May 11, 2011 Tianrun Crankshaft Co., Ltd. announced that it plans to build an industrial park covering an area of ​​400 mu in the Hanting District of Weifang City. The first phase of the investment will be 400 million yuan to build a new 150-mu land with an annual output of 100,000 heavy loads. Crankshaft processing production line. Of the construction funds, 300 million yuan will be raised by the company itself and 100 million yuan will be applied for bank loans. The construction period of the project is 2 years, and the production period is 1 year. It is expected that the production will be fully completed by the end of 2013. It is expected that after the project is completed and put into production, the sales income will increase by 460 million yuan and the total profit will reach 90.48 million yuan in the normal year.

The key to the establishment of the company in different places is that the demand of customers is large enough to ensure the utilization of capacity.

The company's Wendeng factory is the world's largest crankshaft production base, but foreign large-scale crankshaft companies are globally deployed, so in the long run the company needs to set up factories in different places. The biggest advantage of the company's existing large-scale production at a single production base is that the company can iron out fluctuations in production plans based on the differences in the market demand for different customers and different types of products, thereby increasing the capacity utilization rate. Therefore, we believe that the reason for prompting companies to build factories in different places has been that, although they can be built near the customers' production, they can reduce transportation costs and improve response speed. However, due to the fact that orders from different factories depend on a single customer, if the customer needs If the demand is not large or the demand is fluctuating, the capacity utilization rate of the factory in another place is difficult to guarantee. The increase in production cost may even be higher than the saved logistics cost.

Strengthen in-depth strategic cooperation with Weichai Power. It is expected that Weifang Branch's total production capacity will reach 300,000.

Weichai Power is the company's largest customer from 2006 to 2009, and its purchases account for approximately 30% of the company's total revenue. In addition, we expect the largest customer to contribute 36.9% of operating revenue to the company in 2010 should also be Weichai Power, which means that the company's sales to Weichai Power in 2010 were 514 million yuan. Therefore, setting up a plant near Weichai Power, on the one hand, due to the demand of Weichai is enough, it can guarantee the capacity utilization rate of the company's future Weifang plant; on the other hand, because Weichai has positioned the crankshaft as a purchased part, only the interior is retained. A crankshaft production line, so the company does not have to worry about future competition with Weichai's internal crankshaft processing plant for orders. Weichai has developed rapidly in recent years. Apart from a small amount of homemade crankshafts, it is now purchased from the company and Liaoning May 18th. We estimate that the company's matching ratio is about 35%. Therefore, the establishment of the Weifang branch can help the company further improve its The matching ratio of Weichai Power. In addition, since Weifang Branch has a total area of ​​400 acres, we expect that the production base will also have a second-phase expansion plan in the future, and the planned total production capacity will be more than 300,000 heavy-duty engine crankshafts.

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