曲靖市再生铝及铝精深加工项目 Recycled Aluminum and Aluminum Intensive Processing project in Qujing

Project Overview

1. Project Name

曲靖市再生铝及铝精深加工项目

Recycled Aluminum and Aluminum Intensive Processing project in Qujing

2. Project Industry

Advanced Manufacturing Industry

3. Project Site

Baishui Area, Zhanyi Industrial Park, Qujing

4. Project Overview

Zhanyi Industrial Park in Qujing is the fifth batch of the national new industrialization demonstration bases, key provincial industrial park and provincial high-tech industrial development zone. The aluminum industry chain in Baishui area has basically taken shape, forming a relatively complete industry chain from electrolytic aluminum→aluminum profiles(industrial profiles and building profiles)→aluminum products intensive processing. It has a good advantage of industrial clusters. The project is proposed to build a production line of high precision aluminum foil for packing with an annual output of 50,000 tons and a production line of recycled aluminum products such as aluminum rods, aluminum ingots and aluminum plates with an annual output of 500,000 tons and their supporting facilities to improve the upstream and downstream supporting of the aluminum industry chain.

Project Implementation Background

1. Industrial Policies

Guiding Opinions by General Office of the State Council on Supporting National New Areas to Deepen Reform and Innovation and Accelerate High-Quality Development

Notice of the State Council on Issuing Made in China 2025

Development Plan for Advanced Equipment Manufacturing Industry in Yunnan(2016—2020)

Action Plan of Yunnan Province for the Implementation of Provincial Key Early Stage Projects of "Strengthening Weak Links and Increasing Power"(2019-2023)

Industrial Layout Plan of Industrial Park in Yunnan(2016 - 2025)

2. Upper-Level Plan

The park plan has been completed.

Project Construction Plan

1. Project Site Overview

1. Project Site: Baishui Area, Zhanyi Industrial Park, Qujing

2. Scope and Land Scale: It is connected to Xuanwei City to the north, Qujing City to the south, Xundian County to the west and Fuyuan County to the east.

3. Land usage, land expropriation and reservation, land cost, whether involving "three red lines": The land planned for the project has been expropriated and reserved, and none of the three lines is involved.

2. Investment Estimate

1. Investment Estimate: RMB 600 million

2. Fund Raising: Self-raised by enterprises, financing.

4. Project Content

1. Project Positioning: Recycled Aluminum and Aluminum Intensive Processing project in Qujing will build a world-class "green energy brand" based on the People's Government of Yunnan Province with two main production belts and their supporting facilities. The project will make full use of the characteristics of recycled aluminum such as resource conservation, reduction of external dependence on aluminum resources, environmental protection and economic advantages to build a green aluminum demonstration park in northeast Yunnan.

2. Project Content: The project mainly plans to build a production line of high precision aluminum foil for packing with an annual output of 50,000 tons, comprehensive office buildings, standard workshops and new technology R&D center and other supporting facilities.

It also plans to build a production line of recycled aluminum products such as aluminum rods, aluminum ingots and aluminum plates with an annual output of 500,000 tons as well as raw material sheds, product warehouse and supporting facility buildings.

Project Advantages

1. Industrial Basis

As an important industrial city in Yunnan, Qujing has formed an industrial system dominated by energy, chemical industry, tobacco, metallurgy, automobile as well as the development of machinery, building materials, and biological resources. It is an important base for energy, chemical industry, light vehicle, and green food processing and manufacturing in Southwest China. Qujing has developed all the industrial categories, with a strong industrial basis, strong coordination and cooperation abilities, dense industrial management and technical personnel, and an improved policy and service system.

With a good industrial basis, at present, Baishui Park is an aluminum industrial park with a complete industrial chain and complete supporting facilities in Yunnan Province. The park has basically formed an aluminum processing industry cluster including raw materials, electric power, electrolytic aluminum, aluminum alloy, aluminum profiles, new building materials, supporting logistics, etc. It will also extend the industrial chain to develop a whole industrial chain of manufacturing industry and a new industry cluster focusing on high-end aluminum alloy products, electric power parts, special equipment, special mechanical and electrical products, automobile manufacturing and equipment supporting. The upstream of the industrial chain has formed the anode carbon products capacity of more than 900,000 tons; the midstream of the industrial chain has built the electrolytic aluminum project with an annual output of 380,000 tons, and the production technology has reached the domestic leading level with the purity of 99.99%; the downstream has built the aluminum alloy project with a capacity of 330,000 tons and the aluminum profile with a capacity of more than 300,000 tons; the construction of 2 supporting industrial chain projects and recycled aluminum resources comprehensive utilization project with a capacity of 200,000 tons has been started; there is a sewage treatment plant with a daily treatment capacity of 9,000 m³, which can mainly treat four categories of wastewater: acid wastewater, alkaline wastewater, organic wastewater and domestic wastewater.

2. Resource Advantages

1. Mineral Resources:

There are 47 kinds of mineral resources in Qujing City, with a total mineral resource reserve of 35.5 billion tons and a potential economic mineral resource value of over RMB 13 trillion. With proven coal reserve of 9 billion tons, it is one of the 19 key coal-producing areas in China, accounting for more than half of the province's raw coal production. The reserves of lead, zinc, manganese, sulfur, iron, phosphorus, and limestone for cement purpose rank the top in the province.

2. Hydropower Resources:

Within Qujing, rivers and streams radiate in different directions which respectively belong to the Yangtze River and Pearl River system with more than 80 rivers of 100 km2 drainage area, hydropower resource reserves are 4,068,200kw.

3. Human Resources:

Qujing is a city of large population and labor export city, with 5.95 million students in 3 colleges and universities, and 9.63 million students in 32 secondary vocational schools. It has formed a vocational education system and skill training system of large scale, high level, complete categories, and adapted to the demand, with the completed Qujing Vocational Education Center being a larger vocational education and training base in the southwest. Qujing City is an old industrial base in Yunnan Province, with an abundance of technical personnel, skilled workers and enterprise managers.

4. Natural Gas Resources:

China-Myanmar Natural Gas Pipeline has a designed gas transmission capacity of 12 billion m3/year, with an actual annual gas supply of 7 billion m3. Natural gas transmission and distribution stations and supporting pipeline networks have been built in most of the urban areas and industrial parks in Qujing.

5. Electric Power Resources:

Yunnan is an important West-to-East Power Transmission and clean energy base of China, with the installed capacity of clean energy with hydropower as the main clean energy accounts for 71.31 million kw (61.31 million kw of hydropower, 7.89 million kw of wind power, 210,000 kw of photovoltaic). The power supply in Yunnan Province far exceeds the power demand, with abandoned hydropower amounting to 16.8 billion kWh, 15.3 billion kWh, 31.5 billion kWh and 28.7 billion kWh from 2014 to 2017 respectively. Qujing City has a dual security advantage of both hydropower and thermal power, with an installed power capacity of 95.44 million kw, of which: 6.8 million kw of thermal power, representing 49% of the province's installed thermal power. There are one 500 kV converter station, six 500 kV substations and twenty 220 kV substations.

3. Supporting Conditions

1. The road network around Baishui Park, Zhanyi is well-developed, with three railways(Shanghai-Kunming High-speed Railway, Guiyang-Kunming Railway and Kunbai Railway)and five expressways (Shanghai-Kunming Expressway, Hangzhou-Ruili Expressway, Qujing Ring Expressway, Zhanhui Expressway and Xundian-Zhanyi Expressway) passing through, making transportation much convenient. In terms of railway transportation, Hongjie special railway line and freight yard with an annual transport volume of 3.6 million tons have been built in the park. In terms of road transportation, 320 National Highway and Shanghai-Kunming Expressway are about 2 km away from the park, and the park is adjacent to the entrance and exit of Qujing Power Plant in Shanghai-Kunming Expressway.

2. Aluminum processing enterprises already settled in Baishui Park include Yuxin Aluminum Co., Ltd., Swi Fong Aluminum Co., Ltd., Zhanyi Kaishine Special Metal Co.,Ltd., Guangchang Aluminum Co.,Ltd., ShengPeng Aluminum Co.,Ltd., Aijia Aluminum Co.,Ltd., Weichuang Aluminum Co.,Ltd, Shijifeng Aluminum Co.,Ltd, Kaitai Aluminum Co.,Ltd, Desheng Precision Mold Co.,Ltd, Wisely Powder Coatings Co.,Ltd, etc. With a cooperation agreement with Aluminum Corporation of China for 500,000 tons of electrolytic aluminum project, the park will build an electronic aluminum industry base with a capacity of one million tons. The aluminum industry in Zhanyi District will be built into a specialized, characterized and modern aluminum industry demonstration base in Yunnan covering Southwest China, radiating South Asia and Southeast Asia, and will also become an attractive destination for investment of aluminum processing enterprises.

3. Of the total environmental capacity of the Baishui Park, sulfur dioxide is 7492.25 ton/year, with 5619.19 ton/year remaining, nitrogen dioxide is 4994.84 ton/year, with 3995.87 ton/year remaining, and fluoride is 874.1 ton/year, with 724.25 ton/year remaining; the total pollutant emission control index can be adjusted and solved within Qujing City.

4. Location and Transportation

Qujing is one of the three national comprehensive transportation hubs in Yunnan as defined in the Comprehensive Transportation Development Plan for Becoming a Radial Center Oriented towards South Asia and Southeast Asia (2017-2030) and one of the 66 regional circulation node cities in the Layout and Planning of National Circulation Node Cities (2015-2020).

Road:

G56 Hangzhou-Ruili Expressway, G85 Chongqing-Kunming Expressway, G78 Shantou-Kunming Expressway and G60 Shanghai-Kunming Expressway in Qujing are completed, which has taken the lead in achieving "expressway access to every county" in the whole province.

Railway:

Shanghai-Kunming High-speed Railway has been put into operation and two stations have been set up in Qujing; Nanning-Kunming Railway, Guiyang-Kunming Railway run through the region with 55 stations and 20 large and medium-sized freight yards; Chongqing-Kunming High-Speed Railway has begun construction in 2019.

Aviation:

Downtown area is 120 km away from Kunming Changshui International Airport, while the construction of Xuanwei Airport has also commenced. Moreover, it is planned to build general aviation airports in Luoping, Zhanyi and Huize.

Element Guarantees

Fiscal and tax preferential policies at all levels for province/city/district/county/park corporate investments

1. Land Preferential Policy

For the project land settled in the Industrial Park, the price of industrial land in Baishui area of the Green Hydropower Aluminum Industrial Park in Qujing is offered at RMB 120,000/mu. The project implements a differentiated land supply policy adapted to the development of modern industries and regional functional positioning. For those who acquire land use right by way of transfer, after paying the first 50% of the land transfer fee, the remaining can be paid in installments within one year; for those who rent state-owned land, the first three years' rent can be subsidized by 10%-20% to support the development of enterprises.

2. Financial Incentive Policy

Within 3 years from the date of normal operation of the following projects, according to the value-added tax and enterprise income tax paid by the enterprise to form the available part of the district, the subsidies of 100% in the first year, 50% in the second year, 50% in the third year, are awarded to support enterprises for scientific and technological innovation and technological upgrading.

1) High-end service projects, state-recognized high-tech projects;

2) Projects with actual utilization of foreign investment of more than USD 3 million

3) Listed as key developing industrial projects in Zhanyi District;

4) Listed as key investment attraction industrial projects in Zhanyi District;

5) Industrial projects settled in Industrial Park with greater investment intensity(RMB 1.2 million/mu in the western urban area, RMB 1.5 million/mu in the Huashan area and RMB 1.5 million/mu in the Baishui area)of fixed assets;

6) Industrial projects with greater annual total tax payment (RMB 50,000/mu in the western urban area, RMB 100,000/mu in the Huashan area and RMB 80,000/mu in the Baishui area).

3. "One case, one meeting" supporting policy

After reviewed by the District Committee and the District People's Government, the following projects can enjoy the policy of the "one case, one meeting" and special supporting policies in financial support, supporting services and other aspects in addition to prefectural preferential policies.

1) Projects with strategic, leading role in local development and with great development potential, strong driving capacity, and high-tech content;

2) Fortune Global 500 enterprises, fortune Global 500 enterprises, top 500 private enterprises in China and national high-tech enterprises invested in Zhanyi District;

3) Domestic-invested projects with an actual total investment of more than RMB 500 million and foreign-invested projects with an actual investment of more than USD 10 million;

4) Projects settled in the Industrial Park are in line with industrial chain supplementing supports and in line with the key projects of urban development supporting facilities.

4. Administrative charges

According to the spirit of the Notice of the People's Government of Yunnan Province on the Issuance of Implementation Rules for Reducing the Costs of Enterprises in the Real Economy in Yunnan Province(YZF[2017]No. 50), for investment attraction projects, all district-level enterprises-related administrative fees can be exempted and all municipal-level enterprises-related administrative fees can be exempted through coordination except for the national statutory fees that cannot be reduced or waived.

5. Implementation service

"Five accesses and one leveling"(" five accesses" refer to connecting drainage, traffic, electricity, communication and natural gas networks to areas outside the scope of the boundary red line, while "one leveling" refers to land leveling of areas inside the scope of the boundary red line) must be realized for investment attraction.

The "green channel" service system must be implemented for investment attraction projects, with "one-stop service" and "one-time notification" when the owner declares, "one-time handling and time-limited completion" when the submissions are collected completely and "approval with one seal" policy. For enterprises established and operated in Zhanyi District, unless otherwise specified by laws and regulations, the responsible administrative approval unit shall open a "green channel" service for the projects requiring administrative approval by Zhanyi District and implement "priority handling and time-limited completion".

Benefit Analysis

1. Operation Mode: Self-operated.

2. Profit Model: The project mainly obtains revenue by researching, developing and producing the aluminum industry such as researching and developing high-precision aluminum foil, aluminum rods, aluminum ingots, aluminum plates and other recycled aluminum products.

3. Economic Benefits: With an investment of RMB 600 million, the project, after being completed, will have an annual output value of more than RMB 1 billion, and the return on investment reaches 28.83%.

Investment Promotion Direction

North China District, East China District and Yangtze River Delta.

Cooperation Pattern

Joint venture, sole proprietorship or other patterns.

Contact Information

Contact Authority: Investment Attraction Bureau of Zhanyi District, Qujing City

Contact Person: Mei Yonghui (Deputy Director)

Tel.: 15825029966