Heqing Hydropower and Aluminum Materials Integrated Intensive Processing Project

Project Name

鹤庆县水电铝材一体化精深加工项目

Heqing Hydropower and Aluminum Materials Integrated Intensive Processing Project

Project

Industry

New Material Industry

Project Site

Xiyi Area of Xinghe Industrial Park, Heqing County

Project Overview

With the development idea of "extending the industrial chain, expanding the industrial cluster and strengthening the aluminum industry", focusing on hydropower-based production and intensive processing of aluminum, combined with the development foundation and market demand of hydropower and aluminum industry in the park, the project is to make a series of products such as casting materials, extrusion materials, profiles made of aluminum alloy,  to build a first-class intensive processing industrial cluster area engaged in the integration of hydropower and aluminum materials.

Project Construction

Content

Covering an area of about 1,000 mu with a construction area of 400,000 square meters, the project plans to build an aluminum alloy casting workshop, extrusion processing workshop, profile processing workshop, and others.

Supporting Conditions

1. Land acquisition and reserve. 12,700 mu of land has been purchased as a reserve, meeting the land demand;

2. Water supply.  A number of water supply projects have been built in Xiyi Area, with a short-term daily water supply capacity of 20,000m³ and a long-term planning daily water supply capacity of 32,000m³, which fully meets the water demand;

3. Transportation. RMB 650 million has been poured for 33 kilometers of road including Beiqi Highway, south line, and north line of the park; RMB 570 million has been invested to build a railway freight yard in the park, with a transportation capacity of 2.9 million tonnes;

4. Power facilities support. There are several substation projects in Xiyi Industrial Park with a total power supply capacity of 16,000KW, which can fully meet the power supply requirements of the project;

5. Gas supply.  The China-Myanmar Natural Gas Pipeline passes through Xiyi Industrial Park with a length of 10km from valve 4 (Shipingzi gas storage) to Xiyi Park (including one transmission station and one gate station), which can fully meet the gas demand;

6. Other infrastructure support. Heqing No.2 Sewage Treatment Plant and supporting pipe network project, water plant and pipe network project (phase I) in Xiyi Industrial Park, and supporting infrastructure such as Xiyi Enterprise Service Center were built;

7. Raw materials of aluminum production based on hydropower. In Heqing Xinghe Industrial Park, it is planned to produce 1.15 million tons of green and low-carbon aluminum through hydropower. By 2020, green and low-carbon aluminum produced through hydropower is expected to be 800,000 tonnes, meeting the raw material demand of the project.

Investment Estimate and Fund Raising

According to estimates, the total investment will be RMB 3.02 billion, including RMB 2.51 billion of engineering cost, RMB 78 million of preliminary cost, RMB 120 million of interest during construction, and RMB 220 million of circulating fund.

Preferential Policies Applicable

Some provincial and prefectural preferential policies such as Preferential Policies for Investment Attraction of Yunnan Green Low-carbon Hydropower and Aluminum Intensive Processing Industrial Park and "One policy for one enterprise" are applicable.

Market Prediction (Analysis)

Aluminum processing material is an important basic raw material for the development of the national economy. It is widely used in transportation, construction, and other industries. In the future, with the continuous expansion of aluminum application fields, the consumption of related products will also increase, making the project enjoys broad market prospects.

Profit Model and Preliminary Benefit Analysis

After the completion of the project, it is expected to achieve an annual sales revenue of RMB 4.2 billion and an annual after-tax profit of RMB 370 million. The investment recovery can be completed in 8 years (excluding the 3-year construction period)

Risk Analysis

The overall risk is manageable.

Cooperation Pattern

Sole proprietorship, joint venture, cooperation, etc.

Contact Information

Contact Authority: Investment Promotion Bureau of Heqing County

Address: No.2, Beimen Street, Yunhe Town, Heqing County

Contact Person: Yang Jinmei

Tel.: 0872-4121218  0872-2332168  15708729296