Building Materials

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

The products of the project are mainly the diatomite insulating bricks produced by the comprehensive use of the local diatomite resources. The diatomite insulating brick, with the low weight, high strength, small thermal conductivity, no deformation, no poison or odor, safe and convenient construction, is the ideal material of heat insulation layer, insulation of wall partitions and heat and noise insulation of electrolytic tanks, pipes, furnace walls, high-heat air ducts and high-temperature equipment of the electric power, metallurgical, oil, chemical engineering, cement, ceramic, textile, glass, light and nonferrous furnaces industries, etc. It can not only increase the temperature, shorten the heating time, reduce the fuel consumption but also achieve the insulating and energy saving effects.

1.1.2 Market Prospect

The diatomite high-strength and light insulating brick is characterized as small specific weight, high strength, low thermal conductivity, good heat insulation performance and high operating temperature, etc. It is widely applied in the building of some industrial furnaces of the national defense, chemical engineering, metallurgical, mechanical, building material, electronic, coking, ship-making, medicine and rubber industries, etc. and it has the better heat insulation of the especially big furnace. The diatomite insulating brick can reduce the weight of the furnace, decrease the thickness of the furnace wall, change the structure of the furnace, increase the temperature rise speed, reduce the energy consumption and improve the labor conditions and the working efficiency, etc., so it has won the unanimous good comments of a great number of users. Because of its characteristics, it is applied in a wide range of fields. In addition, it is a consumable, so its demand in the market is big. In the long period of time in the future, the product is the best insulating material at present before its substituting insulation material occurs. Therefore, the project has a bright prospect for development.

In recent years, the diatomite of Badaogou has been greatly developed. More and more lower-stream products of diatomite have been developed and the application fields have become wider and wider. With the comprehensive development and utilization of the grade 3 diatomite taken into account, it is very necessary for the comprehensive development and construction of the diatomite project to produce the insulating bricks in combination with the market demand.

1.1.3 Technical Analysis

The project has the mature technology which can be grasped in the local area and the technical equipment can be domestic purchased.

1.1.4 Advantageous Conditions of Project Construction

1) Material resource advantage

There is the largest diatomite reserve in Asia in Changbai County, with the total quantity of 0.17 billion tons and the prospective planned reserve of 0.2 billion tons and its reserve and grade rank first in Asia. The diatomite mining in the county meets the demand of the project for the materials. Diatomite is a biogenic siliceous sedimentary rock, mainly consisting of diatom remains in ancient times, porous and light and its main chemical composition is SiO2 and its mineral compositions are opal and variants. The results of testing of some performances such as internal structure, chemical compositions, mineral compositions, particle size and clinker ignition loss, etc. of the diatomite in Changbai County prove that the diatomite of Badaogou, Changbai County is the domestic diatomite with the best performances.

2) Industrial basis advantage

The most advantageous special resource of the park where the project is located is Ma’anshan Mineral System of Changbai Mountain, Jilin Province, the largest diatomite reserve base in Asia. The explored reserve is more than 0.2 billion tons and the prospective reserve reaches 0.6 billion tons, ranking first in Asia and the grade and quality rank first in the world. In 2015, the layout of the diatomite industry as a whole was completed. The first-rate diatomite research and development center and the complete technological innovation and service system have been established. By now, there have been 14 enterprises entering the park such as Celite Joint Venture Company, Changbai Diatomite Co., Ltd. and British Tripod Investment Co., Ltd., etc. and the industrial scale has been preliminarily established.

3) Obvious location advantage

The best location advantage of Changbai County is that its seat is 0 km from Hyesan-si, the capital of Yanggang-do, Democratic People’s Republic of Korea, located in the central section of the opened belt of Yalv River and it has become the forward position of Jilin Province opened to the outside. Changbai Port is the national first-class port. In addition, it has 2 temporary ports, that is, Badaogou and Shisandaogou, which is unique in the whole border of China and Democratic People’s Republic of Korea. There are railways in Hyesan-si, the capital of Yanggang-do, Democratic People’s Republic of Korea directly to Pyongyang, Kaesong, Chongjin and Hamhung, the biggest industrial city of Democratic People’s Republic of Korea; there are the national-level highways directly to Rajin Port and Chongjin Port. The direct distance from Changbai County to Rajin Port is 196km, 140km to Rajin Port, 116km to Kimchaek Port, 145km to Sinpo Port and 175km to Hamhung Port. It will become the new channel for Jilin Province to go to sea via ports. At present, the county is actively applying for establishing “Changbai National-level Border Economic Cooperation Zone”. The emphasis is put on the establishment of the export processing district (import and export industrial district), frontier trade district, business and financial district, logistic distributing district and tourist service district. By then, it will have established the new pattern of cooperation and mutual complementation with Democratic People’s Republic of Korea through the connection with Hunchun and Dandong and become the tie and bridge of Jilin Province and even the whole country involved in the economic cooperation circle of Northeast Asia, creating the more convenient conditions for the economic and trade exchanges of China, Democratic People’s Republic of Korea, South Korea, Japan and Russia, providing the broader platform for the deepening and development of integration of Changchun-Jilin-Tumen development and opening and providing a solid support for the industrial structural adjustment and strategic upgrading of Changbai County and achieving the good and rapid economic development.

4) Continuous optimized investment environment

The committee and government of the county have attached great importance to the construction of the investment environment, firmly built the working concepts of “promoting the development and strengthening the aftereffects via the environment and evaluating the achievements in the construction from the environment” and tried all the best to open the smooth “green channel” for the economic development, so the county is appraised as “county with the soft environment making the masses satisfied”.  The county builds the government affairs hall to exercise the one-station office and adjusts the examination and approval mode, with all the administrative examination and approval items reduced from original 400 to current 248. For the introduced projects, the whole-process service system and the county-level leader assuring system are exercised. The promotion group of the key projects and industries is established to carry out the tracking service well in the whole process. The theme practice activity of “holding the whole situation and the common citizens in brains” is deeply carried out in the whole county. The harmonious development environment is created in the whole society via the activity of going deep into the enterprises and villages. It is because of the continuous optimization of the environment that the depression effect occurs to Changbai County and the entrepreneurs and investors are “willing to come, settle and develop here”.

1.2 Construction Scale and Content of the Project

1.2.1 Product Scheme

Annual output of 20 million diatomite light high-strength insulating bricks

1.2.2 Construction Content

The project covers an area of 30000 m2, with the building area of 32000 m2 and 5 light high-strength insulating brick production lines will be built.

1.3 Total Investment of the Project and Capital Raising

1.3.1 Total Investment of the Project (see Table 1)

The total investment of the project is 120 million yuan, including the construction investment of 96 million yuan, current funds of 24 million yuan and interest of 0 in the construction period (the debt funds are not considered temporarily).

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

9600

 

 

2

Interest in the construction period

 

 

 

3

Current funds

2400

 

 

 

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

12000

100.00

 

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

1.3.2 Capital Raising

Raised by the enterprise itself

1.4 Forecasting of Economic and Social Benefits

1.4.1 Forecasting of economic benefits (see Table 2 for details)

After the output is reached, the sales income of 140 million yuan can be achieved and the total profit will be 32.62 million yuan.

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

No.

Name

Unit

Index

Remarks

1

Business income

10, 000 yuan/a

14000

Normal year

2

Total profit

10, 000 yuan/a

3262

Normal year

3

Internal financial yield rate of the investment

%

22

After the income tax

4

Net financial value (Ic=10%)

10, 000 yuan

4280

After the income tax

5

Recovery period of all the investment (after the tax)

a

5

Including the construction period of 1 year

6

Investment profit rate

%

20.38

After the tax in the normal year

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

1.4.2 Social Evaluation

The project is favorable to improve the comprehensive utilization level of the diatomite resources, promote the development of the local diatomite mining and processing enterprises, transform the resource advantage into the economic advantage, promote the employment and the local economic development and improve people’s living standard and quality.

1.5 Cooperative Ways

Joint venture, cooperation, sole investment or other ways which can be discussed in the face-to-face talks

1.6 What to be Invested by Foreign Party

Funds, technology, equipment or other modes which can be discussed in the face-to-face talks

1.7 Construction Site

Diatomite Industrial Park, Badaogou Town, Changbai County

1.8 The On-going Condition of Project

The project proposal has been established and it is planned to invite the businessmen to open companies.

2. Brief Introduction to the Partner

2.1 Basic Conditions

Name: Diatomite Special Industrial Park of Badaogou, Changbai County

Address:

2.2 Overview

The Diatomite Special Industrial Park of Badaogou, Changbai County, approved and founded by Changbai People’s Government in November, 2005, is located in the southwest of Badaogou Town, Changbai County and the middle and upper stream of Yalv River, looking at Kimhyngjik the Democratic People’s Republic of Korea, with the planned area of 15.2km2, including 100 hectares of waste land and 230 hectares of abandoned land. Under the park are 5 administrative villages, that is, Dongxing Village, Xixing Village, Zhongxing Village, Ma’anshan Village and Xidapo Village, with the population of 8506. The park takes diatomite, chemical engineering, mineral development and comprehensive processing of forest trees as the four major pillar industries. The most advantageous special resource of the park where the project is located is Ma’anshan Mineral System of Changbai Mountain, Jilin Province, the largest diatomite reserve base in Asia. The explored reserve is more than 0.2 billion tons and the prospective reserve reaches 0.6 billion tons, ranking first in Asia and the grade and quality rank first in the world. In 2010, the layout of the diatomite industry as a whole was completed. The industrial integration has been made and the first-rate diatomite research and development center and the complete technological innovation and service system have been established. 

By now, there have been 14 enterprises entering the park such as Celite Joint Venture Company, Changbai Diatomite Co., Ltd. and British Tripod Investment Co., Ltd., etc. and the industrial scale has been preliminarily established.

2.3 Contact Method

Contact Person of the Project Unit: Liang Qi

Tel: 0439-8255069

Fax: 0439-8255069

E-mail: cbxmb@163.com

 

Contact Method of the City (Prefecture) of the Project:

Unit: Economic and Technical Cooperation Bureau

Contact Person: 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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