一、The actuality of domestic corporation
（一）The actuality of corporation
Liaoning Huajin Chemical Industry Group Co., LTD, (for shot’Huajin Group’)gives priority to in fertilizer and synthesis resin, it is a big business which deal in other area. Co., LTD headquarters is located in Panjin in Liaoning province possesses three production base which situate in Panjin,Huludao in Liaoning province and Kuche in Xinjiang province. Huajin is holding Liaonign Huajin Tonghua Chemical Industry Co., LTD,(for short’Liaotong Chemical Industry’, code 000059) underling Panjin Ethylene Co., LTD, Panjin Shuangxing Engineering Plastics Company, Panjin Liaohe Futeng thermoelectricity Co., LTD,Panjin South Chemical Industrial Liaohe Catalyst Co., LTD, Huajin Plastics Co., LTD and other ten companies. Huajin is one of 500 preference corporations and one of 100 preference corporations in China. Now, the total of workers in Huajin is 11098,and Huajin Group has technic personnel 2492, thereinto,the intermediate title of technical post is 778, the high grade is 186.
Huajin Group is main in urea and ethylene production. The output of urea is 1500000 tons, is the biggest fertilizer production enterprise in China, the output of alkene per year is 280000 tons that occupy the important status.Liaoning Huajin Chemical Industry Group has 30 sets of primary apparatus for producing including the synthetic ammonia and urea equipments of Liaohe Fertilizer imported from US Kellogg Company and Netherlands Tamycarna Company respectively, the synthetic ammonia and urea equipments from the deep cooling purification process of US Brown company and ammonia vapor extraction process of Italy Snam Company, the ethylene equipment based on the patent technology of US Roms Company, polyethylene equipment based on vapor-phase fluidized bed process of BP company, polypropylene equipment based on oilization technology of Japan-based Mitsui company, styrene and polystyrene equipment based on the technology of Canada Lanvline Company and ABS polymerization equipment based on oilization proprietary technology of Korea Xinhu Company in Jinxi Fertilizer. All the equipments and technologies have reached advanced world standard, while the major producing enterprises are on high level of management and have obtained ISO9001 quality certificate and ISO 14001 environmental management certificate.
Huajin Group insists on the standard in market with the asset more-sided, the reduction name branded, the technology high-newed, the management internationalization, advances the advancement of technology actively, regulates production configuration. The enterprise has entered a new developing period in virtue of the wind of Northeast area development. In 2005, Huajin Group has chief asset 9.746 billion yuan, implements distribution income 5.715 billion yuan. The bank credit grade is AA.
Legal Representative of Huajin Group: Enliang Feng
（二）Analysis of historical data
Unit : hundred million yuan
| 2001年 | 2002年 | 2003年 | 2004年 | 2005年 | |
| the income of sale | 31.96 | 34.34 | 41.94 | 51.85 | 57.15 |
| taxation(ten thousand yuan) | 20774 | 18530 | 21333 | 38418 | 41141 |
| assets | 87.91 | 88.62 | 92.17 | 96.70 | 97.49 |
| fixed assets | 64.80 | 67.09 | 68.13 | 70.05 | 74.30 |
（三）The introduce of staple
| Staple | Scale | The occupy of home market | The level of technology |
| Synthetic ammonia | 900,000 ton/year | internal advance | |
| Urea | 1500000 ton/year | 3.6% | internal advance |
| Ethylene | 180000 tons/year | International advance in the? incipience of the 90th era | |
| Polythere | 130000 tons/year | 2.5% | International advance in the? incipience of the 90th era |
| Polypropylene | 50000 tons/year | 0.8% | International advance in the? incipience of the 90th era |
| Styrene | 75000 tons/year | 8% | internal advance |
| Polystyrene | 30000 tons/year | internal advance | |
| ABS | 50000 tons/year | 2.8% | internal advance |
| Carbinol | 60000 tons/year | internal advance | |
| Creostote | 10000 tons/year | internal advance | |
| Ctyrene | 84000000 tons/year | internal advance | |
| Butadiene | 25000 tons/year | internal advance | |
| Catalyst | 3200 tons/year | internal advance |
二、Proposed Cooperation Project
（一）Brief Introduction to Proposed Cooperation Project
1. Project: 0.1 million tons/year ethylene reconstruction and expansion works of Huajin Chemical Group
2. Proposed total newly-increased investment: USD 60.24 million (USD 1=RMB 8.3 yuan)
3. Conditions provided by Chinese Party and investment proportion: utilizing existing ABS devices with annual output of 0.18 million tons/year, public facilities and cash; the investment proportion will be fixed later.
4. Conditions provided by foreign Party and investment proportion: provide fund in cash, the investment proportion will be fixed later.
5. Technical equipments proposed to be introduced: sequence noumenon SAN technics and key equipment, for instance, reaction kettle, high adhibit fuse pump.
（二）Choice the site of factory and the gist
1. Site of factory and the area: Planning construct in the space of Huajing Group ABS factory, requires none new space.
2. Transportation condition: It has railway 1400000 tons, contacts city with Jingshen and Shenda speedway, satisfied the request absolutely.
3. Ability of drainage: It satisfied the request with existing pipe net of Huajin Group absolutely.
4. Ability of heat supply: It satisfied the request with existing establishment of Huajin Group absolutely.
5. Communication situation: the programme control machine in existence satisfies the request absolutely.
6. Ability of warehousing: make use of the establishment in existence.
7. Ability of gas supply: The steam which required enlarge equipment supplies with steam fitter in existence.
8.The ability of investigation and the situation of workers: has national technical center, scientific research 150.
9. The entironment of the place that project in: Contiguous to Bohai Bay, situates Panjing in the south of Liaoning, is Marine sediments plain, with average elevation of earth surface 4 meters.
（三）Production Outline
1. Proposed main products and scale Newly acquired ABS (All are special products): 50,000 tons per year
2. Construction scale and period: PBL equipment has been extended from 10,000 tons per year to 20,000 tons per year; IM-ABS equipment has been extended from 15,000 tons per year to 30,000 tons per year; a set of 70,000 tons per year newly built continuous SAN equipment; newly acquired 50,000 tons per year graining production line. Construction period: 2 years
3. Supply of project resources, raw materials and supplemental materials: The newly increased raw materials 32500 tons of styrene per year in the production increase and innovation project is provided by ethylene equipment of Huajin Group; 10,000 tons of butadiene per year is self-supported by ABS equipment; 9,000 tons of acrylonitrile per year is externally purchased, and other chemicals are externally purchased.
4. Production process: Qualified ABS grain is finally produced by mixing ABS powder made from graft reaction by PBL and styrene conveyed by PBL equipment, acrylonitrile monomer, emulsifier and catalyst under certain temperature and SAN grains made from styrene, acrylonitrile monomer and ethylbenzene solvent by adopting continuous identity polymerization.
5. Environmental protection solution: Due to there is no discharge of sewage in SAN continuous identity technique, pressure of environment protection is eased sharply, the load of sewage treatment facility decreases by 50%, and the ABS environment facility can satisfy the requirement of the project.
6. Technology and standard: PBL unit adopts technique developed by Huajin Group itself, through shortening the reaction time, it is extended from 10,000 tons per year to 20,000 tons per year; IM-ABS unit adopts technique developed by Huajin Group itself, by shortening reaction time, it is expanded from 15,000 tons per year to 30,000 tons per year; SAN unit plans to introduce continuous identity process.
（四） Market Forecast
1. The technical standard, market condition and development trend of the industry: ABS production can disport commonly and especially approximately, applies in electron、wiring、auto and other industry. At present, the requirement of ABS colophony is 2.31 million tons per year, the throughput is 1.27 million tons, short supply is 1.10 million tons. According to the prediction, by the year of 2010, the throughput of ABS colophony is 3.36 million tons/year of our country, consume requirement is 3.90 million tons/year, so the development space in the future is huge.
2. The superiority of products in domestic market: This reconstruct project adopts the word-advanced-level latex graft-reality mix into SAN technical channel, has several excellence, such as, more breed ABS production, less rubbish let, good quality of production, rely on predominance that the material provide of Huajin Group and public project incorporation, saving the investment, accelerating the construction, lowering cost and improving market competitive power.
3. The forecast for market share and developing of products after the project put into production: According to the prediction, in the future several years, high aseismatic、high heat-resistant ABS using in auto, board timber ABS using in refrigeratory and burn-resistant ABS using in electronic computer is coming to the new point of growth.
（五） Benefit Evaluation
1. Investment composing: The project newly added total investment RMB 0.5 billion yuan, in which construction investment (include the interest of building period) RMB 0.44 billion yuan, flow capital RMB 0.06 billion yuan.
2. Economy Benefit: After the project put into production, estimated that newly added sales income RMB 0.6 billion yuan, total cost RMB .039 billion yuan, after-tax profit RMB 0.11 billion yuan, tax amount RMB 0.1 billion yuan. Simple (static state) payback period is 6.3 years (include 2 years’ construction period). Suggestion of profit distribution: invest again and find the new benefit point of growth.
3. Sensitivity analysis: the price of the product is the most sensitive to internal rate of return, and the result of sensitivity analysis shows that the project has rather strong risk resistance capacity.
三、Conclusion
The project is an innovation one relies on the old enterprise to fully tap potentials and increase efficiency, with rather short investment recovery period and strong capacity to earn profit, thus it is feasible in economy.
四、The way of contact
Contact unit: The development programming office of Liaonig Huajin Chemical Industry Group in China.
Linkman: Feng Li
Tel: 86-427-5855241、5859127
FAX: 86-427-5859043
E-mail: huajinlifeng@sohu.com
Homepage：http://www.huajinchem.com
