High-end Aluminum Alloy Materials and Deep Processing Project in Mengzi Economic and Technological Development Zone

Project Name

蒙自经开区高端铝合金材料及深加工项目

High-end Aluminum Alloy Materials and Deep Processing Project in Mengzi Economic and Technological Development Zone

Project Industry

New Material Industry

Project Site

Mengzi Economic and Technological Development Zone

Project Overview

The project takes opportunities brought by the "High-end Aluminum Development Plan" in Honghe Prefecture in Yunnan province. Relying on the existing 300,000 tons of electrolytic aluminum production capacity in the development zone, Bojun's pickup truck project with 200,000 annual output, the location advantage from the "Belt and Road" Initiative and its closeness to South Asia and Southeast Asia as well as the abundance in raw material resources and hydropower in the upper reaches. The project processes high-end aluminum alloy materials and carries out other intensive processing projects, with a focus on the application in automotive, rail transportation, aviation and other special fields in demand of aluminum products, extending the aluminum industry chain in the zone. At present, there are two electrolytic aluminum plants in Honghe Prefecture: Yunnan Runxin Aluminum Limited and Yunnan Yongxin Aluminum Limited, with a combined capacity of 600,000 tons, accounting for 36% of Yunnan Province's total existing capacity of 1.68 million tons. Mengzi Economic and Technological Development Zone has built a nonferrous metal processing system which deals with the processing of materials like tin, copper, lead, zinc, aluminum and other nonferrous metals. It has an annual output of 70,000 tons of tin, 100,000 tons of electrolytic copper, 100,000 tons of zinc, 450,000 tons of electric lead, 300,000 tons of electrolytic aluminum, able to provide sufficient raw materials for the follow-up productions in the project. Yunnan Runxin Aluminum Limited is located in the development zone, with an annual output of 300,000 tons of electrolytic aluminum. The project can use the electrolytic aluminum liquid produced by Yunnan Runxin Aluminu for production as soon as possible, and the transportation distance is extremely short, so that no insulation device is needed in the transportation, reducing product costs and thus enhancing the competitiveness of enterprises.

Project Construction Content

Construction Scale: the project covers a land area of about 60 mu, divided into self-built area and rented area. The self-built area covers 14,000 square meters, which consists of office buildings, a research and development center, a product exhibition center, supporting facilities housing, etc. 24,000 square meters of standard factory area is rented and transformed into production workshops and warehouses.

Construction Duration: Finished by the end of 2021

Land Area: 50 mu

Supporting Conditions

The project construction region has already achieved "five access and one advantage". That is, access to electricity, communication, water (access to water supply and drainage), roads, and gas as well as an economic production cost advantage: labor, industrial electricity, water and other factors of production in the Mengzi Economic and Technological Development Zone are relatively cheap.

Investment Estimate and Fund Raising

The total investment of the project is expected to reach RMB 538 million, including construction costs, plant renovation and decoration costs, other construction costs, costs in equipment purchase and installation, emergency reserve and circulating fund.

Preferential Policies Applicable

In addition to the preferential policies given by the country, province and the prefecture, the project is also given the most preferential support in accordance with other relevant policies.

Market Prediction (Analysis)

As the world's largest producer of electrolytic aluminum, China is also the world's largest processor of aluminum materials. In 2019, China has totally processed 40.1 million tons of aluminum processing materials. At present, most products of Chinese processed aluminum are aluminum profiles, accounting for 51%. With the rapid development of domestic high-end manufacturing industry, aluminum profiles will be widely used in the future, and the demand for industrial aluminum profiles will be growing at a rapid speed. So it is expected that by the end of 2023, aluminum processing output will reach 50.43 million tons. As our country advocates energy conservation and environmental protection, and as the automotive, rail transportation, aerospace and other industries develop at a soaring speed, China's high-end aluminum market has a huge potential.

Profit Model and Preliminary Benefit Analysis

The project is expected to have an annual operating income of RMB 700 million, an annual operating profit of RMB 204.6 million and an annual net profit of about RMB 133 million, with a capital return of 25%. And the investment payback period is expected to be about 4 years.

Risk Analysis

As our country advocates energy conservation and environmental protection, and as the automotive, rail transportation, aerospace and other industries develop at a soaring speed, China's high-end aluminum market has a huge potential. The investment risk of this project is relatively low.

Cooperation Pattern

Joint venture, cooperation and sole proprietorship.

Contact Information

Contact Authority: Mengzi Economic and Technological Development Zone

Contact Person: Zhao Jiao

Tel.: 18787362506

Fax: 0873-3666081

E-mail: 330657438@qq.com