文山市年产20万吨铝型材加工项目 Aluminum Profile Processing Project in Wenshan with an annual output of 200,000 tons

Project Overview

1. Project Name

文山市年产20万吨铝型材加工项目

Aluminum Profile Processing Project in Wenshan with an annual output of 200,000 tons

2. Project Industry

Advanced Equipment Manufacturing Industry

3. Project Site

Aluminum Industrial Area, Matang Industrial Park, Wenshan City

4. Project Overview

Relying on the aluminum industrial basis, rich aluminum resources, hydropower resources, production costs, preferential policies and export market advantages of Wenshan City, Aluminum Profile Processing Project in Wenshan with an annual output of 200,000 tons constructs aluminum plate, aluminum strip and aluminum foil with an annual output of 200,000 tons, including 80,000 tons of aluminum alloy thick plates, 50,000 tons of aluminum alloy thin plates, 40,000 tons of aluminum strip materials and 30,000 aluminum materials. The production line includes a semi-continuous and fully automatic melting and casting line and a rolling and finishing line with 3950 mm hot rough rolling mill, 3000 mm hot finishing mill, large-size pre-stretching machine, roller-hearth quenching furnace, 2200 mm cold-rolling mill, bending and straightening machine, stretching and straightening machine as the main equipment, whose technology and equipment will reach the international advanced level and the products will be produced according to European and American standards. Taking the industrial cluster park as the carrier, the project focuses on aluminum processing and intensive processing to create an Industrial Park in Wenshan with aluminum industry chain cluster.

Project Implementation Background

1. Industrial Policies

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

2. Notice of the State Council on Issuing Made in China 2025;

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

4. Opinions on Accelerating the High-quality Development of Integrated Hydropower Aluminum Industry;

5. Report on the Work of the Government 2021 of Wenshan Prefecture;

6. 14th Five-Year Plan for Wenshan Prefecture.

2. Upper-Level Plan

Master Plan for Matang Industrial Park

Project Construction Plan

1. Project Site Overview

1. Project Site

Aluminum Industrial Area of Matang Industrial Park in Wenshan City, with G5615 Highway running through the territory, is directly connected to the surrounding and domestic traffic, which is 306 km from Kunming, 561 km from Nanning, 1120 km from Guangzhou, 94 km to Puzhehei Railway Station in the state, and 32 km to Wenshan Airport.

2. Matang Industrial Park of Wenshan City is connected to Changshanpo in the north, Panlong River in the south, Dapo in the west and Choushuijing in the east, with a planned land area of 500 mu.

3. The land planned for the project has been purchased and reserved without involving "three red lines".

2. Construction Duration

2 years

3. Investment Estimate

1. Investment Estimate: A total investment of RMB 3 billion.

2. Fund Raising: Self-raised by enterprises or loans.

4. Project Content

1. Project Positioning

Relying on the high-quality direct supply of aluminum liquid from Yunnan Aluminum Co., Ltd., the project mainly focuses on extending the aluminum industry chain, improving the additional production value of aluminum products, building the intensive processing industry cluster of aluminum profiles with an annual output of 200,000 tons of aluminum plates, aluminum strips and aluminum foils, including 80,000 tons of aluminum alloy thick plates, 50,000 tons of aluminum alloy thin plates, 40,000 tons of aluminum strips and 30,000 tons of aluminum foils, which shapes aluminum primary processing capacity as well as high value-added aluminum intensive processing capacity such as aluminum profiles, automobile wheels and aluminum foils. It will build a competitive midstream and downstream production line mainly for aluminum casting, and build a production base for aluminum profile processing industry which radiates to domestic and Southeast Asia key markets with an focus on Wenshan local market and surrounding areas.

2. Functional Zoning: Aluminum plate and aluminum strip production line, aluminum foil production line, aluminum intensive processing product zone.

3. Project Content:

Aluminum plate and aluminum strip production line: Zone classification: heating zone, finish rolling zone, rough rolling zone and winding zone.

Relevant equipment: heating furnace, hot rolling mill, lubricating equipment, emulsion, cold rolling mill unit.

Aluminum foil production line: Technological process: rolling(rough rolling, intermediate rolling, finishing rolling), double winding, double rolling, slitting(shearing) and testing.

Core equipment: Aluminum foil rolling mill.

Aluminum intensive processing production line: including aluminum foil processing, aluminum composite processing, aluminum structural components for electronic communication equipment, parts and for aviation, automobile and railway, and supporting equipment intensive processing.

4. Operation Mode: Self-operated.

Project Advantages

1. Industrial Basis

Matang Industrial Park of Wenshan City is one of the 69 key industrial parks in Yunnan Province with a planned area of 32.95 km² and is divided into "three zones and one center". The Industrial Park is a comprehensive park dominated by the construction of an aluminum industrial center and supplemented by industries such as metallurgy and chemical industry, building materials and machinery manufacturing and transaction. The park is also rich in raw material resources, with bauxite resources of 149.0301 million tons explored by Yunnan Wenshan Aluminum Co., Ltd. settled in the park, and with the aluminum oxide project with an annual output of 1.4 million tons and the hydropower aluminum project with an annual output of 500,000 tons under construction.

Matang Industrial Park of Wenshan City is located next to Wenping Road. The industrial avenues in the park are connected with each other with mature and complete water and electricity networks. The land planned for the project is more than 500 mu, and now the land has been purchased and reserved as the land for project construction.

2. Resource Advantages

Mineral Resources: Wenshan City is extremely rich in mineral resources, including 24 kinds of minerals such as gold, silver, manganese, aluminum, tungsten, iron, copper, lead, zinc, granite, limestone and clay. There are more than 130 preliminarily proven mineral deposits (deposits and mineral occurrence), with potential value of RMB 200 billion and broad development prospects.

Aluminum Ore Resources: Wenshan City enjoys an obvious mineral resources advantage and is a key area of bauxite prospecting in Yunnan Province and a supporting resource place for the sustainable development of the aluminum industry. There are bauxite reserves of 150 million tons in Wenshan Prefecture, among which 110 million tons are exploitable and more than 200 million tons are in store for the near future, ranking first in the Yunnan province; the proven reserves of bauxite in Baise City, which is adjacent to Funing County in the prefecture, are 709 million tons while the prospective reserves are more than 1 billion tons; at the same time, neighboring countries also have rich bauxite resources. Vietnam has a prospective bauxite reserve of 8 billion tons. The supply of raw materials can be guaranteed through market allocation.

The park is also rich in raw material resources, with bauxite resources of 149.0301 million tons explored by Yunnan Wenshan Aluminum Co., Ltd., and with the aluminum oxide project with an annual output of 1.4 million tons and the hydropower aluminum project with an annual output of 500,000 tons under construction.

Bauxite Mines that Have Been Developed and Under Development: Maijiuping Mine in Xichou County; Hongsheke Mine in Yanshan County; Waishantou Mine in Wenshan City; Banmao County in Guangnan County; rich bauxite resources around.

Abundant Bauxite Resources in Neighboring Provinces, Regions and Countries:

Guizhou: The bauxite resource reserves rank the third in China, and the long-term forecast resource reserves exceed 1 billion tons.

Guangxi: One of the four major bauxite resource provinces in China, with proven reserves of 510 million tons, and the main aluminum oxide producers in Guizhou are adjacent to Wenshan State, resulting in lower logistics costs.

Vietnam: Vietnam has a prospective reserve of 8 billion tons of bauxite resources. At present, the proven reserves of bauxite resources in Ha Giang Province, Cao Bang Province and Lang Son Province of Vietnam close to Wenshan Prefecture are nearly 200 million tons.

Laos: Laos has a prospective reserve of 4 billion tons of bauxite resources, which belongs to the same metallogenic area as the bauxite in the western plateau area of Vietnam.

3. Supporting Conditions

Matang Industrial Park Area covers an area of 32.95 km², with sufficient land carrying capacity and environmental capacity. The industrial avenues in the park are connected with each other, meeting the requirements of "four supplies and one leveling".

4. Location and Transportation

With G5615 Highway running through the territory, the park is directly connected to the surrounding and domestic traffic, which is 306 km from Kunming, 561 km from Nanning, 1120 km from Guangzhou, 94 km to Puzhehei Railway Station in the state, and 32 km to Wenshan Airport. The highway from the park to the state-level Tianbao port and the Dulong port has already commenced its construction; the preliminary work of constructing the stations in the park to connect railways from Mengzi and Fangchenggang has been commenced, and is expected to be completed during the "14th Five-Year Plan".

5. Development Opportunities

Future Development of Industries in the Project Location: Matang Industrial Park forms an industrial cluster dominated by aluminum industry and finally constructs Matang Industrial Park into an aluminum industrial base in Yunnan.

Factors Guarantee

1. Production Operation Cost

Electric Power Resources

Wenshan City has abundant electric power resources and reliable power supply. At present, there are 9 substations available for Matang Industrial Park of Wenshan City, including two 220 KV substations, five 110 KVA substations, one 35 KVA substation, and one 500KV substation adjacent to the hydropower aluminum plant is also under construction.

Hydraulic Power Resources

Wenshan City is abundant in hydraulic power resources. The surface area of lakes, ponds, reservoirs and dams is 13,877 mu, the storage capacity is 86.47 million m³, and the total water resources are 1.302 billion m³.

Matang Industrial Park is abundant in production water supply. There are Mudihe Reservoir, Dehou Reservoir and Panlongshan Reservoir for water supply.

The land planned for Matang Industrial Park is 32.95 km², with sufficient land capacity and environmental capacity. More than 500 mu of land has been purchased and reserved in intensive processing zone of aluminum industry.

Project Policy Support

1. Business Environment Improvement

Charges, Investment Environment and Service(Investment Guideline)

Article 12 All administrative charging items involving foreign-invested enterprises shall be charged according to the lower limit, except those specifically stipulated by the state, province and Wenshan City.

Article 13 Joint approval shall be carried out for new projects: the projects approved by the superior Development and Reform Department shall be submitted for approval by the Municipal Development and Reform Bureau in accordance with the procedures; the filed projects shall be filed by the Municipal Development and Reform Bureau in accordance with the principle of territorial management.

Article 14 "Green channel" shall be open to ensure the implementation of key projects. The departments of housing and urban-rural development, planning, land resources and environmental protection shall intervene in advance in new key projects to reduce links, simplify procedures, shorten duration, and provide early management and services to promote early construction of the project.

Article 15 Full agent services of competent departments of the industry shall be implemented for the new project(except those national and provincial approvals that require the investors to register by themselves). The Municipal Government Affairs Service Center and relevant departments shall assist the owners of the projects in the early preparations of the project construction, inform the owners of the projects in one time of the approval materials, approval conditions and approval procedures to be prepared, and provide the full agent services.

Article 16 Foreign investors shall enjoy equal treatment as local citizens in terms of handling of registered permanent residence, education for children, etc.

Article 17 Water, electricity, gas, transportation, communication and other conditions required by foreign-invested enterprises shall be arranged in priority by relevant departments, and the charges shall be carried out in accordance with local standards.

2. Fiscal and tax preferential policies at all levels available to enterprises such as provincial/municipal/district/county/park investments

(1) Land Policies: The land use right of the project land shall be supplied by bidding, auctioning and price listing.

(2) Infrastructure Support Policy: For new industrial enterprises invested in Wenshan City, infrastructure construction support shall be provided for the projects with an investment intensity of more than RMB 1.5 million/mu (projects that supported by government policies "three supplies and one leveling" support and the "one case, one meeting" cannot enjoy the policy). For projects with one-time fixed asset investment (excluding land costs) of RMB 30 million-RMB 200 million (included), RMB 200 million-RMB 500 million (included) and RMB 500 million or more, the support funds are provided based on 4‰, 6‰ and 8‰ of the actual investment respectively, with the maximum subsidy not exceeding RMB 4 million.

(3)Financial and Tax Incentive Policy: For new enterprises invested in Wenshan City, the Municipal Finance Bureau shall give fund incentives according to the following standards for energy conservation and emission reduction, scientific and technological research and development, technological transformation, etc. For enterprises investing in industry, trade, financial services, technology research and development, creative industries, Internet + projects, from the day when the taxes are paid: the bureau will provide incentives to the enterprises with actual payment of value-added tax and municipal income part of enterprise income tax within five years, with 20% incentive for total tax payment of RMB 1 million to RMB 2 million (included); 25% incentive for total tax payment of RMB 2 million to RMB 5 million (included); 30% incentive for total tax payment of RMB 5 million or more.

(4)Other Incentives and Subsidies: Logistics cost subsidies for manufacturers. After the newly introduced industrial enterprises put into production, the logistics and transportation subsidies incurred shall be calculated and subsidized according to their reported operating revenue to the tax authorities. If the operating revenue reaches RMB 30 million or more, the subsidies shall be given at 0.1% with the maximum amount of subsidies not exceeding RMB 1 million per year and cumulative subsidy not exceeding 3 years. For enterprises newly invested in Wenshan City with actual payment of value-added tax and enterprise income tax more than RMB 10 million annually, if the legal representative of the enterprise wants to purchase houses in Wenshan City, and the Municipal Finance Bureau will give a subsidy of RMB 1,500/m² at one time and up to 200 m².

(5) Other encouragement and incentive policies shall be given to enterprises enjoying the policies of "one policy for one enterprise", "one case, one meeting" and "handle special cases with special methods".

Benefit Analysis

1. Profit Model: Aluminum deep processing products sales oriented

2. Economic Benefits: After the project is put into operation, the annual sales revenue is RMB 5545 million, the total profit is RMB 530.19 million, and the after-tax profit is RMB 355.71 million.

Investment Promotion Direction

The project will carry out targeted investment attraction with a focus on three comprehensive new material industrial clusters: Circum-Bohai Sea Region, Yangtze River Delta and Pearl River Delta. Guangdong, Jiangsu, Shandong and Zhejiang are key investment attraction areas.

Cooperation Pattern

Sole proprietorship or joint venture

Contact Information

Contact authority: Matang Industrial Park of Wenshan City

Project contact person: Peng Yongfang

Tel.: 0876-2828788

Fax.: 0876-2121259

E-mail: 525052110@qq.com