Comprehensive Development and Construction Project of Circular Economy of Coal Chemical Industry in Qujing

Project Name

曲靖煤化工循环经济综合开发建设项目

Comprehensive Development and Construction Project of Circular Economy of Coal Chemical Industry in Qujing

Project

Industry

New Material Industry

Project Site

On the northeast side of a 2 million-ton coking plant, Huashan Subdistrict, Zhanyi Industrial Park

Project Overview

The fine chemical industry park is an upgrade of an old industrial park, and a park in park. The planning is based on the basic chemical industry + fine chemical industry + supporting industries. The existing petrochemical, coal chemical, phosphate chemical and salt chemical infrastructure and parks near Zhanyi are relied on to transform and upgrade the chemical industry. In the principle of phased construction, four industrial chain including coal-based petrochemical products, alternative fuels, high-end petrochemical products, and coal-derived chemical fertilizers with a comprehensive production capacity of 16.295 million tons will be established. The project will focus on developing fine chemical industries such as coatings, pesticides, bulk pharmaceutical chemicals, pharmaceutical intermediates, and biochemical products, make full use of the downstream products of the coal chemical industry, implement investment attraction for the industrial chain extension, supplementation or strengthening, and form a new complementary, highly coupled, associated and aggregated, circular and efficient fine chemical industrial system, to develop the park into an international well-known, domestic leading and provincial benchmarking fine chemical industry park.

Project Construction Content

Construction Scale: Integrated office building, fine chemical products research and development center, coal-based petrochemical products production area, alternative fuel production area, high-end petrochemical production area, coal chemical fertilizer production area, downstream application production area, stockyard and other basic production and living facilities.

Construction Duration: 3 years.

Land Area: 1,787 mu.

Supporting Conditions

1. Project Advantages and Opportunities:

Zhanyi is located in the ASEAN "10+1" free trade economic circle, the Greater Mekong sub-regional economic cooperation circle, the "Pan-Pearl River Delta" economic cooperation circle as well as the north-south international thoroughfare, the intersection zone of the third Eurasian Continental Bridge in the southeast direction, Chengdu-Chongqing Economic Circle, the radiation area of Guangxi Beibu Gulf and Central Yunnan Urban Economic Circle.

Railway: Shanghai-Kunming High-speed Railway, Guiyang-Kunming Railway, Panxi Railway.

Road: National Highways 320 and 326 run across the territory; Shanghai-Kunming Expressway (Qujing-Shengjingguan Expressway), Xuantian First-class Highway, Hangzhou-Ruili Expressway (Xuanwei-Qujing Expressway) and other highways join in the county.

Airport: 137.8 km from Changshui Airport, about a two hours’ drive.

2. Associated Industries:

There are rich mineral resources to ensure the supply of raw materials. Qujing City has coal reserves of 14.4 billion tons, with an annual output of 30-40 million tons (after transformation and upgrading, it can reach 80 million tons). There are more than 10 kinds of mineral resources in Zhanyi District, such as phosphorus, limestone, coal, dolomite, refractory clay and building clay. To be specific, its reserves of phosphorus ores reach 570 million tons, reserves of limestone more than trillion t, geological reserves of coal 160 million tons, and reserves of dolomite and clay respectively over 10 million m³, with high development and utilization value; renewable ore resources, like coal ash, are relatively abundant.

The county’s coal industry is developed enough to meet the production needs of enterprises. The park’s coking sector annually produces 4 million tons of cokes, 200,000 t of coal tar, 120,000 t of crude benzene, 100,000 t of carbon black, 50,000 t of maleic anhydride and 600,000 t of methanol; its coal gasification sector annually produces 740,000 t of synthetic ammonia, 700,000 t of urea, respectively 200,000 t of sodium carbonate and ammonium chloride.

The park’s advanced talent training mechanism can provide high-quality technical personnel and management personnel for enterprises. Qujing City is an old industrial base of Yunnan Province. Only the large- and medium-sized enterprises in Zhanyi Industrial Park, like Yunwei Group, Qujing Energy Co., Ltd., Qujing Aluminum Industry, have cumulatively trained more than 4,000 enterprise managers and more than 10,000 engineering technicians and skilled workers. In addition, Qujing City has a variety of higher vocational colleges, which can provide sufficient technical and management personnel for enterprises.

The road, water supply and drainage, power supply and distribution, gas supply and other pipe networks have been completed in Huashan Subdistrict. Two medium-sized reservoirs, namely Huashan and Bailang, have been completed, with an annual total water supply capacity of 284 million m³. There are 3 high-power substations, which can bear a load of 343,400 kW. The No. 29 valve chamber pipeline of Zhaotong branch line of Sino-Myanmar oil pipeline has been laid in the park, with a designed gas supply capacity of 12 billion m³/year and an actual annual gas supply of 7 billion m³/year. The park has a special natural gas transmission and distribution station, an emergency reserve center and a supporting pipe network.

3. Early Preparations:

The project’s feasibility study report has been completed. The total planning area of the park is 3,000 mu, with 1213 mu developed in Phase I. KMYF BIO, Qujing Changyi United Technologies Co., Ltd., and Qujing Diansong Coatings Co., Ltd. are to be introduced. At present, land leveling and other related preliminary construction work are carried out.

Investment Estimate and Fund Raising

Investment Estimate: RMB 4.8 billion.

Fund Raising: Self-raised by enterprises, financing, government investment.

Preferential Policies Applicable

In addition to relevant national, provincial and municipal preferential policies, the project can also benefit from the Support Policies for Investment Attraction in Zhanyi District, Qujing City (for Trial Implementation) (ZBT [2018] No.73); "one discussion on a specific issue", financial support policies and so on.

Market Prediction (Analysis)

Since fine chemicals can hardly be substituted, its application scope is expanding, and the rapid development of the fine chemical industry has become an inevitable trend of the chemical industry. In the past ten years, China has attached importance to the development of the fine chemical industry by listing fine chemistry industry as one of the strategic priorities of chemical industrial development and including it into a number of national development plans. With given preferential policy and financial support, the fine chemical industry will achieve leapfrog development. With the steady growth of China's economy, the deepening of industrialization and information process, the adjustment and upgrading of industrial structure, and especially the great importance attached by the state to the fine chemical industry, China’s fine chemical industry will usher in good opportunities and broad space in the future.

Profit Model and Preliminary Benefit Analysis

The completed project will gain benefits through sales of fine chemicals, technology transfer and other means, with an expected annual production of 16.295 million tons and a sales output value of about RMB 3 billion. The return on investment will be about 17.33%, and the investment payback period about 6 years.

Risk Analysis

The project may face certain risks in terms of construction, market, interest rate (exchange rate) and operation, so possible preventive measures should be formulated.

Cooperation Pattern

Joint venture, sole proprietorship or other patterns.

Contact Information

Contact Authority: Investment Promotion Bureau of Zhanyi District, Qujing City

Contact Person: Gu Zhengxing (Secretary of the Party Group); Dong Biao (Director)

Tel.: 13987179550, 13887489826