Agricultural Product

1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Ethyl acetate is also known as acetic ether. Pure ethyl acetate is colorless liquid with a pungent odor. It is a fine chemical product with wide application. It has excellent solubility, quick-drying feature, and is widely used. It is also a very important organic chemical raw material and very good industrial solvent, and is widely used in the production process of cellulose acetate, ethyl cellulose, chlorinated rubber, vinyl resins, cellulose acetate resins, synthetic rubbers, coatings and paint. Its main uses: as an industrial solvent, used in paints, adhesives, ethyl cellulose, artificial leather, colorants, synthetic fibers etc. products; as a binder, it is used for printing inks, and the production of artificial pearls; as extracting agent, it is used for the production of pharmaceuticals, organic acids and other products; as a spice raw material, it is used as pineapple, banana, strawberry and other fruit flavors and the main raw material of whiskey, butter etc.
The main applications are: as an industrial solvent for paints, adhesives, ethyl cellulose, leather, felt colorants, synthetic fibers and other products; as a binder for printing inks, the production of artificial pearls; as extracting agent, it is used for the production of pharmaceuticals, organic acids and other products; as a spice raw material, it is used as pineapple, banana, strawberry and other fruit flavors and the main raw material of whiskey, butter etc.; as solvent, it is used as synthesis of dyes and some pharmaceutical intermediates. It is one of the synthetic spices with relatively large use amount in edible spice. It is massively used in mixing banana, pear, peach, pineapple, grapes etc. fragrant edible spice. It is quick-drying solvent of cellulose nitrate, ethyl cellulose, cellulose acetate, and chloroprene rubber, also industrial low toxicity solvent. In addition, it is also used as the cleaning agent of textile industry and extraction agent of natural spices. It is also important raw material of the pharmaceutical industry and organic synthesis.
1.1.2 Market Prospects
Foreign market situation: The United States is the world's largest producer and consumer of ethyl acetate, and the current production capacity is 140kt / a. In recent years, the U.S. issued strict VOC regulations to limit the used amount of methyl ethyl ketone in solvent. Users begin to use EA, which is in tight supply, and demand gap emerges. Thus the EA price increases. About 60% of the U.S. EA is used as ink solvent, 15% as process solvent, and other areas of consumption account for about 9%. In Western European, EA production capacity is over 300 kt / a. It is the area with the largest production and consumption of EA, accounting for about 1/3 of the world’s EA production and consumption. In addition, the consumption in the region is increasing every year.
Domestic market situation: With the rapid development of China's chemical industry, pharmaceutical industry and the automotive industry, the development of ethyl acetate is also quick. In 2015, the annual demand growth of ethyl acetate is 8.5%. Comparing the existing production and demand, there is a large gap in the market. To meet the market demand, we can not only rely on import. At present, China has more than 30 ethyl acetate production enterprises, and four of them have annual production capacity of 10,000 tons. The remaining have one thousand tons grade production device. Most of the domestic production of ethyl ester uses the traditional esterification method; the production is small, production technology is backward, production costs are high, and market competitiveness is relatively weak. The annual import volume is still increasing year by year.
During the "12th Five-Year" period, China's demand for ethyl acetate will still grow year by year. At present, the demand in each industry is increasing, with the annual growth rate of around 8%. The world market demand is also increasing year by year, thus the exports prospects are very broad.
Domestic market: focus on "Yangtze River Delta" region, "Pearl River Delta" region.
Overseas markets: focus on the U.S., and then expand to Japan, Russia etc. Middle East region.
Sales target: large food factories.
At present, China has more than 30 companies producing similar products, and the sales price is about 6,500 yuan / ton.
1.1.3 Technical Analysis
At present, the main production methods of ethyl acetate is acetic acid esterification method, acetaldehyde condensation method, ethanol dehydrogenation method, and acetate / ethylene combination method. The traditional acetic acid esterification process is being gradually phased out abroad. Most of the new device adopt acetate / ethylene combination method or ethanol dehydrogenation method; China still mainly adopts acetic acid esterification method.
1.1.4 Advantageous Conditions of Project Construction
(1)Policy Conditions
 The project, in addition to enjoying the preferential policies of Wukeshu Economic Development Zone, also enjoys the preferential policies of Yushu City. Meanwhile, it also enjoys the state preferential policies on the relevant environmental protection industry. In order to promote the development of circular economy, improve the efficiency of resource utilization, protect and improve the environment and achieve sustainable development, as well as to build a environment-friendly society, the state has developed a lot of tax incentives on food and agricultural and sideline products processing in order to guide and encourage the development of environmental protection industry.
(2)Location Advantage
Railways, highways, waterways are accessible. Chang-Yu, Ha-Yu railway runs through the area. It also sets two stations of Wukeshu and Liujia; Yu-Tao grade I highway runs through the area, and connects No.102 State Road. The downtown area is only 16km from Jing-Ha highway; it is only 1 hour’s drive from Jilin City Airport, Changchun Longjia International Airport and Harbin Taiping Airport; secondly, Songhua River runs across the area, tracing upstream to Jilin City, downstream to Harbin, leading to the border port.
(3)Technical Advantage
The project proposes to adopt acetate / ethylene plus method or ethanol dehydrogenation method.
Ethanol dehydrogenation method adopts catalyst to dehydrogenate ethanol, produce crude ethyl acetate, re-enter the separation section to recover unreacted ethanol, and remove butanol etc. impurities and get finished goods. The features of dehydrogenation reaction are mild reaction, the changes of reaction conditions are very flexible, process is simple, and it is easy to operate. Meanwhile, by avoiding the use of acetic acid and sulfuric acid, the corrosion of equipment is small, and it does not produce large amounts of acid waste water, thus the environmental pollution is small.
Acetate / ethylene plus method is a process of directly using ethylene and acetic acid for the industrial production of ethyl acetate. It was successfully developed by the Japanese Showa Denko Company in the 1990s and achieved the industrial production. The reaction is conducted in the gas phase or liquid phase under the catalytic effect of
heteropoly acid or heteropoly acid salt carried by the metal carrier. In the presence of steam, the ethylene carries out hydration reaction and produces ethanol. The ethanol continues to react with acetic acid for esterification reaction and produce the product of ethyl acetate. At the same time, secondary reactions may also occur, for example, the product of ethyl acetate many be hydrolyzed to the reverse direction into ethyl alcohol, or form diethyl ether. Compared with the traditional method of esterification method of acetic acid or acetaldehyde concentration method, this method has high yield, raw material consumption is reduced by 35%, energy consumption is reduced by about 20%, and the device is easy to carry on capacity expansion; in addition, the quality of ethyl acetate product is high, and the purity is easy to control.
This project uses advanced production techniques and technologies at home and abroad, so that the technological level will not be out of date in several decades. Therefore, this industry will retain healthy and orderly, and realize long-term development in Yushu.
(4)Human Resource Advantage
The city has abundant human resources and reasonable structure. The former state-owned enterprises have cultivated a large number of management and professional and technical personnel for enterprises to choose. Compared with other regions, Yushu has advantage in high quality labor force at low price. Therefore, it is suitable for the development of labor-intensive industries. There is some basis for labor export, and a number of professional labor forces have been cultivated. In addition, our city has also established technical training base with the research departments, universities of Jilin Province, thus the follow-up knowledge-based workforce is adequate. All the personnel needed in this project are recruited from the whole society through examination.
(5)Advantage of Industrial Foundation
It is located in the world's three "golden corn belts". Currently, it has 347,000 hectares of arable land, is rich in corn, soybean, rice and other crops, and the annual output of grain maintains at 5 billion jin, accounting for 1/180 of the nation, 1/10 of Jilin Province, 1/3 of Changchun City, known as "the first granary in the world". Since 2004, it wins the honor of advanced county (city) in grain production of the country for six continuous years. The annual output of 300,000 tons of ethyl alcohol project of Jiliang Tianyu Co., Ltd. invested by Changchun Wukeshu Development Zone provides rich raw material for the project. With flat terrain, the water, electricity, gas supply and communications facilities are good, and transport is convenient.
This product directly invests on the basis of annual output of 300,000 tons of ethyl alcohol project of Jiliang Tianyu Co., Ltd. invested by Changchun Wukeshu Development zone. It not only can reduce investment, but also can reduce the project construction period, thus the economic benefits are significant.
1.2 Content and Scale of Project Construction
1.2.1 Production Scale and Project Scheme
Production scale and project scheme: annually produce high-purity ethyl acetate of 30,000 tons; in addition, with the implementation of this project, the construction unit will continue to conduct research and development and production of downstream products.
1.2.2 Construction Contents
(1) The total area of new constructions is ​​50,000 m², and 530 sets of new equipment will be purchased;
(2) By using the purchased and stored land of the development zone, companies can start building of factory after entering the zone.
1.3 Total Investment and Funds Raising of the Project
1.3.1 Total Investment of the Project (detailed in table 1)
Table 1: Summary Table of Total Investment of Project  Unit: Ten Thousand Yuan
Serial No.    Name of Expense    Investment Amount    Percentage to Total Investment (%)    Remarks      
1    Construction Investment    10071.6    70          
2    Interest Incurred in Construction Period    518.00    3.6          
3    Working Capital    3798.4    26.4          
    Total Investment of Project(1+2+3)    14388.00    100         
1.3.2 Funds Raising (Detailed in table 2)
Table 2:       List of Funds Raising              Unit: Ten Thousand Yuan
Serial No.    Classification and Source of Funds    Capital Amount    Percentage to Total Investment(%)      
1    Project Capital    8632.80     60      
1.1    Construction Investment    6042.96    42      
1.2    Working Capital    2071.84    14.4      
1.3    Interest Incurred in Construction Period    518.00    3.6      
2    Raised Fund    5755.20    40      
2.1    Construction Investment    4028.64    28      
2.2    Working Capital    1726.56    12      
3    Total Investment of Project    14388.00    100.00     
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indicators
Table 3:
List of Main Indicators for Financial Benefits Forecast    Unit: Ten Thousand Yuan
Serial No.    Name    Unit    Indicator    Remarks      
1    Operating income    ten thousand yuan/a    20350.00    Normal year      
2    Total Profits    ten thousand yuan/a    5284.85    Normal year      
3    Financial Internal Rate of Return of All Investment    %    23    After income tax      
4    Financial Net Present Value(Ic=10%)    ten thousand yuan    7671.52    After income tax      
5    Payoff Period of All Investment (after tax)    a    4.63    Including construction period of one year     
1.4.2 Social Evaluation
In the chemical industry, multiple species and a variety of production ways bring about a variety of pollutant emissions in chemical production. Many chemical companies, including basic chemicals, paper, forest products and chemical industries, large quantities of mineral resources are consumed each year. When the earth's limited reserve of minerals and slowly growing forests are consumed, the air, water and soil continuously emit large quantities of gas, liquid and solid forms of waste materials. These production activities in chemicals and mining industry will produce important impact on the substance cycling and energy flow of the ecosystem that the humans rely on for survival. This design uses advanced technology route, so that it does not emit a lot of "waste" materials, and the impact on the environment is small. At the same time of achieving significant economic benefits, it also brings good social benefits in terms of energy saving and environmental protection.
1.5 Cooperation Method of Project
Joint venture or sole investment. Other methods can be negotiated face to face.
1.6 What to be Invested by Foreign Party
Capital and technology. Other methods can be negotiated face to face.
1.7 Construction Site of the Project
Changchun Wukeshu Economic Development Zone.
1.8 The On-going Condition of Project
Project proposal has been compiled.
2. Introduction to Partner
2.1 Basic Conditions
Name:Changchun Wukeshu Economic Development Zone Administrative Committee 
Address: Wukeshu Town, Yushu City, Jilin Province (31 km of Yu-Tao Highway)
2.2 Overview of Project Undertaker:
Changchun Wukeshu Economic Development Zone is a provincial development zone approved by Jilin Province Government and established on July 15, 2003. It is located at the triangle center formed by Changchun, Jilin, Harbin three cities. Governing Wukeshu Town, Liujia Town two provincial-level top-ten towns, it has an expanse of 364 square kilometers. The core area has a planned area of 22.49 square kilometers, with a total population of 150,000.
Obvious location advantage: railways, highways, waterways are accessible. Chang-Yu, Ha-Yu railway runs through the area. It also sets two stations of Wukeshu and Liujia; Yu-Tao grade I highway runs through the area, and connects No.102 State Road. The downtown area is only 16km from Jing-Ha highway; it is only 1 hour’s drive from Jilin City Airport, Changchun Longjia International Airport and Harbin Taiping Airport; secondly, Songhua River runs across the area, tracing upstream to Jilin City, downstream to Harbin, leading to the border port.
Abundant resources. With adequate food, it is located in the world’s famous three golden corn belts. There are 25,597 hectares of farmland, with unique black soil resources, annual output of over 250,000 tons of grain, mainly corn-based food. It has abundant livestock resources, and annual cattle herd is around 1 million head. In Northeast's largest cattle market, on fair day, the number of cattle is over 5,000 head, and transaction is over 3,000 head. It has rich water resources. Located on the north blank of the Second Songhua River, the single well water yield is 80-100 tons per hour, which is in line with industrial and agricultural production water standards, and ensures industrial production and domestic water needs of the masses. Power resource is adequate. In the area, there is one primary substation and three secondary substations, with daily transmission capacity of 500,000 KVA, which can provide sufficient power resources for local industrial and agricultural production and life. With improved infrastructure, it has achieved "seven connections and one leveling”. The professional market has complete functions, unique tourism resources, and considerable land resources reserve.
For nearly 10 years after Changchun Wukeshu Economic Development Zone was established, it has introduced COFCO, Jilin Grain Tianyu, Cosmopolitan Industries, Liaoning Hongfu, Thailand Zhengda, Netherlands DSM etc. a number of well-known enterprises from home and abroad. The number of all types of enterprises settling in the development zone is 330, the number of enterprises with designated scale is 32, enterprises with scale of over 100 million yuan is 15, enterprises with scale of over 1 billion yuan is 3, and enterprises with scale of over 2 billion yuan is 2. There are three Fortune 500 companies, and five domestic top 500 enterprises. The enterprises in the zone can annually solve enjoyment of 20,000 people, and the financial contribution rate has increased every year.
The intensive and concentration effect of the project is prominent. In the industrial development, it has initially formed six leading industries: First, corn chemical industry represented by COFCO Biochemical Energy ( Yushu ) Co., Ltd., Changchun Tianyu Biological Engineering Co., Ltd.; second, the bio-pharmaceutical industry represented by DSM Pharmaceutical Intermediates ( Changchun ) Co., Ltd., Changchun Zhenyuan Pharmaceutical and Huawei Pharmaceutical; third, liquor brewing industry represented by Liquor Group of Jilin Province, Changchun City Fenggu Wine Co., Ltd. , Yushu Huasheng Winery, Jinmen Sorghum Winery etc., which will drive over 100 liquor production and processing enterprises in the development zone, creating more than 150 varieties, forming the liquor industry; fourth, livestock processing industry represented by Jilin Zhengyu Agricultural Development Co., Ltd., Yushu City Ocean Food Co. Ltd., Liaoning Hongfu Group, SuoNake Biotechnology Co., Ltd., Longyu Biotechnology Co., Ltd.; fifth, machinery manufacturing industry represented by Jilin Jiuding Machinery Co. Ltd., Changchun Hengfeng Steel Co., Ltd., Wuxi Fox Mine Machinery Manufacturing , Changchun JinYinFeng Door Industry Co., Ltd.; sixth, construction materials processing industry represented by China Building Materials Group North Cement Co. , Ltd., Changchun Huiyi Color Steel Co., Ltd.
By the end of 2011, the region's GDP had reached 20 billion yuan, an increase of 31% over the same period of last year; industrial output value is 22.9 billion yuan, an increase of 30%; industrial added value has reached 8.9 billion yuan, an increase of 56%; general budget full caliber has completed 724 million yuan, an increase of 35%; fixed asset investment is 8.5 billion yuan, an increase of 30%; infrastructure has completed 400 million yuan, an increase of 11%; actual domestic capital utilization in investment attraction is 8 billion yuan, an increase of 35%; actual use of foreign investment is 140 million dollars, an increase of 40%.
Changchun Wukeshu Economic Development Zone has been named the “national demonstration bases for processing of agricultural products" by the Ministry of Agriculture. In the contest of “preferred development zone of China invested by Jiangsu and Zhejiang entrepreneurs”, it is named the “preferred development zone of China invested by Jiangsu and Zhejiang entrepreneurs” and “China’s top ten development zone with most investment value”; it is named “top 100 national demonstration zone for scientific development” by the National Development and Reform Commission, and the "national agro-industrial demonstration zone" by Jilin Provincial Government.
The people in the development zone are industrious and rustic, willing to be pioneers. With improved facilities, preferential policies, and quality service, it wholeheartedly welcomes people of insight to grasp business opportunities, plan development to seek sincere cooperation and explore new areas of business!
2.3 Contact Methods:
Contact Person of Project Unit:Wang Zhenxing
Tel:+86-431-83813002  13943156966
Website of Development
Contact information of city (prefecture) of project:
Contact Unit: Changchun Economic and Technical Cooperation Bureau
Contact Person: Bo Zhanlin
Tel:0431-82763933  82765252
Website of city or prefecture:


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