Auto Key Parts Assembly Industry

Basic Information 

Name of the Proposed Investment Project: Auto Key Parts Assembly Industry

Industrial Classification: manufacturing of auto parts

Planned Investment Amount: $

Form of Investment: sole proprietorship

Policy Category: encouraged policies

Location of the Project:

Materials of the Project

Introduction: Based on the auto parts industry of Shaoguan and the electronic information industry of Dongguan, and directed by supporting auto industry in Guangdong, the Government of Shaoguan will strengthen policy guidance and financial support, combine the introduction, cultivation, transformation and upgrading of the industry. Firstly, is to focus on developing such automobile metal materials as automobile leaf-spring, precision light alloy parts for cars, casting and forging blank, powder metallurgical parts, etc.; as well as such automotive standard parts and vehicle instrument modules as bearing, bearing bush, gear, oil seal, steel spring, bolt, clamp and gasket, brake pad, crankshaft, camshaft, differential mechanism, differential transmission, supercharger, oil pump and hardware products. Secondly, is to break through the development of such chassis modules as clutch assembly, automatic transmission assembly, manual and automatic transmission assembly, hydraulic torque converter, the axle assembly, brake assembly, chassis stamping parts, shock absorber, suspension assembly, blade spring assembly, hydraulic power steering gear assembly, steering machine assemblies (steering wheel, steering knuckle, steering bracket), aluminum alloy wheel hub, driver board, semi-trailer oil cylinder. Thirdly, is to carry out innovative development of such power modules as engine cylinder block, crankshaft, connecting rod, piston, piston ring and cylinder liner, suction and exhaust valve, suction and exhaust pipe assembly, suction and exhaust manifold block, cylinder head cover, engine oil and fuel filter, oil seal, timing gear chamber cover pipe, fuel tank and inlet and outlet pipe, special bearing, camshaft bearing cap, balance shaft cover, ventilation valve assembly, carbon tank, engine mounts, valve assembly, speed meter hole cover. Fourthly, is to develop automobile wire harness, electronic rectifier, joystick, signal receiving box, electrostatic belt, battery and standby power supply; automotive air conditioner, GPS navigator, car audio system, security system, car body control system, automobile data recorder, car electronic monitoring system, lights of all kinds, automotive instrumentation, permanent magnet synchronous and AC asynchronous motor technology, hybrid power plant of new energy vehicles.

Development sequence and main advantages of the construction of the project:

market advantages (market purchasing capacity): The market demand and industrial clusters around Shaoguan provide a wide space for the development of Equipment Park. In the neighboring provinces of Shaoguan city, Hunan, Jiangxi and Guangxi have vigorously developed equipment manufacturing industry, which has formed the advantages foundation and industrial cluster effect of equipment manufacturing. Hunan Province is thriving in electrical engineering and electrical appliances, engineering machinery, automobile and spare parts, heavy mining machinery and other industries. It is becoming a strong support of "Made in China 2025". As an important industrial city in Guangxi, Liuzhou has formed its comprehensive competitive strength that mainly relying on automobile, machinery and metallurgy, especially in the aspects of motor traffic, spare parts, and engineering machinery. It is the only city in China that has the production bases of four major automobile groups and also the national export base and production base of automobile parts. Jiangxi Province is the cradle of China's aviation industry, it is the only province owns development and production ability of a fixed wing aircraft and rotorcraft in China, and it has become China's important R&D and Development Base of navigation industry. In addition, the neighboring cities of Shaoguan, such as Heyuan, Qingyuan, Guangzhou, Dongguan, Chenzhou, Changsha-Zhuzhou-Xiangtan Area, Ganzhou and Liuzhou, have gradually formed distinctive system of equipment manufacturing industry relying on the regional resource advantages. For example, Guangzhou has become one of the three passenger vehicles production base, national auto and parts export base, national demonstration pilot city of energy-saving and new energy vehicles, the export of auto and spare parts rank second among the national auto and parts export bases in China.          

Resource advantages (natural resources, labor resources, etc.) : The special steel resources and coordinated development of equipment industry of the whole province provide a wide market space for the rise of the Equipment Park. At present, Guangdong Shaoguan Steel Co., Ltd. has absorbed the high-end technology from the Changcai Co., Ltd of Baosteel (Shanghai) and built the only high-end superior special steel production base in south China. It has the advantages of advanced equipment and low-cost production of structural alloy steel. It will build the high-end special steel supply base in Pearl River Delta for automobile steel, oceanographic engineering steel, intelligent manufacturing equipment steel. The establishment of Shaoguan Steel Base has effectively remedy the deficiency in the production and processing of equipment materials in Guangdong province, as well as provided favorable conditions for high-end and independent development of equipment industry in Guangdong. With the rapid development of the advanced equipment manufacturing industry in the west bank of the Pearl River, there exists certain deficiencies in the aspects of special steel, equipment base parts and auto parts. According to the statistics, the ratio of annual automobile and parts production value of Guangdong Province in 2015 is only 0.45, which is not only lower than 1:0.9 in China, but also much less than the level of 1:1.7 in developed countries. There are strong demands in high-end basic parts, basic technology, automobile parts, which provide a great market demand space for the development of the equipment park industry.
Position Advantages (distance and time from major market transportation, main ports, international ports, etc.): the position advantages of “three Provinces (Guangxi, Hunan, Jiangxi), Guangzhou-Qingyuan-Shaoguan Business Circle, Advanced Equipment Manufacturing Industry Belt at the West Bank of Pearl River and two districts) provide the most powerful hinterland space for the construction and development of the equipment park. The Equipment Park is located at the Guangzhou-Qingyuan-Shaoguan Business Circle and the extension area of Advanced Equipment Manufacturing Industry Belt at the West Bank of Pearl River, it is the the key development area for the revitalization of northern, eastern and western Guangdong,  which will promote Equipment Park to actively fit into the advanced equipment manufacturing industry system in the area of Pearl River Delta and its west bank, at the same time it can accept the transfer of capital, technology, and industry from Pearl River Delta and even Hong Kong and Macao. The Equipment Park also lies at the junction of Hunan, Jiangxi and Guangdong. It connects with developed regions of equipment manufacturing industry and enrichment region of materials and resources in Hunan and Jiangxi through the Wuhan-Guangzhou High-speed Railway, Beijing-Guangzhou Railway, and Shaoguan-Jiangxi Highway.

The superior economic location make the Equipment Park achieve docking and integration of equipment manufacturing industry between Pearl River Delta Area and northeastern Guangdong and ultimately promote the integration and development of industries and economy in northwest of Guangdong.

Industry Supporting Advantages (regional industrial clusters, transportation, etc.): The construction of Equipment Park is assisted by Dongguan in accordance with the standard of provincial key equipment parks. Dongguan is a big industrial city in Guangdong and also an important manufacturing development area and regional economic of the market economy industry, is China's important manufacturing industry development area and a new high land of the opening-up of regional economic in China. It has provided favorable development foundation for such key fields and sector as industrial development, management system, cooperative mechanism, development mode, industrial investment, resources integration, industrial policy, etc. At the same time, the Equipment Park is located at the key development zone for the revitalization of northern Guangdong as well as the extension area of Advanced Equipment Manufacturing Industry Belt at the West Bank of Pearl River, it can enjoy provincial and national policies of promoting industrial transfer and labor transfer in Guangdong province and advancing the revitalization of eastern, western and northern Guangdong, so as to be access to preferential policies in land, finance and tax, and factor price. This system arrangement makes the Equipment Park have the advantage of “policy lowland”, with the acceleration of policy innovation and constantly released “policy bonus”, the development of Equipment Park will be injected increasingly strong power and competitiveness.

Cost advantage (labor, water and electricity price): the industrial foundation and cost advantages of Shaoguan provide a strong industrial foundation for the construction and development of the Equipment Park. Shaoguan is the major bases of parts and supporting bases for the equipment manufacturing industry in Guangdong province, and the equipment manufacturing industry is also the largest industrial system in Shaoguan. After more than 40 years of development, especially the implementation of the strategy of strengthening the city through industries, through the deepening of reform, structural adjustment, systematic and technological innovation, the equipment manufacturing industry in Shaoguan has gradually formed a competitive industry with such major products as casting-forging products, complete engineering machinery equipment, complete electricity distribution equipment, auto parts, hydrocylinder, etc. In terms of resources and energy, in 2015, electricity generating capacity of Shaoguan is 19.2 billion KWH, with 8.1 billion KWH more than needed. With the establishment of Guangdong Guoyue 2x350000 KW, Huadian Nanxiong 2 x350000 KW and Xinfeng Biomass 2 x30000 KW power plants, the surplus power is expected to reach 1.5 million KW/year. In addition, the electrovalence in peacetime for 1-10 kv large industrial is 55.86 min/ KWH, nearly 25% lower than Pearl River Delta (69.73 min/KWH). On the human cost, the cost and abundance of labor in Shaoguan have higher comparative advantages within the province, which is conducive to the development of labor-intensive and energy-intensive equipment manufacturing industry.  

Advantages of the Project Construction:

Environmental Protection Condition of the Project:

Other Conditions:

Project Undertaker and Contact Information

Project Undertaker: Shaoguan Municipal Bureau of Commerce

Address: Building No.8 of the Buildings of Government of Shaoguan

Contact Person: Li Deping

Contact Number: +86751-8883120

Mobile Phone:

Fax: +86751-8883120

E-mail: sgwjyjk@qq.com