High-end Intelligent Equipment Manufacturing Project in Kunming Economic and Technology Development Zone

Project Name

昆明市经开区高端智能装备制造项目

High-end Intelligent Equipment Manufacturing Project in Kunming Economic and Technology Development Zone

Project

Industry

Advanced Equipment Manufacturing Industry

Project Site

Qingshui Area, Economic & Technological Development Zone, Kunming City

Project Overview

Relying on the development opportunities brought by China (Yunnan) Pilot Free Trade Zone in Kunming, the project, which is to be located in Qingshui Area of Kunming Economic and Technological Development Zone, will give full play to the superior spatial location and diversified industrial development environment of the national economic and technological development zone. With investment attraction to powerful investors, it will grow into a high-end intelligent equipment manufacturing project integrating R&D, design, integration, display training, and technical services and will be built into a high-end equipment manufacturing industrialization base in Yunnan Province, an intelligent manufacturing export base for South Asia and Southeast Asia, and a regional intelligent manufacturing demonstration center in the future.

Project Construction

Content

Construction Scale: The project mainly includes an R&D center, a production area (pre-production test workshop, production workshop), a storage and logistics center, a trade exhibition center, an administrative office area, a living area, and supporting projects.

Construction Duration: 3 years

Land Area: About 600 mu with an overall floorage of 441,000 m²

Supporting Conditions

1. Project Advantages and Opportunities:

Located in the east of Kunming city, Kunming Economic and Technological Development Zone stands in the center and connecting node of the triangle area of the main urban area, Chenggong New district and airport economic zone, which is the connecting hub of the three functional sections of Kunming and is also an important passageway exit in the east and southeast of Kunming. Most of the connecting lines to and from Kunming are converged and distributed here. Airport: Kunming Economic Development Zone is 15 minutes away from Kunming Changshui International Airport; high-speed railway: Shanghai-Kunming High-speed Railway, Nanning-Kunming High-Speed Railway, the upcoming Chongqing-Kunming High-Speed Railway; metro lines: lines 4, 7 and 9 are under construction; expressway: Kunming-Shili Expressway, Kunming-Yuxi Expressway, Kunming Ring Expressway, and Guiyang-Kunming Expressway.

2. Associated Industries:

In August 2019, China (Yunnan) Pilot Free Trade Zone was officially approved to be established. As the key area, Kunming has a broad development space with major development opportunities, contributing to a free and open investment environment and fair market environment for the project.

Kunming Economic Development Zone has now formed an industrial structure with major industries such as equipment manufacturing, biological medicine, food and beverage, tobacco and supporting facilities, optoelectronic information, and modern service industries such as modern logistics, information software, financial services, and technical services, which are symbiotic and mutually reinforcing.

The park has a good situation in which the whole vehicle industry of Yunnan Wulong New Energy Electric Vehicle, the national production and development of hydropower equipment of Kunming Electric Motor Factory, the national automobile distributor of Yunnan Publishing Group, Zhongsheng Dalian Group, the manufacture of precision machinery of Yunnan Rongke's special equipment, the manufacture of Yunnei power diesel engine, and the multi-industry cluster development of Baoneng New Energy Vehicle Base of Baoneng Group.

3. Early Preparations:

The project is in the early stage of planning

Investment Estimate and Fund Raising

Investment Estimate: RMB 3 billion

Fund Raising: elf-raised by enterprises, bank loans, and other ways of financing

Preferential Policies Applicable

The project can enjoy the relevant preferential policies of The Regulations of Kunming Economic and Technological Development Zone on Some Policies for Promoting Investment Attraction (Trial); On the basis of preferential policies given to enterprises by the state, provinces and cities, a series of policies and measures to encourage investment attraction and promote industrial development have been formulated and introduced in combination with their own actual conditions. In addition, “one enterprise, one policy” will be carried out for projects and enterprises that are in line with the industrial orientation, scientific and technological content and high added value of Kunming Economic Development Zone, and support policies and financial rewards will be given.

Market Prediction (Analysis)

With the rapid development of global intelligent manufacturing industry, high-end equipment has ushered in a period of rapid development. Based on the current development status and trend of global intelligent manufacturing, it is conservatively estimated that the global intelligent manufacturing industry will maintain a compound annual growth rate of about 10% in the next few years. It is estimated that the global intelligent manufacturing output will reach about $1.51 trillion by 2022. With the rapid development of China's traditional industrial technology transformation, factory automation and enterprise informatization, the demand for automation equipment will continue to grow. By 2023, the market scale of China's automation equipment will reach 679.4 billion yuan.

China has become the world's largest industrial robot application market. With the rapid development of industrial robots in China, industrial robots in China have entered the industrial extreme and become the largest industrial robot application market in the world. The overall sales volume of robots in China is increasing year by year. In 2019, the sales volume of robots in China was nearly RMB 60.8 billion, mainly industrial robots, accounting for 66% of the total. In 2019, the scale of China's industrial robot market is nearly RMB 40.1 billion, and the market size may exceed RMB 60 billion in 2020.

Profit Model and Preliminary Benefit Analysis

By preliminary estimation, the project will generate revenue through sales of robots, 3d printed products, intelligent control equipment, automatic instruments and technology transfer, and patent licensing after the project construction. The expected revenue is 1.005 billion/year after reaching the production year, the investment return rate is 13.21% , and the total investment packback period is 7.6 years.

Risk Analysis

Market risk: as the State advocates the elimination of backward production capacity, promotion of industrial upgrading and higher requirements for energy conservation and environmental protection, high-end equipment manufacturing and production licensing barriers are also higher and higher. The enterprises need strong market operation and expansion ability.

Technical risk: China's high-end intelligent manufacturing equipment has a high degree of dependence on foreign countries, and the manufacturing technology and core components mainly rely on imports. Affected by the trade war and the COVID-19 epidemic, it has brought uncontrollable technologies to the project development.

Capital risk: high-end equipment manufacturing industry is a typical capital-intensive industry. Enterprises need to invest huge sums of money in the early stage to purchase modern design software and processing equipment, ultra-large high-precision CNC equipment and complete sets of testing equipment, etc.,which requires enterprises to have strong capital management and control strength.

Cooperation Pattern

Participation, cooperation or sole proprietorship, etc

Contact Information

Contact Authority: Management Committee of Honghe Area of China Yunnan Pilot Free Trade Zone

Fax: 0871-68163531

Tel.:  0871-68163523, 0871-68163525

0871-68163526, 0871-68163527

0871-68163529 (foreign capital)

0871-68163530 (foreign capital)