Project name

Polyurethane (PU) Resin

Cooperation form

Equity JV or contractual JV

Project description

Production scheme
Construction plan
Market analysis
Operation scale
Sales forecast

   Project scale: 100,000 t/a PU resins for shoe sole and artificial leather.
   PU shoe soles are characterized by light weight, wear resistance, heat insulation and comfort of wearing. It is an ideal material of today for producing all kinds of shoe soles. Currently, PU resin has a huge market demand and yields high economic return. 6% of shoe soles in the world are made of PU resin, while the percentage is only 3.7% in China. It is predicated the demand for PU for shoe soles will reach 180,000 ton in 2010. The PU leather is widely used in suitcases, bags, shoe uppers and auto upholsteries. In fact, the high-grade PU leather is an important fabric that is gradually replacing the genuine leather world wide. Currently , the domestic output of PU leather and PU agent stands at 125,000 ton a year, and the demand is predicted at RMB 350,000 ton by 2010.
    Backed by the 160,000t/a MDI project of Yantai Wanhua in Daxie Development Zone as well as the favorable geographical and transportation conditions, the PU project has the obvious advantages.
   Annual sales income is forecasted at RMB 140 million and annual profit at RMB 80 million.   

Equipment import & material supply

   To be discussed.

Investment estimate & cost efficiency

Total investment

USD30 million

Registered capital

USD12 million

Annual sales

RMB1.4 billion

Anticipated means of investment from foreign partner

Annual profit

RMB80 million

Foreign exchange

Technology

Equipment

Brand name

Others

Internal return rate

28.4%

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Payback period

2.4 yrs

Basic facts of Chinese partner (ownership, total and fixed assets, current products and sales, current equipment and technology, support facility, etc.)

   Yantai Wanhua PU Co., Ltd. is a listed company mainly engaged in the research, development and production of isocyanate and its derivatives. It is the only domestic producer of MDI. Incorporated in 1998, the company has fixed assets of RMB 450 million and registered capital of RMB 384 million. In view of the advantages of Daxie Development Zone in location, port facility and investment environment, Yantai Wanhua has launched it MDI project in the Zone, which is expected to be completed by end 2005.

Project location & geographic advantage

   The project is located in Daxie Development Zone, a State-level development zone featuring petrochemical industry, port warehousing and so on. The Zone is about 40km from Ningbo city proper. After ten years of construction and development, the Zone has developed complete infrastructure and convenient transportations as well as the cargo collection and distribution network featuring marine transportation. The Zone encourages PU related products and will offer various preferential policies to them.   

Project status quo

   At marketing stage

Project data available

Investment promotion material

Organization to contact

Economic Development Bureau of Daxie Development Zone

Person to contact

Yan Pingbo

Address

Daxie Development Zone, Ningbo

Postcode

315812

Telephone

0086-574-87768969

Fax

0086-574-86768433

E-mail

yanpb@citic-daxie.com 

Website

www.citic-daxie.com