Project name

Production of PDP TV Sets

Cooperation form

Equity JV

Project description

Production scheme
Construction plan
Market analysis
Operation scale
Sales forecast

   Project scale: monthly output of 3000 PDPs and 10,000 PDP TV sets.
    Hong Kong Investment Company and Korea PDP TV Manufacturing Company have planned to jointly build the world 4th largest production base for PDPs and PDP TV sets in mainland China in two phases. The present project concerns the first phase of production base. In this project, all proprietary rights, equipment and know-how of Korea PDP Manufacturing Company will be transferred to Hong Kong Taihe Company, who will execute the investment in Ningbo Free Trade Zone. For this, a domestic partner is sought for cooperation in the project construction. China has the largest market potential for TV sets, possibly up to USD 10 billion. By 2008, digital TV will cover the majority of domestic cities, and by 2015, all analogue TV signals will be replaced by digital TV signals. It is predicted that the market demand for PDP TV will reach 1.8 million sets in China by 2008.
    Annual sales income is forecasted at RMB 563 million and annual profit at RMB 84 million.

Equipment import & material supply

   Existing Korean PDPs and PDP TV sets production lines are to be imported, with equipment cost being around USD 40 million. Glass for first-phase PDP manufacturing will be imported from LG (Korea).

Investment estimate & cost efficiency

Total investment

USD80 million

Registered capital

USD80 million

Annual sales

RMB563 million

Anticipated means of investment from foreign partner

Annual profit

RMB84 million

Foreign exchange

Technology

Equipment

Brand name

Others

Internal return rate

20%

a  

a

Payback period

3.8 yrs

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

   The Economic Development Bureau of Ningbo Free Trade Zone (Export Processing Zone) will provide investment promotion service for the project.

Project location & geographic advantage

   Ningbo Free Trade Zone emphasizes the development of electronic industries relating to computer, computer network, telecommunication and consumer electronics. The Zone has developed an industry chain comprising electronic accessories, motherboards, computer and intelligent home appliance and has become an important IT production base within the economic rim of Yangtze Delta. Backed by Beilun Port, the Zone is also upgrading its logistics facility to better serve the distribution of accessories for the project.

Project status quo

   Project in progress    

Project data available

   FS   

Organization to contact

Economic Development Bureau of Ningbo Free Trade Zone (Export Processing Zone)

Person to contact

Su Jianyu

Address

11/F, Baoshui Building, Beilun District, Ningbo

Postcode

315800

Telephone

0086-574-86888710

Fax

0086-574-86820169

E-mail

bjp@nftz.gov.cn 

Website

www.nftz.gov.cn