Petrochemical

 

1 Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
Snow-melting agent is also called snow removing agent, snow and ice removing agent, ice and snow rapid melting agent, which is mainly used to melt ice and snow. The snow-melting agent of this project is the environment-friendly snow-melting agent processed with corn and other plant straws as raw materials, having advantages of degradation and zero corrosion.
1.1.2 Market Prospects  
(1) Forecast of quantity in America and Canada 
The annual consumption of snow-melting agent in America and Canada is the largest in the world, about 16 million tons. Because the application range is stable, the consumption of snow-melting agent will change according to the snowing times and snow quantity. In recent years, the consumption, range and market share of non-salt snow-melting agent in America and Canada has constantly increased (annual consumption of non-salt snow-melting agent 1.1 million tons). China is decided as the new country for international purchase expansion, and the varieties of snow-melting are determined as calcium and magnesium, with specifications 50Kg, 25Kg, 5Kg and 1.5Kg. It is estimated that, total purchase quantity in China is over 30,000t, and annual growth rate of purchase in China in the next five years will not be lower than 15%.  
(2) Forecast of snow-melting agent quantity in Japan 
The annual consumption of snow-melting agent in Japan is basically 280,000t-300,000t, but the product structure will change. According to the analysis for the market varieties of snow-melting agent during 2009-2013, the purchase quantity of salt snow-melting agent in China will be 150,000t-l80,000t. The consumption of mixed and corrosion inhibitor adding (environment-friendly) snow-melting agent will increase (growth rate 15%). The quantity of this kind of products will reach 50,000t. It is estimated that, in the next five years, the growth rate of mixed and corrosion inhibitor adding (environment-friendly) snow-melting agent is 10%.  
(3) Forecast of snow-melting agent quantity in South Korea 
Annual consumption of snow-melting agent in South Korea is 110,000t. Calcium snow-melting agent can be used for a long time, dripping method and snow-melting consumption have been mastered by the snow removing staff. The market approval degree is high. Therefore, this variety still keeps 70,000t (market share will not change greatly). Salt snow-melting agent will reduce (from 40,000t to 30,000t/year). The mixed and corrosion inhibitor adding (environment-friendly) snow-melting agent will mainly base on the snow-melting effect, environmental protection and other features to replace pure salt snow-melting agent market. It is estimated that, the market consumption will reach 10,000t. So far, domestic and foreign urban road surface snow melting is mainly based on industrial saline spraying. Beijing took the lead to try out new-type ice-removing and snow-melting agent in China in winter of 2007. According to the incomplete statistics, the consumption of snow-melting saline in Beijing during 2010-2013 is as shown in the table below:   
Table 2-6 The consumption of snow-melting saline in Beijing is as shown in the table below 
Application Time                Saline Consumption (t)
Middle of January 2010 (48h)     4100 (salt consumption 600t)  
November 21, 2011 (6h)         885 
January 3rd-5th, 2012            4370 
January 5th-7th, 2013 (50h)        10000 
In the future, the industrial salt snow-belting agent will be totally replaced by ice-removing and snow-melting agent. The annual demand only in Beijing is very big, this is of course related to weather; so it is predicted that, ice-removing and snow-melting agent will be used in roads, expressways, airports and bridges in major cities around the country, and the domestic market demand is very considerable. At present, domestic manufacturers are far from meeting the demand.  
The expressways, urban facilities and bridges in foreign developed countries are more than those in China. Mechanical snow removal cannot meet the demand. Annual consumption of snow removing agent in America is 15 million tons, and 13 million tons in Canada. Based on the data, Chinese market capacity of snow removing agent should reach 4 million tons, but the present snow removing agent consumption in China is less than 1/10 of the market capacity. With the society developing and advancing, the consumption of environment-friendly snow removing agent will grow at geometrical progression. At present, the product occupying the snow removing agent market is mainly industrial salt. It is estimated that, domestic snow removing agent market will be gradually replaced by ice-removing and snow-melting agent, and large quantity of snow-melting agent will be exported and occupy some foreign market.  
1.1.3 Technical Analysis
This project adopts the technology of Changchun Dacheng Industrial Group. This technology takes corn and plant straw as raw materials to process environment-friendly snow-melting agent. It has degradation and zero corrosion features. After this type of snow-melting agent is sprayed on the road surface and melt, it will penetrate in soil, and can be completely recycled and degraded by microbe in soil. The degradation time will not exceed 6 months.
1.1.4 A dvantageous Conditions and Necessity of Project Construction
(1) Technical advantage
The processing and application technology is initiated by Changchun Dacheng Industrial Group in the world, which has successively got patent in China and America. The product's environmental protection performance has passed EU Biological Environment Safety Authentication and Authentication of Environmental Department of South Korea; snow removal performance has passed North America North Pacific Rim Snow Removal Grand Alliance PNS Authentication, and Europe BAST Authentication.
(2) Economic advantage
Ningjiang District of Songyuan City is located in the midwest of Jilin Province, and hinterland of Songnen Plain, which is the major economic town in the northeast called as "East Town" by Mr. Sun Yat-sen, the only city area in Songyuan City, and the center of politics, economy and culture in Songyuan City. It covers and area of 1,313km2, administrates 5 towns and 17 streets, and has population 530,000. In 2007, Songyuan City realized GDP 60.7 billion yuan, total financial income 6.5 billion yuan, and comprehensive economy ranking the third position in the province.
(3) Resource advantage
Ningjiang District of Songyuan City is located in the hinterland of Songnen Plain, having abundant resources. It is the location of Jilin Oilfield, which faces Daqing Oilfield separated by a river, and hailed as Oil Town, Granary, Butchery and Fishing Hometown. It has proved petroleum reserves 1.246 billion tons and natural gas reserves 82.6 billion m3, corn output over 5 million tons, and abundant corn straws. Ningjiang District is located at the junction of Jilin, Heilongjiang and Inner Mongolia, and in the middle of Changchun-Harbin Economic Belt, which is one of middle city group planned by Jilin Province and the neighbor of Harbin-Daqing-Qiqihar Industrial Economy Corridor in Heilongjiang. Regarding the location, if take Songyuan as center, and draw a circle with radius 200km, Songyuan has become the important traffic hub and logistics center linking three northeast provinces as well as 8 cities and 14 counties in Inner Mongolia Autonomous Region, involving population of over 31 million. It has 5 railways and 6 national and provincial arterial highways passing through. It takes 120min going from the city area to Changchun Airport or Harbin Airport. It has good location advantage and many resource advantages.
1.2 Content and Scale of Project Construction
1.2.1 P roduct Scheme and Scale
Main product of this project is plant-based, environment-friendly ice-removing and snow-melting agent, with annual output 80,000t.
1.2.2 Construction Content
The project covers an area of 30000m2, including building area 12000m2, and purchases 30 sets of equipment.
1.3 Total Investment of the Project and Capital Raising
1.3.1 Total investment of the project ( see Table 1)
Total investment of the project is 100 million yuan, including construction investment 85 million yuan.
Table 1: Summary Table of Total Investment of the Project   Unit: RMB10,000
No.
Expense Name
Amount of Investment
Proportion of Total Investment %
Remarks
1
Construction investment
8500
85
 
2
Interest incurred during construction
 
 
 
3
Circulating capital
1500
15
 
 
Total investment of the project (1+2+3)
10000
100.00
 
1.4 Forecast of Economic Benefit and Social Benefit
1.4.1 Major Indexes for Forecast of Economic Benefits (see Table 2)
After the project reaches the production capacity, it will realize annual sales income 170 million yuan, total profit 20 million yuan, payback period 6 years (after tax, including 1 year of construction period) and ROI 14%.
Table 2: List of Major Indexes for Forecast of Economic Benefits
No.
Name
Unit
Index
Remarks
1
Sales income
RMB10,000/a
17000
Normal year
2
Total profit
RMB10,000/a
2000
Normal year
3
FIRR of all investments
%
14
After income tax
4
FNPV (Ic=10%)
RMB10,000
1350
After income tax (operation period 10 years)
5
Period for recovery of all investments (after tax)
a
6
Including 1 year of construction period
6
ROI
%
20
 
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 A nalysis of Social Benefit
After the project is completed, it can provide jobs for nearly 150 persons directly and nearly 1,000 persons indirectly, solve the employment problem for the surplus labor in the project area, help increase the people's living standard, and maintain social stability. The completion of this project will greatly influence the development of relevant industries and economic operation, and conform to the industrial development direction, having very significant economic benefit and social benefit.
1.5 Cooperative Ways of the Project
Sole proprietorship, and other methods can be discussed in person.
1.6 What to be Invested by Foreign Party
Capital, foreign capital 100%, and other ways can be discussed in person.
1.7Construction Site of the Project
YaDahong Industrial Concentration Zone of Ningjiang District
1.8 The On-going Condition of Project
The project proposal has been completed.
2. Introduction to Partner
2.1 Basic Conditions
Name: Dahong Industrial Concentration Zone, Ningjiang District, Songyuan City, Jilin Province
Address: Ningjiang District, Songyuan City, Jilin Province
2.2 Overview:
YaDahong Industrial Concentration Zone was established with the approval of the People's Government of Songyuan City in June 2003, and upgraded to the provincial-level industrial concentration zone in September 2005, covering an area of 28.2km2. The starting zone has accomplished infrastructure investment 100 million yuan, hardened roads 30km, water supply and drainage facilities 34km, electric transmission and transformation circuit 18km, and 2000 capacity program control telephone lines and broadband cables, having complete infrastructure, and reaching "seven accesses and one leveling" standard. Since its establishment, the zone has followed the policies of "high starting point planning, high standard construction, high quality service and efficient management", the thought of "most open mind, most preferential policy, most flexible mechanism and most rapid development", the strategies of "unified planning, stepped implementation and rolling development", and the development thought of complete construction functions, industrial cluster and prominent features to consider oil field supporting industry as main direction, mainly develop four major pillar industries including machining, petrochemical industry, biological pharmacy and new-type building materials, construct first-rate industrial concentration zone, and strengthen the core competitiveness of regional economy. Through several years of development and construction, YaDahong Industrial Concentration Zone has become the important carrier for project development and investment attraction in Ningjiang District, the platform promoting various private enterprises in the district to gather together, and a new economic growth point with the biggest potential. YaDahong Industrial Concentration Zone will implement the whole-process service system and agency system, including relative sealing management, one-window handling, one-station office, a coordinated process service and one project for all process"; carry out leader responsibility system and label protection for the introduced key projects and key enterprises; uses the principles of "zero barrier, low cost and high benefit", and stand on "businessmen approaching, stabilizing and enriching" to attract investors everywhere and numerous businessmen to invest and develop and many talents to establish business due to its unique charm, powerful strength, and enormous potential. The characteristic industrial concentration zone dominated by petroleum supporting has owned certain scale, and has been listed as mainly developed characteristic park by the provincial government according to the Eleventh Five-Year Plan of Jilin Province.
YaDahong Industrial Concentration Zone has entered the fast lane of comprehensive and healthy development, which will use full enthusiasm, good environment and superior investment conditions to welcome far-sighted people from different regions to invest and establish business here, jointly develop and achieve common prosperity.
2.3 Contact Method:
Contact Person: Liu Xin
Tel: 0438-3183311  
Fax: 0438-3183388
 
Contact Method of Project City (Prefecture):
Contact Unit: Songyuan Economic and Technical Cooperation Bureau
Contact Person: Han Baidong
Tel: 0438-2706617   13514384757
Fax: 0438-2706617
E-mail: 870550387@qq.com
 
HomeContact Us   All rights reserved: Jilin Provincial Investment Promotion Website   Privacy Statement   Record No.: JICPB No.10003975 Total visits: