Project No.42

    

¢ñ Project introduction

This project is to extend the production of PPR, PE and PVC pipe fittings with the designed output of 6000metric tons per year. The equipment and moulds are all famous brand machines made in China or imported from abroad. The products are in accord with the DIN, ANSI and BS standards.

¢ò Amount and sharing of investment

The total investment need is 11,000,000 US dollars, of which $4,000,000 will be borne by the Chinese partner, and $ 7,000,000 will be provided by the foreign partner.

¢ó Market analysis

The Tenth Five-Year Plan and the 2015 Development Program for the National Chemical and Building material Industries (a state level document) stipulates: According to the current situation of the domestic chemical and building material industries, the production will focus on plastic pipes, doors, windows and building coats during the Tenth five years period. By 2005,plastic pipes will take up 50% or more of the pipe market. In the rebuilt, expanded and newly constructed engineering projects, 70% of the drainage pipe lines, 60% of the water and hot water supply systems, 80% of casing pipes of power wires, 50% of the rain water draining pipes on buildings, 50% of urban running water systems (400mm or smaller by DN standard), 70% of the township water supply systems, 30% of the city drainage networks and 20% of the gas pipe lines, all will be plastic pipes.

By 2015, 85% of the Zinc coated iron pipes for running water, hot water and central heating systems will be replaced by plastic pipes, 80% of the urban water supply systems, 90% of the township water supply networks, 40% of the urban gas pipes and 50% of the urban drainage systems will be of plastic pipes.

The urbanization of our Country will be speeded up during the Tenth Five-Year-plan period, i.e. 1% higher than each former year on the basis of 30.9% in 1999. By 2005, the numbers of cities and towns in our country will reach 710 and 18,800 respectively, which means 35% of urbanized are as of China. For this purpose, the total investment in the fixed assets of city public installations will reach 990 billion RMB, and the total residential building will reach 5.7 billion m^²

all over the country

^{The plastic industry will be great benefited, with the implementation of the stipulations in the document. And this project conforms to the state industrial policies and the long-term program, and its products are of the items popularized by the relative ministries and bureaus of the central government. (Reference to the Tenth Five-Year Plan and 2015 Development Program of the national chemical and Build material Industries) Analysis of the current situation of plastic industry:}

^{In the developed countries the production and installation techniques for plastic pipes and fittings are mature and the products are widely used. The ratio between plastic pipes and pipe accessories is 8:1, but in China the ratio is only 24:1,which proves that there is a great market of these products. Yet the factories which producing pipe fittings are small in scale and produce narrow assortment of goods.}

^{Our factory was set up in 2001 and we have advanced technology and efficient marketing channels. In order to make our factory a leading enterprise in this line in one or two year, we need to invite foreign investment.}

^{Advantages of the project: This project is supported and encouraged by the state policies, and it is a labour-intensive industry which is suitable for low -labour-cost countries.}

^{Sales prospect: The products are bound to have a big market at home, and will be very competitive in the world market as the production cost is much lower because of lower labour cost. The expected saling ratio between home market and overseas market is 6:4.}

^{¢ô Construction conditions}

^{The factory, takes up 1.5 hectares, is located with in the Yanshan University High-tech Garden of the economic and technology Development Zone of QinHuangDao City, which possesses convenient land, air and sea trans port facilities.}

^{¢õ Sources of major materials}

^{The major materials are produced in China, and some special materials are imported form abroad.}

^{¢ö Profit prospect}

^{1. Construction time: 1 year.}

^{2. Sales income: 18,500,000 US dollars per year.}

^{3. profit: 4,500,000 US dollars per year.}

^{¢÷ Present situation of the Chinese partner.}

^{The Yanda Keli Plastic Co. Ltd is an enterprise invested by Yanshan University. The total investment is $1,000,000.The company has 10 injection machines made in Taiwan, mainly producing PVC, PPR and PE valves, which brings excellent profits with the advanced technology and efficient marketing channels.}

^{¢ø Mode of cooperation}

^{Joint venture or contractual cooperative management}

^{¢ù Contact:}

^{Investment Promotion Bureau of QETDZ}

^{Mr. Zhai Yuzhong Li Zhiwei}

^{Telephone:0335-8052614 8052624}

^{Fax:0335-8056974}

^ZP:066004

^{E-mail:zigzag2@hotmail.com}