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: 0.3 million tons/year carbinol and 0.2 million tons/year dimethyl ether project of Huajin Chemical Group
2. Proposed total investment: USD 171.84million (USD 1=RMB 8.3 yuan)
3. Conditions provided by Chinese Party and investment proportion: provide fund in cash; the investment proportion will be fixed later.
4. Conditions provided by foreign Party and investment proportion: provide fund in cash and technology;the investment proportion will be fixed later.
5. Technical equipments proposed to be introduced: water coal plasm gasify technology and key equipments, for instance, the key reactor equipment.
（二）Choice the site of factory and the gist
1、The site of factory and the area: Planning construct in the west new terra of Huajing Group thermoelectricity factory,the area is 20 hektare.
2、Transportation condition:contacts city with Jingshen and Shenda speedway, satisfies the request absolutely .
3、Ability of drainage: It has verdure water in 22000 tons/day and constructs new slop manage equipment which can deal with 50000 tons/year.(include 20000 tons middle water that can be used )
4、Ability of heat supply: Supplies with the extend of The Group’s thermoelectricity.
5、Communication situation: the programme control machine in existence Satisfies the request absolutely.
6、Ability of warehousing: has 6 new bunker ,each of these can hold coal 8000 tons.
7、Ability of gas supply: Supplies with the steam of the extend in The Group’s thermoelectricity.
8、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 ;Dimethyl ether 0.2 mullion ton/year, hydrogen 30000 ton/year.
2. Construction scale and period: Coal gasification device with annual output of 0.45 million tons; methanol device with annual output of 0.3 million tons; dimethyl ether device with annual output of 0.2 million tons. Construction period: 2 years
3,Supply of project resources, raw materials and supplemental materials: The demand of coal is 0.85 million tons each year, which will be purchased from Tiefa and Fuxin.
4、 Production process:The slack coal with diameter of less than 10mm from coal delivery system will be mixed with water of a certain amount in coal crashing workshop section and crashed into coal water mixture with concentration of 60%, then the coal water mixture will be delivered to the nozzle of gasification furnace by feed pump and come into gasification furnace together with oxygen from air separation plant, through oxidizing reaction, crude gas will be produced and delivered to transformation process after removing dust; in the transformation workshop section, the reaction of CO and H2O from the gas mixture will produce CO2 and H2, then through NHD desulfurization and decarbonization, the gas mixture will be delivered to methanol synthesis device; the purification gas used for producing hydrogen will be delivered to the synthetic ammonia device of the original factory after removing the micro acidic component through methanation; the crude methanol produced by methanol synthesis device will be delivered to dimethyl ether device through the middle tank yard, the product dimethyl ether will be delivered to product tank yard and transported outside via loading station.
5. Environmental protection solution:According to the characteristic of coal dust, install dust-reclaiming mill at the equipment transfer place of the conveyor system, and for other “three wastes”, use the existing environment facility of Huajin Group to satisfy requirement of the project.
6、6. Technology and standard: In the project, Texaco technique is adopted in coal gasification equipment, gas and solid methanol synthesis technique is adopted in methanol equipment, and two-stage technique of methanol dehydration is adopted in dimethyl ether equipment.
（四）Market Forecast
1. The technical standard, market condition and development trend of the industry:Carbinol is the basal material of organic chemical industry, just infer to ethylene、propylene and benzene, takes on capacious market development space, deep process production take carbinol for material has more bigger development space, home market has gap with 1.5 million tons/year. As well as dimethyl ether has capacious development space, as the twain clearliness energy sources substitute of petrolic, dimethyl ether can substitute with LPG and diesel oil. Now, the consumption of LPG in China is 0.035-0.04 billion tons/year, there are 0.02 billion tons LPG in 0.03 billion tons finished product oil import in the year of 2000, the market space is very amplitude.
2. The superiority of products in domestic market:The material coal was supply with Liaoning which Huajin Group is in, even Huajin Group was based on Liaohe Fertilizer Factory. So the production is lower price than craft brother.
3. The forecast for market share and developing of products after the project put into production:The production will occupy 2% in home market after the project established. This project produce elding dimethyl ether which is substitute to liquefied petroleum gas (LPG) mostly. The foreground is very vastitude.
（五）Benefit Evaluation
1. Investment composing:The project newly added total investment RMB 1.42626 billion yuan, in which construction investment RMB 1.35902 billion yuan, the interest of building period RMB 57.51 million yuan, flow capital RMB 9.73 million yuan.
2. cost analysis: the total of cost per year RMB 0.444498 billion yuan, in which fixed cost RMB 46.8%, alterable cost 53.2%, manage cost 65.5%.
3．Suggestion of profit distribution: invest again and find the new benefit point of growth.
4,sum of ratepaying: 0.1624916 billion yuan.
5 Economy Benefit analysis: After the project put into production, estimated that newly added sales income RMB 0.66641 billion yuan, the total amount of profit per year RMB 0.20251 yuan, interior yield of all investment 18.34%, yield of investment 13.98%, payback period is 7.67 year (include 2 years’ construction period).
6 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 national debt one of invigorating Old Northeast Industrial Base, conforms to industrial policy of the nation, optimizes industrial structure, and brings very good social benefit and economic benefit.
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
