Located in Dongdamen, exit and entrance to Changchun-Jilin and Changchun-Beijing expressways, Changchun SPV Industry Park is a characteristic industry park affiliated to Changchun Economic and Technological Development Zone (CETDZ). The first-phase layout area of it totals 3.7 square kilometers.

 

Changchun SPV Industry Park was officially approved by Changchun Municipal People’s Government (No.2 Approval Document [2007]) on February 27, 2007. China Association of Automobile Manufacturers titled the park “China Changchun SPV Industry Park”, and signed a cooperative agreement with CETDZ to jointly build the park on March 1 of 2007. The first SPV industry park of China officially came into existence. 

 

After years of development and construction, CETDZ has fully carried out the strategy for the development of complete cars under the principle of putting more efforts on auto and auto parts industries which is of difference from yet still in harmony with FAW. At present, six manufacturers of 341 series of SPVs including FAW SPV, FAW Passenger Vehicle, Hengli SPV, Zhongxing Auto and Changchun Guofu Truck Bodies Corporation have settled in the park. In addition, some 80 world-class auto parts makers such as Fawer-Johnson, Toyota Engine, ZF Chassis, Siemens VDO Auto Electronics, Delphi Auto Wiring Harness, Lear Auto Interior Trims, Valeo Auto Air Conditioner, Fuyao Glass, Hella Auto Light, Brose Window Lifter, etc., have also settled in the park and can manufacture seven series covering 1,000 kinds of products. Meanwhile, CETDZ has ten national level or enterprise R&D centers including Changling Group, Siemens VDO Auto Electronics, Hengli SPV, Zhongxing Auto, Hella Auto Light, etc., which lays a solid foundation for the mass production of SPVs and SPV spare parts. In 2006, auto and auto parts manufactures in CETDZ realized a total output value of RMB 22.4 billion. 

 

 

I Orientation

 

“Carry out the strategy for the development of complete cars under the principle differing from yet not conflicting with FAW to make Changchun SPV Industry Park a domestically top-notch and world famous industry park.”

 

Changchun SPV Industry Park is a self-innovated industrialized flagship base which combines scientific innovation, manufacturing, modern logistics, international commerce, information exchange and comprehensive service.

 

 

II Overall Concept & Development Roadmap

 

To strengthen the study and analysis of national macroeconomics and industrial policies, to keep pace with economic development to meet different demands for SPVs, to highlight the effectiveness of accommodation and distribution of Changchun international auto city, to back on the current groundwork to highlight industrial features and bring into full play the contrastive strengths of Changchun auto industry and the environmental advantages of CETDZ, to actively introduce incremental capitals, to integrate the SPV resources in Changchun and even the ones in Jilin Province, to develop and construct an enterprise cluster featuring diversity of investors, comparative flexibility between system and mechanism, to create a domestically top-notch and world famous research and development, production, exhibition and sales base for special purpose vehicles, to further enlarge and empower Changchun auto industry and to create an auto city well-known at home and abroad.    

 

 

III Action Plans for Construction

 

Changchun SPV Industry Park will fully carry out the strategy that is of difference from yet still in harmony with FAW, and make use of the current groundwork to highlight the industrial features and to create a domestically top-notch and world famous internationalized SPV industry park. Efforts will also be made to bring into full play the contrastive strengths of Changchun auto industry and the environmental advantages of CETDZ to make Changchun SPV Industry Park through high-level design and construction and high-efficiency service a domestically top-notch and world famous self-innovated flagship SPV base featuring scientific innovation, production, modern logistics, international commerce, information exchange and comprehensive service.

 

Measures are tailor-made to set up six platforms:

 

1. A platform for production of SPVs: This platform is mainly composed of two parts. The first part is concerned about the production of complete SPVs to attract foreign auto refitting companies and domestic investors who are interested in SPV businesses to establish jointly-invested or cooperative enterprises, with more attentions to be paid to attract those internationally top-notch products as dominant products. The second part is about the production of spare parts to usher in domestic and international SPV parts makers, with the makers manufacturing up-to-date hi-tech parts to be more preferred to supply products for SPV manufacturers at home and abroad. Products include but are not limited to: SPV hydraulic systems, sludge pumps, IT/GPS systems, bulletproof materials, auto-carrying electronic police and TV interview & transmission systems, auto-carrying medical equipment, spare parts tailor-made for vehicles driven by oil/electricity or oil/gas, SPV truck axles, airless tires and manufacturing equipment for spare parts, etc. 

 

2. A platform for scientific innovation of SPVs: This platform includes three parts. The first part is to usher in domestic and international scientific research institutions and related units. The second part is to make good use of the intellectual forces of institutions of higher learning, state or provincial scientific research institutions in Changchun and the scientific research institutions of Changchun. The third part is to integrate technology centers of related enterprises to set up platforms for scientific innovations. Through making use of the advantages of all platforms, the base is to organize collective research and development on public and common issues including research and development on spare parts. Enterprises settling in the base can also make use of the power of platforms to research and develop profitable services. The scientific innovation platform also includes test services.

 

3. A platform for modern logistics of SPVs: This platform is to usher in the advanced logistics enterprises from home and abroad to develop significant trading and sales departments for SPVs and SPV parts, to open tenancy business accordingly to meet the regional demands, and in association with industrial trade fairs to carry out “one-stop” service so as to create the domestically top-notch SPV logistics center.

 

4. A platform of international commerce for SPVs: This platform is to make good use of International Expo for SPVs to do a good job in sales management on exhibition and sale of SPVs, to do a good job in export of SPV parts, export of products made by domestic makers and agent service for domestic sales of products made by foreign makers with the after-sale agent service for foreign products sold in Chinese territories included as well, to organize enterprises in the park to actively take part in exhibitions of SPV spare parts and scientific findings, to make good use of exhibition and conference brands and resources to stage SPV trade fairs, to extensively carry out economic and trade exchanges so as to promote international trade of SPV products.

 

5. A platform for information exchange of SPVS: This platform is to establish an information exchange platform for SPVs through opening the Changchun SPV Industry Base Website----the largest and the most authoritative international SPV network in Chinese and English respectively to provide information archives and communications for all suppliers and buyers concerned.

 

6. A platform of comprehensive services for SPVs: This platform is to combine such financial supportive systems and middleman services as finance, insurance, industry and commerce, taxation, commercial business inspection, customs, accounting and legal affairs institutes, etc., to provide all-round, all-process and all-weather high-quality services for all enterprises in the park. 

 

 

IV Development Strategy

 

1. In line with governmental guidance and market-directed promotion, efforts will be made to carry out enterprise cluster strategy, to make enterprise counterparts settled in a comparatively concentrated place according to the features of Changchun and CETDZ’s existing industrial groundwork and developmental law, to create a environment gathering the domestic and international technologies, talents and information by means of cluster effectiveness of the park to promote fair competition and accelerate developmental speed, to drive the regional economy to develop rapidly through the radiating and exemplary effectiveness of the park, and to comprehensively utilize the environmental resources and economically use the construction funds and land resources through the intensified effectiveness of the park. 

 

2. In line with combination of introduction and self-innovation, efforts will be made to carry out the strategy spearheaded by opening-up. According to the core of the development of Changchun SPV industry and through high-position engrafting with large foreign enterprises and multinational groups, choices will be purposefully made to introduce a batch of high-grade, precise and advanced SPV projects and key technological equipment to narrow the gap with the developed countries along with doing a job in digesting and absorbing the imported technologies to promote self-innovations. Great efforts will be made to research and develop the technologies and products with proprietary intellectual property rights so as to develop the proprietary core technologies to make the products go farther into the international markets and take part in the international competition. Environment for investment will be purposefully improved to attract domestic and international investors through more channels, more forms and wider fields so that more foreign direct investments can be utilized and the level of how to use them can be improved.

 

3. Efforts will be made to keep technologies advanced and environment optimized, and to fully carry out brand strategy at different levels. With Changchun SPV Industry Park as the core, and through the leading technologies and sound environment, efforts will be made to build up a brand of China SPV industry bases, to build up image brands in different sectors according to the their own environmental and technological features, and to build up enterprise brands according to their own characteristics in technologies and products.    

 

 

V Guarantee Measures

 

Under the goal “domestically best, internationally distinguished”, measures will be taken to establish and improve the management system, investment system and talent policy system in order to create a sound environment for the development of Changchun SPV Industry Park. 

 

1. Policy support system

It is suggested that Changchun should draw up pragmatic development layout, research and develop new products and technologies, actively usher in enterprises with strengths in manufacturing SPVs, integrate the existing refitting vehicle resources to avoid sporadic, disorderly, low-level and repetitive construction so that a pattern featuring various productions and professionalized coordination can be formed. Meanwhile, effectively preferential policies in market access, financial aid, land use, talent flow and transformation of scientific findings should by available to beneficiaries. For the emerging unfavorable conditions and problems, support policies shall be made in time.

 

2. Investment and financing systems

Various methods will be adopted and more aspects will be taken into consideration to raise funds so as to help SPV enterprises expand financing channels. Construction of the park and development of the industry are mainly financed by the funds raised by enterprises themselves. Construction funds will be collected by many channels and forms such as venture capitals from capital market, financial loans, foreign direct investments, financial aids from the government and so on. Effective measures shall be taken to manage to coordinate with financial institutions for the amount of credit loans. Guarantee methods will be expanded and more loans for SPV projects shall be granted. Meanwhile, encouragements will be given to enterprises to get listed in overseas stock markets, and supports will be given to enterprises in the park to enter into property right trade systems in all domestic provinces and cities for trading of property rights.

 

3. Talent policy system

Policy measures to attract talents will be improved and an environment in respect for talents and in favor of cultivation of talents will be created. More efforts will be made to attract intellectuals and make them settled by means of mechanism, career and emotion. More forms will be used to attract auto talents from home and abroad to open their businesses here in the park. Necessary aids will be provided for talents to help talents settling in the park to grow their business. A wide range of restrictions will be lifted to help talents settling in the park to solve the problems such as life settlement and family education and so on, and to do the best to finance them to carve out their careers. Conditions will be created to usher in technical and managerial talents needed for the development of SPV industry, and to provide them with necessary financial aids and compensations as well as material necessities. Talents in the key R&D projects will be financed with at least RMB 100,000 initial funds for research by employers and government. Talents of all kinds are encouraged to invest in shares and take part in distribution of benefits in the form of such key factors as technology, management and market resource and so on. Proportion of scientific findings in the registered funds shall be in line with the state stipulations.   

 

 

VI Advantages

 

1. Advantages in Services:

In terms of institutional setup, Changchun SPV Industry Park has adopted a streamlined pattern “little government and large society” to improve the service efficiency. With a professional team experienced in R&D practices, Changchun SPV Industry Park is able to provide enterprises with “all-weather, all-round, all-process and one-stop” services.

 

2. Advantages in preferential policies

2.1 Preferential policies for national level economic and technological development zones

Situated in CETDZ, Changchun SPV Industry Park enjoys the same level of preferential policies as such costal cities as Shenzhen and Shanghai and so on.

2.2 Preferential policies for the old industrial base in Northeast China

In line with the Announcement No. 153 (2004) by the State Taxation Bureau under the Ministry of Finance of China, enterprises settling in Changchun SPV Industry Park enjoy the preferential policies on enterprise income tax which were tailor-made for the enterprises in the old industrial base in Northeast China.

2.3 Preferential policies in Jilin Province, Changchun City, and economic development zones

2.3.1 Construction of the special projects in accordance with the national industrial policies, and of large amount in investment and of high content in technologies, etc., may enjoy more preferential policies in the form of “one discussion for one project, one policy for one establishment”.

2.3.2 Foreign-invested enterprises which are under the industrial orientation on investment in development zones may enjoy a certain amount of reductions and exemptions of cost in use of land and supporting facilities.

2.3.3 Foreign-invested enterprises in CETDZ may enjoy preferential policies of all kinds granted by the country, province and city for all industries.  

 

 

VII Flagship (Complete Vehicle) Enterprises

 

1. FAW SPV Company Limited

As one of wholly-owned subsidiaries of FAW Group, FAW SPV Co., Ltd., originally known as FAW Group SPV Factory, was founded on June 20 of 2003. It covers a total land area of 320,000 square meters with over RMB 270 million in assets, with its annual production capacity of SPV chassis and spare parts standing at 15,000 and 1,500,000 respectively, and annual forging and stamping capacity standing at 5,000 tons. At present, the company has developed 11 series covering 213 models of complete products and chassis for off-road vehicles, cargo carriers, cement mixers, self-unloading vehicles, towing vehicles, tank vehicles, lift trucks, storage trucks, military vehicles, and firefighting vehicles and so on. Of them, such models as cement mixers and lift trucks and so on are popular in the domestic markets, generating RMB 513.24 million in output value in 2005.

 

Certified by ISO 9001 and National 3C，FAW SPV Co., Ltd., has powerful marketing network and improved after-sale service system, with its products being sold in over 20 cities including Liaoning, Beijing, Shanxi, Henan, Chongqing and Shanxi and so on. Thus, the three top sales patterns mainly in Northeast, Northwest and East China have been formed. 

 

2. FAW Bus and Coach Co., Ltd.

FAW Bus and Coach Co., Ltd., the first wholly-owned subsidiary of FAW Group, was founded on September 30 2002. Located in CETDZ, it covers a total land area of 12.6 square kilometers. With RMB 1.03 billion assets, it now has incorporated FAW Bus and Coach (Wuxi) Co., Ltd., FAW Bus and Coach (Dalian) Co., Ltd., and FAW Bus and Coach (Chengdu) Co., Ltd., and FAW Bus and Coach Chassis Co., Ltd.

FAW Bus and Coach Co., Ltd., boasts five leading brands Jiefang, Taihu, Yuanzheng and Chuanma, and its products including four series covering over 100 kinds can be used for purpose of public transportation, tourism, group and highway use, etc.. It is experienced in the production of passenger cars, chassis, and medium-duty trucks. With the proprietary designs for products and R&D centers, the company can put ten or more kinds of new models into the market every year, thereby having comparatively strong competitiveness in the market. The chassis plant, a key national technological upgrading project which was invested with RMB 180 million, can produce 20,000 medium or top grade chassis every year. FAW Bus and Coach (Wuxi) Co., Ltd. was jointly established by FAW Bus and Coach Co., Ltd., and Wuxi Huishan Economic and Technological Development Zone and was put into operation in August 2005 with annual production capacity of passenger cars and chassis standing at 5,000 and 5,000 respectively. FAW Bus and Coach (Dalian) Co., Ltd., was relocated and reconstructed in 2001 and now can produce 1,500 passenger cars every year. FAW Bus and Coach (Chengdu) Co., Ltd., was put into operation at the beginning of 2006 with an annual production capacity of 8,000 passengers cars.

 

3.  Zhongxing Auto Project

Hebei Zhongxing Auto Company signed the first-phase cooperative agreement with Changling Group on April 21, 2006. “Hebei Zhongxing Auto Manufacturing Company Changchun Branch” was established by making use of the production facilities of Changling Group. The branch could produce 40,000 (single shit, 20,000 units) units of pick up cars every year, with mass production achieved in March 2007 after production line was retrofitted in December 2006　　

The second-phase agreement was reached on September 19, 2006. In line with the premise that no change shall be made to the first-phase cooperation, the two sides put RMB 2 billion on the establishment of a joint venture with an annual production capacity of 200,000 (single shift, 100,000 units) units of SMPVs, and 500,000 units of automatic control gear-boxes respectively. Located in the north Yangpu Road and in the west of Chaoyang East Road, the first-term project covers a total land area of 300,000 square meters with RMB 300 million planed to be invested in 2007. Constructions for such facilities as road and general assembly workshop and so on are expected to be completed late this year. Meanwhile, efforts will be made to finish cementing the track for testing vehicles and ground surface in the area for storing finished products in the new production plant which will get operational in March 2008. In August 2008, the production capacity is expected to reach 20,000 units. Projects including melting, painting and decorating the plant will be finished in October 2008 with the annual production capacity of SMPVs to reach up to 200,000. The annual output value will total RMB 13.5 billion upon the completion of this project.

 

4. Hengli Auto Industry Park

Hong Kong Tianbao Group, a multinational corporation group integrating R&D on technologies, production and international trade, was founded in 1984 with its hardware products mainly exported to America originally. It entered into auto parts industry in 1998, complete car field in 2002, and then was listed in Hong Kong in 2003. In recent years, with acquisition of Shenyang Songliao Auto, Beijing Benz Engine and Truck Axle Plant, the group has maintained a sound momentum of development.

In May 2006, Hengli Auto Industry Park was set up by the group in CETDZ. Located in the east of Yangpu Street, in the north Yangpuyi Road and in the west of Changyang East Road, it covers a total land area of 690,000 square meters which can mainly produce such products as 18,800 SPVs, 60 sets of internal high—pressure forming auto parts, 60,000 special type gear reducers, one million transmission shafts, 600,000 sets of hydraulic machineries, and eight million aluminum wheel hubs and so on. With a total investment of USD 300 million, the output value is expected to reach RMB 10.7 billion and over 1,000 people can get employed upon the completion of the project.

Approximately a total floor area of 48,000 square has so far been completed since the project was started, with RMB 960 million planed to be invested by 2007 for completion of 148,000 square meters in construction. It is estimated that the production capacity of 5,000 units of complete cars and 200,000 aluminum wheel hubs will be formed by the end 2007.

 

5. Changchun Guofu Truck Bodies Corporation

Changchun Guofu Truck Bodies Corporation is affiliated to Jilin Guofu Group Corporation which is a private enterprise group growing bigger from a small-scale company offering taxi rental and auto maintenance and repair services to a comprehensive group corporation engaged in truck bodies, auto trading, auto refitting, pedestrian street and real estate development and so on.

As the core enterprise of Jilin Guofu Group, Changchun Guofu Truck Bodies Corporation is known for its dominant brand Guofu truck bodies. The corporation registered for establishment with a total investment of RMB 250 million in January 1991. Located in Guofu Technological Industry Park in CETDZ, its land area and workshop area is 160,000 square meters and 14,000 square meters respectively. The annual production capacity is 100,000 sets (single shift, 10,000 sets). While introducing advanced technologies from Europe and America, the corporation also exports its products in the form of SKD and CKD to Europe, America and many countries in Asia. Up to now, the corporation has obtained over 30 domestic and international patents on such assembling technologies for embedded locks and spare parts, etc., thereby becoming a member of National Truck Equipment Association and a designated supplier of combination type closed automotive passenger compartments for automotive chassis producers, and automotive refitting companies as well as large scale transportation enterprises.

Changchun Guofu Truck Bodies Co., Ltd., is the largest flagship SPV enterprise in China with its products exported farther to England, Italy, Morocco, Tanzania, Thailand, Russia and Japan, etc..   

 

6. Chunyuan Automotive Refitting Co., Ltd.

Chunyuan Automotive Refitting Co., Ltd., is jointly invested by Daqing Chunyuan Automotive Refitting Co., Ltd., Changchun Zhongyi Wood Industry Co., Ltd., and Changchun Shuangshan Auto Parts Co., Ltd. Its products including lorry loading cranes, oil-field dewaxing vehicles, and compression type garbage trucks are itemed in the product catalogue of auto manufactures by the Development and Reform Committee of China. Daqing Chunyuan Automotive Refitting Co., Ltd., decided to settle in Changchun SPV Industry Base in order to make good use of the advantages of Changchun in providing supporting products such as auto chassis and spare parts. Heilongjiang Province has approved Chunyuan’s application, and Chunyuan is under transaction procedures for movement to the new location.

This project is planned to be invested with RMB 421 million of which RMB 370 million will be put in assets and RMB 44.58 million in cash flow. With a total floor area of 50,000 square meters, the project is going to be completed in three years. To meet the market demand, an annual production capacity of 6,700 lorry loading cranes, oil-field dewaxing vehicles and compression type garbage trucks is to be formed. The annual sales income is estimated at RMB 1.63 billion, total profit at RMB 102.42 million, and tax payment at RMB 84.63 million, with a profit margin of 24.3%. The project covering 117,154 square meters will be located in the east of Chaoyang East Road, in the south of Yangpusan Road, in the west of Chaoyangsan Road and in the north of Yangpuer Road. 

 

 

VIII Progressive Conditions

 

Changchun SPV Industry Park has so far achieved “seven connections and one paralleling” with RMB 260 million having been actually invested for 10 roads totaling 9.4 kilometers in length and 150,000 square meters in paved area. The No. 3 heating supply plant which can offer heating for 3 million square meters has nearly been completed with a heating supply capacity of 600,000 square meters having been formed. 

　

Up to now, Hengli Automotive Industry Park totaling RMB 2.5 billion and the second-phase project worth RMB 2 billion invested by Zhongxing Auto have settled in Changchun SPV Industry Park. Among the projects under procedures before get started also include the refitting project of Chunyuan Automotive Refitting Co., Ltd., heavy industry and gear-box projects of Sandy duty as well as the heavy industry project of HHI. In addition, some enterprises including Pilkington and FAW SPV and so on are choosing locations in the park to open their businesses.