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Annual 90,000 Tons Wood Plastic Composite Production Project

 

I. Project Background

Wood and plastic composite is a mixed material with high performance and low expense which is made by adding crushed straw and wood clips to waste plastic. Along with the development of logistics industry in China, the market demand of tray increases 200 million a year. Plastic wood tray is one of the key fields of wood plastic composite application. According to the prediction of China Association of Resources Comprehensive Utilization, the demand of wood plastic composites will exceed 1 million tons with large market requirements. Conforming to the strategies of “strengthening comprehensive utilization of resources” and “saving materials” of the “11th Five-Year Plan” and implementing really the basic state policy of “saving resources and protecting the environment”, this project is encouraged by the state and can strive for policy support of the local government. As stated previously, there is a great market and policy environment for the construction of wood plastic composite production project of 90,000 tons.

II. Construction Scale and Product Plan

Floor space: 10,000 m2, overall floorage: 587,000,000 m2; Purchase 63 lines of production with an annual output of 90,000 tons wood plastic composites.

III. Market Analysis and Economic Benefit Forecast

   1. Economic Benefit: Annual output value: 692 million Yuan, tax payment: 130.54 million Yuan, after-tax Profit: 522.76 million Yuan, investment recovery duration: 3 years.

   2. Social Benefit: First, this project smashes straw and wood clips and adds them to plastic wood as agricultural fiber, using more than 60% of the waste materials, which is beneficial to improve the level of comprehensive utilization of straw and wood resources in Taobei District. Second, the waste plastic, straw and sawdust can be made into composite materials can substitute wood, plastic, metal and cement and implement the basic state policy of resource conservation and environmental protection. Third, it is able to stimulate the development of the local economy, promote the employment, and improve the coordinated economic and social development in Taobei.

IV. Total Project Investment and Financing Arrangement

Total investment: 432.5 million Yuan, construction investment: 333.5 million Yuan, floating capital: 90 million Yuan. The funds required for the project are raised by the enterprise.

V. Cooperation Ways

Sole proprietorship and joint venture.

VI. Foreign Investment and Constitution

Cash investment

VII. Project Construction Venue

Taobei District of Baicheng City

VIII. Project Process

The project proposal has been completed.

IX. Outline of Project Organizer

Taobei District is where the municipal party committee and government of Baicheng locate in. It covers an area of 2568.8 square kilometers including 5 counties, 6 towns, 161 administrative villages and 10 sub-district offices. It has a population of 509,000 with non-agricultural population of 282,000.

Taobei District enjoys the resources of straw and wood clips required by the project and is rich in corn, soybean and other crops. It is one of the key commodity grain bases of China and locates in the famous “golden corn belt”. The corn sows area is of 40 thousand hectares, accounting for 34.2 % of the total arable lands of 117 thousand hectares. This district produces annually 1.23 million tons of straw including 400 thousand tons of corn straw. Otherwise, Taobei District distinguishes itself by Xingfa Decorative Woodware Factory of Baicheng City, Xinglong Timber Mill of Baicheng City, Yongxing Timber Mill of Taobei District and other medium sized timber mills totaling more than 10. Produces large amounts of high-quality wood chips per year, which are waiting to be further developed and utilized.

X. Contact Methods

Unit Name: Bureau of Economic and Technical Corporation of Taobei District

Contact Person: Sun Shuhai

Tel: 0086-436- 3248032

Fax:: 0086-436- 3248903

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