| Brief Profiles Of Investment Projects
For China's Agenda 21 |
| Title | Caustic Soda and Utility Engineering Renovation | ||||||||||||||||||||||||||||
| Type | Modernisation of technology | ||||||||||||||||||||||||||||
| Description | |||||||||||||||||||||||||||||
| An advanced ion film solid caustic soda production line with a capacity of 20,000 tons per year will be constructed for the production of high density product of 30 - 32% at the Gedian Chemical Industry Group Company in Wuhan. This is required to correct serious problems with the existing method of production which is characterised by high energy consumption, poor quality of production and serious pollution. The plant is designed for 50,000 tons which will permit capacity expansion in later stages. The thermal power plant will be expanded with a 220 t/h boiler and a turbogenerator with a capacity of 25 MW, some of which will be sold Wuhan city. | |||||||||||||||||||||||||||||
| Rationale | |||||||||||||||||||||||||||||
| The existing technology is not efficient in the use of energy and materials. With the new technology and expanding the scale from 10,000 to 20,000 t/y, product quality will be improved and profitability will be increased. A shortage of electrical power in Wuhan city is a constraint on production, which requires expansion of the thermal power plant. The existing process produces stack emissions containing lead and dusts with asphalt and asbestos fibres. Caustic waste water containing asbestos fibres is also discharged from the plant. The new technology will eliminate these problems. Energy consumption will be improved by 25 - 30%. The new product, high density caustic soda, will satisfy the need of paper and chemical fibre production and will be exportable so that foreign currency earnings will be realised. | |||||||||||||||||||||||||||||
| Products / by-products | |||||||||||||||||||||||||||||
30 - 32% ion film solid caustic soda: 20,000 t/y; Cl2 : 17,720 t/y; H2 : 5,000 t/y; Electricity: 144 million kwh/y | |||||||||||||||||||||||||||||
| Location | Wuhan Gedian Chemical Industry Group Company | ||||||||||||||||||||||||||||
| Available Information | Feasibility Study Report | ||||||||||||||||||||||||||||
| Total Investment (US$) | 28.3 million | Foreign Currency (US$) |
12.2 million | ||||||||||||||||||||||||||
Financing |
Co-operation Sought | ||||||||||||||||||||||||||||
| Total Equity (US$) | 15.7 million |
Co-operation or Joint Venture | |||||||||||||||||||||||||||
| Of which Equity Foreign Partner (US$) | |||||||||||||||||||||||||||||
| Loan (US$) | 12.2 million |
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| Others(specify) (US$) grant | 389,900 |
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| Indicators of Viability | Annual Income: US$ 19.5 million; Annual Profits: US$ 6.9 million; Return on Investment: 23.7%; Profit and Taxes: 30.8%; IRR: 19.9% | ||||||||||||||||||||||||||||
INFORMATION ON SPONSOR | |||||||||||||||||||||||||||||
| Name | Wuhan Gedian Chemical Industry Group Company | Tel | +86-27-7600333 | ||||||||||||||||||||||||||
| Address | 36 Gehua Street, Hushan District, Wuhan city | Fax | +86-27-7600357 | ||||||||||||||||||||||||||
| Annual Turnover (US$) | 1993 | 37.4 million | 1994 | 39.1 million | 1995 | 47.4 million | |||||||||||||||||||||||
| Year of Establishment | 1990 | No. of Employees | 592 | Ownership | State | ||||||||||||||||||||||||
| Fixed Assets (US$) | 72.0 million | Registered Capital (US$) | 31.6 million | ||||||||||||||||||||||||||
| Land (ha.) | 185 | Building (m*m) | Equipment (US$) | ||||||||||||||||||||||||||
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