1. Content and Scale
To build a 20,000t/a-paraformaldehyde production line, which includes 16,000t/a 93-97% paraformaldehyde and 4,000t/a 92% paraformaldehyde.
2. Market Analysis
Paraformaldehyde is also called solid formaldehyde. It takes part in many reactions by the form of vapor under high temperature. It is mainly used for producing synthesis in the fields of organic chemical engineering, fine chemical engineering and farm pesticide, such as synthesis of glycol, pentaerythritol, trimethylolpropane, all kinds of resins, part of insecticides, bactericide and herbicide. The actual output of paraformaldehyde in China is less than 2,000tons, while consumption of it is up to nearly 24,000tons, with the shortage being mainly made up by importation. It is estimated that by 2000 the domestic consumption of paraformaldehyde will reach 28,000 tons, with the yearly increase of 10%. The shortage will be about 25,000-30,000t/a. Therefore, this project is sure to have good market prospects.
3. Technological and Equipment Planning
The project is to introduce advanced technology from abroad: technology of producing paraformaldehyde from formaldehyde after being filtered, condensed, granulated and dried. The ration of oversized or downsized paraformaldehyde will be 30kg/t, They may be used as intermediate by our company, or as raw material after dissolving in water. The dilute formaldehyde liquid recovered, containing about 17% formaldehyde, is 2.4t/t. This recovery may mix with high concentration (around 45%) to produce 37% formaldehyde product.
The key equipment may be imported and other auxiliary equipment will be purchased in china. All equipment is made of stainless steel because of formaldehyde's chemical property.
4. Investment Estimation
The total investment is estimated to be US$9,650,000, including fixed assets investment of US$8,740,000 and circulating funds of US$910,000. The fixed assets include US$5,180,000 for machinery (59.3%), $1,030,000 for civil engineering including fees of land requisition (11.7%), and $2,530,000 for intangible and deferred assets.
5. Economic Benefits Forecast
After it is put to operation, this project will realize the annual sales income of US$15.10 million, profit of US$1.5 million and taxes of US$1.33 million. The profit rate on investment will be 15.6%, rate of profit and taxes 29.38%, and the financial internal rate of return 18%. The payoff period will be 6.1 years.
6. Mode of Cooperation and Detailed Requirement
A share holding company may be set up. We input by land, assets and complete factory facilities. The foreign party may hold or participate in the shares of the new company or input by technology equipment or cash. But the technology and/or equipment must be advanced in the world. The shares the foreign part has may be as high as 45-60%.
7. Brief Introduction of Undertaking Unit
Wuhu Feiying Wood Chemical Co., Ltd. is a shareholding company and the state holds the major shares. It has fixed assets of US$4.86 million and covers an area of 240,000 square meters. We are mainly involved in the production of organic chemicals and artificial fiberboard series.
We have purchased 80,000 m2 land at Wuhu Economic Development Zone, which is near the Zhujiaqiao foreign trade dock, and Wuhu Yangtze River Bridge to be completed in September this year. Investors are provided with favorable policies and ideal investment environment.
8. Contact
Name of the Enterprise: Wuhu Feiying Wood Chemical Ltd.
Address: 73 South Zhongshan Road, Wuhu City, Anhui Province
P.C.: 241016
Tel: 0553-4223400
Fax: 0553-4222474
Legal person representative: Yu Hai-chen
Contact: Yuan Xing-shang
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