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

  
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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