production and sales of six categories of intensive processing products; in the middle and late stages of the project, with the continuous improvement of titanium industry chain and the continuous innovation of intensive processing technology, the project will also introduce high-precision product research and development and production, and the output value will increase year by year. The project belongs to a labor-intensive, capital-intensive and technology-oriented sector, in which the upstream and downstream industries are closely related, so that capital and high-tech talent will continuously flow to the project site, effectively solving the employment problem of labor forces and promoting the development of local economy.

Risk Analysis

This project produces intensive-processing titanium product. The main risks are the technical risk and risk in sales.  Our enterprise should always pay attention to the pioneer technology in the field, learn from it and set up our own independent research and development team, keeping up with the advanced skills. In addition, the first stage of this project mainly focuses on the production and sales of civilian products. We have few rivals, and a huge market. But the customers know little about our products. So we should strictly control the channel sales and product quality, try to meet the needs of high-end customer, launch targeted product advertising in the corresponding channels, so that we can build a good reputation, brand image, and lay a solid foundation for the future development of our products.

Cooperation Pattern

Sole proprietorship, joint venture and cooperation.

Contact Information

Contact Authority: Investment Promotion Bureau of Wuding County

Contact Person:  Zhu Jianquan

Tel.: 0878-8712787

E-mail: wdzsxxxmg@163.com