Building Materials

1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
The secondary product of glass is the deep-processed glass. It is the glass product with the special functions made by the different processing technology according to the operating requirements by using the primary shaped flat glass as the basic material. The products produced in the project mainly include blind shutter glass, LOW-E hollow glass, toughened glass, mirror glass and silver mirror, etc. The deep-processed glass, with the wide purposes, is mainly applied in the building and decoration. The project, depending on the current industrial foundation of Shuangliao Economic Development Zone, absorbs the social capital and strategic cooperators to develop the project together via the businessmen invitation and capital attracting platform of the economic cooperation bureau.
1) Increase the strength of the glass and strengthen the safety of glass
The safety glass includes toughened glass, laminated glass and filmed glass. Toughened glass: its strength is 3-5 times that of the common flat glass. The main approach to increase the glass strength is to establish the compressive stress layer on the glass surface. Therefore, the toughened glass is divided into physical quenched and tempered glass and chemical toughened glass.
In 1951, Shenyang Glass Factory, cooperating with the institute of building materials, developed the first physical air cooled flat toughened glass of our country. In 1955, the hanging flat toughened glass furnace developed by our country itself was successively built and put into production in Shanghai Yaohua Glass Factory and Qinhuangdao Yaohua Glass Factory. At the end of 1970s, Luoyang Glass Factory first introduced the hanging toughened glass production line of Belgium. In 1953, the toughened glass was manufactured by Shenyang Glass Factory and produced in a batch. Qinhuangdao Yaohua Glass Factory built a complete chemical multi-internal-line glass production line in 1983. In 1980s-1990s, our country introduced a great number of horizontal roller toughened glass production lines and a few hanging equipment from the foreign countries.
There are now more than 150 automobile, building and household toughened glass production enterprises and more than 250 toughened glass production lines, with the annual productivity of 70 million m2 in our country.
In recent years, people have developed a new product called heat-strengthened glass (semi-toughened glass) in order to change the phenomenon of small fragments in bursting of the toughened glass. Because the product is uneasy to explode, it is more suitable to the large glass curtain wall.
Laminated glass: It is a kind of safety glass made with 2 or more pieces of glass bonded with the synthetic resin. When it is broken, the fragments will not be scattered. There are the dry and wet production methods of laminated glass, but the dry method is the main stream. The laminated glass products of China was earliest developed successfully by the Institute of Building Materials. 
In 1957, Shanghai Yaohua Glass Factory built the first dry laminated glass unit. In the middle of 1960s, Qinhuangdao Yaohua Glass Factory produced the aviation bulletproof glass. In the late of 1970s, Qinhuangdao Yaohua Glass Factory took the grouting method to produce the wet laminated glass and made it. Subsequently, Luoyang Glass Factory first introduced the laminated glass production line from Finland. In the middle of 1990s, China Yaohua Glass Group developed the fireproof laminated glass. At present, there are 150 laminated glass production lines, with the annual productivity of 15 million m2 in our country. There are a lot of types of laminated glass, but the main types are pvb film laminated glass, fireproof glass with the solid sodium silicate hydrate swelling layer as the fireproof intermediate layer and one-step laminated glass (without autoclave) with the en film as the intermediate layer. The vacuum one-step laminated glass production method can produce not only the common safety glass but also the decorating laminated glass with ornaments. Recently, China Yaohua Glass Group has developed the light decorative laminated glass.
Filmed glass: The filmed glass is made with a multi-layer polyester film pasted to the flat glass surface so as to improve the performances and strength of the glass and make it have some functions such as heat preservation, heat insulation, explosion protection, ultraviolet protection, beautiful appearance and safety, etc. At present, it is mainly applied in the automobile and building doors, windows and partition ceilings, etc.
The filmed glass was developed by the US at the end of 1930s. It was earliest applied in the Aerospace Agency. Our country started using the imported safety filmed glass as of 1993. It is mainly used in the cash trucks of banks and show windows of jewelry shops. At present, the glass film cannot be produced domestically and it still depends on the import. The filmed glass will produce the different effects such as colors, phototropy, conductivity and heating, etc. according to the different film materials.
2) Change the geometric shape of the flat glass
As we all know, the flat glass is generally flat and smooth, but in the use, people often need some glass with an arc or camber, which shall change the geometric shape of the flat glass. At present, the main products include arc bending glass, glass compote and glass lid, etc., but their shaping mechanisms are roughly the same.
Arc bending glass: It is also called thermal bending glass and arc bending glass. When the glass is heated at the second time to approach the softening temperature, it is bended and deformed according to the requirement. According to the bending degrees, it is also divided into narrow bending and deep bending. The narrow bending glass is mostly used in the building decoration, automobile and ship windscreen glass as well as glass furniture decoration series (such as TV stand and tea table, etc.); the deep bending glass is widely used in the horizontal freezer, show counter, sightseeing elevator and corridor, glass ceiling and aquarium for appreciation, etc. If the toughening treatment is carried out in the thermal bending, it will be the thermal bending toughened glass and the glass lid belongs to this type. Now, some arc glass curtain walls are mostly made of thermal bending toughened glass in order to assure the safety. 
The glass compote is made with the color ceramic glaze or appliqué agglomerated to the glass while bending. It is the product of combining the thermal bending glass and color ceramic glaze glass.
3) Glass surface treatment
The treatment of the glass surface includes two aspects: one is to enrich the glass surface, that is, the physical or chemical method is used to make the different patterns and figures on the glass surface; the other is coating of the glass surface.
Polished glass: Before the float glass is produced, some glass needs to be polished to achieve the purpose of 2 surfaces tending to be completely paralleled. The polished glass is the glass polished with red powder, tin dioxide and felt after some grinding materials such as silicon carbide and silica sand, etc. to grind the two surfaces of the common flat glass or rolled glass to make it flat.
In 1958, the first reciprocating grinder designed and manufactured by our country itself was built in Shanghai Yaohua Glass Factory so as to adapt to the requirement of the toughened and laminated glass for the flatness of the glass surface. In 1970, Luoyang Glass Factory introduced a single-face continuous grinding unit matching with its rolling production line. With the occurrence of the float glass, it replaced the polished glass.
Stained glass: The stained glass is also called painting glass. It is a material pervious to light, which can provide the color art for doors and windows. It is generally made with the special glaze used to paint the figures on the glass and then burnt or appliqué on the glass and burnt. Its making method is like that of ceramics.
Sand blasted glass and etching glass: It is to use the 7~7kg/m2 high-pressure air to blow some particles such as silicon carbide, etc. to the glass surface to make sand marks on the glass surface. It can carve the lines, letters and various figures and the parts which need no processing can be covered with some materials such as rubber and paper, etc. as the protecting film. If the acid leaching and burning is made on the basis of sand blasted glass (all sand-blasted), the frosting glass will be available, also called ice-flower glass.
Color glazed glass: The color glazed glass is a kind of opaque color glass made with one side of the flat glass burnt with the inorganic pigment and via the heat treatment. According to the different pigments, the glazed glass with the different color effects can be produced. The mono-color glass can be used in the doors and windows and the multi-color glazed glass (also called granite glass or marble glass) can be used in the internal and external walls or floors of the buildings.
Carved glass: Human beings earlier started taking the manual method to carve the beautiful figures on the glass. Now, the automatic checkering machine taking the computer numerical-control technology can process the high-grade decorating glass used in all the places.
1.1.2 Market Prospect
1) Present situation of development of the glass deep-processing industry of China
With the continuous deepening of the market economy, the deep-processing product industry of the flat glass of our country has gone through the unprecedented development, especially the automobile industry, modern home furnishing life, office and entertainment places, etc. have been rapidly development in recent years, which has greatly increased the demand of the automobile safety glass, high-grade glasses and hollow glass for the glass deep-processing products. All these have increased the new opportunities for the development of the glass deep-processing industry. In addition, the country has promulgated the Provisions on Promoting the Modernization of the Housing Industry and Improving the Housing Quality according to the demand for the gradual improvement of people’s living standard, requiring that the automobile safety glass produced in China should be certified by the relevant department.
At present, about 300 hollow glass production lines have been built in China, including 70 production lines introduced from the foreign countries, with the total productivity of about 50 million m2 in the whole country. Viewed from the domestic market, the production and demand of hollow glass are rising year by year and the trend that the products in the east are moved to the west has become more and more obvious and the virtual pooling and combination of the processes, technologies, materials and equipment in the east with those in the west has begun to surface. The re-processing rate of the flat glass of our country was increased to 40%-45% after 2015. The market demand for the hollow glass will have increased to 87 million m2 and the annual demand will have increased to 35 million m2 by 2020, so the market development prospect is very bright.
2) Main problems existing in the glass processing industry
The first is the small scale. The glass processing enterprises of our country are mainly distributed in South China, East China and North China, with the consistent industrial layout with the flat glass. The incomplete statistics show that there are nearly 10 thousand enterprises involved in the glass deep-processing in our country, with only 454 enterprises above the scale. The division of the industrial scale is serious, some enterprises are good and some are bad, there is lack of long-term plan in the development, lack of technical innovation and the enterprises are opeated by itself, so no scale advantage can be established, which is unfavorable to the industrial development.
The second is that homogenization brings about the disorderly competition in the market. The productivity of the flat glass industry is surplus. Analyzed from the total quantity, it is seriously surplus. The total productivity of the flat glass has been 1.25 billion boxes, the actual output has been 0.78 billion boxes by the end of 2015. The productivity utilization rate is less than 63% and the surplus of the productivity is quite serious; analyzed from the surplus property, it is the structural surplus. The productivity of the common float glass for the buildings is seriously surplus and the proportion of the good-quality float glass is only 35%, so the demand of the high-grade processing cannot be met and some of the varieties shall be imported.  
Flat glass and processed glass are the main components of the glass industry and both them exist side by side and play a part together. Viewed from production and operation, the proper surplus of the productivity of the flat glass is favorable to the devolvement of the processed glass; viewed from the history, the development of the processed glass can refer to the experience of the flat glass so as to prevent the tortuous development. However, we have not carried out the careful thinking and analysis. In addition, the industrial access threshold is low and the standard is backward and it is difficult for the government and the industrial association to carry out macro-control, etc., so the disorderly development is brought about and even surplus occurs to the processed glass: the homogenization of the products of the enterprises is serious, the benefit level has been greatly reduced, the fund pressure of the enterprise is unprecedentedly big, there exists the cut-throat competition of the personnel and prices, the production equipment is unused and the production management is rough, etc.
Third, viewed from the product structure, there exists the serioius imbalance in the productivity of the domestic flat glass, the supply of the low and medium-grade glass is seriously more than the demand, it is short of the glass products with the high-tech contents and it is difficult to meet the market demand of the domestic processed glass. The situation of the processed glass is similar to it. The preliminary statistics show the outputs of the main processed glass in 2014: toughened glass: 0.33 billion m2, laminated glass: more than 0.1 billion m2, hollow glass: about 0.4 billion m2, filmed glass: 0.2 billion m2, Low-E filmed glass: 0.12 billion m2. Although the total output of the processed glass ranks first in the world, compared with the internal level, there exists a great gap in some aspects such as industrial centralization, technical progress, market coordination and product development, etc. The processing rate of the flat glass is only 40%, the external dependence is 15-20%, the support capability of the high-end products is to be improved and the varieties shall be enriched; the development in the market is disorderly and the product quality is different; therefore, it is urgent for the integration and upgrading of the glass deep-processing industry shall be strengthened.
1.1.3 Technical Analysis
The production process of the deep-processed glass in our country is relatively mature. Combining the local actual conditions, the company has strengthened the development of the (or compound) modified materials combined with the glass so as to make the deep-processed glass products to develop to the multi-functional compound, ecological and environmental friendly and intelligent and smart directions.  
With the businessmen invitation and capital attracting platform of the economic cooperation bureau, the strategic cooperators are introduced and the social resources are absorbed to assure the credibility of the project.

1.1.4 Advantageous Conditions of Project Construction
1) Policy conditions
The project meets the national industrial adjustment directory and the “12th Five-Year” Plan of the city and the province and it can enjoy the preferential policies of the governments and development zones at all levels. In order to the development of the new materials industry, the Ministry of Industry and Information has issued the “12th Five-Year” Development Plan of the New Materials Industry and the 3-Year Action Plan of Standardization of the New Materials, etc. It is pointed out in the “12th Five-Year” Development Plan of the New Materials Industry that the principal status of technological innovation of the enterprises shall be strengthened, the enthusiasm of innovation of the enterprises shall be invigorated and protected, the technical innovation system shall be perfected, a number of key and core technologies shall be broken through via the original innovation, integrated innovation, introduction, digestion, absorption and re-innovation, the development of the new materials and products shall be accelerated and the innovation level of the new materials industry shall be improved.
2) Resource advantage
Silica sand of Shuangliao is one of the 4 major rich ores in the world, with the average fineness, big reserve, narrow buried layer and easy mining. The explored silica sand reserve of Qikeshu sand mine reaches 0.9 billion tons and the maximum mining depth of the mine can reach 30 meters. The industrial grades of its original ore: content of SiO2: 89—90%, content of Al2O3: 4.8%, content of Fe2O3: 0.32%. The fineness of the original ore is even, with the ore of 0.1—0.7 grade accounting for more than 90%.
3) Personnel advantage
Shuangliao City owns the about 0.1 million surplus labor force, including 4500 college and university students registered in the employment market to be employed, so the rich personnel resources can be provided for the enterprises to select the senior administrators. The average monthly salary of the skilled workers is about 1800 yuan and that of the special technical workers is about 2600 yuan.
4) Geographical advantage
Siping, with the advantageous location, is located in the central belt of the economic region of Northeast China, is the center in the junction of Liaoning, Jilin and Inner Mongolia and the important traffic hub in Northeast China, with the highways and railways extending in all directions. Siping Railway Station is one of the 18 major railway marshalling stations of China. 
1.2 Content and Scale of Project Construction
1.2.1 Product Scale
Build 5 production lines, with the daily processing of 45000m2 glass.
1.2.2 Project Construction Content
The project covers the total area of 120mu, including the building area of 40900m2. Build 5 production lines, with the daily processing of 45000m2 glass.
1.3 Total Investment of the Project and Capital Raising
The total investment of the project is 152 million yuan, including the construction investment of 126.54 million yuan.
Table 1: Summary Table of the Total Investment of the Project
                                                 Unit: RMB10, 000
No.    Expense Name    Amount of Investment    Proportion of Total Investment %    Remarks      
1    Construction investment     12654    83.25          
2    Interest in the construction period                  
3    Current funds    2546    16.75          
    Total investment of the project (1+2+3)    15200    100.00         
Note: “RMB10, 000” in the Table shall be RMB.
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
After the project reaches the output, the annual sales income will be 116.5 million yuan, the profit will be 38.5 million yuan, the investment recovery period will be 4 years (after the tax, including the construction period of 1 year) and the investment profit rate will be 25%.
Table 2: List of Major Indexes for Forecast of Financial Benefits
No.    Name    Unit    Index    Remarks      
1    Business income    10, 000 yuan/a    11650    Normal year      
2    Total profit    10, 000 yuan/a    3850    Normal year      
3    Internal financial yield rate of the investment    %    20    After the income tax      
4    Net financial value (Ic=10%)    10, 000 yuan    720    After the income tax (operating period of 10 years)      
5    Recovery period of all the investment (after the tax)    a    4    Including the construction period of 1 year      
6    Investment profit rate    %    25         
Note: “RMB10, 000” in the Table shall be RMB.
1.4.2 Social Evaluation
The construction of the project meets the national industrial policy and investment guide. It takes the advanced process and technology and chooses the reliable equipment, so it can achieve the purposes of making the local economy prosperous and arranging employment. The construction scale of the project is suitable, with the scientific design, mature experimental technology and good construction conditions. After the project is operated, the management system is complete and the goods sources are sufficient, with the bright market prospect. It is estimated that the economic benefits will be ideal, with certain social benefits.   
1.5 Cooperative Ways
Sole investment and joint venture
1.6 What to be Invested by Foreign Party
Funds, equipment and technologies
1.7 Construction Site of the Project
Huajian Park, Shuangliao City, Jilin Province
1.8 The On-going Condition of Project
The project cooperation proposal has been established.
2. Introduction to Partner
2.1 Basic Conditions
Name: Shuangliao Economic Development Zone
Address: Shuangliao Economic Development Zone
Legal Representative: Song Guojun
2.2 Overview
Shuangliao Economic Development Zone is located in the junction of Jilin Province, Liaoning Province and Inner Mongolia, distributed in the east and west wings of the urban area of Shuangliao. It was originally built in 2002. It was listed as the provincial-level centralized industrial zone of Jilin Province in 2005, with the total planned area of 28km2. It is planned as “1 zone and 4 parks”, that is, Shuangliao Economic Development Zone, Liaodong Economic Park, Liaoxi Industrial Park, Huajian Park and Circulating Economic Park.
In 2015, the total output value reached 17.5 billion yuan RMB, resetting a new record in the history. In the centralized industrial zone, the hard surface road network has been established; some infrastructure such as power supply, water supply, gas supply, heating, water drainage and communication, etc. has become complete; 1 sewage treatment plant has been built, with the daily treatment capacity of 25000 tons. The Municipal Committee and the Municipal Government have established and carried out all the preferential policies, provided the special preferential policies for the development zone and exercised the green channel of “offices in one building”, “one-station service” and “one-station work”.
2.3 Contact Method
Contact Person: Qi Honggang
Tel: 0434—7223721 15044453332
Fax: 0434—7234222

Contact Method of the City (Prefecture) of the Project:
Contact Unit: Siping Economic and Technical Cooperation Bureau
Contact Person: Song Qingxin
Tel: 0434-3266211   13844482608


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