Agricultural Product



1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Vitamin C (Vitamin C, Ascorbic Acid), also known as L-ascorbic acid, is a water soluble vitamin. It has effects of promoting collagen synthesis, treating scurvy, preventing atrophy and bleeding gums, preventing arteriosclerosis, anti-oxidation, treating anemia, cancer prevention, protection of cells, detoxification, protecting the liver, improving the body's immune system, improving the body's emergency response capabilities and so on.
1.1.2 Market Prospects
Our country is a big producer of vitamins and trade exporting country. It is known as the world's vitamin production base. It not only can produce all varieties of vitamins, also the production technology and market share of vitamin C, vitamin E, vitamin B2, vitamin D3 etc. possesses the global leading position. In recent years, with the development and expansion of vitamin industry, the vitamin products exports have realized rapid growth. At present, this kind of product has become the goods type with relatively large scale of exports among China's pharmaceutical exports. 
Situation of foreign market: 50% of the global vitamins are used for feed additives. The market share of pharmaceuticals and cosmetics, food and beverage is 30% and 20%, respectively. Among them, feed additive vitamin products are influenced by the aquaculture industry, and the growth rate has slowed down. However, medicine and health products, cosmetics and food, beverage additive has benefited from improved living standards and increased health awareness of the people, with tendency of accelerated growth. The market prospects are broad.
Situation of domestic market: China's vitamin C producers account for 85% - 90% share of the global market. In the first half of this year, the export volume of vitamin C was 53200 tons, down by 12.53%; exports amounted to 219 million dollars, down by 34.49%; export average price is 4.13 dollars / kg, down by 25.13%. Currently, vitamin C price has recovered slightly.
At present, there are five producers of vitamin C in China, with production capacity of 126,000 tons (NDRC statistics is 136,000 tons). After 2009, China has successively constructed, expanded, and proposed to construct many vitamin C projects, with a cumulative production capacity of up to 120,000 tons, and the domestic total production capacity is close to 250,000 tons.
Experts predict that the annual growth rate of China's demand for vitamin C is about 10%. As China continues to expand the scale of production of vitamin C, the technology and management level has continuously improved, and its international competitiveness will get better and better.
From the market positioning, the focus of the domestic market is "the Yangtze River Delta" region; overseas markets: focus is Europe and the United States, expanding to South America, Africa etc. emerging markets.
The project has a moderate scale of investment, thus it can integrate existing resources. The construction period is short, with labor, technology, manufacturing cost advantages, thus we can take intensive marketing strategy.
1.1.3 Technical Analysis
China initiated secondary fermentation method for the production of vitamin C, and the whole process includes fermentation, extraction and conversion three steps. That is, with D-glucose as starting material, by two times of fermentation, produce 2 - keto-L-gulonic acid; after extraction, convert it into vitamin C with acid or alkali. Its advance has been internationally recognized, but in the fermentation broth, there is mycelium, proteins and other suspended particles etc. impurities. The original process adopts heating precipitation method to remove these impurities. That is, after placing the fermentation broth for precipitation, through 732 ion exchange resin, partly acidification of 2 - keto-L-gulonic sodium, adjust PH value to the isoelectric point to make the protein aggregate, then use high speed centrifugation to isolate agglomerated mycelium, protein and suspended particles; through 732 ion exchange resin, the supernatant is acidified into 2 - keto-L-gulonic acid solution, then for concentration and crystallization.
1.1.4 Advantageous Conditions and Necessity 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 this 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 mainly adopts secondary fermentation method for the production of vitamin C, and the whole process includes fermentation, extraction and conversion three steps. That is, with D-glucose as starting material, by two times of fermentation, produce 2 - keto-L-gulonic acid; after extraction, convert it into vitamin C with acid or alkali. Its advance has been internationally recognized, but in the fermentation broth, there is mycelium, proteins and other suspended particles etc. impurities. The original process adopts heating precipitation method to remove these impurities. That is, after placing the fermentation broth for precipitation, through 732 ion exchange resin, partly acidification of 2 - keto-L-gulonic sodium, adjust PH value to the isoelectric point to make the protein aggregate, then use high speed centrifugation to isolate agglomerated mycelium, protein and suspended particles; through 732 ion exchange resin, the supernatant is acidified into 2 - keto-L-gulonic acid solution, then for concentration and crystallization.
(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 liquid glucose, produced by COFCO Biochemical Energy (Yushu) 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 uses the liquid sugar of COFCO Biochemical Energy (Yushu) Co., Ltd. invested by COFCO in Changchun Wukeshu Development Zone to directly produce polylactic acid. 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
The main product is vitamin C, with scale of annual output of 5000 tons of vitamin C.
1.2.2 Construction Contents
Main construction contents are production workshop, raw material warehouse, office buildings and so on.
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    10715.8    89.30          
2    Interest Incurred in Construction Period    434.2    3.62          
3    Working Capital    850    7.08          
    Total Investment of Project(1+2+3)    12000    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    5139.6    42.83      
1.1    Construction Investment    4365.4    36.38      
1.2    Working Capital    340    2.83      
1.3    Interest Incurred in Construction Period    434.2    3.62      
2    Raised Fund    6860.6    57.17      
2.1    Construction Investment    6350.4    52.92      
2.2    Working Capital    510    4.25      
3    Total Investment of Project    12000    100     

1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indicators (detailed in table 3)
Table 3:List of Main Indicators for Financial Benefits Forecast  
Unit: Ten Thousand Yuan
 
Serial No.    Name    Unit    Indicator    Remarks      
1    Sales Revenue    ten thousand yuan    18000    Normal year      
2    Total Profits    ten thousand yuan    5333.33    Normal year      
3    Financial Internal Rate of Return of All Investment    %    30    After income tax      
4    Financial Net Present Value(Ic=10%)    ten thousand yuan    10032.81    After income tax      
5    Payoff Period of All Investment (after tax)    a    4    Including construction period of one year     
1.4.2 Social Evaluation
After the vitamin C project is completed and put into production, the entire production process does not use nor emit toxic matters. By treatment, the waste water, waste gas is in line with environmental requirements. The production line has no large vibrating equipment, no strong electromagnetic sources. The noise of equipment operation complies with relevant state regulations. It will not cause any environmental pollution. And vitamin C industry can promote the production of local corn and by-products, and promote the development and revitalization of related industries. In short, the development of vitamin C industry should take recycling economy as the main line, and take a production development, good ecology, improved ecology virtuous circle road.
1.5 Cooperation Method of Project
Sole investment. Other methods can be negotiated face to face.
1.6 What to be Invested by Foreign Party
Invest capital of 120 million yuan. 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 feasibility study report is being 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)
Legal Representative:Ma Guang(vice mayor of Yushu Municipal Government and director of the Administrative Committee)
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
Fax:+86-431-83813002
E-mail:kfqzssj3002@163.com
Website of Development Zone:www.ccwks.cn
 
Contact information of city (prefecture) of project:
Contact Unit: Changchun Economic and Technical Cooperation Bureau
Contact Person: Bo Zhanlin
Tel:0431-82763933  82765252
Fax:0431-82763933
E-mail:cc82763933@163.com 
Website of city or prefecture:http://www.ccmbc.com/
 

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