China Industry Transfer and Enterprise Strategy
1. Why CCM offers this report?
At present, major economies around the world are expecting to emerge from the recession, so the Chinese government and governments in other major economies have established a series of policies to promote economic growth.
CCM thinks that industry transfer is an option for some enterprises to move out of recession, thanks to the different market factors in different regions, which may open up new markets for them or reduce their cost of operation.
2. What CCM has studied in this report?
In this report, CCM introduces the background of China's industry transfer and how enterprises set their strategies.
In the first part, firstly, CCM gives a basic introduction of the market factors related to industry transfer, such as average wage, industrial land price, resources distribution, residents’ aggregate expenditure and relevant policies in China. Secondly, a clear framework is demonstrated, including the type of industry transfer, specific related industries, transfer paths and transfer destinations. Finally, CCM explores the motivation for industry transfer and gives a theoretical analysis model.
In this second part, a set of enterprise strategies for industry transfer is analyzed to show how CCM's model works, whether it is necessary for a company to transfer and how to transfer. Firstly, CCM lists all situations that a company may encounter. Then, a customized model of site selection is established to roughly assess the transfer feasibility of these potential new regions to generate some relatively reliable solutions. Finally, profitability analysis and sensitivity analysis are performed for these relatively reliable solutions to accurately measure the benefits and risks. The financial appraisal is based on CCM's mature research of a specific industry and company.
Finally, major industry transfer policies and typical transfer destinations are shown in the appendix.
3. What CCM is able to provide?
Overview of industry transfer in China or in the world for specific industry or company can be offered.
Strategic decision-making about industry transfer for specific company can be offered.
Feasibility assessment of investment projects about industry transfer for some investors, such as bank, can be offered.
Governments' industrial park planning and attracting investment can get help from CCM.
At present, major economies around the world are expecting to emerge from the recession, so the Chinese government and governments in other major economies have established a series of policies to promote economic growth.
CCM thinks that industry transfer is an option for some enterprises to move out of recession, thanks to the different market factors in different regions, which may open up new markets for them or reduce their cost of operation.
2. What CCM has studied in this report?
In this report, CCM introduces the background of China's industry transfer and how enterprises set their strategies.
In the first part, firstly, CCM gives a basic introduction of the market factors related to industry transfer, such as average wage, industrial land price, resources distribution, residents’ aggregate expenditure and relevant policies in China. Secondly, a clear framework is demonstrated, including the type of industry transfer, specific related industries, transfer paths and transfer destinations. Finally, CCM explores the motivation for industry transfer and gives a theoretical analysis model.
In this second part, a set of enterprise strategies for industry transfer is analyzed to show how CCM's model works, whether it is necessary for a company to transfer and how to transfer. Firstly, CCM lists all situations that a company may encounter. Then, a customized model of site selection is established to roughly assess the transfer feasibility of these potential new regions to generate some relatively reliable solutions. Finally, profitability analysis and sensitivity analysis are performed for these relatively reliable solutions to accurately measure the benefits and risks. The financial appraisal is based on CCM's mature research of a specific industry and company.
Finally, major industry transfer policies and typical transfer destinations are shown in the appendix.
3. What CCM is able to provide?
Overview of industry transfer in China or in the world for specific industry or company can be offered.
Strategic decision-making about industry transfer for specific company can be offered.
Feasibility assessment of investment projects about industry transfer for some investors, such as bank, can be offered.
Governments' industrial park planning and attracting investment can get help from CCM.
EXECUTIVE SUMMARY
METHODOLOGY
1 OVERVIEW OF INDUSTRY TRANSFER IN CHINA
1.1 Background of industry transfer in China
1.2 Current situation of industry transfer in China
1.3 Motivation for industry transfer
2 TRANSFER STRATEGY FOR AN ENTERPRISE
2.1 Model of site selection
2.2 Financial appraisal of possible schemes
2.3 Case study (how to use CCM's model)
2.3.1 Background of the case
2.3.2 Site selection for the case
2.3.3 Financial appraisal for the case
3 APPENDIX
3.1 Industry transfer policy in China
3.2 Typical transfer destinations in China
METHODOLOGY
1 OVERVIEW OF INDUSTRY TRANSFER IN CHINA
1.1 Background of industry transfer in China
1.2 Current situation of industry transfer in China
1.3 Motivation for industry transfer
2 TRANSFER STRATEGY FOR AN ENTERPRISE
2.1 Model of site selection
2.2 Financial appraisal of possible schemes
2.3 Case study (how to use CCM's model)
2.3.1 Background of the case
2.3.2 Site selection for the case
2.3.3 Financial appraisal for the case
3 APPENDIX
3.1 Industry transfer policy in China
3.2 Typical transfer destinations in China
LIST OF TABLES
Table 1.1-1 Minimum transfer prices of land for industrial purposes in major cities in China
Table 1.2-1 Industries tending to transfer in China
Table 1.3-1 Condition judgment for passive transfer
Table 2-1 Schemes for comparison
Table 2.1-1 Model of site selection
Table 2.2-1 Statement of cash flows for a project
Table 2.2-2 Profitability indicators and their judgment standards
Table 2.2-3 Sensitivity analysis for a project
Table 2.3.1-1 Basic information of Dezhou Detian Chemical Co., Ltd.
Table 2.3.1-2 Isopropylamine profile
Table 2.3.1-3 Rough estimation for variable production cost of 99% isopropylamine in China, 2011
Table 2.3.1-4 Isopropylamine producers in China, Jan. 2011–June 2012
Table 2.3.1-5 Possible optimal strategies for Dezhou Detian
Table 2.3.2-1 Site selection to Anhui Ma'anshan Dangtu Economic Development Zone
Table 2.3.3-1 Estimated cash flow statement of the isopropylamine project, USD
Table 2.3.3-2 Profitability indicators of the isopropylamine project
Table 2.3.3-3 Sensitivity analysis for NPV of this new project
Table 2.3.3-4 Sensitivity analysis for IRR of this new project
Table 2.3.3-5 Sensitivity analysis for static PBT of this new project
Table 2.3.3-6 Sensitivity analysis for dynamic PBT of this new project
Table 3.1-1 Major policies of industry transfer made by Chinese central government in recent years
Table 3.1-2 Major policies of industry transfer made by Chinese local governments in recent years
Table 3.2-1 Typical transfer destinations in China
Table 3.2-2 Location factors of these cities or counties where demonstration areas are located (1)
Table 3.2-3 Location factors of these cities or counties where demonstration areas are located (2)
Table 1.1-1 Minimum transfer prices of land for industrial purposes in major cities in China
Table 1.2-1 Industries tending to transfer in China
Table 1.3-1 Condition judgment for passive transfer
Table 2-1 Schemes for comparison
Table 2.1-1 Model of site selection
Table 2.2-1 Statement of cash flows for a project
Table 2.2-2 Profitability indicators and their judgment standards
Table 2.2-3 Sensitivity analysis for a project
Table 2.3.1-1 Basic information of Dezhou Detian Chemical Co., Ltd.
Table 2.3.1-2 Isopropylamine profile
Table 2.3.1-3 Rough estimation for variable production cost of 99% isopropylamine in China, 2011
Table 2.3.1-4 Isopropylamine producers in China, Jan. 2011–June 2012
Table 2.3.1-5 Possible optimal strategies for Dezhou Detian
Table 2.3.2-1 Site selection to Anhui Ma'anshan Dangtu Economic Development Zone
Table 2.3.3-1 Estimated cash flow statement of the isopropylamine project, USD
Table 2.3.3-2 Profitability indicators of the isopropylamine project
Table 2.3.3-3 Sensitivity analysis for NPV of this new project
Table 2.3.3-4 Sensitivity analysis for IRR of this new project
Table 2.3.3-5 Sensitivity analysis for static PBT of this new project
Table 2.3.3-6 Sensitivity analysis for dynamic PBT of this new project
Table 3.1-1 Major policies of industry transfer made by Chinese central government in recent years
Table 3.1-2 Major policies of industry transfer made by Chinese local governments in recent years
Table 3.2-1 Typical transfer destinations in China
Table 3.2-2 Location factors of these cities or counties where demonstration areas are located (1)
Table 3.2-3 Location factors of these cities or counties where demonstration areas are located (2)
LIST OF FIGURES
Figure 1.1-1 Average wage of employed persons in urban private units by region in China, 2011
Figure 1.1-2 The distribution of important resources by ensured mineral reserves in China
Figure 1.1-3 Resident's aggregate expenditure in different regions of China, 2011
Figure 1.2-1 Current trend of industry transfer in China
Figure 2.3.1-1 Production of isopropylamine in China, 2007–2011
Figure 2.3.1-2 Ex-works prices of isopropylamine in China, Jan. 2008–Dec. 2012
Figure 2.3.1-3 Export dependence of isopropylamine industry in China, 2007–2011
COMPANIES MENTIONED
Yunnan Green-Land Biological Technology Co., Ltd.
China Railway Construction Corporation Limited
Zhejiang Xinhua Chemical Co., Ltd.
Dezhou Detian Chemical Co., Ltd.
Zhejiang Jianye Chemical Co., Ltd.
Figure 1.1-1 Average wage of employed persons in urban private units by region in China, 2011
Figure 1.1-2 The distribution of important resources by ensured mineral reserves in China
Figure 1.1-3 Resident's aggregate expenditure in different regions of China, 2011
Figure 1.2-1 Current trend of industry transfer in China
Figure 2.3.1-1 Production of isopropylamine in China, 2007–2011
Figure 2.3.1-2 Ex-works prices of isopropylamine in China, Jan. 2008–Dec. 2012
Figure 2.3.1-3 Export dependence of isopropylamine industry in China, 2007–2011
COMPANIES MENTIONED
Yunnan Green-Land Biological Technology Co., Ltd.
China Railway Construction Corporation Limited
Zhejiang Xinhua Chemical Co., Ltd.
Dezhou Detian Chemical Co., Ltd.
Zhejiang Jianye Chemical Co., Ltd.
