I. Project Name
Production Project of 750kV UHV Cable and Special Purpose Cable
II. Basic Information of Project
1. Profile of Undertaker
Shandong Kehong Wire & Cable Co., Ltd. covers a total area of 210,000 ㎡, with the total asset of 350 million yuan. Its main products include copper, aluminum, plastic granules, testing equipment, iron powder, PVC cables, power cables, cross linked cables, high-voltage cables, aerial cables, control cables, computer cables, rubber-sheathed cable, mining cable, environmentally-friendly double shielding geothermal cables, constant power heating cables, power adaptors, and so on. The annual sales revenue can reach 500 million yuan.
The company has achieved CCC certification from China Quality Certification Center and ISO9001 quality management system certification. And Kehong is among the well-known trademarks in China and also won the title of famous brand in Shandong province. The company has technical cooperation with multiple universities and research institutes. In recent years, the company has been responsible for more than 8 provincial and national science and technology planning projects, including 4 projects in the national level. It has achieved dozens of achievements in the scientific research and developed a number of national leading or even international-level new products, which all gained Quality License for Export Products and are exported to Portugal, Sudan, United States and other countries.
2. Planned Location
The factory locates in Hezhuang Township of Laicheng District of Laiwu City.
3. Construction Content and Scale
Based on the forecast and analysis of supply and demand in domestic and overseas markets, the construction scale of this project will be set as the following: an annual output of 1,500 kilometers marine engineering special cables, 1,000 kilometers special cables for mine, 4,000 kilometers special cables for rail traffic, 1,600 kilometers fire-resistant special cables, 4,300 kilometers new energy special cables, and 700 kilometers ultra-high-voltage power cables.
III. Necessity of Project Construction
At present, the wire and cable industry has become the second largest industry in China only after the automobile industry. Its output value has exceeded United States, which made China the world’s largest electric wire and cable producer. By the end of 2010, its annual output value exceeded 800 billion yuan, with copper consumption occupying 60% of the national total number, aluminum consumption occupying 10% of the national total number. The copper consumption accounted for one fourth of the global production of wire and wire copper conductor, and the fiber consumption accounted for 40% of the global consumption. The auxiliary cable material, cable equipment manufacturing industry has also formed a relatively complete system. The rapid development of wire and cable industry played an important role in supporting national economic construction, and made important contributions to the development of both local and national economy.
IV. Investment Estimate and Capital Collecting
The total investment of this project is 715 million yuan. The capital fund was 435 million yuan, accounting for 60.84% of total investment capital, which was in line with relevant national policies. The collecting mode of capital financing is the enterprise accumulated capital (depreciation, profit, etc.) for reinvestment, which in turn ensured the capital financing.
After the completion of this project, the annual newly-increased operating revenue amounts to 3.152 billion yuan, while the annual newly-increased gross profit amounts to 280.33 million yuan.
VI. Cooperation Method
Joint venture, cooperation