Building Materials

 

1 Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

The main product of this project is diatomite anion functional material. Diatomite and its products, as a kind of meson material, and filling material, due to its high permeability, high adhesion and high adsorption property, is widely used in over 500 fields of food, pharmaceutical, chemical, building materials, environmental protection, petroleum, metallurgy, paper, rubber, agriculture and animal husbandry industries etc.; it also plays revolutionary role for the original objects, and has significant role for improving the quality of the original objects, reducing pollution etc.

1.1.2 Market Prospects

With the deepening of diatomite technical R & D, and the requirements of global sustainable development, the market prospect of diatomite development and application is broad, and market demand is significantly enhanced. Diatomite products in China have a huge market demand. Experts estimate that till 2010, there will be 30 billion yuan market space and it will be up to 60 billion yuan in 2020.

1.1.3 Technical Analysis

The key technology is gaining complete diatomite original structure, with smooth aperture, without impurities, and loading the appropriate photocatalyst; in the sunlight and light exposure conditions, per cubic centimeter produces anion of 5000-10000, efficiently reducing 80% of the hard-to-degrade organic matters in the air (12 hours).

The current diatomite material abroad that uses photocatalyst technology to produce anion is only limited to the interior wall material, and there is no domestic production. Linjiang City Guangyuan Diatomite Materials Co., Ltd. cooperates with Jilin University and Chinese Academy of Sciences, Changchun Applied Chemistry Institute to study functional material to produce diatomite by using diatoms characteristics added with photocatalyst. Added to latex paint, it can improve indoor living environment, regulate air quality and reduce pollutants. This technology is advanced technology in China, but also the best material for improving the living environment.
1.1.4 Advantageous Conditions of Project Construction

1Analysis of resource conditions

First, large reserve; the Changbai Mountain is diatomite-rich area; the proven deposits in this mine are over 200 square kilometers, with industrial reserve of 600 million tons, accounting for a quarter of the world's reserve; it is the world’s proven large-scale diatomite ore source with the best development vision, accounting for 54.8% of the national reserve.
Second, good quality; compared with mesh-and book-like structure of American marine deposit type diatomite mine, the park-like structure of the continental deposit type diatomite in Linjiang has better quality; in Linjiang area, the percentage of first and second grade earth in diatomite is higher, but the diatomite in other eight provinces is mostly grade three and four diatomite. Therefore, the external resources for large-scale development of diatomite industry have matured.

(2) Construction conditions analysis
In Linjiang City, the Ya (Park)--Da (chestnuts) Railway runs across the territory; there are five railway stations. The current transport volume of Linjiang Rail Station is about 900,000 tons, and it handles passenger and cargo business leading to all over the country. In Linjiang area, there are also highways connecting Changbai, Songshu and Baishan City, and connected with Cijiangdao River County of the Democratic People's Republic of Korea through rail. It also sets customs and trading ports. The cement highway from Liudaogou Town to Rende Village was built in 2005, the effective road width is 5 meters. Rende Complex is 5 km from Liudaogou area, 3 km from the diatomite mining area, 55 km from Linjiang City, 160 kilometers away from the Changbai County, and 360 kilometers away from Changchun City. Linjiang City belongs to cold and wet belt cold temperate continental monsoon climate, with long dry and cold winter. The annual average temperature is 4.7°C.; extreme maximum temperature is 36.55°C; extreme minimum temperature is -35.1°C; the average temperature in the coldest month is -13.1°C; the average temperature in the hottest month is 22.2 ° C.; the average relative humidity in the coldest month is 72%; the relative humidity in the hottest month is 80%; the annual average atmospheric pressure is 0.9769 bar; maximum rainfall is 1238.4mm; annual average rainfall is 856.5mm; maximum snow thickness is 400mm; freeze depth is 85cm; average wind speed is 1.4m / s; the dominant wind direction and frequency is N16 (static wind 37); outdoor wind speed (average): winter is 1.3m / s, summer is 1.7m / s.
The proposed location is the Rende Complex in the Diatomite Industrial Concentration Area of Linjiang City, Jilin Province. The Diatomite Industrial Concentration Area of Linjiang City is located in the two-river valley plain in the northeast of Liudaogou Town, Linjiang City. The southwest is bordered by the edge of Liudaogou Town, the northeast is directed to Rende Village, and Dayangshu Village in the east. The area is 1.9 square kilometers. In 2007, 25 hectares of land was acquired in the Rende Complex for the settling of enterprises. Rende Complex is located in the East 5 km of Liudaogou Town, with flat land, and complete transport, communications, electricity, water conservancy and other infrastructures. At present, the area has been flattened, and
2510m2 of old buildings will be demolished. 

 (3) Policy conditions analysis
As a resource-based city, Linjiang City is the key area supported by national, regional and industrial policies. Linjiang City is a policy-intensive area in Jilin Province, rich in policy resources. Diatomite multifunctional filling material project is in line with the requirements of the nation for building resources-saving and environment-friendly society. Since the new century, China has entered a stage of accelerated development of industrialization and urbanization, also entered a critical stage of energy saving, and environmental protection. The "Eleventh Five-Year Plan" put forward a binding energy saving, pollution and emission reduction target, and introduced policy support. The country actively guides enterprises to adopt the new equipment, new process, and new technology conducive to energy conservation and environmental protection, vigorously develops circular economy and energy-saving environmental protection industry; increases government bond funds and central budgetary allocations to support the construction of urban sewage, waste disposal and hazardous waste treatment facilities. The diatomite industry of Linjiang City can get the support of the national policies on energy saving, environmental protection.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme

The construction scale is annually producing 10,000 tons of diatomite anion functional material.

The main product is diatomite anion functional material. The main technical indexes are as follows:

Passing rate of fineness 325 mesh

Whiteness

Content of SiO2

Specific surface area m2/g

Diatom hole volume cm3/g

Zeta electric potentialmV

Grade A

Grade B

≥98

≥85

≥80

≥90%

≥20

≥0.6

absolute value≥10

1.2.2 Construction Content

The investments in capital constructions cover constructions of 30000 square meters and 191 sets (pieces) of equipment. The constructions of the factory of diatomite anion functional materials mainly cover a calcinations workshop, a batch preparation workshop, a drying workshop and a refining workshop plus electricity and water supplies to the workshops, a testing building, warehouses, etc.

1.3 Total Investment and Funds-Raising of the Project

1.3.1 Total Investmentdetailed in 1

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

Serial No.

Name of expense

Investment amount

% to total investments

Remarks

1

Construction investment

12126

87.4

 

2

Interest incurred in construction period

166

1.2

 

3

Working capital

1581

11.4

 

 

Total investment of the project1+2+3

13873

100.00

 

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

1.3.2 Funds-Raising

1) Self-raised funds
In the 138.73 million yuan total investment: self-raised fund is 67.07 million yuan.

2) Other sources
Apply for state supporting funds of 40 million yuan; construction period interest of 1.66 million yuan.

1.4 Financial Analysis and Social Evaluation

1.4.1 Major Indexes for Forecast of Financial Benefitsdetailed in table 2

Table 2  List of major indexes for financial benefits forecast

Serial No.

Name

Unit

Index

Remarks

1

Sales income

10,000 yuan /a

12000.00

Normal year

2

Total profits

10,000 yuan /a

4297

Normal year

3

Financial internal rate of return of all investments

%

21.87

After tax

4

Financial net present valueIc=10%

10,000 yuan

22173

After tax

5

Recovery period of all investmentsafter tax

a

4.85

Including construction period of two years

6

Profit rate of investment

%

23.23

After tax

1.4.2 Social Evaluation

The scale construction of diatomite multifunctional filling material project is a major strategy for making the frontier area and the people rich and creating a new Linjiang City. Diatomite is Linjiang City’s most advantageous resources, but there are still some problems in the development, greatly influencing the development effectiveness, mainly embodied in single product structure, fierce malicious competition. Most of the production processes are backward, with obsolete equipment, big energy and material consumption; it is an urgent need to use advanced technology by relying on Linjiang City’s resource advantage, extend to other diatomite products; the diatomite multifunctional filling material project combines domestic and foreign factors of production, exploits diatomite resource with high quality, transfers Asia's best resource advantages into economic advantages, can greatly improve the overall economic strength of Linjiang City, drive the new rural construction, accelerate the achievement of the goal of making the frontier area and the people rich, and explore a road for county economy to take off.

Diatomite multifunctional filling material project is conductive to increasing employment opportunities, increasing people's income. Linjiang City is a typical resource-based city, and over the years, due to mining and forestry development, it has accumulated some social contradictions. Due to the aging of the mine workers, it increases employment difficulties, and the employment pressure in urban and rural areas is big; till now, there are still many residents living in shanty towns; the debts in roads, water supply and drainage and other infrastructures are much. Thus constructing the project of annually producing 10,000 tons of diatomite multifunctional filling material can greatly develop the productive force, create tens of thousands of jobs, also provide jobs for the transfer of rural labor, and solve the employment problems of the urban and rural residents; it is conducive to exploring a road for enriching the frontier, and building a harmonious border city.
1.5 Cooperative Ways of the Project

joint venture, cooperation

1.6 What to be Invested by Foreign Party

Cash. Other methods can be talked face to face.

1.7 Construction Site of the Project

Linjiang Diatomite Industrial Concentration Zone

1.8 The on-going condition of project

The feasibility study has been finished.

2 Introduction to Partner

2.1 Basic Conditions

Name: Administration Committee of Linjiang Diatomite Industrial Concentration Zone

Legal address: Liudaogou Town, Linjiang City

Legal representative: Sui Shihe

2.2 Overview

Linjiang Diatomite Industrial Concentration Zone: located in Linjiang City of Jilin Province. It was established on December 13, 2006 approved by the Jilin Provincial People's Government, with the starting area of 1.9 square kilometers, the planned area of 12 square kilometers; it is planned into five functional areas: industrial park, science park, logistics area, business district, living service area. The institutional setting includes Party and Government Office, Economic Development Board, the Financial Accounting Office, Merchants Department, Forestry, Water Conservancy and Environmental Construction Bureau; the accredited organizations are the National Tax Branch, the Local Taxation Bureau, Trade and Industry Branch, Land Branch, Technology Supervision Branch. Staff number is 36 people. In the area, the proven diatomite reserve is 200 million tons, ranking the first in Asia, and the taste possesses the first in the world. Existing diatomite processing enterprise number is 16, with 2 metal mining and processing enterprises, and characteristic industrial cluster has initially formed. Diatomite series products developed fall into 30 categories, and are sold to the Asia-Pacific, Europe and the United States and other countries and regions, in which the filter-aid product accounts for more than 85 percent of the domestic market, and it is China's largest diatomite production and processing base.

2.3 Contact Method

Postal Code134609

Contact PersonLi Guo

Tel86-439-8751163

Fax86-439-5816046

E-mailgztgyjzq@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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