Building Materials

1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
The transparent conductive glass, the main product of the project, which is a kind of high-tech special glass, is mainly used to manufacture some flat display devices such as liquid crystal display (LCD), electroluminescent screen, plasma display (PDP) and vacuum fluorescent display, etc. It is widely applied in the laptops, electronic dictionaries, electronic notebooks, mobiles, visual telephones, handheld game machines, electronic printers, portable TV, wall color TV and portable medical devices as well as electronic instruments, calculators and electronic watches, etc.
1.1.2 Market Prospects
The display industry is being rapidly developed in the world. There are about 50 domestic LCD manufacturers built and under construction, but there are only 7 enterprises producing the transparent conductive glass and the productivity meets only half of the demand and the products are the low and medium-level products. In addition, the digital household colored TV taking the transparent conductive glass with the plasma and electroluminescent display technique as the background will replace the current cathode-ray tube (CRT) colored TV and its demand for the transparent conductive glass will be much more than that of LCD and it shall be the medium-grade and high-grade transparent conductive glass. Therefore, the transparent conductive glass market is very big, with the good prospect.
The FPD (flat panel display) product technique will change quickly in the future. With the technical progress and great reduction of the price, it will gradually replace the status of the CRT product. At present, in all FPD products, only the liquid crystal display (LCD) is the matured product and the others such as plasma display (PDP) or organic light-emitting diode (OLED), etc. will have the technique and cost need to be broken through, so the demand is not obvious. Statistics show that the output value of LCD will have been 86% of the FPD market, PDP: about 7.5% and the other displays totaling 6.5% by 2031. Therefore, the whole FPD industry will have taken LCD as the main stream in recent years. 
The main materials of TN/STN—LCD of Taiwan such as ITO conductive glass, etc. mainly depend on imports, the autonomy of production is limited and even the shortage of goods occurs in the busy season. The data shows that some relevant manufacturers of Taiwan have gradually stepped into some upper-stream material industries such as ITO conductive material, polarized light panel, color screen and backlight panel, etc. and they expect to improve the self-supply rate of materials.
There are about 80 LCD manufacturer’s production lines at present. The total demand for the ITO conductive glass is about 80 million pieces at present, which provides the great and clear market space for the conductive glass.
1.1.3 Technical Analysis
The project undertaker owns the patent technology, which is at the international advanced level, and the industrialized production can be realized.
1.1.4 Advantageous Conditions of Project Construction
1. Advantageous traffic conditions.
Shuangliao City where the project lies, 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; Shenming 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 where the project lies 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 3 km2 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 where the project is settled 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 where the project is settled is completed. A sewage treatment plant with the daily treatment of 50,000 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 Production Scale and Project Scheme
Build the production line with the annual output of 6 million transparent conductive glass and the main equipments include 2 STN-ITO photo-electronic vacuum coated equipments and their matching cutting lines and cleaning lines as well as 100 polishers, etc.
1.2.2 Build the new site and purchase equipments
Build the production area, office and living areas and warehouse area and purchase the production, inspection and test equipments.
1.2.3 Covering area and construction period
Total planned area: 20,000m2, construction period: 2 years
1.3 Total Investment of the Project (see Table 1 for details)
The total estimated investment of this project is RMB 120 million.
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    9600    80          
2    Interest in the construction period            Temporarily not considered      
3    Current funds    2400    20          
    Total investment of the project(1+2+3)    12000    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    24000.00    Normal year      
2    Total profits    10 thousand yuan /a    2900.00    Normal year      
3    Taxes    10 thousand yuan /a    900.00    Normal year      
4    Internal financial earning rate of all the investment    %    16.5    After income tax      
5    Net financial present value (Ic=10%)    10 thousand yuan     5870.00    After income tax      
6    Recovery period of all the investment     a    6.32    Including the construction period of 2 years (after tax)      
7    Investment profit rate    %    18.13    Normal year (after tax)     
Note: “10 thousand yuan” in the table refers to RMB.
1.4.2 Analysis of Social Benefits
With the increasing of the demand for the renewable, clean and safe energy resources in the world day by day, the innovation of the new techniques and gradual reduction of the cost, various transparent conductive glass is becoming the key point and hot point of the new solar utilization research in the world and it has been more and more widely applied in all the fields and many enterprises of our country have entered such an industry.
The project, with the advanced technique and strong reliability, will play the big leading role in the market. With the demand for the flat panel displays becoming bigger and bigger and the demand for the solar utilization continuously increasing, the demand for the transparent conductive glass will also 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 meets 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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