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10,000 Tons/Year Continuous Basalt Fiber and Its Products Project
2016/03/24     Source:

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Continuous basalt fiber (CBF) is the continuous fiber produced by taking natural volcanic basalt as raw material, crashing and adding the basalt in melting furnace at 1450℃-1500℃, and conducting wire-drawing and plate leaking of platinum rhodium alloy. CBF can be used as reinforcement to produce various performance of excellent composite, and can be widely used in fire fighting, environmental protection, aerospace, war industry, vehicle and ship manufacturing, engineering plastics, building and other war industry and civil fields, so CBF is hailed as new material in the 21st century. CBF is one pure green natural fiber, which has high tensile strength, shearing strength and elasticity modulus, resistance to UV, acid and alkali corrosion, high temperature and low temperature, heat insulation and electric insulation, low moisture absorption rate, good fatigue and breakage resistance, sound insulation, good wave-transparent performance and certain wave absorbing performance. As foreign process technology has constantly improved and new market has been continuously opened up, basalt fiber can be expected to become the fourth largest high strength and high modulus fiber.

1.1.2 Market Prospect

The rock wool produced by taking basalt as main raw material was first successfully tried in Wales, the United Kingdom since1840, having a history of more than 160 years[2]. In 1922, American Patent (OS1438428) appeared basalt fiber manufacturing technology produced by a French Paul, but no material production was done. Since 1970s, China has developed research of CBF off and on, but failed. In 2001, China Harbin Institute of Technology established special research team to engage in the research and development of basalt fiber preparation technology. In 2004, Harbin Institute of Technology, Shenzhen Research Institute and Chengdu Aerospace Wanxin Technology Co., Ltd. established Chengdu Aerospace Tuoxin Technology Co., Ltd., to further research and improve basalt continuous fiber manufacturing equipment functions, and developed basalt fiber terminal product. In 2002, China formally listed CBF into the National 863 Program.

CBF has pure natural property that is not synthesized artificially, harmless production process, long service life, low cost, high performance and ideal cleanliness, so it belongs to new-type green active environmental protection material. The basalt melting process will not discharge boron and other alkali metal oxide, enabling the smoke discharged from tank furnace in CBF manufacturing process not separate out harmful substances or discharge harmful gas to the atmosphere, industrial garbage or toxic substances to pollute the environment. To a large extent, basalt fiber can replace glass fiber, it is widely applied in aerospace, petrochemical industry, automobile, building industries, so CBF is hailed as new-type environmental protection fiber of "changing volcanic into wire" and "turning stone into gold by touching" in the 21st century. It has performance better than glass fiber and price cheaper than carbon fiber, and can produce various composite as well, which has become the substitute of glass fiber, iron and steel, aluminium alloy and even carbon fiber in a great many of fields, having its unique application prospect.

CBF is one new high technology fiber and continuous fiber produced by taking natural volcanic basalt as raw material, crashing and adding the basalt in melting furnace at 1450℃-1500℃, and conducting wire-drawing and plate leaking of platinum rhodium alloy. The color of pure natural CBF is similar to golden. CBF can be used as reinforcement to produce various composite. Compared with carbon fiber, aramid fiber, UHMWPE and other high technology fiber, in addition to s high technology fiber, high strength and high modulus, CBF has excellent resistance to temperature, oxidation and radiation, heat insulation, sound insulation, good filtration, compression resistance, high shearing strength and good cost performance, it is applicable to various environment, belonging to one pure natural inorganic nonmetallic material, and new basic material and high technology fiber that can meet the development demand for national economic foundation industry.

In 2002, China listed "CBF and its composite" into the National 863 Program. Through two years of development, Shanghai Ejin Basalt Fiber Co., Ltd. (GBF) of Hengdian Group undertaking this subject adopted special production technology and "one-step process" and gained research and development achievement of producing continuous fiber by using pure natural basalt (without adding any auxiliary materials) as raw material, thus realizing industrialized production. In the period of the Tenth Five-Year Plan, 863 Program achievements with proprietary intellectual property rights laid a solid foundation for the industrialization of CBF project.
CBF production technology in the world is still in basic development stage at the moment. Under the influence of easy crystallization of pure natural basalt ore solution, poor thermal conductivity and other special production process difficulty, in the current stage, the stable production technology of CBF in the world generally remains in the basic level of 200-hole wire-drawing plate leaking, and CBF production technology urgently needs constant and profound research and development.

1.1.3 Technical Analysis

The project is planned to choose the patent technology and process of Russia. It insists in “introduction, absorption and re-innovation” in the technical route. The main equipment of the project is purchased from overseas and other equipment is domestically purchased.

1.1.4 Advantageous Conditions of Project Construction

(1) Policy conditions

As the resource-based city in the northeast region, Baishan City enjoys the national preferential policies of the northeast old industrial base revitalization and transition of resource-based cities. The people’s government of Baishan City provides policy preference for new industrial production enterprises in terms of tax, land utilization and charging.

(2) Location advantages

Baishan City is situated in the southeast of Jilin Province and west of Changbai Mountain with beautiful natural scenery, east longitude 126°7' to 128°18', north latitude 41°21' to 42°48', adjoins Yanbian Korean Autonomous Prefecture to the east; Tonghua City to the west, Jilin City to the north, and Democratic People's Republic of Korea to the south, separated by the Yalu River. It is 180km from the east to the west, and 163km from south to north. The country's border line is 454km long, covering 17,485km2. The urban area is 1,388km2. Changbai County is situated at Changbai Mountain range, which has Sino-Korean border line 260.5km, covering an area of 2,486km2. The market development takes development zone as center, including Shenyang, Changchun, Harbin and other big cities, as well as Benxi, Fushun, Siping, Tonghua, Meihekou, Dandong, Jiamusi, Yanbian and most of Korean Peninsula. Changbai Development Zone is in the country border area along coastal waters, which has become the largest Sino-Korean trade entrepot, belonging to the ideal place for developing the resources of Changbai Mountain. The special location advantages and resource advantages are incomparable by other regions. In addition, hydrogeological and weather conditions of the park show that, the selected construction site of the project is good. The park has complete infrastructure, good construction environment, complete service and convenient traffic. The construction site is surrounded with two-way four-lane urban roads, laid with water supply pipeline, sewage drainage pipeline, rainwater drainage pipeline, communication line and urban gas pipeline. Power supply is supplied to power distribution room of factory by the substation nearby to ensure smooth implementation of the project.

(3) Talent advantages     

A great number of excellent enterprises have stationed in the park, where also has a batch of employees and research and development experts with high professional quality. With the park developing gradually, it is sure that more related experts and technicians will enter, assisting production technology of project products and process development. Baishan City is featured by ample human resources and low price. Moreover, Jilin Province has many institutions of higher education, including Jilin University, Changchun University of Science and Technology, Beihua University, Northeast Dianli University and Jilin Institute of Chemical Technology, providing sufficient talent reserves for the project implementation.

(4) Industrial foundation advantages

The raw materials of this project are mainly from abundant high quality basalt mineral products resources of Changbai County. Basalt is natural volcanic extrusive rock with ample quantity and low price. Before basalt fiber production technology appeared, basalt was only used as gravel for laying road, railway filling, highway subgrade filling, concrete filling, and CBF production is the technology of "changing stone into wire" and "turning stone into gold by touching", greatly increasing the application value of basalt ore.

1.2 Project Construction Contents and Scale

1.2.1 Product Scheme and Scale

Annual production capacity of the project is 10,000t CBF and its products.

No.

Product Name

Annual Production Capacity (10,000t/year)

1

Basalt fiber short cut yarn

5000

2

Basalt fiber rough yarn

3000

3

Primary basalt fiber cloth

2000

Total

10000

1.2. 2 Construction Contents

The project will purchase land 240,000m2, construct production plant and auxiliary plant 46,150m2, introduce 3,118 sets of foreign advanced equipment and purchase domestic supporting advanced equipment, and use Russian technological patent to construct CBF and its products production line.

1.3 Total Investment of the Project and Capital Raising

1.3.1 Total Investment of the Project (see Table 1)

Table 1: Summary Table of Total Investment of the Project  Unit: RMB10,000

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

54004.00

85.79

 

2

Interest incurred during construction

1946.00

3.09

Capitalized interest

3

Circulating capital

7000.00

11.12

 

 

Total Investment of the Project (1+2+3)

62950.00

100

 

Note: "RMB10,000" in the Table shall be RMB.

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

Table 2: List of Major Indexes for Forecast of Financial Benefits   

No.

Name

Unit

Index

Remarks

1

Business income

RMB10,000/a

50413

Normal year

2

Total profit

RMB10,000/a

9671

Normal year

3

FIRR of all investments

%

19.25

After income tax

4

FNPV (Ic=10%)

RMB10,000

52660.2

After income tax

5

Period for recovery of all investments (after tax)

a

8.5

Including 2 years of construction period

6

ROI

%

15.36

 

Note: "RMB10,000" in the Table shall be RMB.

1.4.2 Social Evaluation

CBF has pure natural property that is not synthesized artificially, harmless production process, long service life, low cost, high performance and ideal cleanliness, so it belongs to new-type green active environmental protection material. The basalt melting process will not discharge boron and other alkali metal oxide, enabling the smoke discharged from tank furnace in CBF manufacturing process not separate out harmful substances or discharge harmful gas to the atmosphere, industrial garbage or toxic substances to pollute the environment. The project has expanded and developed the varieties of domestic high performance fiber, good for meeting the demand of national defense and the people's livelihood for advanced high performance materials, greatly boosting Chinese CBF research and application, effectively utilizing the local basalt mineral products resources of Changbai County, optimizing the industrial structure of old industrial base, facilitating the development of regional economy, increasing tax and a lot of jobs, and meeting the Group's strategic layout of sustainable and favorable development.

1.5 Cooperative Ways of the Project

Joint venture.

1.6What to be Invested by Foreign Party

Capital, technology and equipment.

1.7 Construction Site of the Project

Basalt Industrial Park, Malugou Town, Changbai Economic Development Zone, Changbai County.

1.8 The On-going Condition of Project

Project Proposal has been prepared, and business attracting is in the progress.

2. Introduction to Partner

2.1 Basic Conditions

Name: Changbai Economic Development Zone

Address: Basalt Industrial Park, Malugou Town, Changbai Economic Development Zone, Changbai County, Jilin Province

2.2 Overview of Project Area

Changbai Korean Autonomous County is situated in the southeast of Jilin Province, south foot of Changbai Mountain, and right bank in the upstream of the Yalu River, at middle latitude, on high terrain, belonging to subtemperate continental monsoon climate. It is cold in winter and warm in summer, having four distinctive seasons. The county contains abundant high quality basalt mineral products resources from Baodaogou to the foot of Tianchi of Changbai Mountain, which is one of a few domestic raw material bases applicable to produce basalt fiber.

Changbai Economic Development Zone of Jilin Province (hereinafter referred to as Changbai Development Zone) is the provincial-level development zone established according to JZH1992No. 231 Document issued by the People's Government of Jilin Province, which enjoys the provincial-level preferential policies, economic power of authority and prefecture-level economic administration authority for Changbai Development Zone granted by the provincial government. In 2003, Notice of Editorial Committee of Baishan City for Organizing to Approve Management Committee of Development Zone (BSBZ2003No. 10) decided that, Management Committee of Changbai Economic Development Zone should set up vice-county system, and establish Comprehensive Office, Bureau of Financial Audit, Economic Trade Development Bureau and Foreign Trade Cooperative Bureau. The appointed units include National Land Planning Bureau, Environmental Protection Bureau, Public Security Bureau, Administrative Bureau of Industry and Commerce, National Tax Bureau and Local Tax Bureau, having complete institutions, convenient service and excellent development environment.
Changbai County is situated at south foot of Changbai Mountain, and upstream of the Yalu River. The Development Zone relies on downtown of Changbai County, extends to Shijiudaogou River to the east, Liangjiang Village to the west, Tower Mountain to the west, and the Yalu River to the south, controlling zone covers 5km2, planning zone 3km2, and initial zone 1.2km2.
According to the development demand, Changbai Development Zone has established industrial community, commercial and trade community, and living residence community. The industrial community is situated in the east and west of Changbai County town, mainly developing forest industry, medicine and health care products industry, processing industry, industrial and trade combination industry for North Korean and other industries and projects. Commercial and trade community is situated in the north of Changbai Port, Sino-Korean International Highway Bridge, Initial Zone of Development Zone, mainly developing commerce and trade, food and entertainment industries, Sino-Korean inter-city trade market, etc. Living community is situated in the south of Tower Mountain, which connects county town, puts infrastructure construction in the overall plan, and mainly develops real estate and raw materials processing industry.

2.3 Contact Method

Contact Person of Project Unit: Zhao Yunbo

Tel: 0439-6195057

Fax: 0439-6195057

Contact Person of Project City: Zhang Weiming

Tel: 0433-3624156

Fax: 0433-3622155

E-mail: tmjigai@126.com

Website of City (Prefecture): www.tumen.gov.cn

 

Contact person of city (prefecture) of the projectLiu Caixiu

Tel0439-3594265    18629751799

Fax0439-3594778

Emaillcx9881@sina.com

Website of city (prefecture) www.cbs.gov.cn

 

 

 

 

 

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