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100,00t/a PVC and 100,000 Caustic Soda Projects of Tangshan Sanyou Chemical Industry Joint-Stock Co.,Ltd.

1.       Project description

Engineering: IEM process will be chosen in preference. 500,000 solid caustic soda and 500,000 liquid caustic soda (convert into 100%) will be produced by the electrolytic method through the purified brine which the production is a low consumption and fine quality. The wet-process acetylene method will be used to produce the vinyl chloride(vcm),and the suspension process is going to be used to make vcm compound.

Product plan: The main raw materials and electricity power are as follows:  acetylene stone: 147, 000 tons/a

   sea salt: 156,000t/a

direct water: 212m3/h; 3.6×108keh/a.

Capacity:1000, 000t/a PVC; 1000,000t/a caustic soda

Design ability: 100,000t/a caustic soda (50,000 solid soda ash; 50,000t/a fluid 30%(convert into 100%)soda ash)

We are going to import the main advanced polymerization technology and main equipments (108m3 polymerizer).

2.       Items for the capital formation of the project.

Total investment: The fix asset and flow cash are  64,820,000 USD.

Money from abroad: It may be decided through discussions.

The capital from our own side:Self-collection

3.       The engineering condition

The sea salt shall be supplied by the Salt Works nearby. We are going to purchase the acetylene stone from Inner Mongolia Autonomous Region and other regions.

The project belongs to the new one and it is necessary for us to search for the customers and sales markets. The buildings for the production and storage and other facilities will be newly constructed. The necessary personnel shall be selected and trained from the current staff members of our company. The basic facilities may relies on present ones of the Group Corporation.

4.       Market analysis

The Alkali Industry in China have been developed very fast for 20 years and made great achievements. China began to export caustic soda during “the Ninth Five Year” period. The capacity of caustic soda in China reached 8,800,000 tons/a by the end of 2002 .She ranked the second in the world in this field. The estimates from the professional researchers are that the total consumption of caustic soda in various fields would reach 8,400,000 tons and the caustic soda export would be 500,000 tons by the end of 2003. And the requirement and demand would be a balance at that time.

The enterprises produced the polyvinyl chloride at home are 70 producers The capacity ability are 3,800,000 tons each year. The total output of  PVC in China was 3,380,000 tons by the end of 2002. PVC has become one of the five popular resins in the world and the total output ranks the second. PVC output in Asia by the end of 2003 estimated to 39% of the total output of the whole world. The worldwide output of PVC will maintain an average increasing rate of over 5.75% each year up to the year of 2003. The average consumption of PVC for each person in China, India and other countries is very low in comparison with the countries of America and Europe. Thus the PVC development in China has a broad future.

5.       The economical benefit analysis

It is estimated that the benefit will be as follows after it is put into production:

Sales income/a: 84,220,000 USD

Total profit: 10,740,000 USD

Internal rate of return: 19.64%(after income tax)

Payout Period: 5.71

6.       Project schedule

The project suggestion has been approved and the construction is going to be started.

7.       Basic information of the project unit

Company's name Tangshan Sanyou Chemical Industrial Company
Registered addr Nanpu Development Zone, Tangshan City, Hebei Province
Registered time 1999 Registered capital 30,120,000.USD
Stock structure Domestic legal stock: 250 million, stock A: 100 million
Field Chemical Enterprise nature

State-owned
Large scale

Debt information Total property 192 million USD
Fixed assets 66,750,000 USD
Total debt 66,020,000 USD
Main product(capacity&sales) Soda capacity: 1,500,000,000 ton/a(including 800,000 tons/a low salt soda ash) The rate of production and sales is 100%.
Sales income 118,070,000 USD in 2003
Net profit 9,700,000 USD in 2003
Occupied area 790,000 M2 Construction area 270,000 M2
Staff members 2621
Personnel Structure

Management:362 Technicians:492 Researchers:161 sales members:68 Production members:1290 other:148

Company addr. Tanshan Nanpu Development Zone, Hebei, PRC
Mail addr.

Tangshan Sanyou Group,Nanpu Development Zone,Tangshan, Hebei

Post code

063305
Legal person Yao Zhiyi

Fax

0315-8519188

8. Cooperation form

Joint - venture or cooperation (the relative cooperation form may be decided by both sides through consultation.)

9Person in charge of the project and contacting method

Person in charge: Zhang Xuefeng

Tel86-0315-8517177  86-0315-8511277

Fax86-0315-8519188

 
 
 
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