I. Profile of Company Project
1. Project Name: High-performance Powder Metallurgy Auto Parts Project (Dispersion-Strengthened Aluminum, Dispersion-Strengthened Copper Alloy Powder Metallurgy Products)
2. Investment and Construction Content
The project plans to invest 320 million yuan. It aims to: carry out the industrialization of a variety of dispersion-strengthened materials based on the theoretical research of dispersion-strengthened material. In these materials, some can quickly produce considerable economic benefits (dispersion-strengthened copper, dispersion-strengthened iron powder for diamond tools, dispersion-strengthened iron-base parts and dispersion-strengthened aluminum-base parts); some can meet the special needs of the aerospace, military and other fields (helicopter blades plywood, dispersion-strengthened aluminum for gyroscope bracket); some can provide support for the leading technology (dispersion-strengthened copper for nuclear fusion reactor, dispersion-strengthened steel). The industrialization of these dispersion-strengthened materials can improve our country’s dispersion-strengthened material significantly and the prepared technique of new materials. And the industrial chain of dispersion-strengthened material is set up based on Laiwu Xinyi Powder Metallurgy Co., Ltd., which effectively promotes the economic development of Laiwu and other areas in Shandong Province.
The industry belongs to new material industry of powder metallurgy.
II. Project Executor
Lyu Yuanzhi, male, born in 1959, bachelor degree, majored in Enterprise Management, senior economist and senior engineer, set up Laiwu Xinyi Powder Metallurgy Co., Ltd. in 2000. In 2013, as the leading one, Xinyi Company united Beijing University of Science and Technology, Shanghai Motor Powder Metallurgy Co., Ltd. and GRIPM Advanced Materials Co., Ltd. to undertake the 863 State Project “Key Components and Application Technology of High Density Iron-based Powder Metallurgy”.
By the end of 2013, the total assets of Laiwu Xinyi Powder Metallurgy Co., Ltd. reached 174.87 million yuan. Its net assets were 153.16 million yuan including fixed assets of 121.10 million yuan, current assets of 61.86 million yuan. The asset-liability ratio was 16.7%. In 2012, it produced different powder metallurgy products of 10,200 tons. The company has obtained sales amount of 235.44 million yuan with the profits and taxes of 58.89 million yuan including the profits of 35.13 million yuan. The corporate banking credit ranks AAA.
III. Market Analysis
1. Market Prediction
The dispersion-strengthened iron powder with low cost is mainly used for diamond tools processing and iron-based parts industry. The market development objects focus on the key enterprises in the diamond tools manufacturing industry and enterprises operating sintering iron-based parts. High-intensity dispersion-strengthened aluminum alloy is mainly used for helicopter blades plywood, hypersonic aircraft skin, high supersonic missile shell, torpedoes shell, satellite gyroscope stents, automobile and motorcycle engine parts, etc. The market development objects aim at domestic automobile and aircraft manufacturing enterprises. The dispersion-strengthened steel mainly concerns the front-line science—controlled nuclear fusion structural materials. Though the market is still not mature yet, it is of great significance in the future. It will not be evaluated as certain economic profits.
2. Economic Benefit
The products in the project feature in high-tech and high value-added with sales profits higher than 20%. The products are quite competitive in the market in comparison with the traditional ones due to obvious price advantage under the same performance or better performance under the same price.
Dispersion-strengthened iron powder for diamond tools: with the annual output of 500 tons, and unit price 25,000 yuan/ton, the annual sales amount of dispersion-strengthened iron powder is up to 12.50 million yuan.
Dispersion-strengthened copper: set up the production line for dispersion-strengthened copper to turn out 250 tons per years. With the sale price of 200,000 yuan/ton, the annual sales revenue is estimated to be 50 million yuan.
Dispersion-strengthened aluminum: produce 1000 tons of dispersion-strengthened aluminum, bar and pipe 500 tons each per year. With the price of dispersion-strengthened aluminum alloy bar 130,000 yuan/ton, and dispersion-strengthened aluminum alloy pipe of 150,000 yuan/ton, the total sales revenue reaches 140 million yuan per year.
IV. Cooperation Method
Joint venture, cooperation, sole proprietorship