Project on Producing 2.5 million square meters/year of Ceramic Fiber Composite Fireproofing and Heat Preservation Light Wall Material with Gangue of Datong Special Fireproof Materials Co., Ltd.

I. A Survey of the Project
i. Construction scale and content: to produce 2.5 million square meters/year of ceramic fiber composite fireproofing and heat preservation light wall material; product design: the material is made up of punching sheared high-strength color-coated steel plates agglutinated with the fireproofing aluminum silicate (porcelain) after being sprinkled with glue, solidified, and heat-treated.  
ii. Construction conditions, raw and auxiliary materials and public facilities: the main raw and auxiliary materials are all general industry materials that can be conveniently bought in Datong or surrounding areas. Public facilities such as the water supply station, and the transformer and switch room all guarantee a sufficient supply.  　
iii. Site selection, regional conditions and land occupied: the construction site, occupying a land of 133,340 square meters (200 mu), will be in the Longquan Industrial Park. The district is very flat with no adverse engineering geologic phenomena, and with convenient traffic conditions.
iv. Techniques and pattern selection of major equipment: the project is to produce wall materials on basis of deep processing of porcelain (aluminum silicate) refractory fiber products developed by the Research Institute of Mineral Resources of China Academy of Geological Sciences in view of the kaolinite gangue unique to Datong area. The production techniques are mature: equipment complexes, with high extent of automation and advanced properties, have been developed at home concerning porcelain refractory fiber material and light boards.  
v. Construction period: 1.5 years.
vi. Gross investment and economic benefits: the gross investment will be 105.75 million Yuan (12.8 million US dollars), including 97.359 million Yuan of fixed asset investment, and 8.391 million of initial working capital. The normal annual sales income will be 200 to 230 million Yuan; the sales profit rate around 18~21%; investment profit margin about 22.4%; rate of profit and tax to investment 28.8%; the investment payback period will be 4.8 years (including 1.5 years’ construction period); break-even point 45.7%.

II. Mode of Cooperation
Becoming a shareholder by inputing in the form of currency or equipment; the stock ownership may be controlled by the foreign side.

III. Brief Introduction to the Project Undertaker
Founded in 1997 and located in Yanggao County, Datong City, Shanxi Province, Datong Special Fireproof Materials Co., Ltd. is a joint-stock enterprise controlled by private funds. The legal person is Guo Rishun; and the registered capital is 11.46 million Yuan. 71.47% of the total share capital is held by private funds in the form of capital in cash, and 19.8% and 8.73% are respectively held by the Research Institute of Mineral Resources of China Academy of Geological Sciences in the form of technology and by Shanxi Economic Construction and Investment Company in the form of capital in cash. Presently the company has a headcount of 81, of which 12 hold a medium-grade professional title and 5 are senior technologists.
And now the company can produce 2000 tons/year of aluminum silicate ceramic fiber material and products, which can be divided into five general categories and 27 different kinds, such as cellucotton, tapeta fibrosum, fibrofelts, fiberboards and other odd shaped items etc.
The total assets reache 28.22 million Yuan (8.84 million of circulating funds, 14.53 million of net fixed assets, and 4.85 million of immaterial assets). The liabilities and owner's equity total 28.22 million Yuan (4.19 million of current liabilities, 10.95 million of long-term liabilities, and 13.08 million of owner's equity). The estimated sales income will be 12 million Yuan; profits one million Yuan.

IV. Contact Details
Project principal: Guo Rishun Tel: 0352-6651246 Fax: 0352-6652131
Contact person: Wang Yuanzhong Tel: 0352-6651244 Fax: 0352-6651247
Address: No. 346, Xinjian Road, Yanggao County, Shanxi Province
Zip code: 038100
E-mail: DTYGTN@public.dt.sx.cn