Project name

Automobile Air Bag

Cooperation form

Equity JV

Project description

Production scheme
Construction plan
Market analysis
Operation scale
Sales forecast

   Project scale: annual sales of automobile air bags at RMB 220 million.
   Ningbo Mingjia Auto Trimmings Co., Ltd. hopes to enter into a strategic cooperation relationship with a foreign business to introduce technology, capital and most importantly, brand. The prospective joint venture, with an approximate investment of USD 12 million, will develop auto air bags as substitute for import to meet the growing market need. The project will occupy a land area of 60mu, with the foreign and Chinese partner holding 50% equities each. The foreign partner may also choose to invest with know-how.
   The rapid development of auto industry in China has led to the increasing demand for auto parts and accessories. Air bags are not yet widely applied to domestic cars except the imported ones. As people are more concerned with driving safety, the air bags will find more and more domestic market.
   Annual sales income is forecasted at RMB 220 million and annual profit at 26 million.

Equipment import & material supply

Investment estimate & cost efficiency

Total investment

USD12 million

Registered capital

USD5 million

Annual sales

RMB220 million

Anticipated means of investment from foreign partner

Annual profit

RMB26 million

Foreign exchange

Technology

Equipment

Brand name

Others

Internal return rate

25.77%

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Payback period

3.2 yrs

Basic facts of Chinese partner (ownership, total and fixed assets, current products and sales, current equipment and technology, support facility, etc.)

   Ningbo Mingjia Auto Trimmings Co., Ltd. is a technology intensive private enterprise specializing in auto trimming products. The company employs over 250 people and has annual sales of USD 3.6 million. The main products have 5-10% domestic market share, ranking among the top ten in the country. The company also has its own R&D center and is able to carry out product development, mould manufacturing and assembling independently. The advanced equipment and process introduced from abroad also ensure the product to meet international standard.
 The company has a wide sales network covering the common and low-end auto trimmings market. It supplies its products to over 10 auto manufacturers. It is feasible for the company to utilize the existing sales network and develop new products with higher added value.

Project location & geographic advantage

   The project is conveniently located in the southern suburb of Ningbo, close to Yinxian Avenue and Yinzhou Second Avenue, 3.5 hours' drive from Shanghai, 10km from Ningbo international airport and 30km from Beilun Port.

Project status quo

   At marketing stage      

Project data available

Investment promotion material       

Organization to contact

Foreign Investment Promotion Bureau of Yinzhou District

Person to contact

Wang Xianfeng

Address

13/F, 886 Ningbo Baizhang East Road, Ningbo

Postcode

315040

Telephone

0086-574-87838068

Fax

0086-574-87396889

E-mail

webmaster@yinzhouchina.com.cn  

Website

www.mecai.com