Metallurgical

 1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

ABS resin refers to acrylonitrile- butadiene-styrene copolymer. ABS is the abbreviation of Acrylonitrile Butadiene Styrene. It is a thermal plastic high molecular material with the high strength, good toughness and easy to process and shape. The ABS resin is a yellowish solid, with certain toughness and its density is about 1.04~1.06 g/cm3. It has the strong capacity of acid, alkali and salt resistance and it can also resist the dissolution of organic solvents, to a certain degree.

When the proportions of the three compositions in the mixture are adjusted, the physical property of the resin will be changed, to a certain degree: 1,3-butadiene provides low-temperature extensibility and impact resistance for the ABS resin, but the excessive butadiene will reduce the hardness, luster and flowability of the resin; acrylonitrile provides hardness, thermal resistance, alkali and salt resistance and other chemical corrosion resistance for the ABS resin; styrene provides the hardness, processing flowability and brightness of the product surface for the ABS resin.

The ABS resin is normal in the environment of -25~60, with the good shaping property and bright surface of the processed product and easy to dye and galvanize. Therefore, it can be used in some daily necessities such as cases of household electric appliances and toys, etc. The common LEGO bricks are made of ABS.

The ABS resin can be processed into plastics by some shaping methods such as injection molding, extruding, vacuum, blow molding and rolling, etc. It can also be secondly processed by some methods such as machining, bonding, coating and vacuum suffocating, etc. Because its integrated performances are good and its purposes are wide, it is mainly used as engineering materials and can also be used in the household appliances. Because it has the good resistance to oil, acid, alkali and salt as well as other chemicals, etc, good galvanization and it has some advantages such as good luster, low specific gravity and low price, etc. after it is galvanized with a metallic layer, it can be used to replace some metals. It can also be synthesized into many self-extinguishing and thermal resistance varieties so as to adapt to various purposes.

The ABS can be mixed with a lot of resins into the copolymers such as PC/ABS, ABS/PVC, PA/ABS and PBT/ABS, etc. to produce the new performances and new application fields, for example, the ABS resin is mixed with PMMA to produce the transparent ABS resin.

1.1.2 Market Prospects

1Supply and demand in the international market and forecasting

The ABS capacity in the world is 7.82 million tons/year in 2006, 8.62 million tons/year in 2009 and 9.55 million tons/year in 2011. It is predicted that it will have been 9.8 million tons/year by 2012.

It is analyzed by the SRI Consulting Co., Ltd. located in Menlo Park, the US that the demand for the ABS resin in the world is 7.4 million tons in 2006, 7.62 million tons in 2009, increased to 8.3 million tons in 2012 and the demand for the ABS in the world in the future will keep the annual growth rate of 4.5%. At present, the productivity and output of ABS resin of our country cannot meet the demand of the domestic actual production and a large amount of ABS resin should be imported every year. It is predicted that the productivity of ABS of our country will have been 3.44 million tons/year, the output will have been 2.993 million tons and the demand will have been 6.399 tons by 2018, so there is a big lack in the market in the future.

At present, the ABS production is mainly centralized in some countries and regions such as the US, China (including Taiwan), South Korea, Japan and West Europe, etc. By 2010, the ABS capacity in the world has been 9.26 million tons/year.

Table 2 Statistics of Major ABS Manufacturers and Capacities in the World in 2010                                         Unit: 10 thousand tons/year

No.

Manufacturer

Country/Region

Capacity

1

Chi Mei Group

Taiwan

100.0

2

BASF

Belgium and Germany, etc.

66.0

3

LG Chemical Co., Ltd.

South Korea

56.0

4

INEOS ABS

US and Spain, etc.

52.5

5

Ningbo LG Yongxing Chemical Co., Ltd.

China

50.0

6

SABIC Innovative Plastics Co., Ltd.

US and the Netherlands, etc.

47.5

7

Cheil Industrial Co., Ltd.

South Korea

45.0

8

Toray Co., Ltd.

Japan, Malaysia

42.0

9

Dow Chemical Co., Ltd.

Netherlands, US

40.0

10

Formosa Plastics

Taiwan

37.0

11

IRPC

Thailand

12.0

12

Zhenjiang Chi Mei Chemical Co., Ltd.

China

70.0

13

JSR Synthetic Rubber Co., Ltd.

Japan

33.0

14

Kumho Chemical Co., Ltd.

South Korea

22.0

15

Shanghai Gaoqiao Petrochemical Co., Ltd.

China

20.0

 

Others

197.0

 

Total

890.0

2Supply and demand in the domestic market and forecasting

The ABS capacity of our country is 1.79 million tons/year in 2006 and it is further expanded to 2.88 million tons/year in 2011, ranking the first in the world. It can be seen from Table 3 that although the growth of capacity and output ABS of our country is rapid, it cannot meet the actual production demand yet, and a large amount of it should be imported every year and the self-sufficiency rate is less than 50%. It is predicted that the annual growth rate of the demand in the future will be 6.4%.

There are 11 ABS manufacturers in our country and the capacities in 2010 and 2011 are shown in Table 4.

3Analysis and forecasting of the ABS market price

Viewed from the domestic ABS price trend in the recent 3 years, the price interval is 14000 yuan/ton-18500 yuan/ton; viewed from the price trend in 2012, the interval price is 14000 yuan/ton-16200 yuan/ton and the average price is about 15400 yuan/ton. Viewed from the economic development trend in the recent 3 years, the economic development tends to be stable, obviously rising at home and abroad and the price should tend to fluctuate and rise.

Table 5

 

1.1.3 Technical Analysis

ABS resin consists of more than 50% styrene and variable butadiene and acrylonitrile.

In the current phase, the main production methods of ABS resin are emulsion grafting-identity SAN mixing method and continuous identity polymerizing method, of which the emulsion grafting-identity SAN mixing method has become the uppermost production process of ABS resin.

The project is planned to take the emulsion grafting-identity SAN mixing method and introduce the emulsion grafting-identity SAN mixing process of Bayer or BASF.

1.1.4 Advantageous Conditions of Project Construction

1Policy conditions

The petrochemical industry is one of the pillar industries of Jilin Province. During the 12th Five-Year Plan, Songyuan City will carry out some projects of oil and natural gas development, natural gas purification of Sinopec, 0.5 million tons of synthetic ammonia and 0.8 million tons of urea of Sinochem Changshan, etc., restore the capacity of the original Qianguo Refinery, make efforts to reach the capacity of 5 million tons and build itself into the 10-million-ton-level refining base. Songyuan Municipal Government has attached great importance to the invitation of investments from overseas and established a series of relevant policies of attracting the investments from overseas. It is mainly to give some preferences in some aspects such as tax collection, land leasing and good-quality service, etc. and keep the continuity and stability of the policies. And especially for the gas and chemical industrial projects, the Opinions of Songyuan Municipal People’s Government on Accelerating the Development of the Petrochemical Industry (SZF (2011) No. 15) has been promulgated, giving more preferences and supports in some aspects such as land and tax collection, etc.

2Resource and industrial advantages

In Songyuan, there are sufficient materials to develop the lower-stream products of propylene. There are also rich oil and natural gas resources. The prospective reserve of oil is 2.7 billion tons and the explored reserve now is 1.42 billion tons, the reserve of natural gas is 1.4 trillion m3 and the explored reserve is 300 billion m3, the annual oil gas output of Songyuan City is 5 million tons. Depending on the oil resources of our city and the 1.5-million-ton/year refining device of the original Qianguo Oil Refinery of PetroChina Jilin Oilfield Co., Ltd., Songyuan City has introduced the 1 million tons propylene project of Changchun Zhongcheng Investment Group has been carried out steadily.

3Personnel advantages

Songyuan College of Vocational Technology can cultivate 8000 technicians every year. There are a lot of colleges and universities in some cities around Songyuan City such as Changchun, Harbin and Dalian, etc., which can provide more than 0.5 million personnel. Songyuan Municipal Government has signed the personnel and scientific and technological cooperation framework agreement with Beijing Branch, Shenyang Branch and Changchun Branch of the Chinese Academy of Sciences, which has provided the scientific and technological support for the development of the enterprises. In addition, the original Qianguo Petrochemical Co., Ltd. and Songyuan Petrochemical Co., Ltd. have the rich reserves of oil gas chemical personnel.

1.2 Content and Scale of Project Construction

1.2.1 Product scale

The project has the annual output of 0.2 million tons of ABS and annual operating time of 8000 hours.

1.2.2 Project Construction Content

The project builds an ABS device and auxiliary facilities, covering an area of 50000m2.

1.3 Total Investment and Funds Raising of the Project

The total investment of the project is 1650 million yuan, of which the fixed-assets investment is 1400 million yuan.

Table 6: Summary Table of the Total Investment of the Project            

Unit: 10 thousand yuan RMB

No.

Expense Name

Amount of Investment

Proportion in the Total Investment %

Remarks

1

Construction investment

135000

82.0

 

2

Interest in the construction period

5000

3.0

Capitalized interest

3

Current fund

25000

15.0

 

4

Total investment of the project1+2+3

165000

100.00

 

Note: “10 thousand yuan” in the table refers to RMB.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the output, the annual sales income will be 3150 million yuan, the profit will be 296.53 million yuan and the investment recovery period will be 7.6 years (after the tax, including the construction period of 2 years) and the investment profit rate will be 18%.

Table 7: List of the Main Financial Benefits Forecasting Indexes

No.

Name

Unit

Index

Remarks

1

Sales income

10 thousand yuan/a

315000

Normal years

2

Total profit

10 thousand yuan /a

29653

Normal years

3

Internal financial yield rate of the total investment

%

12.8

After the income tax

4

Net financial present value Ic=10%

10 thousand yuan

21598

After the income tax (operating period: 10 years)

5

Recovery period of the total investment (after the tax)

a

7.6

Including the construction period of 2 years

6

Investment profit rate

%

18.0

 

Note: “10 thousand yuan” in the table refers to RMB.

1.4.2 Social evaluation

After the project is built, it will be favorable to build the complete industrial chain, promote the industrial upgrading, promote the lower-stream industry to develop and increase the local employment, play the good role of promoting the local social development and also promote the progress of the pillar industry of Jilin City.

1.5 Ways of Cooperation

Sole investment of the investor

1.6 What to be Invested by Foreign Party

Funds, equipment and technology

1.7 Construction Site of the Project

Jilin Songyuan Oil Chemical Industry Circulating Economic Park

1.8 The On-going Condition of Project

The cooperative proposal of the project has been established

2. Brief Introduction of the Cooperator

2.1 Basic Conditions

Name: Songyuan Oil Chemical Industry Circulating Economic Park

Address: Songyuan Oil Chemical Industry Circulating Economic Park

Legal representative: Sun Changyi

2.2 Overview

Songyuan Oil Chemical Industrial Circulating Economic Park is a provincial-level industrial development zone, with the total planned area of 4.64 km2, is now planned to be expanded to 28 km2. As one of the two special chemical industrial parks of Jilin Province, depending on the local rich oil, natural gas and biomass resources, the park orients the dominant industries into the three industrial blocks, that is, oil and gas chemical engineering, biological chemical engineering and fine chemical engineering. During the “13th Five-Year Plan”, the park, focusing on the building of the three major industrial blocks, implements the strategy of the leading projects for promotion, makes efforts to promote the businessmen invitation ,capital attraction and project construction and try to establish the 30-50 billion output value scale. By now, the 0.1-million-ton propylene project, of Zhongcheng Group and the 0.2-million-ton biomass synthetic oil project of Yangguang Group have settled in the development zone and the investment construction has been started.

2.3 Contact modes:

Postal code: 138000

Contact person: Yu Zhengyang

Tel: 0438-2690097

Fax: 0438—2960098

E-mail: shihuayuanqu1818@163.com

 

Contact person of the city (prefecture) of the project: Han Baidong

Tel: 0438-2706617   13514384757

Fax: 0438-2706617

 

E-mail: 870550387@qq.com

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