I. Project Name

Technological Transformation of Numerically-Controlled Cutter

II. Project Implementation Agency

Guanzhong Tool Plant

III. Project Description

It is proposed to build a production line, with annual output of numerically-controlled cutters and fittings of 13,000 pieces, offering hard alloy and super-hard materials for numerically-controlled machine tools, and to develop various coating cutters for improving the service life of the cutters. The Project needs 32 sets of main equipment, including 10 imported ones and 22 domestic ones.

IV. Total Investment and Cooperation Form

Total investment of the Project is RMB 15 million Yuan, including RMB 12.6 million Yuan worth of fixed-assets investment and RMB 2.4 million Yuan of current funds;

Cooperation form: Joint venture, negotiation.

V. Anticipation of Market and Analysis of Investment Return

According to relevant materials, the domestic demand is about 300,000 pieces every year, relying mainly upon import at present. What’s more, the demands on numerically-controlled cutters are increasing rapidly along with the development of numerically-controlled machine tools in mechanical processing industry, so it has a bright future.

After the Project is put into operation, the annual increased sales income is expected to reach RMB 21 million Yuan, the profit margin 36%, the internal rate of return 40%, and the payback period of investment 3 years.

Contact Person: Wang Huqin

Telephone: 0917-7222012

Fax: 0917-7222312

Address: No.34, Guanzhong Road, Fengxiang County, Shaanxi  72140