Background of the Project: In recent years with the rapid development of the national economy, the demand for steel is increasing year by year. Correspondingly, that for alloy nitride uprises remarkably since nitrogen is required to be admixed in the steel for architecture. So the market for the series of nitride is rather optimistic.

During the period of the tenth five-year, the annual output of alloy nitride of Jilin Ferroalloy Group Company reached 5,000 tons, which, judging from the present market, lags much behind the domestic demand. Under such circumstances and taking the favorable opportunity of rejuvenating the Northeast Old Industrial Base, Jilin Tianchi Port Wine Co. Ltd will finance from various sides to expand the business scope, utilizing the 1,500KVA vacuum electric furnace to produce a series of alloy nitride.

Market Analysis: There are over 1,700 steel enterprises across the country with seven, including Baosteel Group Corporation, Angang Steel Company Limited etc, being able to produce more than three million tons. According to market research, the annual demand of the market for the series of nitride will top 200,000 tons. Thus, the supply of Jilin Ferroalloy Group Company obviously falls far short, though there are two enterprises producing this series of products, but their output is less than 1,500 tons per year. Even if the project being put into production, the annual 24,000 tons of serial nitride products will only guarantee the demand of several large-scale steel enterprises; the market gap remains big. In this way, the project is very prospective. 

Investment Budgetary Estimate: gross investment: 122.20 million Yuan, of which fixed assets are 37.70 million Yuan, land cost 12.50 million Yuan, circulating funds 72.00 million Yuan.

Construction Scale: 24,000 tons/year of serial alloy nitride, such as chromium nitride and manganese nitride.

Economic Benefits Estimation: selling profit: 108.57 million Yuan; after-tax profit: 72.74 million Yuan; tax: 66.43 million Yuan.

Progression of the Project: The project recommendation has been finished.

Mode of Cooperation: investors to be invited.

Contact: Wang Xiaoqin

Tel: 0937-6226160v