Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Graphite Electrode Production
Type Expansion of production capacity
Description   
The capacity of the company's existing production facilities for graphite electrodes in Laishui county, Hebei province, will be expanded from the current 7,000 tons to 19,000 tons per year. Construction of 6,200 m*m of factory buildings, purchase and installation of 19 production stations and introduction of some quality control and test instruments are included in the project.
Rationale   
The current domestic production of these products can not meet the demand. The insufficiency is about 20,000 tons per year and the annual shortage will be increased to 60,000 tons in five years. The main raw materials are the waste residue petroleum tar from oil refineries and the tar oil by-product from coking factories, which are available in the local area. The energy consumption for producing high power graphite electrodes is lower than for producing normal electrodes. The average amount of energy saved is about 6 tons standard coal for producing one ton of electrodes. The indicated profitability is substantial.
Products   
Annual outputs: 400-600 mm high power graphite electrode, capacity: 11,000 tons; 400-500 mm common graphite electrode, capacity: 3,000 tons; high carbon and micro sulphur carbonizer, capacity: 5,000 tons.
Location Laishui county, Hebei province
Available Information Feasibility Study, Technical Study, Market Study, Detailed Project Description
Total Investment (US$)

13.7 million

Foreign Currency (US$)

  

Financing

Co-operation Sought

Total Equity (US$)

6.9 million

Joint Venture

Of which Equity Foreign Partner (US$)

2.52 million

Cooperative Production

Loan (US$)

6.8 million

  
Others(specify) (US$)      
Indicators of Viability Break-even Point: 42%; Pay-back Period: 5 years; IRR: 29%; Return on Investment: 31%.

INFORMATION ON SPONSOR

Name Great Wall Electrode Factory of Laishui county Tel +86-312-4525108
Address Laishui county, Hebei province Fax +86-312-4525106
Annual Turnover (US$) 1993 2.4 million 1994 3.4 million 1995 3.6 million
Year of Establishment 1987 No. of Employees 226 Ownership Corporation
Fixed Assets (US$) 2.2 million Registered Capital (US$) 0.72 million
Land (ha.) 6.6 Building (m*m) 28,000 Equipment (US$) 1.9 million

 


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