Agricultural Product


1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
Biodegradable plastics emerge with the environmental issue. As a new type of plastic variety closely related to solving the global environmental problem, it is developing continuously, and is listed as high-tech product in the 21st century. From the strategic goal of sustainable development, its potential market is huge. Development and use of biodegradable plastics is not just an economic issue, but also a social problem, so the market capacity is considerable. As the country's major grain-producing city (county), organic food production Demonstration County and recycling economy Pilot County, governance of "white pollution" to eliminate the adverse effects on the ecological environment and sustainable development of organic agriculture has become imperative. To this end, it is proposed to introduce advanced technology for the development of biodegradable plastics.
1.1.2 Market Prospects
With recent advances in the production of raw materials and products processing technology, degradable plastics, especially biodegradable plastics, has attracted people’s concern, and become the highlight of sustainable and recycling economic development. At the same time, it has become the hot spot of the world. Whether from alternative energy, reducing carbon dioxide, or from environmental protection and solving part of the "three rural" issues, the development of biodegradable plastics is necessary, also very meaningful.
Foreign market situation: in terms of PLA-based plastics, NatureWorks LLC's production capacity is 140,000 tons / year. It is a leader in the market, with significant expansion plan. There is also Japanese Shimadzu Corporation and Mitsubishi Chemical. The Japanese UNITIKA Company has researched and developed and produced many kinds of products, including canvas, trays, cutlery, etc., which are widely used in Aichi Expo of Japan.
Domestic market: China's current company engaged in industrialization is Zhejiang Hisun Biodegradable Plastics Corporation (5,000 tons / year scale production line). The unit engaged in pilot is Shanghai Tongjie Liang Biomaterials Co., Ltd., and Jiangsu Jiuding Group.
Experts predict that during the "Twelfth Five-Year" period, the used amount of biodegradable plastics in the world is about 1 million tons. Current production is about 300,000 tons. The market is very promising.
Domestic market: temporary production is 250,000 tons.
Overseas markets: demand is 750,000 tons.
Sales target: mainly exported to European and American countries and regions.
Currently, the technology of the United States, Japan, and Germany is relatively mature. The Chinese technology is still in the development stage. It is good opportunity for the development of this business. China is a consumption market, allowing its people to use its own products and develop themselves.
1.1.3 Technical Analysis
Mainly introduce advanced production technology from home and abroad, gain relevant successful experience. It will introduce technology from the United States, Japan and Germany and other countries; carry out in-deep development according to the characteristics of the project and product features, become China's largest bio-degradable plastic green production base.
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 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
Biodegradable plastics production technology is advanced production technology in home and abroad, and it will introduce talents of special industry at home and abroad. Meanwhile, the main regional markets of biodegradable plastics are Europe, North America and Asia Pacific. The Europe occupies the largest market share of global synthetic biodegradable plastics market in 2012. It is expected that till 2018, it will lead the global market. It is expected that to 2018, the Asia-Pacific market will grow at a CAGR of 25.7%.
(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 kilograms, 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
Annual output of all kinds of biodegradable plastics is 50,000 tons;
In addition, with the implementation of the project, the construction unit will continue to carry on Research and Development and investment of downstream products, make this industry become bigger and stronger in Wukeshu Development Zone, becoming China's national industry.
1.2.2 Construction Contents
(1) New plant covers an area of ​​30,000 m², purchase new equipment of 810 (sets);
(2) Use existing purchased and reserved land, leave enough space for the subsequent development, and realize healthy development in the form of industrial park.
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    7000    70          
2    Interest Incurred in Construction Period    360    3.6          
3    Working Capital    2640    26.4          
    Total Investment of Project(1+2+3)    10000    100.00         
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    6000     60      
1.1    Construction Investment    4200    42      
1.2    Working Capital    1440    14.4      
1.3    Interest Incurred in Construction Period    360    3.6      
2    Raised Fund    4000    40      
2.1    Construction Investment    2800    28      
2.2    Working Capital    1200    12      
3    Total Investment of Project    10000    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    Sales Revenue    ten thousand yuan/a    33000.00    Normal year      
2    Total Profits    ten thousand yuan/a    6667.67    Normal year      
3    Financial Internal Rate of Return of All Investment    %    49    After income tax      
4    Financial Net Present Value(Ic=10%)    ten thousand yuan    17086.47    After income tax      
5    Payoff Period of All Investment (after tax)    a    3    Including construction period of one year     
1.4.2 Social Evaluation
The project is located in Changchun Wukeshu Economic Development Zone. It can bring benefits to local socio-economy and ecological environmental protection. First, because our product material contains no plastic raw material, so the product can effectively degrade in the natural environment, eventually becoming carbon dioxide and water, so our products do not pollute the environment. It can also can improve soil aggregate structure, promoting the healthy growth of plant; Second, there is considerable financial and taxation income; Third, the project can solve the employment of local farmers and some technical staff; Fourth, it is able to adjust the local industrial structure, help farmers get rich, achieve the sustainable development of the industry, and stabilize the local basic industries.
1.5 Cooperation Method of Project
Sole investment or technical cooperation. 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
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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