1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Protective slag is an important auxiliary material in the production of steel continuous casting, which can play an important role in preventing the secondary oxidation of molten steel, insulating and insulation, reducing heat loss of molten steel, and absorbing and dissolving non-metallic inclusions. Wollastonite has the characteristics of low melting point, low viscosity of high temperature melt and good thermal insulation performance, and is well used in continuous casting protective slag. Compared with non-wollastonite slag, the metallurgical protective slag with wollastonite as the base material has stable performance, wide adaptability, strong adsorption and dissolution of inclusions, good process stability, and good metallurgical function, which can improve the production quality and production efficiency of continuous casting. The project uses wollastonite as the basic slag, adds flux and regulator according to a certain proportion, and sends it to the ball mill for grinding, and the obtained powder is regranulated to obtain protective slag.

1.1.2 Market prospect

(1) Analysis of the current situation of the silica lime industry

Wollastonite is a characteristic non-metallic mineral resource, the main component is Ca₃Si₃O₉, which is a single-chain silicate mineral. Due to its needle-like, fibrous crystal morphology, high whiteness and unique physical and chemical properties, wollastonite is widely used in ceramics, paints, coatings, plastics, rubber, metallurgical protective slag, chemical industry, papermaking, welding electrodes, and as asbestos substitutes, abrasive binders, glass and cement ingredients.

Analysis of the development status of wollastonite industry shows that: Since 2017, China's wollastonite imports have remained fluctuating around 4,000 tons, and in 2022, China's wollastonite imports was 3,800 tons, with an import value of 5,116, 100 US dollars; From January to February 2023, China's wollastonite import volume was 400 tons, and the import value was 581,400 US dollars. China is the country with the most abundant wollastonite resources in the world, and its resource reserves are the first in the world. Wollastonite in China is mainly distributed in Liaoning, Jilin, Inner Mongolia, Anhui, Hubei and other provinces, among which Liaoning and Inner Mongolia have a higher yield. In recent years, China's wollastonite production has increased year by year, accounting for a large share of the world's total output. With the rapid development of domestic construction, ceramics, glass and other industries, the market demand for wollastonite in China continues to grow, which promotes the rapid development of the wollastonite industry. It is expected that from 2022 to 2027, China's crude steel output will stabilize at the level of about 100,000 tons, and the amount of protective slag in the molten steel continuous casting production process is 0.4~0.7kg/t, and it can be seen that the demand for protective slag is very large, about 76-1.33 million tons.

(2) Market prospects for silica lime industry

At present, the global wollastonite market continues to grow, benefiting from the development of ceramics, glass, metallurgy and other industries. As the world's largest producer and consumer of wollastonite, China's market demand continues to grow. Wollastonite is mainly used in the construction industry to produce concrete and mortar to improve compressive strength and durability; In the ceramic industry, wollastonite is an important component of ceramic raw materials and glazes, which can improve the hardness and wear resistance of ceramic products; In the glass industry, wollastonite is used in the production of fiberglass and glass products. In addition, wollastonite is widely applied in metallurgy, environmental protection, electronics and other fields.

The wollastonite industry has good market growth prospects in the context of global economic development, industrialization and environmental protection requirements. With the acceleration of global urbanization and the continuous advancement of infrastructure construction, the demand for wollastonite as a building material will continue to grow. At the same time, with the rise of new industries and the progress of science and technology, the application field of wollastonite may continue to expand and innovate, thereby driving the further expansion of the market.

Rich in wollastonite resources, Lishu County is the earliest wollastonite development, production and export base in China, the domestic wollastonite resources are the world's rare natural low iron high-quality wollastonite, has proven reserves of more than 20 million tons. Since the discovery and exploration and mining of wollastonite in Lishu County, it has gone through more than 30 years, during which it has continued to grow and develop, and has become one of the most distinctive industries in Lishu County, and in 2013, the China Non-Metallic Minerals Industry Association officially awarded Lishu County as the “hometown of wollastonite in China”. In 2021, the “Outline of the 14th Five-Year Plan for National Economic and Social Development of Lishu County and the Long-Range Objectives for 2035” clearly stated that it is necessary to give full play to the advantages of Lishu wollastonite resources, improve R&D, production technology, product value, and extend the driving effect of Lishu mineral resources industry; With Dadingshan needle-shaped wollastonite powder as raw material to develop a new material industry chain, the project construction meets the actual needs of the local area, and the market prospect is optimistic.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

In recent years, the local government has vigorously promoted the cultivation of regional characteristic industries, promoted the continuous extension of the wollastonite industry chain, and successively issued a series of policy documents such as the “14th Five-Year Development Plan for the Non-metallic Mineral Industry” and the “Overall Plan for Mineral Resources (2021~2025)” to guide the wollastonite industry to extend to high value-added products such as high aspect ratio wollastonite powder and modified wollastonite powder, as well as downstream industries such as plastics, rubber, and papermaking.

In 2021, the “Outline of the 14th Five-Year Plan for National Economic and Social Development of Lishu County and the Long-Range Objectives for 2035” clearly stated that it is necessary to give full play to the advantages of Lishu wollastonite resources, improve R&D, production technology, product value, and extend the driving effect of Lishu mineral resources industry; Dadingshan needle-shaped wollastonite powder is used as raw material to develop a new material industry chain.

(2) Talent advantages

Xinkai District cooperated with Changchun Institute of Applied Chemistry, Chinese Academy of Sciences, to set up a science and technology innovation center platform, established a cooperation with the National Technology Achievement Transfer Center of Xi'an Jiaotong University to set up the Siping Branch Center of Xi'an Jiaotong University, and established a Siping Research Branch with Dalian Institute of Chemical Physics; It has unique advantages in promoting the research and development of new chemical materials and the transformation of achievements. Changchun Institute of Applied Chemistry, Chinese Academy of Sciences, Xi'an Jiaotong University, Dalian Institute of Chemical Physics, Jilin University, Harbin Institute of Technology, Dalian Institute of Technology, Northeast Normal University, Jilin Institute of Chemical Technology and other scientific research institutes and universities have provided talents and scientific and technological support for enterprises; At the same time, it can also provide scientific and technological services, technology transfer, achievement transformation, fund introduction and consulting services for enterprises in the park. Siping Vocational College, Jilin Engineering Vocational College and Lishu Vocational High School and many other colleges and universities provide employment security.

(3) Location and transportation advantages

Siping is the core of the entire Northeast Asia region and is the city with the shortest transportation radius. Overlooking the 17.28 million square kilometers of Northeast Asia, the geometric center point is in Siping, reaching the Bohai Economic Circle in the south, Russia in the north, the Korean Peninsula in the east, and Mongolia in the west. Siping is located at the junction of Liaoning, Jilin and Inner Mongolia provinces, in the center of the Northeast Automobile Industry Belt, with access to Heilongjiang, Jilin, Liaoning and Inner Mongolia Eastern Four Leagues. It is the nearest city and the only way for Jilin, Heilongjiang and eastern Inner Mongolia to lead to the coastal ports and the Bohai Economic Circle, with a land area of 1.24 million square kilometers, accounting for 12.9% of the total land area in China, and a total population of 107 million. With convenient transportation extending in all directions and crossing railway and highway network, Siping is an important node city on the Harbin-Dalian traffic artery; Beijing-Harbin Railway, Harbin-Dalian High-speed Railway, Harbin-Sanya Expressway, Changchun-Shenzhen Expressway, Daqing-Guangzhou Expressway, National Highway 102 and so on intersect in Siping.

Xinkai District is located on the first-level development axis of Harbin-Dalian in the revitalization of Northeast China. It is 80 kilometers away from Changchun, 120 kilometers away from Longjia International Airport, 190 kilometers away from Shenyang, 230 kilometers away from Taoxian International Airport, 380 kilometers away from Yingkou Port and 580 kilometers away from Dalian Port. Several major transportation arteries in Northeast China, such as Beijing-Harbin Railway, Harbin-Dalian High-speed Railway, 102 National Highway, Ji'an-Shuangliao Expressway, Harbin-Dalian Expressway and Ji'an-Xilinhot Expressway, all pass through the area, and there are 2 railway stations, 8 special railway lines and 3 expressways. Siping Station is one of the 18 freight marshalling stations of the national railway, an important transportation hub in Northeast China, providing very convenient transportation for the import of raw materials and the output of products.

(4) Industrial advantages

Siping has a strong industrial foundation. After years of development, it has formed a complete industrial system with intensive and fine processing of green agricultural products and mechanical processing and manufacturing as the leading industries, energy, metallurgy, chemical industry, building materials, medicine, light industry and electronics as the advantageous industries, and high-tech and modern logistics as emerging industries. There are more than 40 industries and more than 250 kinds of high-quality products above the provincial level. The products that occupy an important position in China include heat exchangers, combine harvesters, special vehicles, wheel loaders, blowers, tungsten and molybdenum products, polycrystalline silicon solar thin-film batteries, chlor-alkali, glass, cigarettes, beer, etc. Siping has developed rapidly in characteristic industries, forming ten characteristic industrial parks, including mobile machinery, heat exchangers, agricultural products and food processing, animal products processing, photovoltaic industry, auto parts, chemical industry, building materials, medicine, and modern service industry. Give full play to industrial advantages, and vigorously promote the construction of “four bases” of modern equipment manufacturing, new energy, pharmaceutical and chemical industry, and agricultural science and technology demonstration in Jilin Province.

Lishu County, Siping City, has obvious industrial advantages. With the national (food) agricultural and livestock products processing new industrialization industry demonstration base, the provincial building materials industrial park and Jinshan gas field as the platform, the county has initially formed four pillar industries of food, building materials, energy and service industry, of which the annual production capacity of alcohol has reached 350,000 tons, and the annual processing capacity of cement has reached 4.8 million tons. A number of high-quality products represented by Xintianlong alcohol and Dingshan cement are well-known in the domestic market.

(5) Resource advantages

Lishu County is the earliest wollastonite development, production and export base in China, and is known as the “hometown of wollastonite in China”. It has been more than 30 years since its discovery and exploration, and wollastonite has become one of the most distinctive industries in Lishu County. Wollastonite resources are abundant. It is China's earliest wollastonite development, production and export base, and its domestic wollastonite resources are the world's rare natural low iron high-quality wollastonite. It has proven reserves of more than 20 million tons, in the forefront of the world. Lishu is rich in natural resources. There are reserves of metallic, non-metallic and energy minerals in the territory. There are 36 kinds of proven minerals such as gold, silver, copper, iron, lead, zinc, limestone, wollastonite, marble, granite, etc., and more than 100 minerals. The limestone reserves are more than 250 million tons, and the bentonite reserves are more than 50 million tons, which are of great mining value; Natural gas reserves are more than 75 billion cubic meters, and the recoverable capacity is 50 billion cubic meters.

1.2 Contents and scale of project construction

1.2.1 Scale of Construction

An annual output of 300,000 tons of metallurgical protective slag, including: 200,000 tons of wollastonite protective slag, 60,000 tons of calcium aluminate, and 40,000 tons of calcium ferrite.

1.2.2 Contents of Construction

With an area of 10,000 square meters, the project is planned to mainly build production areas, auxiliary production areas and living and office areas. The proposed new production system includes raw material workshop, extrusion workshop, and pelletizing and packaging workshop, the auxiliary production system includes raw material warehouse, finished product warehouse, machine repair workshop, etc., and others include comprehensive office building, inspection and testing room, etc.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of this project is 100 million yuan, including the construction investment of 70 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 60 million yuan, its profit will be 19.8 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 19.8%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The construction of the project is in line with the adjustment of the industrial structure of Jilin Province and the industrial development plan of Siping City, which can promote the sustainable development of local minerals, metallurgical building materials and construction industries, increase local fiscal revenue, provide 50 jobs, and reduce the pressure of social employment. The construction of the project requires a large amount of raw materials and power, which can drive the development of upstream and downstream production enterprises.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways are negotiable.

1.7 Construction site of the project

Siping New Industrialization Economic Development Zone Ecological Chemical Industry Park.

1.8 Progress of the project

The project investment plan has been completed and is attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of Siping New Industrialization Economic Development Zone

Address: Guojiadian Town, Lishu County, Siping City, Jilin Province

2.2 Overview

Jilin Siping New Industrialization Economic Development Zone is a provincial-level economic development zone officially approved by the Jilin Provincial Government on December 7, 2016, and is an important carrier of new industry in Siping City. It is located in the northeast of Siping City, 10 kilometers away from the downtown, with a planned area of 30.71 square kilometers and four parks: The ecological chemical industry park is 12.15 square kilometers, the logistics park is 2.89 square kilometers, the building materials park is 3.91 square kilometers, and the equipment manufacturing and industry-city integration area is 11.76 square kilometers. There are provincial-level characteristic towns of ecological chemical industry in the area. The zoning plan, land use plan, industrial planning, safety assessment and environmental impact assessment of the newly opened area have been approved, the safety risk assessment of the chemical park has been passed, and the safety risk assessment of the chemical park in 2023 was rated as national level D.

2.3 Contact method

Contact unit: Siping New Development Zone Investment and Operation Bureau

Contact Person: Yu Quan

Tel: +86-13844482777

Contact method of the city (prefecture) where the project is located:

Contact unit: Siping Economic Cooperation Bureau

Contact person: Wen Dacheng

Tel: +86-434-3260536

E-mail: spjhjjhk@163.com