Organosilicone New Material Industrial Park Project in Zhanyi District, Qujing

Project Name

曲靖沾益区有机硅新材料产业园项目

Organosilicone New Material Industrial Park Project in Zhanyi District, Qujing

Project

Industry

New Material Industry

Project Site

In the original factory area of Yunwei Group, northeast of Huashan Subdistrict, Zhanyi Industrial Park

Project Overview

The project will rely on the existing 400,000 t organic silicon project of the park, and make full use of the synthesis and production raw materials of organic silicon, like methanol, chemical-grade industrial silicon, hydrochloric acid, copper powder, potassium hydroxide, concentrated sulfuric acid, silica, steam (coal), coke oven gas, hydrogen, nitrogen, electricity, water, and natural gas. The project is aimed at building an organic silicone new material industry park, establishing a production area of organic silicone downstream products, introducing production lines of organic silicone downstream products, perfecting the silicon industrial chain, and building industry clusters of circular economy to realize green development.

Project Construction Content

Construction Scale: construction of administrative office buildings, scientific research centers, standardized workshops, quality inspection centers, warehousing and logistics centers and other supporting infrastructure; introduction of organic silicone production lines for producing more than 10 products including siloxane, 107 glue, 110 glue, silicone sealant, rubber compound, simethicone, hydrosilicone oil, and high-boiling silicone oil.

Construction Duration: 2 years.

Land Area: 1,760 mu.

Supporting Conditions

1. Project Advantages and Opportunities:

Zhanyi is located in the ASEAN "10+1" free trade economic circle, the Greater Mekong 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:

The park has complete water, power and gas supply facilities, which can meet the project needs for a long time. The water resources are abundant, with the annual total water supply capacity up to 284 million m³. The two medium-sized reservoirs respectively in Huashan and Bailang can supply 46 million m³ per year to this planned project. There are now 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.

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.

Upstream enterprises of the industry converge to effectively guarantee the supply of raw materials. Numerous chemical enterprises are planned for the park, some of which will effectively supply silica powder, methanol, hydrogen chloride and other raw materials of organic silicon products.

There are well-established supporting facilities. Education guarantee: Minor children of introduced corporate executives and talent can be given priority in public school attendance in the area under jurisdiction. Housing security: In the Xihe Park area, the average land price is about RMB 1 million/mu, and the average house price is about RMB 4,334/m². Medical service guarantee: There are 5 Grade 3 Class A hospitals, 3 Grade 2 Class A hospitals and 2 Grade 1 Class A hospitals in the main urban area. The employees of the introduced enterprises can enjoy the same treatment as permanent residents of Zhanyi District. Financing platform: Qujing City has 2 financing platforms: Qujing Development Investment Co., Ltd. (registered capital: RMB 1 billion); Qujing Transportation Construction Investment Group (registered capital: RMB 1 billion).

3. Early Preparations:

A organic silicone project (400,000 t/year) of Yunnan Provincial Energy Investment Group has been introduced nearby, which is currently under Phase I construction. This project is located in the original factory area of Yunwei Group Co., Ltd., so it can activate the existing idle land and public auxiliary projects, convenient railway logistics conditions, chemical equipment manufacturing capacity and supporting public works such as water supply, power supply, gas supply, heat supply and waste treatment.

Investment Estimate and Fund Raising

Investment estimate: RMB 8.6 billion.

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

Preferential Policies Applicable

Support Policies for Investment Attraction in Zhanyi District, Qujing City (for Trial Implementation) (ZBT [2018] No.73); "one discussion on a specific issue" system; financial support policies.

Market Prediction (Analysis)

According to relevant statistics, the global demand for organic silicone products is expected to be about 3.046 million tons in 2021, with an average annual growth rate of about 5.6%. Among others, the global demand for silicone rubber will be about 1.818 million tons, the global demand for silicone oil about 1.111 million tons, and the global demand for silicone resin about 116,000 t. Organic silicone is demonstrating its superior performance and playing a role in more and more fields. The consumption demand for organic silicone by emerging application fields like new materials, biomedical, new energy, high-end equipment manufacturing, and daily necessities keeps growing at a high rate. Asia has huge demand for organic silicone, with an average annual growth rate of 10%-15%. Asian emerging countries have low per capita GDP, and there is still a big gap from developed countries in per capita organic silicone consumption, which means a huge market potential of organic silicone.

Profit Model and Preliminary Benefit Analysis

The completed project will gain benefits mainly through sales of organic silicone downstream products, with an expected main business income of RMB 5 billion in the initial period, a return on investment up to 14.43%, and an investment payback period of about 7 years (excluding the construction duration).

Risk Analysis

Investment in the project may face technical risks and market risks. Advanced production management ideas, cutting-edge manufacturing technologies and a sound quality assurance system can be adopted to make products domestically and internationally competitive. Other measures include increasing investment in research and development, ramping up the research and development of new products, taking full advantage of high cost performance to expand the market, and establishing long-term cooperative relations with other enterprises.

Cooperation Pattern

ABO cooperation; government+enterprises+capital providers= a new cooperation mode.

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