Building Materials

 1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Environmental protection and energy saving and emission reduction have become hot topics for public debate. Relative to the greenness, free pollution, sustainable development and other environmental concepts, the humidity control is unfamiliar and often easily overlooked. In recent years, the effect and harm of humidity have attracted more and more attention in the country. The humidity-controlling temperature-regulating material is the material which can sense the change of humidity in its adjusted space and automatically adjust the relative humidity of the air on the basis of its own hygroscopic property, at the same time, can store heat or cool by effectively utilizing natural resources such as solar energy and cold air at night, to reduce fluctuations of indoor temperature and improve thermal comfort level, which is an effective way to achieve efficient use of building energy. At present, our country attaches great importance to the dual-function material of humidity control and temperature regulation.

This project uses diatomite, acrylic acid, methyl cellulose and phase-change energy-storage materials as raw materials, combining with diatomaceous earth with strong moisture releasability and highly-hygroscopic organic macromolecule, to develop and research new diatomite-based composites for humidity control and temperature regulation.

1.1.2 Market Overview

(1) The Status of the Development of China's Ecological Environment Functional Building Materials

The ecological material is the material which is the most beneficial to human health and exerts the minimum environmental load on the earth during take-up of raw materials, product manufacturing, use or recycling, waste disposal and other links. More than 7 billion tons of mineral resources are required to be consumed every year for producing building materials in China. In the existing 40 billion square meters of urban and rural buildings, only 320 million square meters can be regarded as energy-efficient buildings.

With the improvement of people's living standard and the improvement of living quality, people's requirements for building materials environment are gradually increasing. It is required to minimize consumption of natural resources in the process of raw material acquisition, production, processing and use under the premise of satisfied usability, and the material shall be renewable or recyclable and be abandoned without harm, be conducive to environmental protection as well as comfort and health of human body.

The humidity-controlling temperature-regulating material has attracted much attention from people as an ecological environment building material. The humidity-controlling material is the material which can sense the change of humidity in its adjusted space and automatically adjust the relative humidity of the air on the basis of its own hygroscopic property and is independent of any artificial energy and mechanical equipment. The temperature-regulating material refers to the material that can sense the change of ambient temperature. When the temperature is higher than some value, it will absorb heat and release energy when the temperature is lower than this value. The material can regulate the temperature of the closed environment.

(2) The Status of Diatomite Resources Development

Diatomite resources of Baishan City in Jilin Province play at the top of the world in its quantity and grade. In order to transform the advantages of diatomite resources to economic advantages and achieve better and more rational development and utilization of diatomite resources, Baishan City establishes a scientific and reasonable planning system.

 

Diatomite has a wide range of applications. According to its grade, the diatomite can be classified into thermal and sound insulating diatomite, diatomite for petrochemical industry, diatomite for filtration and bleaching, diatomite for fillers, diatomite for building materials and diatomite for ceramic industry.

  At present, Baishan City lacks projects on dual-function diatomite of humidity control and temperature regulation. This project is based on the development status of diatomite resources in Baishan City to develop new environmental building materials for humidity control and temperature regulation, enrich the construction market of Baishan City and meet the market demand, with a good market prospect.

(3) Development Prospect Forecast of Project on Diatomite-based Composites for Humidity Control and Temperature Regulation

Many regions in China are humid in summer and dry in winter, such as North China and East China, and the eastern part of the Yangtze River Basin is perennially wet. In order to improve the comfort level of the building environment in these areas, inorganic mineral and water-absorbent resin are compounded, so that hygroscopic materials are widely concerned.

Diatomite is a porous disc-shaped structure with the pore size of 10-50mm. On the surface of diatomite, there are large amounts of hydroxy with chemical activity. The acrylic monomer can conduct incomplete graft copolymerization with it, to form the cross-linked structure with diatomite particles as main grid points, thus forming the diatomite-based composite with smooth surface. The adsorption function of diatom itself and the combination with other organics make functions of moisture absorption and temperature regulation of the composite be improved.

 

Performances of Temperature-adjusting Humidity-controlling Antibacterial Interior Wall Coatings

Inspection item

 

Technical indicator

Inspection result

The state when in the container

 

No hard lumps, be uniform after stirring

Conform

Appearance of the coating

 

The appearance of the coating is normal

Conform

Constructability

 

Coat 2 times without difficulties

Conform

Contrast ratio %

 

≥0.9

0.91

Alkalic-resistance (24h)

 

No abnormality

No abnormality

Cleaning resistance / times

 

200

500

Low-temperature stability

 

Not deteriorating

Not deteriorating

VOC content/(g*L-1)

 

≤120

12

Free formaldehyde/(g*kg-1)

 

0.1

Not detected

Soluble metal/(mg/kg)

Soluble lead (Pb)

90

Not detected

Soluble cadmium (Cb)

≤75

Not detected

Soluble chromium (Cr)

≤60

Not detected

Soluble mercury (Hg)

≤60

Not detected

Micro-organism resistance /%

 

99

99.5

Mold resistance/grade

 

1

0

Moisture pickup/(g*m-2)

 

65

Moisture discharge/(g*m-2)

 

54

Coefficient of thermal conductivity/[W/(m*k)]

 

0.125

Indoor temperature difference (compared to the control) /℃

 

Higher by 2.1

Remained indoor temperature difference/℃

 

17-23

Removal rate of methylbenzene,  ammonia and peculiar smell within 96h/%

 

>92

1.1.3 Technical Analysis

Calcine the diatomite at 600 ℃ for 1h at first to remove the water and then apply the aqueous polymerization method. Prepare the sodium hydroxide solution of 7.6mol/L and dilute the acrylic acid by 1 time for use. Measure out a certain amount of strong sodium oxide solution and place it into the reaction vessel, slowly drop acrylic acid dilution, with stirring, in the ice water bathing, and remove the ice water bathing after meeting a certain requirements of neutralization. Under severe stirring conditions, add the crosslinking agent N, diatomite, methyl cellulose, dodecanol, lauric acid, the initiator sodium persulfate and proper distilled water successively to obtain the to-be-polymerized acrylic acid aqueous solution. Put the to-be-polymerized solution into the electrothermal blowing dry box to heat at 80 ℃ for 5h, and take out when forming a solid gel, then cut it into small pieces of equal size, conduct air drying under 110 ℃, and mill and crush after drying. The diatomite composite material for adjusting moisture and temperature produced under this project shows stable and good performance for the stronger absorbing performance of diatomite and the combining effect of other organics.

1.1.4 Advantageous Conditions of Project Construction

(1) Policy advantage

Technical Standards of Environmental Signs for Decoration standardizes “green service” for decoration of the decoration enterprises, to set up a threshold between “true green” and “pseudo green”, so that the level of China's decoration services can link up with the international market.

The twelfth five-year plan outline of Baishan City’s national economic and social development put forward to develop diatom nanometer micropores and other new energy-saving green materials based on diatomite resources. Focusing on the construction of Linjiang and Changbai Diatomite Industrial Park, do a good job in the rectification and integration of existing enterprises and mineral resources and introduce strategic investors to achieve large-scale operation, creating Asia's largest and world-class diatomite new material base.

In Overall Development of Metallurgical Industry in City Planning, the development of new mineral materials is clearly listed as a key special project, which will gain strong support from enterprises in terms of its capital, land, taxation and other aspects.

(2) Resource advantages

Diatomite resources reserve of Jilin Province ranks first in the country, about 51% of the national reserve. Baishan City is located in the southeast of Jilin Province.As of the end of 2010, diatomite reserve of Baishan City has been up to 290 million tons, accounting for 97.4% of the total amount of Jilin Province and 53.6% of the total amount of China, among which diatomite resources owned by Changbai County and Linjiang City have accounted for about 98.2% of the total amount of Hakusan City.

Linjiang City is rich in natural resources and wild animal and plant resources, known as “three-dimensional resource treasure house”. The mineral resources include 46 species such as iron, coal, gold, diatomaceous earth in the territory. Among them, proven diatomaceous earth reserve exceeds 200 million, ranking first in the country, which is awarded the “China Diatomaceous Earth Industrial City” and “China Diatomite Diatomaceous Earth Industry Technology Demonstration Base” by China Non-metallic Mineral Industry Association.

Linjiang Diatomaceous Earth Industrial Concentration Area is located in the two ditch valley of northeast of Liudaogou of Linjiang City, an area of 1.9 square kilometers, planning area of 12 square kilometers.

 (3) Location advantage

Located in the core area of tourism market in Northeast Asia, at the edge of Russia, Japan and Korea, which have the largest tourist sources of China's inbound tourism and with the trend of North Korea's reform and opening up becoming increasingly apparent, Baishan city is faced with the potential advantages of rapid development of tourism and trade exchanges in the future. Baishan City is located in the Central Changbai Mountain tourism economic circle and Shenyang, Changchun Three-hour economic circle. Since Changbai Mountain Airport is opened, Shenyang, Dalian, Tianjin, Qingdao and other routes have been opened, forming the three-dimensional transportation network with aviation, highways, railways been integrated, so Baishan City geographical advantage will be significantly improved.

Located in two important nodes of two sea outfalls―Tumen River and the Yalu River that are frontier areas, with the national key development and open experimental area and the construction of the border economic cooperation zone, Baishan City can fully play its role as the external window, with great potential to develop export-oriented economy.

During the “Thirteen Five-Year” period, Baishan City has insisted on deepening reform, expanding opening up, and actively building a new comprehensive and board pattern with focusing on in-depth reform and opening up, striving efforts to expand Baishan economic extroversion.

(4) Industrial advantage

Baishan City will focus on building a new material industry park with the comprehensive utilization of diatomaceous earth as core. With the new building materials, environmental protection, ecological agriculture as the starting point, select several projects of mature technology and close to the market to plan. In the premise of grasping resources, scientific research and market, plan to build a Asia's largest new material industry incubator park with comprehensive utilization of diatomite as the core.

On December 13, 2006, Jilin Provincial People's Government approved to establish the Linjiang diatomaceous earth industrial concentration zone, located in two ditch valley of northeast of Liudaogou of Linjiang City, an area of 1.9 square kilometers, planning area of 12 square kilometers, proven reserves of 0.2 billion tons, among which the first-level soil accounts for 30%, the second-class 35% and third-class 35%. In 2008, cooperation with Beijing Dadi Yuantong Group as strategic partners, 300 million yuan has been invested in the integration and efficient utilization for diatomaceous earth resources of Linjiang. In 2010, China Nonferrous Metals Industry Association awarded Linjiang City as “Chinese Diatomaceous Earth Industrial City” and “Chinese Diatomaceous Earth Industry Technology Demonstration Base”. As of March 2015, there are 3 diatomaceous earth provincial famous trademarks, 5 provincial brands and 3 provincial technology research and development centers. Main diatomaceous earth products that have been developed and produced include filter aid, functional filler, insulation materials, building materials, carrier materials, catalysts of six series of 35 varieties and 138 kinds of specifications. Layout status of production is as follows: Liudaogou mining area, production area, Lincheng industrial production area, and most enterprises are concentrated in the vicinity of Liudaogou mine area.

At present, there are 28 enterprises that produce diatomaceous earth products with diatomaceous earth research as raw materials in Linjiang City, among which the enterprise with scale is more than 15, accounting for 23.8% of the total number of enterprises on the regulation in Linjiang City.

1.2 Content and Scale of Project Construction

1.2.1 Project Scale

This project is mainly for new diatomite-based dual-function composites for humidity control and temperature regulation. The main products of the project include 1 million square meters of diatomite wall paper, 1 million square meters of diatomite board and 20,000 tons of brushing materials and so on.

1.2.2 Construction Content

The project plans to cover an area of 11,000 square meters, including the processing workshop of new dual-functional diatomite-based composite materials for humidity control and temperature regulation (3000 square meters), 3 warehouses with each building area of 2000 square meters, a office building (1,000 square meters), which is equipped with the Ministry of Finance, the Ministry of Operations, the Department of Human Resources, the Administration Department, the Distribution Department, the Information Department, the Planning Department and the Engineering Department, staff quarters as well as a canteen (1,000 square meters).

1.3 Total Investment of the Project and Capital Raising

1.3.1 Total Investment of the Project

The total investment of the project is 150 million Yuan, including construction investment of 120 million Yuan.

Table 1: 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

12000

80

 

2

Interest incurred in construction period

 

 

 

3

Working capital

3000

20

 

 

Total investment of the project (1+2+3)

15000

100

 

1.3.2 Financing

Self-raised by the enterprise.

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

After the project reaches its output, the annual operation revenue is 185 million Yuan, and profit is 50 million Yuan. The payback period is 4 years (after taxes, including construction period of 1 year), and return on investment is 33%.

Table 2: List of Major Indexes for Forecast of Economic Benefits 

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

18500

Normal year

2

Total profit

RMB10,000/a

5000

Normal year

3

FIRR of all investments

%

30

After income tax

4

FNPV (Ic=10%)

RMB10,000

12541

After income tax

5

Period for recovery of all investments (after tax)

a

4

Including 1 year of construction period

6

Rate of return on investment

%

33

After income tax

Note: "RMB10,000" in the Table shall be RMB.

1.4.2 Social Evaluation

After the completion of this project, it can fill the gaps in the market and promote the development of other related industries. It can promote the local economy and society of Linjiang City, with good social benefits.

1.5 Cooperative Ways

Joint venture, cooperation, other methods can be discussed in person.

1.6 What to be Invested by Foreign Party

Capital, other methods can be discussed in person.

1.7 Construction Site of the Project

Diatomaceous Earth Industrial Concentration Area.

1.8 The On-going Condition of Project

The cooperation proposal has been prepared.

2. Introduction to Partner

2.1 Basic Conditions

Name: Diatomaceous Earth Industrial Concentration Area.

Legal address: Liudaogou County, Linjiang City

2.2 Overview

Established on December 13, 2006 with the approval of the Jilin Provincial People's Government, the starting area of 1.9 square kilometers and the planned area of 12 square kilometers, Linjiang Diatomaceous Earth Industrial Concentration Zone is planned to be five functional zones, including industrial park, science and technology park, logistics area, business district and life service area.

The institutions set up include Party and Government Offices, Economic Development Bureau, Financial Audit Bureau, Merchants Bureau, Forestry Water Conservancy and Environmental Protection Bureau; the accredited agencies include State Taxation Branch, Local Taxation Branch, Industry and Commerce Branch, Land Branch and Technical Supervision Branch, with manning quotas of 36. There are 200 million tons of current diatomaceous earth reserve in the region, ranking the first in Asia and being the world's first grade. There are 16 existing diatomaceous earth processing enterprises and 2 metal mining and processing enterprises, which have initially formed a characteristic industrial cluster. There are more than 30 species of developed diatomaceous earth products, which are exported to the Asia-Pacific, Europe, the United States and other countries and regions, among which filter aid products account for more than 85% of the domestic market, being the China's largest diatomaceous earth production and processing base. In 2007, the Linjiang Diatomaceous Earth Industrial Concentration Zone reached the regional GDP of 380 million yuan, industrial output value of 560 million yuan, industrial added value of 220 million yuan, tax revenue of 30 million yuan, capital investment in place of 164 million yuan, fixed assets investment of 541 million yuan.

Industrial development: create “China Diatomaceous Earth Industrial City: and construct China's largest diatomaceous fine earth and new materials production base, diatomaceous earth environmental functional materials production base, sewage treatment engineering raw material support base and small sewage treatment and drinking water purification plant production base, diatomaceous earth-related products distribution center, diatomaceous earth technology research, development, cooperation and exchange center and diatomaceous earth-related industrial projects incubator base.

2.3 Contact Method

Address: No. 208, Linjiang Street, Linjiang City

Postal Code: 134600

Contact Person of Project Unit: Zhang Yiquan

Tel: 0439—5212718

E-mail: ljzdxmb@163.com

 

Contact Person of Project City (Prefecture): Liu Caixiu

Tel: 0439-3594265    18629751799

Fax: 0439-3594778

E-mail: lcx9881@sina.com

Website of City (Prefecture): www.cbs.gov.cn

 

 

 

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