Building Materials

1 Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
The shaping process of the float glass is completed in the tin pot connected with the protective gas by use of some materials such as silica sand, soda and cabosil, etc. in the high-temperature melting state of heavy oil. The molten glass continuously flows out of the tank kiln and floats on the tin liquid surface with the big relative density. On the effects of gravity and surface tension force, the glass liquid is spread and set off to make the upper and lower surfaces flat, hardened, cooled and introduced to the pass-over roll platform. The roller of the roll platform rotates to pull the glass belt out of the tin pot and enters the annealing kiln to get the flat glass product via annealing and cutting. Compared with the other methods, the float method has its advantages: it is suitable to the high-efficiency manufacturing of the good-quality flat glass, for example, no stria, even thickness, flat upper and lower surfaces and mutual parallel; the scale of the production line will not be limited by the shaping method, low energy consumption of the unit product; high utilization rate of the finished products; easy scientific management and realization of mechanization and automation and high labor productivity; the continuous operating period can reach several years and it is favorable to the stable production; It can provide the suitable conditions for producing some new products online such as electric float reflective glass, painting film glass in annealing and cold-end surface treatment, etc.
1.1.2 Market Prospects
At present, the output of the ultrathin float glass of our country accounts for only 15% of the total output, the quantity of the domestic ultrathin float glass is far from meeting the domestic market demand and the country needs a lot of foreign exchanges to import it from the foreign countries every year. The country encourages the opening of the high-grade and good-quality float glass projects. Shuangliao City has some rich good-quality ore resources such as silica, dolomite, limestone and feldspar, etc. The Municipal Party Committee and the Municipal Government attach great importance to the development and utilization of the silicon resources. Shuangliao City has the rich silica sand resources, the sand is pure, with the good transparency, even granularity, shallow purchase layer and easy development, the silicon dioxide content of the rinsed sand is more than 95%, it can reach more than 98% after the flotation and the prospected reserve reaches 0.9 billion m3. Therefore, it is called one of the four major mines with the rich ores in the world and the silicon dioxide is the good material for producing the glass.
The annual demand of our country for the good-quality float glass is 85-90 million boxes and the domestic annual productivity of ultrathin float glass is only 16 million boxes at present, so the gap in the market is very big. If the ultrathin float glass production line is built in Shuangliao City, there will be a big product sales market only in Jilin Province. The demand of Jilin Province for the good-quality float glass is 3.1 million boxes at present. It is predicted that the demand will be 3.3 million boxes this year, the demand will have been 4.5 million boxes by 2015 and the products are mainly supplied to some large automobile groups such as FAW, etc. The project is planned to take the most advanced float glass production process and introduce the foreign advanced and key technique and equipments to produce the ultrathin glass in short supply in the market at present. The products can be domestically sold and exported.
1.1.3 Technical Analysis
The project takes the domestic advanced technique and introduces the online low-E float glass production technique and the other matching equipments are purchased domestically. The good-quality float glass can be produced. The product can meet the quality requirements of the deep-processed glass and top-grade building glass. The project has the energy and material advantages. The fuel consumption accounts for a great proportion in the flat glass manufacturing cost. The natural gas used in the project has the low price and stable supply, which is the advantage over the other domestic glass manufacturers. The silica material used in the project has the short transport distance and low price. Therefore, the material and fuel prices of the project are at the low level in the same industry and the project will have the strong cost competitive advantage after it is put into production.  
1.1.4 Advantageous Conditions and Necessity of Project Construction
1. Advantageous traffic conditions.
Shuangliao City, located in the junction of Jilin Province, Liaoning Province and Inner Mongolia, is called the “important traffic place connecting the three provinces” and a bright pearl in the connecting belt of Songliao Plain and Horqin Grassland. Pingqi and Zhengda railways meet each other in the city. Shenming and Jixi national highways, Changzheng and Sitao provincial highways as well as Daqing-Guangzhou, Changchun-Shenzhen and Ji’an-Shuangliao expressways, passing Shuangliao, are established into the traffic network extending in all the directions.
Shuangliao, located in the central belt of Changchun City, Siping City and Tongliao City, is the traffic center of railways and highways in the west of Jilin Province. It is only 300-500km from Dalian Port and Yingkou Port. Zhengda and Pingqi highways cross each other here, so Shuangliao becomes the traffic hub connecting Liaoning Province, Jilin Province and Inner Mongolia; Shengming and Jixi national trunk line highways penetrate the city from north to south; Changshuang and Zhengtai provincial trunk line highways cross the city from east to west; in addition, there are 8 county-level roads and 20 township-level roads radiating the urban area and the rural area and established into the traffic network with the bituminous paved roads to all the townships.
2. Advantageous mineral resources
Shuangliao City contains a large amount of good-quality silica sand. Qikeshu Silica Sand Mine, Shuangliao City is the good-quality silica sand mine famous in the world. It can provide the good-quality materials for producing the float glass and various glass products. It is investigated that the industrial reserve of silica sand is 0.9 billion tons in the determined 3km2 mining area, so it is the silica material base in the north of China, with the thin mineral deposit covering layer, big silica sand reserve and even granularity. It is one of the four major mines with the rich ores in the world. The industrial grades of the crude ores are: silicon dioxide: 90%, aluminum oxide: 3.9%, ferric oxide: 0.38%, 0.1-0.7mm grains accounting for more than 90% and the silicon dioxide content can reach more than 98% after the flotation. Therefore, it is the ideal good-quality material of the glass, precision forging and electronic industries. On the bottom of the silica sand bed is the high-content gold placer and its scale and quality are peculiar domestically, with the high exploitation value.
3. Perfect industrial foundation
The main projects built in the park are 600-ton float glass production line, 460-ton float glass production line and online coated glass and dark grey glass line reconstruction projects, etc. of Fuyao Group Shuangliao Co., Ltd. The annual productivity of flotation sand, rinsed sand and scrubbed sand has been 0.5 million tons and the glass building material industrial park with the scale has been preliminarily established, with the perfect industrial foundation.
4. Complete infrastructure
Some infrastructure such as roads, bridges, power supply, water supply and drainage and sewage treatment, etc. in the park is completed. A sewage treatment plant with the daily treatment of 50000 tons and a project with the daily supply of 0.5 million m3 natural gas are built, neighboring Shuangliao Power Generation Plant with the total installed capacity of 2.4 million KW and the power resources in the park is sufficient. The rich experience has been accumulated for the construction and development of Shuangliao glass building material industry, the powerful industrial foundation has been laid and a great number of high-quality engineering technicians and excellent industrial technical workers have been cultivated since Liaohe Glasshouse was built in Shuangliao in 1948.
1.2 Content and Scale of Project Construction
1.2.1 Product Scheme and Scale
Daily molten charge of 300-ton ultrathin float glass
1.2.2 Construction Content
The total planned area of the project is 0.1 million m2, the construction period is 2 years, and it is planned to build the production workshop, material workshop, combined workshop, compressed air station, circulating water pump room, transformer substation, etc. and the production line.
1.3 Total Investment of the Project (see Table 1 for details)
Table 1: Summary Table of the Total Investment of the Project Unit: 10 thousand yuan
No.    Expense Name    Amount of Investment    Proportion in the Total Amount of Investment%    Remarks      
1    Construction investment    25500    85          
2    Interest in the construction period            Temporarily not considered      
3    Current funds    4500    15          
    Total investment of the project(1+2+3)    30000    100         
Note: “10 thousand yuan” in the table refers to RMB.
1.4 Forecast of Economic and Social Benefits
1.4.1 Major Indexes for Forecast of Economic Benefits(See Table 2 for details)
Table 2:    List of the Major Indexes for Forecast of Economic Benefits
No.    Name    Unit    Index    Remarks      
1    Business income    10 thousand yuan/a    55000.00    Normal year      
2    Total profits    10 thousand yuan /a    6800.00    Normal year      
3    Taxes    10 thousand yuan /a    4800.00    Normal year      
4    Internal financial earning rate of all the investment    %    19.11    After income tax      
5    Net financial present value (Ic=10%)    10 thousand yuan     122427.00    After income tax      
6    Recovery period of all the investment     a    6.03    Including the construction period of 2 years (after tax)      
7    Investment profit rate    %    17    Normal year (after tax)     
Note: “10 thousand yuan” in the table refers to RMB.
1.4.2 Analysis of Social Benefits
The project, with the advanced technique and strong reliability, will play the big leading role in the market. The glass manufacturing industry of China has made great progress in recent years. Not only the output ranks the first in the world but also the technical progress in the deep-processing glass field has been made, including the introduction and updating of production equipments and domestic manufacturing of some equipments, etc., all of which have laid a foundation for the development of the whole glass industry in the future. In order to adapt to the demands for the national economic construction and development and improvement of people’s living standard and strengthen the capacity for later development of the enterprises, the float glass production technique shall be taken to transform the backward vertical uplift production process to produce the good-quality flat glass and promote the development of the glass deep-processing products according to the national industrial policy. The demand for the float glass will become bigger and bigger. While bringing the remarkable economic benefits for the users, the good social benefits will also be brought about in some aspects such as scientific and technological innovation and energy utilization, etc. In addition, the project can resolve the employment problem of the common people around it, with the remarkable social benefits.
1.5 Ways of Cooperation
Joint venture, cooperation, mutual shareholding or other ways interviewed
1.6 What to be Invested by Foreign Party
All the investment or part of investment in cash, other modes interviewed
1.7 Construction Site of the Project
The project is planned to be built in Shuangliao Glass Building Material Industrial Park.
1.8 The On-going Condition of Project
The project proposal has been established.
2. Introduction to Partner
2.1 Basic Conditions
Name of project undertaker:Fuyao Group Glass Industry Co., Ltd.  
Legal address:Liaoxi Street, Shuangliao City
Legal representative:Cao Dewang
Corporate ownership form: limited company
2.2 Introduction to Project Undertaker
Fuyao Group Glass Industry Co., Ltd. purchased the original Shuangliao Float Glasshouse on May 1, 2002 and formally founded Fuyao Group Shuangliao Co., Ltd. on August 19, 2003. The main products under the company include automobile glass, building glass, deep-processed glass and energy saving glass, etc.
The company now owns 2 float glass production lines with the daily molten charges of 460 tons and 600 tons, respectively. The float glass production line with the daily molten charge of 460 tons is the domestic advanced technique and the float glass production line with the daily molten charge of 600 tons is the international advanced production technique. In 2006, the company invested to introduce the US PPG online coated production equipment and technique. The production line is the first and only domestic online metal coated glass production line. It can produce the multi-color 3-19mm coated glass. At present, the products include alloy, titanium silver coated and pigmented glass. The company has introduced the German equipment to build the flotation sand production line with the annual output of 0.28 million tons of good-quality sand. The company has become the glass silicon material base.
The company has the annual productivity of 6.035 million boxes of glass. The products are sold not only domestically but also in some countries of the Middle East, Asia and Europe, etc. The alloy coated glass produced has the ideal visible light transparency and reflection ratio. It can weaken the transparency of ultraviolet light and effectively control the incidence of the direct solar radiation, with the good sunshade effects. The dark grey (hiding) glass produced is the domestic first one. The coated and hiding glass products can be widely applied for the automobile glass, building and decorating glass. At present, the company is the only good-quality and top-grade float glass production base in Jilin Province.
The titanium silver coated glass is the new product independently developed by the company. It integrates the characteristics of the online LOW-E and SUN-E and it is the updated green, energy saving and environmental-protection product. The visible light transparency of the product is over 60%, better than the performance of SUN-E; without the limits of processing time and mode, it resolves the problem that the online LOW-E cannot be processed in the other place; it controls the incidence of the ultraviolet ray and reduces the hazards to a human body and indoor furniture, which is indispensable to SUN-E and online LOW-E.
The company devotes itself to the development of the new products. The company has established the new product development center, gathered a lot of technical elites and backbones in the domestic glass industry, continuously developed the new products with the high-tech contents and advanced technique in some aspects such as colors, types, series of products and product extension, etc., led the technical progress of the energy saving glass and built the strong brand in the glass industry. The company has declared about 10 patent products.
The company has passed the ISO9001: 2000 standard certification and the product quality meet the GB/T19001—2000 standard.
Registered capital of the company: 40.028 million USD, Fuyao Group Glass Industry Co., Ltd.: 75%, Fuyao Hong Kong Co., Ltd.: 25%
Cao Dewang, Chairman of the Board, male, is a successful entrepreneur working as Member of the Committee of Chinese People’s Political Consultative Conference of Fujian Province, National Situation Researcher of the State Council, Special Economic Researcher of Fujian Provincial Government, Director of China Association of Automobile Glass and Standing Deputy Director of Fujian Association of Entrepreneurs, etc. He is the first entrepreneur carrying out the stock system transformation of the enterprise and earliest to enter the capital market.
2.3 Contact Method
Contact Person: Dong Hongjun
Tel: 13844453626
Postal Code: 136400

Contact method of city (prefecture) of project:
Contact Unit: Siping Economic and Technical Cooperation Bureau
Contact Person: Song Qingxin
Tel: 0434-3266211   13844482608


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