Railway Vehicle Pantographs and Coupler Buffer Systems Production
Railway Vehicle Pantographs and Coupler Buffer Systems Production Project
of Changchun City
1.Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
The railway vehicle pantograph and coupler buffer system are the important matching equipment for the
normal operation and the main parts of the power transmission and traction connection for running of the train.
There are the multiple varieties of manufacturing technologies and materials, which can meet the different
demands of various types of railway vehicle equipment after some deep machining and adjustment such as mill
finishing, coating, water resistance, dirt resistance, static resistance and wear resistance, etc.
1.1.2 Market Prospects
In some countries with the developed railway vehicle industry such as the US, Germany and Japan, etc.,
their research on the pantographs and coupler buffer systems for railway vehicles have become very deep and
the industrialized production technology has also been very advanced. However, the research on and
production of the materials for railway vehicles were started very late in China and it has still been in the
primary phase. At present, the domestic materials for railway vehicles cannot meet the demand for rapid
development of railway vehicles, the demand in the market is big, and especially the materials for high-speed
trains with some special performances such as flame resistance, heat insulation, water resistance, dirt
resistance, sound absorption, humid absorption and static resistance, etc. should be imported from foreign
countries. In the future, with the rapid development of the railway vehicle industry of our country, the market
demand for the railway vehicle pantographs and coupler buffer systems will grow more rapidly; therefore, the
market prospects of the project are very good.
1.1.3 Technical Analysis
In recent years, great progress has been made in the production flow, production efficiency and technical
updating speed of the railway vehicle pantographs and coupler buffer systems. The introduction, absorption
and re-innovation of the advanced equipment have fully improved the technical level of the industry as a
whole; the inputs of some backbone enterprises in the research and development have been increased year by
year and the innovative capacity of the industry has been gradually strengthened; the adoption of the trans-field
engineering integrated innovative technology and equipment has become the common understanding of the
manufacturers of railway vehicle pantographs and coupler buffer systems.
With the application of the high-end functional rigid composite materials for railway vehicles in the
pantographs and coupler buffer systems, the materials will be further applied in some fields such as aviation
and ships, so the market scale is extremely big.
1.1.4 Advantageous Conditions of Project Construction
(1) Obvious location advantages
This project is located in Changchun Rail Transit Equipment Industrial Development Zone, which is 3km
from downtown, 10 minutes driving from Harbin-Dalian rapid transit railway passenger station, and 30
minutes driving from ChangchunLongjiaInternationalAirport. Ring expressway and Changchun-Baicheng
Highway, Changchun-Nong’an Highway and other national and provincial highways as well as the Fourth
Ring Road of ChangchunCity traverse in the area, and the area has special railway line, developed road
network and convenient traffic, belonging to the traffic hinge in the northwest of ChangchunCity, so the
location advantages are obvious.
(2) Complete infrastructure
This project is located in Changchun Rail Transit Equipment Industrial Development Zone, which has
invested a total of 1 billion yuan and completed infrastructure construction including road, communication,
electricity supply, heat supply, gas supply, water supply and drainage, the area of Nine Accesses and One
Leveling can reach 10km2, the area of standardized industrial plant is 50,000m2, and the reserved development
area for railway vehicles supporting enterprises is 4km2. Land formalities have been settled, infrastructure has
been completely put into place, and the enterprises can construct as soon as they enter.
(3) Solid scientific and technological resources
Changchun Rail Transit Equipment Industrial Development Zone where this project is located in has
established long-term cooperative relationship with 23 colleges, universities and institutes including Jilin
University, Northeast Normal University, Changchun Vocational Institute of Technology, Changchun Institute
of Biological Products of Ministry of Health and Changchun Academy of Agricultural Sciences. Furthermore,
as the national manufacturing base of moving machinery, ChangchunCity has solid foundation and distinct
features in automobile, railway vehicles and other relevant industries, as well as the advantaged strength in
moving machinery's industrial development atmosphere, humanity environment, technical support and talent
reserve, thus providing strong scientific and technological support for the development of this project.
(4) Privilege of governmental support
Changchun Rail Transit Equipment Industrial Development Zone where this project is located in offers
the enterprises a series of preferential policies including "having priority in meeting land utilization demand
and arranging interest subsidies or interest-free loans", "the enterprises enter the park can enjoy expenditure
subsidy of technological research and development, support of project land as well as infrastructure
construction including water, electricity and heat, preferential income tax of high and new technology
enterprises, and deduction of investment in business establishment investment.
(5) Strong technical support
With the help of its market, information, talents, network and other aspects of advantageous resources,
China CNR Corporation assists Changchun City Government to introduce core technology enterprises and key
part production enterprises into Luyuan Development Zone, provide technical support for the part supporting
enterprises that have entered into the Development Zone, properly ensuring the technical level of the
production of railway vehicles decorative materials.
(6) Fast and convenient support
As early as in August 2008, CNR Changchun Railway Vehicles Group Co., Ltd. was settled in this
Development Zone, which has registered capital 480 million yuan, mainly produces and export CRH, urban
rail transit, metro, railway vehicle, etc. After this project construction is completed, aluminium section
production enterprises and Railway Vehicles Group will be settled in the same Development Zone, they can
very conveniently keep supporting cooperation each other to save logistics transportation costs and order
receiving and dispatching time.
(7) Excellent service environment
Changchun Rail Transit Equipment Industrial Development Zone can provide this project with full
tracking service from negotiation, site selection, procedures handling to construction, production and
operation. In addition, the Development Zone plans 14km2 of living service area, which can meet the
production and living demand of enterprises, build good service environment for enterprises and provide
convenience for the project's future development.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Annual output of 10000 railway vehicle pantographs and coupler buffer systems
1.2.2 Construction Content
The total planned area of the project is 2 hectares, the construction of the production area, office and
living area and power warehouse area will be completed in 2 phases in 2 years and some production, testing
and test equipment will be purchased.
1.3 Forecast of Economic and Social Benefits
1.3.1 Major Indexes for Forecast of Economic Benefits (details as per Table 1)
Table 1:
List of Major Indexes for Forecast of Economic Benefits
No.
Name
Unit
Indicator
Remarks
1
Operating income
RMB10,000/a
20000.00
Normal year
2
Total profit
RMB10,000/a
3260
Normal year
3
Taxes
RMB10,000/a
1475
Normal year
4
FIRR of all investment
%
21.8
After income tax
5
FNPV (Ic=10%)
RMB10,000
9188.78
After income tax
6
Period for recovery of all investment
(after the tax)
a
5.5
Including 2 years of
construction period
7
Investment profit rate
%
24.45
Normal year
Note: "10,000 yuan" in the table refers to RMB
1.3.2 Analysis of Social Benefits
The putting into production of the railway vehicle pantographs and coupler buffer systems project can
create a large amount of taxes for the local area every year and promote the local economic development; the
operation of the project will be sure to employ the local labor force, resolve the employment problem of
surplus labor force and bring benefits to the common people around it; the settlement of the pantograph and
coupler buffer system manufacturers can further perfect the railway vehicle industry chain in the park and
promote the industrial upgrading of the park; the adoption of a great number of advanced processes has
reduced the dependence on the imported materials and decreased the costs. In addition, the advanced
technology has improved the safety coefficient and reduced the environmental pollution, so the social benefits
are very big.
1.4 Total Investment and Funds Raising of the Project
1.4.1 Total Investment of the Project (see Table 2 for details)
The total investment of the project is 0.1 billion yuan RMB.
Table 2: Summary Table of the Total Investment of the Project Unit: 10 thousand yuan
No.
Expense Name
Amount of Investment
Proportion in the Total Amount of
Remarks
Investment%
1
Construction investment
8500
85
2
Interest in the construction period
3
Current funds
1500
15
Total investment of the
project（1+2+3）
10000
100
Temporarily not
considered
ject of Changchun CityNote: “10 thousand yuan” in the table refers to RMB.1.4.2 Funds Raising
It is planned to raise the funds of 0.1 billion yuan RMB and no debot fund or interest is taken into
account.
1.5 Cooperative Ways of the Project
Sole investment, joint venture, cooperation or other methods can be discussed in person.
1.6 What to be Invested by Foreign Party
Sole investment, joint venture or other methods
1.7 Construction Site of the Project
3km, Changchun-Baicheng Highway, Changchun City.
1.8 The On-going Condition of Project
Planning, land and other preliminary work and Nine Accesses and One Leveling infrastructure supporting
construction have been completed.
2. Introduction to Partner
2.1 Basic Conditions
Name of project undertaker: Changchun Luyuan Economic Development Zone
Legal address: 3km, Changchun-Baicheng Highway, Changchun City
Legal representative: Hou Wei
Corporate ownership form: State-owned
2.2 Overview of Project Undertaker
Changchun Luyuan Economic Development Zone is a provincial development zone established by getting
the approval of Jilin Provincial Government on June 30, 2003, which enjoys the preferential policy of
provincial development zone and has four functional areas of advanced manufacturing, logistics trade, food
and medicine and railway vehicles. The development zone is adjacent to Changchun downtown, the traffic is
convenient and fast, Beijing-Harbin, Changchun-Baicheng Railways and Changchun-Baicheng, ChangchunZhengzhou provincial high-speed highways cross through the border. Changchun Ring Expressway has two
exits within the border. It takes 40 minutes driving from ChangchunLongjiaInternationalAirport to the
Development Zone. Changchun, Southern Changchun and Datun Railway Freight Depots are less than 10km
from the Development Zone.
At present, the Industrial Development Zone has 17 main plant's supporting enterprises including schoolrun welding and riveting factory of Changchun Passenger Car Plant, Changchun Hexin Boiler Manufacture
Co., Ltd., Railway Vehicle Accessory Plant of Changchun Hexin Boiler Manufacture Co., Ltd. and Changchun
Yan'ao Electric Company. The railway vehicles functional division (Changchun Rail Transit Equipment
Industrial Development Zone) in Luyuan Economic Development Zone has planning area of 51km2, including
finished automobile assembly area 5km2, detection maintenance area 3km2, industrial supporting area 29km2,
and living service supporting area 14km2. After construction of this division is completed, annual production
capacity of 1,000 CRHs, 1,200 urban rail passenger cars and 500 railway vehicles as well as annual production
value of 50 billion yuan will be realized, it will become one high-speed transit and urban rail vehicle
manufacturing, export and maintenance base that tops in production capacity, product level, test detection
capacity and maintenance capacity in the world.
2.3 Contact Method
Postal Code: 130113
Contact Person: Ma Mingxing
Tel: 0431-87886789
Contact Person of the City (Prefecture) of the Project: Lou Huimin
Tel: 0431-82715338
Fax: 0431-82715338
E-mail: cc82715338@126.com
Website: www.ccmbc.com