Hubei Mechanical and Electric Engineering Research and Design Institution Project Package

Project 1  Wuhan International Mechanical and Electric Engineering Service Center

I Project Location:

118 Shipailing ,Wuchang,Wuhan(Hubei Mechanical and Electric Engineering Research and Design Institution)

II Project Content:

Large-scale comprehensive service platform serves functions such as products exhibition,business and technical service ,training , research and development ,information , logistic and conference service  as well as Solar power generation.

III Project Scale:

The floorage totals approximately 200000 square meters, and the capacity of Solar Power Plant power station is to be 2000000watt。The total investment is predicted to be 0.8-1billion RMB.

IV Project Background:

1 Excellent local industrial environment in Wuhan

(1) Wuhan is in the lead position in central China area.

Wuhan city known as “The thoroughfare to nine provinces” is located in central China with easy transportations to the other parts of the country. It is advancing on the way towards an international metropolis with a developed complete transportation network. According to statistic, there are 66 enterprises out of world top 500 companies having invested or set up agencies here, 42 enterprises out of China top 500 companies and 17 enterprises out of China top 500 private enterprises having set up agencies here, 89 China top 500 enterprises having set up operation branches. World known mechanical and electric engineering enterprises such as Siemens , ThyssenKrupp，Alstom、Peugeot--Citroen、Faurecia， Visteon、， Honda、Kawasaki，Philip and ect.

Hubei boasts more than 60 universities with more than 0.4million students and more than 1million specialized scientific researchers. Wuhan ,in particular, as one of the three educational and research center holds more than 2000 research and development institutions generating many research achievements presenting world advanced level which gives the transnational companies in wuhan a strong technical and human-resource support.

(2) Automobile and mechanical and electric engineering industry is the pillar industry in Hubei and regions around.

Hubei is one of the three largest production bases of automobile parts in China. By the end of 2005, the whole-cars production capacity had achieved 0.8million with a complete product line with different functional automobiles and different prices. The whole-cars production has promoted the parts production industry which has achieved a productions capacity of 0.6million sets. Hubei has acquired production ability of 58 part products out of 60 key part products primarily emphasized by the state. A group of large-scale automobile part production enterprises have been developed in this region at the mean time. By 2005, there were 433 provincial automobile companies and 361 automobile parts production enterprises with total assets of 134.5billion RMB and accomplished industry production value of 79.92 billion RMB. The sales revenue was 95.05billion RMB, the pre-tax profit was8.825 billion RMB and profit reached 3.548billionRMB.

The development goal of automobile industry is that the whole-cars production capacity reaches 0.9million with a sales revenue of over 106 billion RMB, taking 20%of the domestic market share by 2007; the whole-cars production capacity reaches 1.3million with a sales revenue of over170billion RMB, taking 25%of the domestic market share by 2010; the parts production capacity reaches 0.8million sets with a sales revenue of over 40 billion RMB by 2007; the parts production capacity reaches 1.4million with a sales revenue of over 60 billion RMB by 2010.

2 Profound industry foundation provided by Hubei Mechanical and Electric Engineering Research and Design Institution

Hubei Mechanical and Electric Engineering Research and Design Institution is focusing on the research and development of mechanical and electric engineering products ,design and consulting service of mechanics ,construction and environment protection industries .It owns A level building design qualification in mechanics ,construction industries ,A level engineering consulting qualification, and second grade qualification in environmental protection construction design.

It is the only large-scale comprehensive research institution integrating functions of research, design, production, marketing and technical service. With profound foundation in mechanical and electric engineering industry, it has been identified as the Hi-tech enterprise at provincial level. Meanwhile, it has obtained ISO9001:2000 Quality Management System Certification.

3 foundation of Solar Power Plant is in compliance with the state sustainable development strategy and industry policy.

In China, solar power generation is supported as key industry by state and local government. The state issued 《Renewable Energy Law》on Jan.1, 2006 to emphasize the utilization of renewable energy.

Establishing the solar power plant in “Wuhan International Mechanical and Electric Engineering Service Center” is in compliance with the state sustainable development strategy and industry policy. With regard to environmental protection, this Solar Power generation system could save 768 tons standard coal, reduce the emission of industrial powder by 9.6 tons ,industrial waste residue by  202 tons , carbon dioxide by 340 tons and sulfur dioxide by 15.36 tons. It is a real green energy with pollution.

With regard to society effects, this project will Solar Power generation system to generate power with low cost, short construction period and easy operational and transformational system. It is easier for the public to accept. Up to now, the cost for is approximately 2.8-3 RMB/kWh.As the technology evolves and scale enlarges, it is predicted to reduce to 0.5 RMB/kWh. For its large initial investment needed, Solar Power generation still requires supports from government.

V. Approach to cooperation:

1 Investment: in forms of capital, management ,technology, equipment and ect.

2 Technical cooperation in Solar Power generation technology.