10000t/a nano Magnesium Hydroxide Flame Retardant

I、General introduction of Chinese enterprise

(I)Current status of the enterprise

1、Business name: Dahua Group Ltd.

2、Establishment date:1933

3、System of ownership:A limited company with the State as the majority

shareholder

4、Staffs and workers:16,000

5、Technical Personnel: 3100 professionals with 430 holding senior technical titles, 1060 holding middle technical titles.

6、Business Scope:Inorganic chemical products, as soda ash, ammonium chloride etc.

7、Business address:10 Gongxing Road Ganjingzi Dis., Dalian, PRC

8、Legal representative:Mr. Xing Xuepu

9、Current equipment: Plants of soda ash,ammonium chloride, NPK compound fertilizers, synthetic ammonia,sulfuric acid, ammonium nitrate and so on.

10、Net asset:RMB 2.9 billion

11、Rate of credit:Class AAA

(II) Analysis of the related historical data:

1 General trend analysis of the total amount of assets and fixed assets in the past 5~10 years by graphics and words;

Trends of the total amount of fixed assets and assets

Trends of the total amount of fixed assets and assets are steadily increased in recent years.

2 General trend analysis of the total amount of sales revenue and profit & tax in the past 5~10 years by graphics and words;

Trends of total amount of sales revenue and profit &tax

Trends of the total amount of sales revenue and profit & tax are steadily increased recent years.

(III) Introduction of main products

1、Varieties and scale of main products:Soda ash 800,000 t/y, fertilizers 800,000t/y, ammonia 300,000t/y, salt 900,000t/y, paints 15000t/y.

2、The technology level of the main product: Main products such as soda ash and ammonium chloride produced by dual process. Both Gonglian Brand soda ash light and Gonglian Brand NPK fertilizer are Liaoning provincial famous brand products, up to the standard of GB210-92、GB15063-2001.

3 Shares of the main products in domestic and overseas market and sales areas:Products have been sold to more than 10 provinces and cities in China and established trade relationship with more than 80 countries.

II Content of the prospected project

(I)General Introduction of the prospected project

1 Name of the project: 10000t/a nano Magnesium Hydroxide Flame Retardant

2 Prospected total investment: total investment RMB 50million

3 The main conditions provided by Chinese establishment: technology, plant building and utilities facilities, 50% of the total investment.

4 The main conditions provided by foreign establishment: the product’s application technology and fund, 50% of the total investment.

5The prospected technology and equipment: nonavailable

(II)Selection of the plant site and its basis

1The prospected plant site and its areas: leasing land 10000 square meters, plant building 2700 square meters in Dahua’s plant site

2 Transportation condition: Dahua Group is 15km away from Dalian Harbor, 6km away from Dalian Zhoushuizi International Airport, and 12km away from the entrance of Shenyang-Dalian Expressway, with the railway inside the plant site connected with Harbin-Dalian Railway Line.

3 Supply of water: Has a water supply pipe network for 40,000t/d fresh water and 1 million t/d sea water, sewage treatment 7 million t/a.

4 Supply of heat: Has a distributed steam pipe network to supply heat for area plant, with an annual capacity reaching 12 million GJ.

5 Communication :We can utilize all of the convenient telephone switching system available in the group.

6 Storage capacity: 800tons,15 days of operating cycle.

7 Supply of gas: provided by the steam pipe network of Dahua Group.

8 R&D: there are 58 staffs and workers in the company, among which 33 of them are technicians including 2 doctor degrees, 1 master degree. The company has invited 6 professors and doctors from universities to supervise the company’s technical development. The R&D researcher in the company amounts to 26.3% of the total staffs.

We have R&D center and established a R&D center of inorganic functional materials as well.

9 Natural environment: located in Dahua Group plant site, suitable to chemical production

(III) Program of production:

1 Name and scale of the prospected products: 5500t/a nano magnesium hydroxide fire retardant, 3500t/a nano aluminium-magnesium stratiform functional material, 1000t/a compound functional material

2 Plant scale and construction period: 10,000 t/a, construction period 1 year

3 Resources of the project and supply of the materials: The raw materials using in the project as magnesium chloride and caustic soda can easily be obtained locally, and enough for production.

4 Process of production:

brine

nucleation

precipitator solution

filtration and scrubbing dynamic

crystallization

performance modification dynamic drying retardant

5 Measures of environment protection: Our process meets the standards’ requirements for dust and ventilation. There is no strong noise, and “the three wastes” is invisible during the production. The byproduct of sodium chloride was used as material to produce soda ash. The process meets the requirements of the Design Standard of Industrial Hygiene and is so called “clean production”.

6 The prospected technology and standard: our product is a kind of new material, thus there is no ready technical standard to apply. We’ll try to make a standard as a uniform standard according to relative ISO and GB within 2 years.

(IV)Market forecast:

1 The adopted standard, market condition and development trend in the industry: This inorganic flame retardant is a kind of new materials and there is no ready-made technical standard to apply . The consumption of the retarding agent in 1999 was about 1 million tons, including 20% inorganic flame retarding agent, while 60% of them in developed countries. It is estimated there will be over 1.5 million tons of this retarding agent be produced, especially demands for halogen-free flame retardant in several sectors will up to 80,000 tons. That’s meaning a bright future market for this product.

2 Rival advantages of the product in domestic and overseas market: There is no manufactures in China who produce this product at present. Using magnesium chloride, a kind of the ocean resources, as the raw material, it is good project for environment protectioon. The rival advantages are obvious replacing the traditional product with our new product. It is a product that is encouraged by our government.

3 Shares and development forecast after completion: At present the products used in special cable sector has been developed, its quality has been up to international advanced level. We are considering sell it to foreign countries such as Japan, Korea and America.

(V)Benefit appraisal

1、Investment: total investment RMB50 million, including fixed assets RMB 45 million and circulating fund RMB5 million.

2、Analysis of cost: due to self-provided material and advanced technology, cost of this product will be lower than other similar product

3、Proposition of the profit distribution: by shareholds

4、Estimation of tax: RMB18 million

5、Analysis of economic benefits: return ratio of investment 79.%, profit ratio of sales before tax63%, profit ratio of sales after tax56% recovery of investment 3 years.

6、Analysis of profit-loss balance: This project will reach to its profit-loss balance if it finish 38% of its design capacity.

III General conclusion: Dalian Fuzhouwan Salt Works has an annual output of 900,000 tons for salt and about 30,000 tons for magnesium chloride. It is advantageous using the available raw materials to develop flame retarding materials and products of magnesium salt series with high additional values. Dahua Group abounds in the production experiences and specialized advantages in the production of inorganic chemical products.

IV Contact method:

Contact unit:Development Department, Dahua Group Ltd.

Contact person:Qu Mingli

Tel: 6676560 6786438

Fax:6799007

E-MAIL: