1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Basalt fiber photovoltaic mounting system is a composite material product reinforced with basalt fiber. It has excellent mechanical properties and corrosion resistance, is non-conductive, has low density, long service life, and low overall cost. Its sales price in the market is much lower than that of similar galvanized steel mounting systems and mounting system made of other materials; Basalt fiber photovoltaic mounting system also have good weather resistance and can withstand the effects of harsh weather conditions such as sunlight, high and low temperatures, wind, and rain; In terms of design and application, basalt fiber photovoltaic mounting system demonstrate great flexibility and are suitable for the design and planning of commercial or civilian solar roof systems, especially exhibiting unique advantages when installing ordinary frame solar panels in parallel on sloping roofs.

The project aims to meet the development needs of the growing renewable energy equipment industry in China. A production base for basalt new material photovoltaic and solar thermal equipment mounting systems and specialized fasteners that can meet the requirements of high-end product matching will be built in the Tonghua Pharmaceutical High-tech Industrial Development Zone.

1.1.2 Market prospect

(1) Current global photovoltaic power generation market

In the context of the scarcity of traditional energy resources and the increasing global climate change, photovoltaic power generation has obvious advantages from the perspectives of resource sustainability and environmental friendliness. Therefore, in recent years, countries around the world have vigorously developed photovoltaic power generation, and governments have formulated industrial support policies to promote the development of the photovoltaic industry.

At the same time, as an important representative of the global emerging industry, the photovoltaic industry has broad development prospects in the long run. A large number of enterprises participate in and invest in the photovoltaic industry, and the photovoltaic industry has shown a high-speed development trend, becoming one of the fastest-growing emerging industries in the world.

According to statistics from the International Energy Agency (IEA), the annual new installed capacity of photovoltaic power generation worldwide has also maintained a rapid growth trend. The annual installed capacity of global photovoltaic power generation has increased from 38GW in 2013 to 390GW in 2023, with a CAGR of 27.63%.

According to data from the International Renewable Energy Agency (IRENA), the cumulative installed capacity of photovoltaics worldwide has increased from 101.7GW in 2012 to 1546GW in 2023, reaching a new high in 2023.

In terms of installed capacity, China, the United States, and India are the three major markets in the entire photovoltaic market. Since China became the world's top market in 2013, it has had a direct impact on market stability and price fluctuations. The United States has always been the second largest market in the world, while markets in India, Brazil, and Europe are relatively big.

(2) Current China's photovoltaic power generation market

As early as 2000, China had already made preliminary plans for the photovoltaic industry. In 2002, it carried out "power transmission to rural areas" to promote the development of the photovoltaic industry in rural areas with relatively low population density and abundant land resources, achieving the transformation of the annual installed capacity of photovoltaics from kW to MW. The implementation of the "Golden Sun Project" in 2009 propelled the development of China's photovoltaic industry into the "fast lane". Subsequently, the continuous introduction of industrial policies such as the Energy Development Strategy Action Plan (2014-2020), Guiding Opinions on Establishing a Target Guidance System for Renewable Energy Development and Utilization, and Notice on Matters Related to Wind and Photovoltaic Power Generation Project Construction in 2020 provided systematic guarantees for the development of the photovoltaic industry. In 2020, China announced at the 75th United Nations General Assembly that it aims to achieve peak dioxide emissions carbon peaking before 2030 and strive to achieve carbon neutrality by 2060. As a relatively mature new energy industry in China, the development of photovoltaics has received further attention. During the 14th Five Year Plan period, China defined new energy, including photovoltaics, as the main energy source of the new power system for the first time, and took strong support measures for its development.

According to data from the National Energy Administration, the installed capacity of photovoltaics has significantly rebounded from 2020 to 2023. In 2021, China's newly installed photovoltaic capacity was 54.88 GW, a year-on-year increase of 13.86%. In 2022, the newly installed capacity of photovoltaic power generation in China reached 87.41 GW, a year-on-year increase of 59.27%. In 2023, the newly installed capacity of photovoltaic power generation in China reached a new high of 216.88GW, a year-on-year increase of 148.12%. This data was only 12.92 GW in 2013, with an average annual compound growth rate of 43.95% from 2013 to 2023.

According to data from the National Energy Administration, as of 2023, the cumulative installed capacity of photovoltaics in China has reached 614.07GW, a year-on-year increase of 54.6%. And this data was only 19GW in 2013, with an average annual compound growth rate of 42.92% from 2013 to 2023. The photovoltaic industry is showing a thriving development trend under the joint action of national strategy and market demand.

(3) Market analysis of photovoltaic mounting system industry

The photovoltaic power generation system includes photovoltaic modules, inverters, photovoltaic mounting systems, combiner boxes and other equipment and accessories. The photovoltaic mounting systems are special devices designed and installed in the solar photovoltaic power generation system to support, fix and rotate the photovoltaic modules. Due to directly carrying the power generation main body of the photovoltaic power station, the product performance of the photovoltaic mounting systems have significant impact on the power generation efficiency and investment returns of the photovoltaic power station.

Photovoltaic mounting systems can be divided into fixed mounting systems and tracking mounting systems. Compared with fixed mounting systems, tracking mounting systems can be adjusted according to the angle of the sun, allowing photovoltaic modules to maintain the optimal angle towards sunlight, resulting in significantly better power generation than fixed mounting systems. The power generation gain is usually between 5% and 35%. In recent years, with the improvement of the reliability of tracking mounting systems, the reduction of cost, and the trend of photovoltaic grid parity forcing power plant investors to calculate power generation efficiency, the proportion of tracking mounting systems in photovoltaic mounting systems have been continuously increasing, forming a partial replacement for fixed mounting systems.

The Research and Analysis of the Current Market and Development Prospects of China's Photovoltaic Mounting Systems from 2024 to 2029 released by the China Academy of Commerce Industry Research shows that the market size of China's photovoltaic mounting systems market will be 19 billion yuan in 2022, a year-on-year increase of 8.57%, and the market size will be about 21 billion yuan in 2023. With the continuous growth of photovoltaic installed capacity, it is expected that the photovoltaic mounting systems will continue to expand in the future. Analysts from the China Academy of Commerce Industry Research predict that the size of China's photovoltaic mounting systems market will increase to 25.3 billion yuan by 2024.

By 2025, the global market size of photovoltaic brackets will reach billions of dollars. With the continuous increase in global photovoltaic installed capacity, the market demand for photovoltaic mounting systems will also continue to grow, especially in the field of distributed photovoltaics, where the application of photovoltaic mounting systems will be more extensive. Driven by multiple factors such as technological innovation, green environmental protection, market demand, and policy support, the photovoltaic mounting systems industry will continuously enhance its own strength and market competitiveness. Meanwhile, with the continuous expansion and deepening of internationalization, photovoltaic mounting system enterprises will usher in broader development space and opportunities.

With the increasing attention to renewable energy, the photovoltaic industry has also ushered in a period of rapid development. Basalt fiber photovoltaic mounting systems, as the new type of photovoltaic support material, have broad market prospects.

1.1.3 Technical analysis

The project adopts modern production technology and automated production lines, with mature production processes and technologies, and has the conditions for large-scale production.

The production process of the project is as follows:

Crushing and melting: The crushed basalt is added to an electric furnace for melting, and the basalt is fully melted to form a clear melt;

Casting: In the insulation stage, inorganic non-metallic fibers are uniformly arranged in a specific mold, and then the molten liquid is cast into the mold;

Cooling: Insulate and cool the castings to room temperature;

Demoulding: After cooling down to room temperature, demoulding is carried out to produce a fused basalt photovoltaic mounting system.

1.1.4 Advantageous conditions of project construction

(1) Policy advantageous

In January 2022, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban Rural Development and other departments issued the Action Plan for Innovative Development of Intelligent Photovoltaic Industry (2021-2025), encouraging the development of intelligent and digital household intelligent photovoltaic products and systems, achieving plug and play, safety and reliability, and convenient use, and promoting the development of the household photovoltaic market.

The 14th Five Year Plan for National Economic and Social Development and 2035 Long Range Objectives Outline of Jilin Province proposes to cultivate the new energy industry and strengthen a number of backbone solar photovoltaic power generation and photovoltaic product manufacturing enterprises.

In March 2022, Jilin Province released the Action Plan for Promoting Stable Growth of Industrial Economy in Jilin Province, proposing to comprehensively promote the "Wind and Solar Three Gorges" project, striving to achieve a new energy installed capacity of over 30 million kilowatts, including photovoltaic installed capacity of over 8 million kilowatts by the end of the 14th Five Year Plan period.

The 14th Five Year Plan for National Economic and Social Development and 2035 Long Range Objectives Outline of Tonghua City proposes to accelerate the development of the new energy industry. New and renewable energy shall be actively developed, and the proportion of clean energy in Tonghua City shall be increased. Solar and wind power generation shall be developed according to local conditions, the field of distributed photovoltaic power generation shall be expanded, and the construction of wind power projects shall be promoted.

In March 2023, the National Development and Reform Commission agreed to establish a demonstration zone for industrial transfer in southwestern Jilin, focusing on enhancing industrial transfer capacity, optimizing business environment, deepening open cooperation, effectively undertaking domestic and foreign industrial transfer, promoting industrial transformation and upgrading in the process of undertaking, and striving to build the demonstration zone into a characteristic manufacturing base in Northeast China, a green and low-carbon transformation pilot zone, a new highland for regional cooperation and development, and an important agricultural and special product processing base in China. The demonstration zone covers three cities: Siping City, Liaoyuan City, and Tonghua City.

(2) Resource advantageous

The approved planning area of Tonghua Pharmaceutical High-tech Zone is 12.7082 square kilometers, with an administrative division area of 57.3 square kilometers; The planned area for the medium and long term is 57 square kilometers, with an administrative division area of 107 square kilometers. The construction land for the project is reliably guaranteed.

(3) Industrial advantageous

Tonghua City has a good foundation for the development of the basalt industry and the ability to supply raw material products for basalt mounting systems.

Jilin Tongxin Basalt Technology Co., Ltd. is located in Tonghua Pharmaceutical High-tech Zone and has formed an annual production capacity of 12000 tons of basalt continuous fibers. It is a new technology enterprise integrating the research and development, production, and sales of basalt continuous fibers and basalt fiber composite materials. The main products are basalt fiber direct roving, composite  rebar, chopped fiber, geogrid, basalt fiber cloth, basalt fiber FRP rebar, lightweight automotive components and other related basalt fiber and basalt fiber composite products.

Tonghua Iron and Steel Co., Ltd. is the largest steel enterprise in Jilin Province, with a steel production capacity of 4.6 million tons per year. Its carbon steel raw materials have high rigidity and low procurement costs, and can provide auxiliary raw materials for large and medium-sized photovoltaic and solar thermal power generation equipment mounting systems nearby.

The surrounding areas (such as Yingkou and Dalian) have complete supporting capabilities for aluminum alloy and special steel products, which can meet the raw material needs of small and medium-sized equipment mounting systems and fasteners. At the same time, the local area has a strong foundation for the development of equipment manufacturing industry, with a large number of industrial and technical workers. It has cultivated a large-scale and technologically advanced EPC production and installation team for metallurgical equipment, which can provide necessary talent support for project implementation.

(4) Location advantageous

Tonghua has a unique location and huge open space. Located in the center of the Northeast Asian Economic Circle and the core area of the Yalu River International Economic Cooperation Belt, the border line is 203.5 kilometers long. It is an important link belt in the easternmost part of China to promote the "the belt and road initiative" strategy and achieve land-sea connectivity and interaction. Tonghua is an important hub of the Northeast East Passage and an important window for Jilin Province to open up to the south. It has one national level port for highways and one national level port for railways. There are 7 highways passing through Tonghua; 467 kilometers of operation railway; Flights from Tonghua to Beijing, Shanghai, Guangzhou, Tianjin, Chongqing, Taizhou, Dalian and other cities have been opened. The preliminary work for the expansion of Shenyang-Baihe High-speed Railway, Ji’an-Huanren Expressway, and Tonghua Airport has been accelerated.

(5) Talent advantageous

Tonghua City has 3 national key secondary vocational schools, 3 provincial key secondary vocational schools, and all county-level vocational education centers have passed the provincial key school acceptance and entered the top 100 schools in Jilin. It is the first region in the province where all county-level vocational education centers have entered the provincial key school list. In recent years, through scientific layout, continuous promotion of vocational education structure adjustment and resource integration, exploration of new paths for diversified education, continuous improvement of modern vocational education network system construction, the local characteristics of vocational education have begun to form, and the ability to serve economic and social development has gradually improved.

The Tonghua Municipal Government has signed science and technology strategic cooperation agreements with provincial universities and research institutions such as Northeast Normal University, Jilin Agricultural University, Changchun Institute of Applied Chemistry, Chinese Academy of Sciences, and Tonghua Normal University, providing technological support for enterprise development. Tonghua City continues to provide assistance to enterprises in talent cultivation and other aspects, vigorously implementing the "Ten Thousand Students Revitalizing Enterprises Plan" and "Thousand Students Returning Home Plan", and continuously attracting college graduates for enterprises.

1.2 Contents and scale of project construction

1.2.1 Scale of product

After the project reaches production capacity, it will produce 1000 tons of fixed photovoltaic mounting systems, 2000 tons of adjustable photovoltaic mounting systems, 5000 tons of tracked photovoltaic mounting systems, and 2000 tons of various embedded parts and special fasteners annually, forming a large-scale renewable energy equipment production base in Northeast China.

1.2.2 Contents of project construction

The total land area of the project is 20000 square meters, and the total construction area is 15000 square meters. The project includes the construction of a machining workshop of 3000 square meters, a riveting and welding workshop of 2500 square meters, a surface treatment workshop of 1500 square meters, an assembly workshop of 1500 square meters, a raw material and finished product warehouse of 5000 square meters, a research and development service building and ancillary buildings of 1500 square meters, the purchase of 160 sets of main production equipment such as machining centers and CNC machine tools, 200 sets of experimental testing equipment, and corresponding public auxiliary facilities.

1.3 Total investment of the project and capital raising

The total investment of the project is 100 million yuan, including construction investment of 80 million yuan and working capital of 20 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 150 million yuan, its profit will be 20 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 20%.

1.4.2 Social evaluation

After the completion of the project, it can effectively enhance the market supply capacity of supporting facilities in the new energy industry, promote the high-quality development of the renewable energy industry, further achieve energy conservation and carbon reduction, and promote economic and social development based on efficient resource utilization and green low-carbon development. It will also effectively optimize the industrial structure of Tonghua City, improve the quality of development, expand the scale of fiscal revenue, increase employment opportunities, and have significant ecological and social benefits.

1.5 Cooperative way

Joint venture, cooperation, other methods can be discussed face-to-face.

1.6 What to be invested by the foreign party

Funds, equipment, and technology.

1.7 Construction site of the project

Tonghua Pharmaceutical High-tech Industrial Development Zone.

1.8 Progress of the project

The project proposal has been prepared.

2 Introduction to the Partner

2.1 Basic information

Name: Tonghua Pharmaceutical High-tech Industrial Development Zone

Address: No.1568 Economic Development Ring Road, Tonghua City

2.2 Overview

The predecessor of Tonghua Pharmaceutical High-tech Industrial Development Zone (hereinafter referred to as Tonghua Pharmaceutical High-tech Zone) was Jilin Tonghua Economic Development Zone, established in July 2005. In August 2011, with the approval of the Jilin Provincial People's Government, Jilin Tonghua Economic Development Zone was integrated with Tonghua Pharmaceutical High-tech Industrial Development Zone and renamed as Tonghua Pharmaceutical High-tech Industrial Development Zone. In December 2013, it was promoted to a national level pharmaceutical high-tech zone with the approval of the State Council. The approved planning area of Tonghua Pharmaceutical High-tech Zone is 12.7082 square kilometers, with an administrative division area of 57.3 square kilometers; The planned area for the medium and long term is 57 square kilometers, with an administrative division area of 107 square kilometers.

There are currently 43 pharmaceutical enterprises in Tonghua Pharmaceutical High-tech Zone, including 7 enterprises such as Wantong Pharmaceutical and Xiuzheng Pharmaceutical that have developed into group companies. Tonghua Dong Bao Group and Tonghua Golden-Horse Pharmaceutical are listed companies, 9 pharmaceutical enterprises have been recognized as national high-tech enterprises, and 9 enterprises have obtained provincial-level certified enterprise technology centers, of which 3 enterprises have been recognized as national level technology centers. With the implementation of Tonghua's "big transportation" strategy, the completion of the "six roads, one field, one port" projects such as Tonghua-Shenyang, Tonghua-Dandong, Tonghua-Changchun, Tonghua-Ji’an, Meihekou-Shenyang Expressway, Tonghua-Dandong Railway, Tonghua Airport, and Tonghua Land Port will directly integrate Tonghua into the "2-hour economic circle" around the Bohai Sea. In particular, the implementation of the "Tonghua-Dandong Economic Belt" in the Yalu River Economic Cooperation Pilot Zone of Liaoning and Jilin provinces will make Tonghua an important connecting belt for the Liaoning Coastal Economic Belt, Shenyang Economic Zone, and Changchun-Jilin-Tumen Development and Opening Pilot Zone. Tonghua Pharmaceutical High-tech Zone has a strong advantage as a latecomer.

2.3 Contact method

2.3.1 Contact method of cooperator

Contact unit: Commerce Bureau of Tonghua Pharmaceutical High-tech Industrial Development Zone

Contact person: Chen Kuihong, Cui Feng

Tel: +86-435-3265515   

   +86-13944545515

+86-435-3322595   

+86-13732858668

E-mail: thyygxq@126.com

2.3.2 Contact method of the city (prefecture) where the project is located:

Contact unit: Tonghua Municipal Bureau of Commerce

Contact person: Wang Liangchen

Tel: +86-435-3199017   

   +86-18643036783

E-mail: thsswjtck@126.com