1 Introduction to the Project
1.1 Project Background
1.1.1 P roduct Introduction
Diesel engine tail gas treatment fluid is also known as automobile urea, which is used in the diesel engine, belonging to the liquid for reducing the pollution of nitric oxide in diesel vehicle tail gas. The composition is 32.5% high-purity urea and 67.5% deionized water. In order to improve the haze weather, it is very urgent to increase the fuel oil standards for automobiles. Environmental protection departments of different countries have requested to further reduce the nitric oxide pollutant discharged by the diesel engine. The standard is commonly known as European IV Standard in China.
Diesel engine tail gas treatment fluid (commonly in China known as: automobile urea, automotive urea and automotive environmental protection urea) the consumer good necessary for SCR technology.
SCR system includes urea tank (loaded diesel engine tail gas treatment fluid ) and SCR catalytic reaction tank. The operation process of SCR system is: when there is nitric oxide in the exhaust pipe, the urea tank will automatically spray diesel engine tail gas treatment fluid. Diesel engine tail gas treatment fluid and nitric oxide will occur oxidation reduction in SCR catalytic reaction tank, and generate pollution-free nitrogen and vapor discharge.
1.1.2 Market Analysis
During more than 100 years from the 19th century to the present, automobile industry has developed rapidly. Until now, global automobile quantity has exceeded 800 million. As a most leading traffic tool, automobile industry has become the sign of civilization of the modern society. However, while vigorously promoting the automobile productivity development, and providing huge convenient for people's traffic, the tail gas discharged has caused serious pollution to the atmospheric environment, and gradually become the world's problem. The composition of automotive tail gas pollutant is very complicated; there are hundreds of harmful ingredients in it. Main composition with big content includes: CO, NO, HC, SOx and other harmful gas and soot, lead oxide and other dust, as well as CO2, the chief culprit of greenhouse effect.
Heavy trucks and passenger cars should reach the National Four Rules Discharge Standard. Proper SCR system should be used for treatment of tail gas, which must use urea solution to dispose the NO x in the tail gas. The industrial data showed that, 1t vehicle urea production needs more than 200m 3 of natural gas, and 1t urea production needs more than 600m 3 of natural gas, so the return of automotive urea is higher than that of ordinary urea.
The analyst indicated that, with national standard for diesel vehicles implementing gradually, and environmental protection policy becoming stricter to motor vehicle's pollution prevention and control, the motor vehicle tail gas treatment market will be more prosperous. The securities research report stated that, after the national standard is implemented, the market scale of diesel engine tail gas treatment can increase by about 14 billion - 16 billion yuan. It is understood that, automotive tail gas management market mainly includes SCR system equipment, automotive urea and automobile catalyst. Take National Standard for heavy truck upgrading, some research organizations are expected to bring about at least 10 billion yuan of market space. The oil upgrading involves many aspects, and the industrial space involved will reach as high as more than 100 billion yuan.
In 2014, China's automotive urea consumption was about 39,000t, only 2.5% of the world's automotive urea solution consumption. The automotive urea market has big potential. Beijing has used the buses with SCR catalysis technology since 2007, and used more than 13,000 buses reaching the standard of National Four Rules and more than 1,000 buses reaching the standard of National Five Rules by March 2014.
Domestic automotive urea demand has huge potential, expected to reach 4 million - 7 million tons. As the National Four Rules will be implemented soon, the blue sea market of domestic annual demand for automotive urea 4 million - 7 million tons is expected to open gradually. During 2013-2018, based on annual average growth rate of output 10%, annual demand for automotive urea will reach 7 million tons by 2018.
1.1.3 Technical Analysis
Basic technology of diesel vehicle tail gas treatment fluid: tap water - pretreatment - first-level reverse osmosis - second-level reverse osmosis - ultrapure water storage tank - materials storage tank - mixing homogenizing system - preliminary filtering system - decoloration system - extraction - purification
1.1.4 A dvantage of Project Construction
(1) Policy advantage
Ten National Rules for Air Management issued by the State Council shows that, PM2.5 management is one of main contents. The industry thinks that, Beijing is the key area of atmospheric management. Clean Air Action Plan during 2013-2017 of Beijing City issued recently has guiding significance for other regions in China to development relevant tasks. Motor vehicle tail gas management will become an important part of atmospheric pollution prevention and control. With the national standard for diesel vehicles implementing gradually, and environmental protection policy for motor vehicle pollution prevention and control strengthening, motor vehicle tail gas treatment market will prosper.
(2) Location advantage
Baicheng is the important commodity collection and distribution place and logistics node city in the west of our province. Tantu-Heishui section under construction of Nenjiang-Dandong Expressway in our province has total length 156km, vertically penetrating Zhenlai County of Baicheng City, Taobei District and Taonan City.
Zhenlai-Baicheng Expressway is the important part of Shuangliao-Nenjiang National Expressway, Nenjiang-Dandong Expressway in our province running through three northeast provinces and one district in regional framework road network specified in Outline of Development Plan for Revitalizing Northeast Old Industrial Base Road and Water Traffic issued by the Ministry of Transport, and "5 vertical lines" of expressway network plan of Jilin Province. After it is open to traffic, it will enable Baicheng City to accomplish more obvious location advantage, and realize Hunchun-Ulanhot Expressway networking, thus inevitably promoting the construction of western biological economic zone of our province and the city's integration in Changchun-Jilin-Tumen Development and Opening-up Strategy, and laying a solid foundation for connection among three northeast provinces and one district and regional economic integration.
1.2 Content and Scale of Project Construction
Annual production capacity is automotive urea 100,000t. The project covers an area of 40,000m2.
1.3 Total Investment of the Project and Capital Raising
Total investment of the project is 210 million yuan, including construction investment 130 million yuan, circulating capital investment 76.3 million yuan, and interest incurred during construction 3.7 million yuan.
Table 1: Summary Table of Total Investment of the Project   Unit: RMB10,000
Expense Name
Amount of Investment
Proportion of Total Investment %
Construction investment
Interest incurred during construction
Circulating capital
Total investment of the project (1+2+3)
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
After the project reaches the production capacity, it will realize annual sales income 520 million yuan, total profit 120 million yuan, payback period 3.2 years (after tax, including 1 year of construction period) and ROI 56%.
Table 2: List of Major Indexes for Forecast of Economic Benefits
Sales income
Normal year
Total profit
Normal year
FIRR of all investments
After income tax
FNPV (Ic=10%)
After income tax (operation period 10 years)
Period for recovery of all investments (after tax)
Including 1 year of construction period
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 A nalysis of Social Benefit
This project will tightly follow the national policies regarding energy conservation, emission reduction and vigorously management of automobile tail gas. The technological market is mature, which can prosper local means of livelihood and production means market, solve the employment problem of local residents, and promote the development of local characteristic industries.
For the local government, the social and economic benefits of the project can conform to the development direction of local economy, especially in "expanding domestic demand", facilitate the development of local economy, cultivate and facilitate the demand of rural area and peasants, directly intensify the city's economic radiation and driving functions for the surrounding rural areas, and facilitate the income of peasants.
1.5 Cooperative Ways:
Sole proprietorship and cooperation.
1.6 Construction Site:
Coal and High Loading Capacity Industrial Park of Baicheng Economic Development Zone.
1.7 The On-going Condition of Project
Investment attraction is ongoing.
2. Introduction to Partner
2.1 Basic Conditions
Name: Baicheng Economic Development Zone
Address: Coal and High Loading Capacity Industrial Park of Baicheng Economic Development Zone
2.2 Overview
Baicheng Economic Development Zone is the first provincial-level development zone in the city area, which was established in February 1998 with the approval of the provincial government. In 2010, the city conducted secondary business starting and economic adjustment for development zones. The regional area expanded from 4km2 to 171km2. It has jurisdiction over 3 street offices, 14 administrative villages and 9 communities, with population 100,000. During over 10 years since its establishment, Baicheng Economic Development Zone has followed the guiding thought of "establishing by projects, prospering by industry and activating by commerce and trade", and constantly enhance the comprehensive economic strength, infrastructure and appearance under the unremitting efforts of all leaders and cadres, which has become a new city area with the strongest economic strength, best dwelling environment and most active commerce and trace logistics. In 2012, the region realized total production value 3.2 billion yuan and complete financial income 585 million yuan, playing a more important role in the economy and society of the city.
2.3 Contact Method:
Contact Unit Economic and Technical Cooperation Bureau of Jilin Province Baicheng Economic Development Zone
Address Floor 10, Development Building, No. 88 Xingfu South Street, Baicheng City
Contact Person Sun Shuhai 0436-5086035    0436-5086990
Fax 0436-5086019 
Postal Code 137000
Contact Method of Project City (Prefecture):
Contact Unit: Baicheng Economic and Technical Cooperation Bureau
Contact Person: Liu Lin
Tel: 0436-5081011   13943687990
Fax: 0436-5081011
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