An Investment of 3 Billion Yuan, with an Expected Anuual Output Value Reacing 10 Billion Yuan After Completion
On May 15th, a ceremony marking the start of construction work of Hailiang Group’s southwest production base for copper fabrication was held in Luohuang Industrial Park, kicking off the project. This base is an important step for Hailiang Group to carry out its strategic layout of the production and sales of its own copper fabrication industry across the world, becoming the tenth production base following other nine domestic and international bases, namely Zhejiang, Shanghai, Anhui, Taishan, Zhongshan, Chengdu, Vietnam, Thiland and the United States. It inevitably futher consolidates its leading role in the industry and marches ahead toward the goal of becoming “an international giant in the non-ferrous materials smart manafacturing”.
The project was formally signed to join the Luohuang Industrial Park Jiangjin with an total investment of 3 billion yuan, covering an area of 230 acres. Aiming at fabricating copper pipe and indulation pipe for the refrigeration function of air conditioner, as well as copper bar for electrotechnics, this production base is expected to manufacture 90,000 tons of new and effective refrigeration cooper tubes, and 60,000 tons of high-precision conductive copper bars annually. The project will be implemented in two phases. The first phase of the project is predicted to be completed by December 2018. At present, the industrial and commercial registration, construction land planning permission and program design have been finished, record has been filed, and a sales company has been established. As to the second phase, it should be completed by Decemeber 2021 with an annual output value reaching about 10 billion yuan after completition.
Founded in 1989, Hailiang Group has steadily grown into an international large-scale private enterprise group based on copper fabrication after nearly 30 years of development, specializing in non-ferrous smart manufacturing, education and health industry (ecological agriculture, medical care and elderly care). Zhejiang Hailiang Co., Ltd. is a sino-foreign joint venture company with interests controlled by Hailiang Group Co., Ltd. Since its foundation in 2001, Hailiang Stock has been dedicated to the research and development, production, sales and service of high-grade copper products, copper-aluminum composites and aluminum materials, becoming one of the largest and most competitive copper fabrication enterprise in the world. The company is also the largest copper-products exporter in China, the “refined-management” made Hailiang Stock a benchmarking enterprise. It took the lead and set a good example in the transformation and upgrading of the traditional manufacturing industry, and maintained its profit groth ability that led its counterparts for many years. Products fabricated by the company cover almost 100 brands and 1000 specifications with advanced technology and renowned reputation, and they are widely used in nuclear power, aerospace, ship and marine engineering, sea water desalination, air conditioner (A/C) and refrigerator refrigeration, construction water pipes, equipment manufacturing, automotive industry, electronic information and other military and civilian industries. These products are exported to 117 countries or regions around the world. At the moment, Hailiang Stock has over 6,800 employees with a total asset of 15.28 billion yuan, net asset of 5.178 billion yuan. In 2017, the operation revenue of the company was 29.816 billion yuan with a total profit of 705 million yuan.
With the kicking-off ceremony of Chongqing Hailiang Copper Industry Co., Ltd., being successfully held, another 10 billion class enterprise in Jiangjin, one of China’s top 500 companies in Luohuang Industrial Park will start its construction and development. Luohuang Industrial Park will form a non-ferrous metal fabrication industry cluster with Hailiang, LBZB and Chongqing Harvest Aluminum Co., Ltd., being its cores to promote the optimization and extension of the industrial chain. As an advanced equipment manufacturing industry, Hailiang enjoys the state-of-art technical equipment. Its high-grade copper products with high-tech content and renowned reputation, along with its operation to provide affiliated equipment to Gree, Midea, Haier and other large companies, will help enrich Jiangjin’s industrial structure, driving the transformation and upgrading of Jiangjin’s traditional industries. In addition, Hailiang’s products are mainly copper pipes for A/C refrigeration and cooper bars for electrotechnics. Therefore, it will provide resource guarantee for A/C manufacturers, their suppliers for copper pipes, a large number of switch cabinet industries and bus duct enterprises in Chongqing. Purchasing in local company will lower the procurement cost.
“To invest in Jiangjin, Hailiang will output sound capital, superb management, cutting-edge technology, advanced equipment as well as green production, so as to truly lead Jiangjin in manufacturing,” introduced by a manager of Hailiang. The company will continue to uphold the ingenuity of the craftsmanship and manufacturing spirit, exploit the advantages of high-tech enterprises, national intellectual property pilot enterprises and institutions, state-level postdoctoral research workstations, and the Ministry of Education's key laboratory "Hailiang Copper Fabrication Technology Development Laboratory" to the full, and strive to become the largest, most competitive, most influencial and high-quality manufacturing base for non-ferrous metal new materials by relying on new advanced equipment, the latest advanced technology and an excellent management team. We will serve customers, the people and the society with high-quality products.
Furthermore, with the signing of the strategic cooperation frame agreement between Hailiang and Jiangjin, three major business sections of Hailiang Group are expected to enter Jiangjin one after another and continue to enrich Jiangjin's industrial structure.
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Why did Hailiang choose Luohuang Industial Park Jiangjin to invest its southwest production base for copper materials? On the one hand, it was due to the need for Hailiang’s own stragetic layout. Hailiang Stock now has domestic bases in Zhejiang, Shanghai, Anhui, Taishan, Zhongshan, etc. with no production base being deployed in the west. On the other hand, it was owing to the market factors, that is, A/C units manufactures that cooperate with Hailiang Stock, such as Gree, Midea, Haier and Changhong, need affiliated equipment deliverd nereby.
“When choosing the location, 8 districts and counties were considered including Tongliang, Yongchuan, Bishan, Shanpingba, Jiulongpo, Ba'nan, Yubei and Jiangjin. And the final decision was Luohuang, Jiangjin.” A relevant person in charge said that among the five evaluation indicators of the location, Luohuang Industial Park Jiangjin ranked the first in three of them, the third in one of them. The geographical advantage of Jiangjin was also a reason behind the decision.
According to reports, Hailiang Group has 9 production bases around the globe with more than 700,000 tons of cooper fabrication materials being produced every year. A large part of Hailiang Group’s copper raw materials are from Kazakhstan and Sichuan, China. The raw materials for electrolytic copper imported from Kazakhstan alone reaches 40,000 tons per year, and these 40,000 tons are delivered to the above production bases through China Railway Express (Chongqing). Now that Hailiang Group is establishing a production base in Chongqing, Jiangjin will become the only production and fabrication base for Hailiang in the Western Region of China. The cost of copper raw materials imported from Kazakhstan through China Railway Express (Chongqing) to Chongqing is 15 dollars lower per ton than to Zhejiang. Besides, the copper materials of Hailiang Group are used mainly to provide affiliated equipment for A/C companies while Gree, Midea, Haier and Changhong and other A/C companies all have factories in Chonging, so settling in the Luohuang Industrial Park Jiangjin will not only reduce the cost of long-distance transportation, but also shorten the response time and facilitate its long-term cooperation with customers.