Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Production of Medium-density Fibreboard (MDF)
Type Mordenisation and expansion of existing fibreboard production line
Description   
The company's existing hard fibreboard production line with a capacity of 6,000 m*m*m/ will be modernised. Two medium-density fibreboard production lines with production capacity of 15,000 m*m*m/y each will be installed. The dry process of producing medium-density fibreboard will be adopted, rather than the wet process, in order to solve the problem of serious sewage discharges during production. This will tend to reduce operating costs and increase economic benefits. The project includes construction and installation for an MDF workshop, boiler house, glue production workshop, formaldehyde storage tanks, water pond, compression pump room and sewage processing plant.
Rationale   
Medium-density fibreboard has a prospective market in the furniture making, building materials and other manufacturing industries. The estimated global demand for this product is expected to be 26 million m*m*m in year 2000, but the production at that time is estimated at only 20 million m*m*m. The raw materials, such as tree branches and small-diameter wood can be obtained from local forests. The project adopts dry processing technology which can reduce sewage discharge by 10,000 tons per year in comparison with wet process technology. The project also can contribute to saving 285 ha. of forest resources per year by utilising waste materials from forestry operations.
Products   

Medium density fibreboard, size: 1220 x 2440 (mm), thickness: 6-22 mm;

Production capacity: 30 thousand m*m*m per year.

Location Dafeng Tree Farm, Dafeng county, Jiangsu province
Available Information Pre-feasibility Study, Detailed Project Description, Technical Study, Market Study
Total Investment (US$)

5.97 million

Foreign Currency (US$)

0

Financing

Co-operation Sought

Total Equity (US$)

5.37 million

Joint Venture

Of which Equity Foreign Partner (US$)

2.60 million

Cooperative Production

Loan (US$)

0.60 million

Market Access

Others(specify) (US$)      
Indicators of Viability Return on Investment: 34.4%; Internal Rate of Return: 36.9%; Pay-back Period: 2.8 years; Break-even Point: 38%.

INFORMATION ON SPONSOR

Name Dafeng Fibreboard Factory Tel +86-515-3392103
Address Dafeng Tree Farm, Dafeng county, Jiangsu province Fax   
Annual Turnover (US$) 1993 2.2 million 1994 2.9 million 1995 5.8 million
Year of Establishment 1980 No. of Employees 1023 Ownership State
Fixed Assets (US$) 3.05 million Registered Capital (US$) 2.17 million
Land (ha.) 10 Building (m*m) 12800 Equipment (US$) 2.34 million

 


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