Investment Projects in Northeastern China

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Name of project: Industrial Carbon Black Project in Jiguan District, Jixi City
Content and scale of project: Two carbon black production lines will be built. The annual production capacity is 40,000 tons of carbon black.
Project overview: At present, the total output of carbon black nationwide is only 0.538 million tons. Demand for carbon black in Northeast China is 0.15 million tons, accounting for 18.7% of the total output in China, but the output in Northeast China is as low as 60,000-70,000 tons. Coal reserve in Jixi is nearly 6.5 billion tons. There are 312 coal mines and coking enterprises. Coking enterprises in surrounding counties, such as Shuangyashan, Qitaihe and Hegang can supply 0.28 million tons of raw oil each year and sufficient raw material can be provided to carbon black manufacturers. After the project has been put into production, the existing problem of short supply of raw material of meridian tyre can be solved basically. The market prospect is very promising.
Estimated investment and source: Total investment in the project is US$11.71 million, including US$10.25 million in fixed assets and US$1.46 million in circulating funds, with the ratio of bringing-in investment negotiable.
Cooperation means: Share participation, cooperation, joint venture or others
Estimated economic benefit: After the project is completed, the annual sales income will reach RMB200 million and the annual profit and the annual tax will be RMB30 million and RMB20 million respectively.
Brief introduction to domestic investor:
1. Name of investor: Government of Jiguan District, Jixi City
2. Address: 21 Xingguozhong Road, Jixi City Postcode: 158100 enterprise status: Located east of Heilongjiang Provity is adjacent to Russia to the east, Mudanjiang City to the west and south, and Qitaihe City to the north. Jixi City is a core-based resourceintensive city, with advantages in machinery, electricity, chemicals, building materials and other sectors. Jixi City assures investors of a good environment for investment, preferential policies and“green corridors” related to tax, land transfer fees and action fees.
4. Contact: Wang Ziyan
5. Tel: 86-467-2655902
6. Fax: 86-467-2655902
7. E-mail: jgqxmb123@163.com
Name of project: Al-Si Alloy Production Project in Baoshan District, Shuangyashan City
Content and scale of project: The annual production capacity is 50 thousand tons of aluminum-silicon alloy.
Project overview: Electrothermal process is used to produce aluminumsilicon alloy. The technology is the latest aluminum-silicon alloy production technology and saves energy by 45%, compared with electrolytic process. In addition, Electrothermal process is environmental-friendly. By using Electrothermal process, diversified aluminum-silicon alloys can be produced. Shuangyashan is rich in mine resource, especially in coal. The coal reserve is more than 11 billion tons. Silicon mines are mainly distributed at Yangbi Hill and Shimen Village, with a proven reserve of more than 18 million tons. The average content is above 25%. Sufficient raw material can be provided to the aluminum-silicon alloy project. Silicon is widely used in many fields, such as machine production, traffic and transport, building material, construc- tion, military industry, electronics, and packing industry. Along with rapid economic development in China, demand for aluminum and aluminum products will increase sharply and the market is very promising.
Estimated investment and source: Total investment in the project is US$21.31 million, including US$13.98 million in construction funds and US$7.32 million in initial working capitals, with the ratio of bringing-in investment negotiable.
Cooperation means: Share participation, cooperation.
Estimated economic benefit: After the project reaches the designed capacity, the annual sales income will reach RMB 300 million and the annual profit and the annual tax paid will be RMB 21.05 million and RMB 10.37 million respectively.
Brief introduction to domestic investor:
1. Investor: Investment Promotion Bureau of Baoshan District, Shuangyashan City Postcode: 155131
2. Contact: Feng Jun
3. Tel: 86-469-4321415
4. Fax: 86-469-4321415
5. E-mail: bsqzsj101@126.com
Name of project: 20,000t/y Crystalline Xylitol Project of Qitaihe Hongchen Xylitol Co., Ltd.
Content and scale of project: After completion of the project, the annual production capacity is 10,000 tons of xylose, 20,000 tons of xylitol, and 20,000 tons of byproducts, namely, mother liquor.
Project overview: The major raw material is corn cob. Sufficient corn cob produced in Heilongjiang Province can be used to produce xylose which is then processed to produce xylitol. The project will be located at Boli County, at eastern part of Heilongjiang Province. Maize-planting area in that county is 450,000 mu. Surrounding countries also produce huge amount of maize. Sufficient raw material can be provided. Construction of the project was started in 2007. US$23.40 million has been invested. The first 5,000-ton xylose production line has been put into
production. 70% of the second 5,000-ton xylose production line has been finished. 20,000-ton xylitol project hasn’t been started. Water supply facilities, power supply facilities and gas facilities have been built. One sewage treatment plant that can treat 6,000 tons of sewage per day has been built.
Estimated investment and source: Total investment in the project is US$78 million, including US$63.1 million in fixed assets and US$15 million in circulating funds.
Cooperation means: Loans, financing or joint venture & cooperation.
Estimated economic benefit: After the project is completed and reaches the designed capacity, the annual sales income will reach US$119.60 million and the annual tax and the annual profit will be US$17.5 million and US$27.1 million respectively.
Brief introduction to domestic investor:
1. Name of investor: Qitaihe Hongchen Xylitol Co., Ltd.
2. Present enterprise status: The Company is a private enterprise incorporated in 2007 by Qitaihe Meihua Coal Processing (Group) Corporation. Its legal representative is Mr. Li Baowu, one famous entrepreneur of Qitaihe. Address of the company is No. 38 Beidazhi Road, Yuanming Street, Boli County. The company covers a land area of 444 thousand square meters, with a staff of 218, including 39 technicians and 9 medium and high-level technicians.
3. Contact: Zhao Wenju
4. Tel: 86-464-8358599 15204640908
5. Fax: 86-464- 8358577
6. E-mail: 568716190@QQ.com
Name of project: Injection Flexible Bags and Plastic Bottles Modern Production Line Retrofit Project in Qitaihe City
Content and scale of project: 2,000 square meters of new office building will be built. 3,285 square meters of factory building will be rebuilt, including 786 square meters of clean factory building and 1,000 square meters of heat supply building and testing room. A polypropylene bottle production line will be built. The annual production capacity can reach 15 million soft bags and 20 million bottles.
Project overview: This is the only soft bag and plastic bottle production line in eastern part of Heilongjiang Province. There are 5 prefecture-level cities and 3 state-owned farm bureaus within the circle area less than 240 km away from the location of the project. The project has passed GMP certification and products have been released to the market and are widely used in large hospitals in eastern part of Heilongjiang. The products are favored by many patients.
Estimated investment and source: The estimated investment in the project is US$10 million, including US$6 million raised by the company itself and US$4 million from other entities. The investment in the construction of the project is US$8 million, including US$1 million in construction works, US$4 million in equipment, US$1 million in installation works, US$1 in other expenses and US$1 million in reserve funds. The initial working capital is US$2 million.
Cooperation means: Share participation
Estimated economic benefit: After the project reaches the designed annual capacity of 15 million large-volume injection flexible bags and 20 million plastic bottles, the annual production value will be around RMB 100 million and the annual tax and the annual profit will be RMB 20 million and RMB 20 million respectively.
Brief introduction to domestic investor:
1. Name of investor: Qitaihe Pharmaceutical Factory in Heilongjiang Province
2. Address: 88 Xingyuexiu Road, New Development Zone, Qitaihe City, Heilongjiang Province
3. Present enterprise status: The company is committed to scientific R&D, production, marketing and distribution. It covers a land area of 34,000 square meters. The building area of the factory is 12,000 square meters. The total assets are valued at RMB 0.1 billion, including RMB 75 million in fixed assets. The company has a staff of more than 130, 45% of which has col- lege education.
4. Contact: Zhao Wenju
5. Tel: 86-464-8358599 15204640908
6. Fax: 86-464- 8358577
7. E-mail: 568716190@QQ.com
Name of project: Fused Magnesium Production and Processing Project in Luobei County, Hegang City
Content and scale of project: To produce 20,000 tons of fused magnesium per year
Project overview: Magnesite mine of Luobei County is located at Huanshan Town, with a total magnesia reserve of 1.18 million tons. The average content of magnesia is 45.38% and the maximum content is above 47.5%. The iron content is below 0.15% on average. Fused magnesia products are mainly used to smelt iron, steel, iron alloy, and non-ferrous metal, and produce casting ladle, cement kiln and glass kiln. Silicon-magnesia alloy serves as additive in steel-making process. Only several domestic enterprises can manufacture fused magnesia and silicon-magnesia alloy. The market demand is very large and they are in short supply in the market. It can also be exported, so the market prospect is very promising.
Estimated investment and source: Total investment in the project is US$5.12 million, with the ratio of bringing-in investment negotiable.
Cooperation means: Joint venture, cooperation
Estimated economic benefit: After the project is completed, the annual production value will reach RMB 60 million, and the annual profit and the annual tax will be RMB 6 million and RMB 3 million respectively.
Brief introduction to domestic investor:
1. Name of investor: Yunshan Mineral Resources Industrial Park in Luobei County, Hegang City
2. Address: Yunshan Forest Farm, Luobei County, Hegang City Postcode: 154200
3. Contact: Wen Yulin
4. Tel: 86-468-6831647
5. Fax: 86-468-6831647
6. E-mail: wyl9459@163.com
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