Building Materials

 

1. Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
Andesite, neutral calc-alkali extrusive rock, the same constitute with diorite, gets its name from the Andes in the west of South America. It distributes in Circum Pacific active continental margins and island arcs. Its occurrence is mainly in eruption of central type of land facies, usually interphase with volcaniclastic rock of corresponding constitute to form strato-volcano. Some is in occurrence of extrusive rock cupols and spine. Adesite volcano is the tallest in all volcanoes, generally 500-1500 meters, some reaching 3000 meters.
Sanfeng Cave in Longjing City contains rich andesite mineral resources of 22.3 million m3 reserves. However, the advantageous resources have not been found in reasonable and effective comprehensive use due to the lake of application technology innovation and precision processing technology development, thus the added-value of the resources fails to gain substantial improvement and transfer into local realistic development advantages. It is planned to introduce high-tech technological enterprises who integrate comprehensive use of non-organic non-metal minerals and mining processing, able to fully use new technologies and processes to exploit large-size raw materials to be processed into industrial corrosion prevention, nuclear power protection, building decorative surface, chemical equipment, environmental-protection coating products, so as to significantly enhance effective comprehensive use of the resources and double the added value.
1.1.2 Market Overview
Stone market evolves from small to large, weak to strong, accompanied by the prosperity of stone market and continuous increase in demand. Monitoring data show that: nationwide natural marble building panel reached 55.845 million square meters in the first half year of 2012 at a year-on-year growth of 26.64%; we produced natural marble building panel 13.39 million square meters in July, with an increase of 43.61% compared with same time before.
From the output of cities and provinces, the top 3 provinces in producing natural marble building panel in the first half 2012 were Fujian, Guangxi and Shandong provinces, each holding an output of 35.35%, 19.97% and 6.91%. It is shown from the monitoring data that nationwide granite building panel output reached 0.2 billion square meters at a year-on-year growth of 38.41%. In July, nationwide granite building panel was produced 47 million square meters at a year-on-year growth of 43.60%. From the output of provinces, Fujian, Shandong and Jilin ranked the top 3, each holding 48.77%, 18.65% and 7.61%.
Figure 1: Statistics on marble stone exploitation amount and increase rate of China from 2010 to 2014
1.1.3 Technical Analysis
It is planned to introduce high-tech technological enterprises who integrate comprehensive use of non-organic non-metal minerals and mining processing, able to fully use new technologies and processes to exploit large-size raw materials to be processed into industrial corrosion prevention, nuclear power protection, building decorative surface, chemical equipment, environmental-protection coating products.
1.1.4 A dvantageous Conditions of Project Construction
(1) Policy advantage
Longjing City enjoys the following preferential policies: adjustment and reformation of northeastern industrial base in China, west development police reference, key counties included in the national plan for poverty alleviation through development, frontier minority policy and the national program to develop border areas and improve the lives of people there. Currently, it is also facing major strategic opportunities of Tumen River Development and Open-up, Changchun-Jilin-Tumen Pilot Zone, and integration of Yan-Long-Tu, especially the last one that will highlight the city’s policy advantages and its development potential. As the practice area of early Integration of Yan-Long-Tu, Longjing develops drawing fast close to Yanji where there is more and more obvious trend of Yanji population and industry transferring to Longjing to create favorable conditions for expanding capacity and accelerating development in Longjing.
(2) Location advantage
Situated in the hinderland of northeast Asian golden triangle, Longjing embraces good location and convenient transportation. There are 5 trunk lines through the city, and Tu-Wu, Songlao main line are connected with urban road net. Only 10-minute driving from Longjing to Yanji City where its prefecture office lies and Yanji Airport, and only 1 hour to Hunchun, starting point of new Hunchun-Zarubino air line. Longjing borders North Korea on 142.5 km long borderline. It holds such two land routs open ports as Kaishantun and Sanhe, both of national-level, the latter only 87 km from Chongjin Port in North Korea which is the most ideal channel to the Japan Sea passing North Korea. Annual passenger capacity of the two ports is 100000, vehicle capacity, 100000 and goods capacity 500000 tons, through which ports direct trade can be done with North Korea and Russia, or transit trade by passing neighboring countries, so great frontier business opportunities are available.
(3) Resource advantage
Longjing City is rich in natural resources, in coal, metal and non-metal ores, possessing the Sanfeng Rock known as “the most acid-resistant rock in the world” as well as oil and natural gas. So far coal, natural asphalt, copper, lead, zinc, gold, cadmium, molybdenum, acid-resistant andesite, wollastonite, limestone, diabase, mineral water and other mineral resources as 33 in total; there are various special resources such as wild industrial plants of 124 families and 1072 species, among which precious medical plants are 196, wild animals are black bear, wild boar, roe deer and wood frog, etc. Being the production base for apple pear, green rice, sun-cured tobacco and cattle, Longjing has the largest leagues of apple pear orchard in the world, the largest artificial feeding bear base in Jilin Province and Tianfuzhi Mountain Matsutake Natural Reserve of national-level.
Sanfeng Cave in Longjing City is rich in 22.3 million m3 reserves of andesite resource. However, the favorable resources have yet to be rationally and effectively used due to the lack of application technology innovation and precision processing technology development, thus the added-value of the resources fails to gain substantial improvement and transfer into local realistic development advantages.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scale
The project is planned to finish by forming raw material exploitation and processing capability and powder processing capability, able to produce corrosion-resistant building decorative panel, industrial corrosion-resistant irregular part and large-size raw materials.
1.2.2 Construction Content
The project covers a total area of 30000 m2, building area 15000 m2, plant 13000 m2, and 2000 m2 for scientific research, working and living facilities.
1.3 Total Investment of the Project and Capital Raising
Table 2: Summary Table of Total Investment of the Project   Unit: RMB10,000
 
 
 
 
 
 
No.
Expense Name
Amount of Investment
Proportion of Total Investment %
Remarks
1
Construction investment
15000
88.2
 
2
Interest incurred in construction period
 
 
 
3
Working capital
2000
11.8
 
 
Total investment of the project (1+2+3)
17000
100.00
 
Note: "RMB10,000" in the Table shall be RMB.
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
Table 3: List of Major Indexes for Forecast of Economic Benefits
No.
Name
Unit
Index
Remarks
1
Sales income
RMB10,000/a
28000
Normal year
2
Total profit
RMB10,000/a
8500
Normal year
3
FIRR of all investments
%
30
After income tax
4
FNPV (Ic=10%)
RMB10,000
19700
After income tax
(operation period 10 years)
5
Period for recovery of all investments (after tax)
a
3
Including 1 year of construction period
6
Rate of return on investment
%
37
After income tax
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 Social Evaluation
After the completion of the project, new job opportunities will be available by preliminarily offering 60 positions to play a leading and demonstration role in local material industry development. The project will also improve local resident income and living standard and enhance technological level of production enterprises, so it is significant to local economic and social development
1.5 Cooperative Ways of the Project
Sole proprietorship, cooperation.
1.6 What to be Invested by Foreign Party
Capital
1.7 Construction Site of the Project
Zhixin Town, Longjing City.
1.8 The On-going Condition of Project
Project proposal has been completed.
2. Introduction to Partner
2.1 Basic Conditions
Project Undertaker Name: Economic and Technical Cooperation Bureau of Longjing City
2.2 Overview
Situated at east Jilin, southeast Yanbian Koran Autonomous Prefecture, and the east foot of Changbai Mountian, Longjing City is the frontier of Changchun-Jilin-Tumen Pilor Zone and an important part of international cooperation of Tumen River area and integration of Yan-Long-Tu. The city contains an area of 2208 m2, forest coverage of 71.5 and population of 167000, in which the Korean Nationality is account for 110800, 66.4% of total population, as well as 5 towns, 2 villages and 1 community management committee. With the steady advancement of “Yan-Long-Tu” integration and deep implementation of “Changchun-Jilin-Tumen Planing Outline”, flourishing vitality has appeared in the economic and social development in Longjing City where there are ecological and suitable residence, special folk ways, port location and natural resources and other advantages which are increasing revealing to create a promising prospect.
During the “Twelfth Five-year Plan”, the city harvested an annual average growth of 13.7% in GDP, 10.6% in full-covered fiscal income, 18.1% in fixed asset investment and 14.4% in total retail of consumption goods. Remarkable achievement has been made in project construction with an accumulated investment of 23.9 billion Yuan in 354 projects such as agricultural, forestry and water, industry, business trade service and urban and rural constructions; Sihuan Aokang Pharmaceutical Co., Ltd, Jinyang Ampoule Production Line, higher college of technology in Jilin Province and other major projects to promote economic and social development projects have managed to settle there while Jilin-Hunchun Highway (Longjing section), widened Long-Yan Road, centralized heating pipe and net, sewage treatment and other projects have been put in use. Industrial economy present a stable operation with scaled industrial output value accumulated to 23.54 billion Yuan and added value to 7.65 billion Yuan; registered enterprises in industrial concentration district have reached 121. New rural construction is in complete advancement as shown in continuously deepen rural reformation, annual average grain output reaching 134000 tons,  rural dilapidated housing rehabilitation finished in 5884 households, and rural safe drinking water concerning 72000 people solved. New changes in urban and rural appearances can be seen in shanty town transformation finished in 4566 households, 1027 households of low-rent house, and transformation in 3500 mining squatter settlements; projects like vast stretch of rural environment renovation and household refuse have been pushed forward in order; new district is 335000 m2 with infrastructure and matched construction basically finished. Opening-up steps into a new stage, successfully listed into National Key Opening-up and Development Experimental Zone of Jilin and Yanji (Changbai), with outward passages construction proceeded in order, economic and trade cooperation with South and North Korea unceasingly enhanced, and trade diversity increasingly enriching. Cultural undertaking is in fast progress accompanied by constant increase in public cultural service level, intensification in history and folk culture protection inheritance and coordinated development in mass and competitive sports. Obvious improvement in tourist facilities is shown in 6 scenic spots of A grade being approved. New advancement has gained in ecological civilization construction, which is represented by air quality in the city reaching national second grade, and green coverage ratio in constructed area reaching 45.5%, managing to list the city into national eco-civilization of water construction pilot city honored as ecological city of provincial level and garden city. People’s livelihood and well-being have been prominently improved as projects involving people’s well-being like social pension service center have been out into use. Insurance rate of New Type Rural Cooperative Medical System has reached 99.7% and 97% for basic endowment insurance for rural residents. Compulsory education is developing in a stable way with marked enhancement in teaching environment and quality. Thanks to the unremitting efforts in 5 years, economy in the city is in stable progress, people’s living standard in the increasing with each passing day, the city ranking 6 at the check and evaluation of counties in the whole province, laying a solid foundation to the economic and social development in the “13th Five-year Plan” and constructing a moderately prosperous society in a all-around way.
The target of Longjing City in the “13th Five-year Plan”: regional ushers an annual average growth of 7% in GDP, 5% in full-covered fiscal income, 15% in fixed asset investment, and 12% in total retail amount of consumption goods. To promote a stable development in the city’s economy and society, the Municipal Government will carry forward the five engineers as “Industrial upgrading, rural and urban overall development, opening-up, ecological construction and peoples’ well-being” in the light of reality and scientific planning. It will propel “5-city creating” operation, initiating a new situation in economy, politics, culture, people’s well-being and ecology so as to lay a sound foundation to achieve the construction of a moderately prosperous society in a all-around way.
2.3 Contact Method
Contact Person of Project Unit: Wang Wei
Tel: 0433—3223870 13944768877
Fax: 0433—3223870
 
Contact Person of Project City (Prefecture):
Contact Unit: Economic and Technical Cooperation Bureau of Yanbian Prefecture
Contact Person: Sui Siyu
Tel: 0433-2369007 13039339299
Fax: 0434-2369007
Website of City (Prefecture): www.investyanbian.gov.cn
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