| Brief Profiles Of Investment Projects
For China's Agenda 21 |
| Title | Cement Production | ||||||||||||||||||||||||
| Type | New production of cement | ||||||||||||||||||||||||
| Description | |||||||||||||||||||||||||
| A new cement plant will be constructed in Jiayu county, Hubei province. New processing techniques will be adopted, from the collection of the raw materials to the transportation of the finished product. The dry process of clinker production will be utilised in which the input materials are prepared prior to charging the kiln. The planned capacity of the plant is 2,000 tons/day. The new production will be established in the form of a joint-venture. Some key components and automatic control equipment will be imported to ensure the efficiency and quality of production. | |||||||||||||||||||||||||
| Rationale | |||||||||||||||||||||||||
| The new plant will be located in Jiayu county, near the Yangtze River and Beijing-Guangzhou Railway, providing convenient transportation for inputs and outputs. The area has suitable climatic conditions and abundant mineral resources which provide a good foundation for the project. Currently, the production capacity of cement in Hubei province is 4.5 million tons per year, whereas estimated market demand in the year 2000 is 10.5 million tons. The gap of 6 million tons provides a large potential market for the output of this project. | |||||||||||||||||||||||||
| Products | |||||||||||||||||||||||||
| No. 425, No. 525, No. 625 general and special cements, suitable for the construction of multi-story buildings, dams, bridges, and underwater engineering, etc.; Capacity: 733,000 tons/year. | |||||||||||||||||||||||||
| Location | Jiayu county, Hubei province | ||||||||||||||||||||||||
| Available Information | Project Proposal; Feasibility Study Report | ||||||||||||||||||||||||
| Total Investment (US$) | 93.1 million |
Foreign Currency (US$) |
4.0 million | ||||||||||||||||||||||
Financing |
Co-operation Sought | ||||||||||||||||||||||||
| Total Equity (US$) | 63.8 million |
||||||||||||||||||||||||
| Of which Equity Foreign Partner (US$) | 31.3 million |
Joint Venture | |||||||||||||||||||||||
| Loan (US$) | 29.3 million |
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| Others(specify) (US$) | |||||||||||||||||||||||||
| Indicators of Viability | IRR: 19.9%; Return on investment: 18.4%; Payback period: 8.7 years | ||||||||||||||||||||||||
INFORMATION ON SPONSOR | |||||||||||||||||||||||||
| Name | Hubei Hongjiang Cement Corp | Tel | +86-7213-422320 | ||||||||||||||||||||||
| Address | 182 Yanjiang Rd., Honghu city, Hubei province | Fax | +86-7213-422186 | ||||||||||||||||||||||
| Annual Turnover (US$) | 1993 | 11.4 million | 1994 | 23.5 million | 1995 | 58.6 million | |||||||||||||||||||
| Year of Establishment | 1970 | No. of Employees | 1338 | Ownership | State | ||||||||||||||||||||
| Fixed Assets (US$) | 30.1 million | Registered Capital (US$) | 12.0 million | ||||||||||||||||||||||
| Land (ha.) | 1200 | Building (m*m) | 146,200 | Equipment (US$) | 10.8 million | ||||||||||||||||||||
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