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An outstanding China opportunity

Manufacturing Project for Top and Middle Grade Wall Bricks

1. Project Content:      

It is to build an assembly line of producing 5 million square meters top and middle grade main-wall bricks per year.    

The technological process:  By adopting domestically advanced technology, its technological process is as follows: raw material from the warehouse-making it into thick liquid-making it into powder-beingshaped-drying-firing-polishing-packing-put into the granary.  

Main equipment:  (1) Three raw material mills of 45 tons each; (2) One 4.2- meter-high desiccating tower;  (3) One 4,200 ton punching machine;  (4) One 2.8m×120m drying kiln;  (5)One 2.8m×180m firing kiln ;  (6) One polishing line(7) One two-step gas furnace     

Market Analysis:  (1) The raw materials:  There are rich resources of potassium feldspar and china clay within a radius of 120 kilometers in the local area, which account for 60% of the total volume of materials, and the cost of is less than 90 RMB per ton, And its fuel can be coal gas or natural gas.  (2) The sales market:  With the implementation of the strategy of building new countryside and developing the central parts in China, there will be a very broad market perspective for top and middle grade decorative materials. The survey shows that the varied wall bricks are used more than 150 million square meters per year in Hubei Province, and the total productive forces of 25 production enterprises of wall brick in Hubei is about 75 million square meters per year. Within the transporting radius of 400 kilometers, which includes the most areas of Hubei, Henan, Hunan, Shannxi, with some large and middle cities such as Wuhan, Zhengzhou, Luoyang, Pingdingshan, Xiangfan, Shiyan, Yueyang, their consumption of such building materials is estimated to be about 300 million square meters.Therefore the contradiction between supply and demand is very prominent, with the shortage is met by products from Guangdong and Shandong, etc. But with the strategy of rectifying overloading in road transportation, the local advantages become very obvious.

2. Investment estimation and financial scheme:  The total estimated investment is  USD 4.37 million, with USD 31.2 million for the fixed assets, and USD 12.5 million for circulation. The foreign enterprises will invest in the form of cash and equipment, and we will provide the construction land and auxiliary projects of the infrastructure.

3. Economic the Social Benefits:    The building period is be one year. After put into operation, it can product 50 million square meters top and middle wall bricks per year, and the output value per year is USD 13.75 million, and the annual sales income is more than USD 12.5 million, the profit of which is USD 7.5 million, and the payback period is 6.8 years (including one year building), and the annual rate of profits is 17.14%.  

4. General Information of the Project Unit:   Gucheng Pottery Industrial Park has planned the land of more than 400 mu for use. And at present there are two pottery industrial enterprises settled in the park, The infrastructure facilities, including the supply of water, electricity, and road etc., are basically available.

5. Current Status:  It will be backed by the former Gucheng Pottery factory for construction. The foreign investor will become the project legal person to take charge of its construction and management.

6. Cooperation Form:  Sole investment by foreign enterprise as the dominant selection, joint venture and cooperation are also acceptable.

7. Contact:    Contact Person: Tang Youjun        Tel:    0710-7889328           Postcode: 441700                          Add: 98, Fenyang Road, Pottery Industrial Park, Gucheng City, Hubei Province, China                          Contact Person: Guo Dequan    Tel: 0710-7233880

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