Sector and Others

1. Introduction to the Project
1.1Project Background
1.1.1 Introduction to Product
The project product " Plastic Optical Fiber (POF) optical card" uses plastic optical fiber as transmission medium, uses plastic fiber optical interface technology for controlling the noise brought about by photoelectric conversion, eliminating the last 100m data bottlenecks of users, realizing high-speed optical signal directly to a computer terminal, and establishing plastic optical fiber LAN system to replace the existing twisted-pair copper LAN system. Its characteristics are  using light signals to replace electrical signals, greatly reducing the electromagnetic radiation leakage, improving the security of network data. Using plastic optical fiber has merits of high bandwidth, good transmission quality, good toughness, ease of interface, ease of maintenance, etc., so the technology product fills the domestic gap. The main technical Indicators have reached international advanced level of similar products. Compared with type V copper wire system, the project product has features of wide transmission frequency, good security performance, strong anti-interference ability, lightning resistance, light weight, good toughness, saving copper resources etc. Compared with quartz fiber system, it has features of convenient construction and connection, inexpensive light source, and low comprehensive cost. It is widely used in various public and special local area network systems, industrial control systems, internal communication network system of airborne, vehicle, ship etc. The market prospect is broad.
1.1.2Market Prospects
China will accelerate the construction pace of high-speed access networks. It is estimated that the annual growth of overall application proportion of nationwide access to optical fiber network will exceed 30%.  China's "golden" series of works is a major application market of optical fiber access network, with a considerable capital investment. A large part of it is used for optic fiber cable access system. The intelligent building cabling project has 10,000 information points, and investment amount is up to $ 1 million. The 2,500 information points will use 120km of fiber optic cable, which shows that the optical fiber access networks have great market demand. Seen from China's information industry planning during the “10th Five-Year” period, China's market potential is very striking. For example, the state plans to increase long-haul fiber optic of 200,000 kilometers. According to 100 cores, it will need 20 million km optical fiber. Seen from the application percentage of fiber optic in trunk lines, regional networks and metropolitan network, even according to the ratio of 1:8, the market capacity during the five-year period is 160 million km. On average, each year will have more than 30 million km. According to 60% discount, each year will use 18 million kilometers on average, which is a huge market. The high-speed plastic optical fiber network is oriented to achieve a variety of broadband services in the future (such as: high-speed data, video conferencing, video telephony), and achieve fiber to the home (FTTH), which will allow the length of the fiber access network to greatly exceed the trunk length (similar to the relationship between the body's arteries and veins and capillaries). The market prospects of plastic optical fiber and systems integration projects are broad. The share of plastic fiber optic network cards in plastic optical fiber Ethernet transmission system accounts for 30% -50 %. The vast plastic optical fiber Ethernet transmission systems market presents a huge demand for plastic optical fiber network card.
According to the Twelfth Five-Year Plan, China's broadband Internet access ports have doubled to 370 million, and optical fiber network at home covers 200 million households. Service levels: (fixed) broadband Internet access users doubles to over 250 million, of which rural broadband access subscribers increase by 170%, exceeding 68 million households; nationwide optical fiber users at the home are more than 40 million households, which will extensively use plastic optical fiber. Currently, it is required to support multi-port POF switch to plastic optical fiber in order to maximize network speed. It is expected that the market demand will reach the scale of 10 billion yuan in 2015.
1.1.3 Technical Analysis
The project intends to take the “introduction, absorption and re-innovation” technical route. It plans to introduce the CAS technology. Relying on Jilin University of Technology and the Changchun Institute of Optics, the company will continue to conduct independent research and development. The project’s technology is relatively mature. It has realized industrialized production, and it belongs to international and domestic first-class level.
1.1.4 Superior Conditions for Project Construction
(1)Advantage of Raw Material Resources
The project area has not yet had PMMA raw material needed for producing plastic optical fiber. But Jilin Petrochemical Company has the production capacity of annually producing 200,000 tons of MMA. The production capacity of methyl methacrylate (MMA) is the largest in China, accounting for about 40% of the domestic production capacity, 10% of Asia, and about 5% of the world. Product performance is excellent, which is a prerequisite for polymerization of PMMA. In MMA - PMMA - POF process, Jilin City occupies the source, with a lack of the middle. If Jilin Petrochemical Company or the chemical park can cooperate with Changchun University of Technology for the co-production of communication level PMMA (or through investment attraction to introduce communication level PMMA project), it will promote the rapid development of plastic optical fiber industry.
(2)Advantage of Industrial Foundation
The industrial park where the project is located in is the key demonstration park of Jilin Province. Jilin Chemical Industrial Park has CNPC, Jilin Fuel Ethanol Co., Ltd., Jilin Chemical Fiber Group Company etc. large enterprise groups that occupy an important position in the same industry of China. These leading companies, in the development process for many years, have laid a good foundation for the development of chemical industry in the park. Currently, the park has nearly 240 chemical production enterprises, more than 1,000 kinds of products, covering a number of areas such as basic organic chemical raw materials, synthetic materials, fertilizers, fine chemicals, bio-chemical products, with relatively distinct characteristics. Jilin Petrochemical Company, as a leading enterprise in the park, is a large refining integrated company, with more than 60 sets of major equipments, including 16 sets of equipment with production scale ranking the top three in the country. The production capacity of ethylene-propylene rubber, acrylonitrile, and methyl acrylate methyl nine sets of equipment ranks the first in the country; the production capacity of high-density polyethylene etc. three sets of device ranks the second in the country; the production capacity of styrene-butadiene rubber etc. four sets of device ranks the third in the country. The chemical industry of Jilin has a long history. After decades of development, it has formed complete production system including petrochemicals, synthetic materials, fertilizers, fine chemicals and bio- chemicals, and has become the pillar industry in Jilin City. The park has preliminarily formed refining ethylene, ethylene downstream, propylene downstream, aromatics downstream, ethylene by-product utilization, fertilizer, fine chemical, bio-chemical etc. major industrial chain.
(3)Advantage of Location and Transport
Jilin Chemical Industrial Park, where the project is located in, is located in Jilin City, which is important hinterland of Chang-Ji-Tu Development and Opening-up Pilot Zone. It is also important logistics node city of the integrated transport network in Chang-Ji-Tu region, the center of the Northeast Asian region and the new Eurasian Continental Bridge, the nexus of contact of Northeast Asian countries. Through Hunchun port, it is closely connected to Russia Zarubino and North Korea Rajin port etc. port groups, as well as the eastern Mongolia and the Far East hinterland of Russian Siberia. It is the closest area of China's inland to the Sea of ​​Japan, and the overlay district of the northeast Asia economic Area, Greater Tumen economic circle, and the Northeast economic zone. Therefore, the location advantage is obvious. Jilin City has superior geographical location. It is located in central part of northeast China. It leads to North Korea and the Russian border in the east, Shenyang in the south, Changchun in the west, and Harbin in the north, all within 500 km away. It is the central city of Jilin Province; the traffic infrastructure is complete, and aviation, railways, highways etc. lead to all directions. It is one of the cities with considerable radiation in the northeast. The modern logistics development plan of Jilin Province will construct Jilin City into one of the two logistics centers.
(4)Advantage of Water and Power Resources and Infrastructure
The industrial park where the project is located in is located in the most important river system in northeast China - the Songhua River. The per capita water resource amount is 3,875 cubic meters, 5.4 times that of China’s northern cities. With favorable natural conditions, water supply, power supply, heat supply, environmental protection etc. other infrastructure are relatively perfect. In the area, there is Sanjiazi waterworks, Jilin Central Water Plant, Chemical Fiber Water Plant etc. water supply plants, with the daily water supply capacity of 620,000 tons; in the park, there is adequate supply of electricity. It has established Xinli Primary, Jinzhu Primary etc. four 220KV substations and many 66KV secondary substations. The power supply capacity is 1,483,500 kilowatts; in the aspect of heating, the central heating system is basically built in the park. The total steam capacity of Jilin Thermal Power Plant, Jilin Power Plant, Songhua River Thermal Power Plant etc. heat supply companies is 8570 t / h; the environmental protection system in the park is sound. It has Northeast China's largest chemical sewage treatment plant and more than a dozen professional production waste water and sewage treatment plants, with daily sewage treatment capacity of 715,000 tons. Meanwhile, it is implementing infrastructure and utilities improvement project in the park, comprehensively promoting the construction of Bajiazi Pipe, Railway Special Lines, Longxing heating center etc. 31 basic and public supporting works. The park can achieve the supply “integration” of major public works, thus saving businesses running costs, and realizing low carbon, green growth.
(5)Advantage of Human Resources and Technical Strength
The project area Jilin City has relatively strong education and scientific research strength. The whole province has 45 colleges and universities, including 26 undergraduate colleges; 19 ordinary three-year (vocational) colleges; and 10 independent colleges subordinate to universities. The province has 120 natural science research institutions, including 3 belonging to Chinese Academy of Sciences, 48 belonging to provincial institutes. It has built ten national key laboratories, 15 provincial key laboratories, and 81 provincial Science and Technology Innovation Centers (including Engineering Technology Research Center). Jilin City has five colleges and secondary vocational institutes, six chemical research and design institutes. Changchun Institute of Applied Chemistry, Jilin Chemical Company Institute, PetroChina Oil Engineering Company Northeast Branch etc. scientific research institutes possess the advanced level in the research and design of China’s chemical industry. Jilin Chemical Company is a state-owned enterprise constructed by the country during the “first Five-Year” period. Over the years, it has trained a large number of high-quality professional and technical personnel and industrial workers in chemical production, which offers a wealth of human resources for the development of Jilin Chemical Industrial Park. The big and medium-sized enterprises in the park have 38,000 junior and senior professional and technical personnel, and more than 100,000 technical workers. Jilin Chemical Industrial Park is the only chemical industry gathering area in Chang-Ji-Tu Development Pilot Zone. Resources and environment carrying capacity is strong, momentum of development is fierce, and chemical industry strength is solid. The production technology strength is strong, and research and design level possesses the leading domestic level. The park currently has National Engineering Research Center of Carbon Fiber, Jilin Chemical Fiber Technology Center etc. five national enterprise technical centers and Jilin Fuel Ethanol laboratory etc. 11 provincial research institutions. The Research and Development strength is solid, and the technological innovation investment each year is more than 1.54 billion yuan.
(6)Advantage of Policy and Service Environment
The project belongs to strategic emerging industry, is in line with national industrial policy. It is key investment project in the park. The park offers generous incentives in land, taxation, industrial support facilities. Relying on the chemical park, it will plan and construct plastic optical fiber industry demonstration zone, which has some practical feasibility. The park will make full use of the advantages in initiation, with building first-class development environment for enterprises as the goal, boldly breakthrough the shackles, change self-orientation concept in management, with developing big companies and promoting project as the core, and pursue "one-off" clarity, "one-stop "service," one-stop "settlement in service. The park focused on creating a 3,000 square meters of government hall, 18,000 square meters of headquarters base and entrepreneurship building, which provide first-class service soft environment for enterprises. For project with investment of more than 30 million yuan, the park is responsible for agency transaction, maximally saving construction time and reducing construction cost in terms of project entry, land planning, project environmental impact assessment, construction, entry of supporting facilities, completion and final acceptance etc. procedures.
1.2 Construction Scale and Product Scheme
1.2.1 Product Scheme
Annual output of POF optical card of 1 million pieces
1.2.2Construction Contents
The project covers 100,000 square meters, with construction area of ​​45,000 ㎡. It is estimated to construct five POF media converter production lines with annual output of 200,000 pieces, and plants, testing centers, office buildings and so on.
1.3 Total Investment of Project
1.3.1 Total Investment of the Project (detailed in table 1)
Table 1: Summary Table of Total Investment of Project  Unit: Ten Thousand Yuan
Serial No.    Name of Expense    Investment Amount    Percentage to Total Investment (%)    Remarks      
1    Construction Investment    24500    70           
2    Interest Incurred in Construction Period            Not considered temporarily      
3    Working Capital    10500    30          
    Total Investment of Project(1+2+3)    35000    100.00           
Note: the “Ten Thousand Yuan” in the table is in RMB.
1.3.2 Funds Raising
Self raising of enterprise or others.
1.4 Forecast of Economic Benefits (detailed in table 2)
After the project reaches full production capacity, it will annually realize sales revenue of 400 million yuan, and profit of 80 million yuan.
List of Main Indicators for Financial Benefits Forecast
Serial No.    Name    Unit    Indicator    Remarks      
1    Operating income     10,000 yuan/a    40000    Normal year      
2    Total Profits    10,000 yuan/a    8000    Normal year      
3    Financial Internal Rate of Return of All Investment    %    23    After income tax      
4    Financial Net Present Value(Ic=10%)    10,000 yuan    87542    After income tax(Operation period is ten years)      
5    Payoff Period of All Investment (after tax)    a    5.8    Including construction period of 2 years      
6    Profit rate of investment    %    20    Normal year after income tax     
Note: the “10,000 yuan” in the table is in RMB.
1.5 Cooperation Method
Sole investment; other methods can be negotiated face to face.
1.6 What-To-Be-Invested by Foreign Party and Composition
Capital and equipment.
1.7 Construction Site
Jilin Chemical Industrial Park
1.8 The On-going Condition of Project
The project has been approved; it is planned to start in September, 2014, and will be completed and put into production in October, 2016.
2. Introduction to Partner
2.1 Basic Conditions
Name:Demonstration Zone of Jilin chemical industrial circular economy
Address: No.6 of Hanyang South Street, Longtan District, Jilin City, Jilin Province
2.2 Overview
Jilin Chemical Industrial Park was established in October, 2008 by the provincial government in accordance with the strategic cooperation agreement signed between the provincial government and PetroChina. It has a planning area of ​​59.8 square kilometers. It enjoys the management privileges and preferential policies of provincial development zone. In Jilin Chemical Industrial Park, chemical industry base is solid, and it is an important chemical industry base in our province. At present, the park owns CNPC Jilin Petrochemical, Jilin North Chemical Company, Nebulae Trade and Industry etc. production-oriented enterprises, with a total of 172 (127 companies during production, and 45 companies with suspended production), the number of large-scale enterprises is 45. There are hundreds of chemical products, including basic organic chemicals, synthetic materials, fertilizers, fine chemicals, bio-chemical products; about over 60 kinds of them have large production scale, and occupy certain market share in the domestic and foreign market. They are mainly acrylonitrile, ethanol, ABS, styrene, ethylene, styrene, ethylene oxide. The park has basically formed refining ethylene, ethylene downstream, propylene downstream, aromatics downstream, ethylene by-product utilization, fertilizer, fine chemical, bio-chemical etc. several major product industrial chain. A relatively complete chemical industrial system has been basically formed. To the end of the 12th Five-Year period, the production value of Jilin Chemical Industrial Park will reach 150 billion yuan, and Jilin Chemical Industrial Park will truly become an international eco- chemical industry manufacturing center, a logistics base radiating the northeast with international influence, international advanced new material base and new economic growth pole of Chang-Ji-Tu Development Pilot Zone. It will drive the economic development of related industries and regions in Jilin Province of Northeast China.
2.3 Contact Methods:
Contact Person of Project Unit:Zhang Huijun
Tel:0432-63041733  15044244991
Website of Development Zone:

Contact method of city (prefecture) Economic Cooperation Bureau of the project
Contact Person: Liu Aiguo

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