Important remarks
William Jefferson "Bill" Clinton (The former President of the United States)
Annual 3,000 Tons Continuous Basalt Fiber and Derived Products Project


I. Project Background

The fundamental way to solve the increasing demand for human society resources is to develop new resources. The continuous basalt fiber is a new material with extremely strong vitality emerged in modern technology development and the 4th high-tech fiber after carbon fiber, aramid fiber and ultra high molecular weight polyethylene fiber with the name of green industry raw material of 21st century.

   Continuous Basalt Fiber (CBF) is made from raw quarried basalt rock melting to about 1450 to1500. The molten rock is then extruded through platinum-rhodium alloy nozzles to produce continuous filaments of basalt fiber. CBF is a green and natural fiber, which has high elastic modulus, shear strength and elasticity modulus. It has the advantages of resistance to ultraviolet, acids, alkalis, breaking elongation, heat and low temperature, good heat, electric and sound insulation, low hygroscopic rate and good wave-transparent and wave-absorbing performances.

   It is expected that the CBF has great potential application in national defense and peoples livelihood because of its excellent properties, inexpensive price, abundant raw materials, no pollution and poisoning. CBF has more superior performance than glass fiber and cheaper price than carbon fiber and can be made into various composites. It has been the substitute of glass fiber, steel, aluminum alloy and carbon fiber with unique application prospect.

   The common basalt fiber products are woven roving, textile yarn, chopped strand, bulk yarn, cloth, carpet and composite of basalt fiber.

   It is widely used as materials of reinforcing, fire-insulation, sound absorbing, electrical insulation, filtering, dampness resistance, seepage resistance, anti-radiation and anti-ultraviolet in aerospace, national defense, military industry, ship and automobile manufacture, civil construction, road and bridge, electricity oil and other sectors.

   Golden touch is a vivid evaluation in manufacturing technology characteristics and applied value of CBF. Being a typical new green material of low investment, high production, low energy consumption, less emission, sustainable development, conserved resource and friendly environment, CBF has been listed as one of the four high-tech fiber of preferential development in Outline of National Program for Long and Medium Term Science and Technology Development and the 11th Five-Year Plan for National Economic and social Development. It is a product included in the Category of Technology Encouraged to Introduced and one of the high-tech fibers encouraged to develop by Textile Industry Adjusting and Revitalizing Plan and Investment Direction of Technology upgrading and transformation of Textile Industry.

II. Construction Scale and Production Plan

Land acquisition: 75,000m2, factory and auxiliary buildings: 18,800m2

Introduction of foreign advanced equipments and purchase of domestic supplementary equipments: 1042 units (sets)

This project uses a Russian patent technology to construct a production line of CBF and its products, forming an annual production scale of 3,000 tons of CBF and its products.

III. Market Analysis and Economic Benefit Forecast

The raw materials of this project originate in the abundant and high-quality basalt mineral resources of Changbai County. Basalt is a kind of natural lava with abundant quantity and low price. It is used as gravel for paving streets, fillings for railway and roadbed and cement packing materials until the occurrence of basalt fiber production technology. CBF production is a golden touch technology, which greatly improves the exploitation potential of basalt rock.

Basalt rock itself is nontoxic and dont respond with other substances to generate toxicants. It is also weakly radioactive within safe limits. The produced CBF not only has superior performance but also is widely used. It is not sticky and wont be stuck to any harmful substances to human body. In the production process of CBF, this no emissions other than produce certain noises and dust in shattering rocks, which generally takes place in sparsely populated region and no causes pollution to the city. The wide use of CBF can partially replace the glass fiber, which causes more pollution, reducing indirectly environmental pollution.

Basalt rock is low-priced and costs usually 250 Yuan. CBF and its products are valued at between 50,000 and 100,000 Yuan, which brings a wealth of profit. The investigation and production of CBF and its products in is still at the initial stage both at home and abroad with a large market share and boundless prospects. The financial appraisal index also revealed good economic benefits.

This project enriches and develops the varieties of domestic fiber of superior performance, which helps meet the need of national defense and peoples livelihood in high performance materials and promotes greatly the investigation and application of CBF in China. It uses effectively the local basalt resources of Changbai County, optimizes the industrial structure of old industrial base, improves the regional economic development, increases the taxation and creates employment posts, adapting to the strategic layout of sustainable and favorable development of the group.

This project can take full advantage of the abundant basal mineral resources of Changbai County to produce CBF with high added value. It will not only promote the local regional economic development, but also provide 1200 jobs. In addition, basalt fiber is green natural fiber and the production doesnt generate pollution. The construction and operation of the project will benefit our country, society and every citizen. It has high acceptability and social adaptability in Changbai County

IV. Total Project Investment and Financing Arrangement

   Total investment: 194.63 million Yuan, construction investment: 167.61 million Yuan, floating capital: 20 million Yuan, interest incurred during construction: 7.02 million. 94.63 million Yuan of the funds are raised by the enterprise and 100 million Yuan, by applying a loan.

V. Cooperation Ways

Joint venture.

VI. Foreign Investment and Constitution

Cash investment

Shenshi Textile Fiber Technology Co., Ltd. of Jilin Province raises funds for the project of annual production of 3,000 tons of CBF and it products with foreign side, which occupies less than 50% foreign-controlled shares.

VII. Project Construction Venue

Basalt Rock Industrial Park of Malugou Town of Changbai Economic Development Zone in Changbai Korean Autonomous County

VIII. Project Progress:

Until now, the project has obtained State-owned Land Use Certificate official reply of environment effect and other preliminary procedures.

IX. Project Unit Profile

Shenshi Textile Fiber Technology Co., Ltd. of Jilin Province is a subsidiary company with independent juridical position established by Xinjiatai Industry Group of Jilin Province to work on the basalt fiber project. The corporation locates in Basalt Rock Industrial Park of Malugou Town of Changbai Economic Development Zone in Changbai Korean Autonomous County of Jilin Province, covering an area of 240,000m2. Xinjiatai Industry Group of Jilin Province cooperates with Novgorod Glass Fiber Plant of Russia to introduce the preliminary processing technology of CBF production line and subsequent products. The Russian technical personnel take charge of the overall guidance of equipment selection, production building and facilities. Novgorod Glass Fiber Plant of Russia not only has more than 30 years of basalt production experiences but also mature experience in formation of new enterprises, production quality control and manufacturing process improvement, which possesses perfect advantages and capability to cooperate to form Shenshi Fiber Technology Co., Ltd.

   Xinjiatai Industry Group of Jilin Province, established in august, 2008, locates in Changchun Economic and Technological Development Zone. The parent company of the group is Xinjiatai Industry Group Co., Ltd. and it also has 4 subsidiary companies: Changchun Weida properties Limited Company, Jiatairentian Real Estate Development Limited Company, Changchun Xinjiatai Technique and Business Limited Company and Jilin Jianxin Construction Inspection Limited Company. The group has 17 branches and production bases in Beijing, Shanghai, Neimenggu, Xinjiang, Qingdao, Xiamen, Quanzhou, Zhangzhou and other places, providing more than 2,000 jobs. Xinjiatai Group covers an area of 120,000m2 in Changchun, including 17,000m2 of office and residence construction. It owns existing fixed assets of 120 million Yuan and current assets of 50 million Yuan with annual production of 80 million Yuan and annual sales of 51.66 million Yuan.

X. Contact Methods:

Address: 4323 Yangpu Street, Economic and Technological Development Zone of Changchun City, Jilin Province

Postal Code: 130031

Contact Person: Chen Chunxin

Tel: 0086-13904322009

© Copyright  APCEO & Executive agent in China: Asia-Pacific Fortune (Beijing) Intellectual Property Agent Ltd., Asia-Pacific Fortune Economic Consulting Center (Beijing), All Rights Reserved