Building Materials

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Prospect of Product and Market

Diatomite urea-formaldehyde resin is mainly used in the manufacture of molded plastic, and manufacture of daily necessities and electrical parts; it can also be used for making plate adhesive, slurry of paper and textiles, plywood, and architectural decoration board. Because of its light color and easy coloring, the products are often colorful and magnificent. Because the forestry resources become strained and the strengthening of people's awareness of environmental protection, the protection of forestry resources is growing more and more, and the development and utilization of forestry scraps is more and more. The update speed of synthetic processing decorative and decoration and construction materials accelerates, and the rising of new synthetic material is widely favored by people. The application of synthetic green resin will be more and more widespread; the market has become increasingly prosperous, and prospects are broad.

1.1.2 Technical analysis

At present, the domestic urea-formaldehyde resin filling technology is mature, and the production equipment can realize industrialization.

1.1.3 Advantageous Conditions of Project Construction

1Resource advantage

The project site area is rich in mineral resources. The proven reserve of diatomite is 200 million tons; the prospective reserve is 600 million tons, ranking the first in Asia. And most are high-quality soil, and it has clear comparative advantage among the diatomite resources at home and abroad.

2Technical personnel advantage

 On the development and utilization of the diatomite, Linjiang City has established the Diatomite Scientific Research Institute of Jilin Province. It has also established stable R & D partnerships with Changchun Applied Chemistry Institute of Chinese Academy of Sciences, Dalian Physic-Chemistry Institute of Chinese Academy of Sciences, China University of Mining and Technology, China University of Geosciences, Jilin University and other research institutions. It focuses on promoting the research and achievement introduction of beneficiation purification, superfine technology, surface modification, composite materials, sewage treatment and water purification equipment, environmentally friendly functional materials. It has achieved seven leading domestic diatomite technological achievements, such as improving low-grade diatomite to produce ultra-fine silica technology, diatomite rubber reinforcement technology, nano Ti02 / diatomite composite photocatalytic technology, diatomite / asphalt pavement composite material, and has reach the level of pilot. In the next step, it will increase research investment, improve the feasibility studies, carry on pilot production as soon as possible, and enter the industrial development direction. In recent years, it insists on combination of industry, learning and research, increases research and development investments, and continues to make breakthroughs in development and utilization technology of diatomite.

Linjiang City, combined with the needs of economic development mode shift on talent, relying on the platform advantage of 4 specialty industrial parks, takes the operation mode of external introduction+ internal hiring and training to gather talents, absorbs more than 300 shortage and special personnel to participate in the construction and development, and has achieved remarkable success.

3Industrial foundation advantage

 The location of the construction of the project is located in Linjiang Diatomite Industrial Concentration Zone. The Industrial Concentration Zone is located in Liudaogou Town of Linjiang City. It was approved by the Jilin Provincial Government and established on December 13, 2006. The Industrial Concentration Zone has reached "three levelings and one connection" standard, and the conditions for enterprises to settle down have been equipped. The land acquisition, land leveling, road widening and hardening, electricity transmission, communication lines, water supply project of the living area, embankments construction etc. of the projects have been completed.

At present, the zone has 12 diatomite processing enterprises. After nearly 20 years of development and utilization, it has formed industrial cluster, and is China's largest production base of diatomite products. Last year, the Industrial Concentration Zone realized output value of 320 million yuan, tax of 13.5 million yuan, and arranged rural surplus labor force of 2100 persons. Not matter in output value or taxes, it accounts for one tenth of the total economy of Linjiang City. It is the key pillar industry in industrial economy development of Linjiang City. At present, the diatomite products of Linjiang City occupy more than 80% of the national market share, and a Chinese diatomite city is rapidly rising.

4Policy advantage

The construction of the project is in line with the national industrial policy. It belongs to the key project supported by the state and local governments. It can enjoy the special funds subsidy. At the same time, the construction of the project belongs to the provincial industrial concentration area, thus it can enjoy the treatment of provincial development zone; the project belongs to the local key investment attraction project, and can enjoy the land, taxation and other preferential policies.

1.2 Scale and Product Scheme of Project Construction

1.2.1 Product Scheme

An annual output of 120,000 tons of diatomite urea-formaldehyde resin adhesive filler

1.2.2 Construction Content

Planned construction area is 200,000 square meters, and construction area is 150,000 square meters.

1.3 Total Investment of the Projectdetailed in table 1

 The estimated total investment is 590 million yuan.

 Table 1                 List of Total Investment of the Project            unit: 10,000 yuan

Serial No.

Name of expense

Investment amount

% to total investments

Remarks

1

Construction investment

41300

70

 

2

Interest incurred in construction period

 

 

Not considered temporarily

3

Working capital

17700

30

 

 

Total investment of the project1+2+3

59000

100

 

Note: the “10,000 yuan” in the table is in RMB.

1.4 Forecast of economic benefits

1.4.1 Major financial indexesdetailed in table 2           

The annual sales income is 1.6 billion yuan, the total profit is 146 million yuan, the internal rate of return is 18.28%. Payback period of investment is 5.9 years.

Table 2  List of major indexes for financial benefits forecast

Serial No.

Name

Unit

Index

Remarks

1

Operating income

10,000 yuan /a

160000

Normal year

2

Total profits

10,000 yuan /a

18600

Normal year

3

Financial internal rate of return of all investments

%

21.28

After tax

4

Recovery period of all investmentsafter tax

a

5.9

Including construction period of two years

5

Profit rate of investment

%

23.64

After tax

Note: the “10,000 yuan” in the table is in RMB.

1.4.2 Social Evaluation

The implementation of the project will help to improve the comprehensive development and utilization of diatomaceous earth; it is in line with national and local industrial policy, is beneficial for resource and environmental protection, helps to promote the development of the diatomite industry, and local level of acceptance is high.

1.5 Cooperative Ways of the Project

Sole investment

1.6 What to be Invested by Foreign Party and Composition

Invest capital of 590 million yuan.

1.7 Construction Site of the Project

Linjiang Diatomite Industrial Concentration Zone

1.8 The On-going Condition of Project

Project proposal is being compiled.

2. Introduction to Partner

2.1 Basic Conditions

Name: Administrative Committee of Linjiang Diatomite Industrial Concentration Zone

Legal address: Liudaogou Town, Linjiang City

Legal representative: Sui Shihe

2.2 Overview of project undertaker

Linjiang Diatomite Industrial Concentration Zone: located in Linjiang City of Jilin Province. It was approved by the People's Government of Jilin Province and set up on December 13, 2006. The starting area is ​​1.9 square kilometers, planning area is ​​12 square kilometers, and is planned into five functional areas: Industrial Park, Technology Park, Logistics Area, Commercial Area, and Life Service Area. In institutional setup, it includes the Party and Government Office, the Economic Development Board, the Financial Accounting Office, Business Invitation Bureau, Forestry, Water Conservancy and Environmental Protection Construction Bureau. The dispatched departments are National Tax Sub-Bureau, Local Tax Sub-Bureau, Trade and Industry Sub-Branch, Land Sub-Branch, Technical Supervision Sub-Branch; the total staff number is 36 persons. The area has proven diatomite reserve of 200 million tons, and the reserve ranks the first in Asia, and the taste ranks the first in the world. At present, it has 16 diatomite processing enterprises, two metal mining and processing enterprises, and has initially formed characteristic industrial cluster. There are more than 30 kinds of developed diatomite series products, and the products are exported to the Asia-Pacific, Europe and the United States and other countries and regions. Of which, the filter aid products account for more than 85% of the domestic market, and it is China's largest diatomite production and processing base.

Legal representative is Sui Shihe, born in October 1965. He was consecutively former staff member of Linjiang Municipal Propaganda Department, deputy secretary of Dahu Street, deputy director of monitoring bureau, party secretary of Jiajiaying Township, secretary of Sengong Street, executive vice president of Municipal Party School, and director of Real Estate Board. Currently, he is party secretary and town chief of Liudaogou Town, Linjiang City. He has college degree.

 2.3 Contact method

Contact person of project undertakerLi Guo

Tel0439-8751163

Fax0439-5816046

E-mailgztgyjzq@163.com

 

Contact person of project city (prefecture): Liu Caixiu

Tel0439-3594265    18629751799

Fax0439-3594778

E-maillcx9881@sina.com

Website of city or prefecturewww.cbs.gov.cn

 

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