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6 Million Pieces/Year ITO Conductive Glass Project of Baicheng City
2016/03/24     Source:

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

LCD display is produced with ITO conductive glass and liquid crystal materials, which is divided into TN type, STN type and TFT type. TN type is usually used in low-grade monochrome small screen information display, such as calculator, remote controller, instrument and apparatus and game machine, having features of monochrome display, low technical difficulty and big output; TFT LCD is mainly used in high grade small and medium-sized display, such as laptop and mobile DVD, having features of high price, true color, big technical difficulty and large investment; STN LCD is between the above two types, having features of rapid response, high picture quality, color display and low cost, very suitable for the present high grade, small screen display terminal, such as Mobile Phone, PDA, visible telephone, vehicle-mounted display and liquid crystal glasses of the emerging 3D television and touch screen.

1.1.2 Market Prospects

(1) Market overview

With global panel display industry gradually transferring to low cost regions, domestic manufacturers have survived in the good environment. In the middle-late period of 1990s, Japan and South Korea began to leave out of TN/STN-LCD market. However, Mainland China and Taiwan still substantially increased this market share. It is predicted that, this industry will still transfer. The industry of Mainland China will occupy bigger proportion in the world's market share. In particular, in recent years, with Chinese LCD industry developing and becoming mature, the competitive advantages of product quality and price have became very obvious. High-end monochrome STN-LCD entrenched in Japan and South Korea was gradually abandoned, and the orders have gradually turned to China, causing the demand of domestic LCD market to exceed supply.

In 2010, 3D television was put into market, enabling 3D liquid crystal glasses, necessary tools for seeing 3D movies, to be out of stock in the market. The supply of the corresponding STN ITO glass cannot meet the market demand.

Chinese automobile market is still at the early stage, and vehicle-mounted STN LCD still has huge space; 3D television just started, and the future market demand will be very extensive. Therefore, STN LCD will have a very broad market space. In the coming 5 years, the market demand for STN ITO glass will be constantly promising.

According to the statistics, at present, domestic demand for ITO conductive glass for STN-LCD is 3 million pieces/month, with annual market demand growth rate bout 10-20%. The current domestic orders of STN glass have exceeded the production capacity requirement, especially domestic high grade STN conductive film glass cannot meet the demand of market and customers. Therefore, the investment in STN ITO glass production line has positive significance for relieving the present STN product's production capacity, increasing yield rate and product quality, and further expanding the market space of high grade STN glass.

(2) Market demand analysis

Application in LCD field 

The application of ITO transparent conductive film glass in LCD field is very extensive. At present, LCD is divided into TN-LCD, STN-LCD and TFT-LCD, which is the important part in information industry.

Among all kinds of LCD, TN-LCD is the first primary product that was put into market, such as electronic watch, calculator, game machine, etc. STN-LCD is high grade LCD product, such as portable computer, electronic notebook, translating machine, electronic dictionary and word processor. TFT-LCD is plane true color LCD, new generation LCD, which is LCD extensively used in laptop, desktop computer, various monitor and digital color television and other electronic products. In addition, it has PDP plasma display and ELD electroluminescence display, belonging to new generation panel display. Wall hanging television produced with PDP has light weight, which can be used as public information label, conference hall demonstration system and desktop computer monitor. ELD electroluminescence display size can be enlarged, which is widely used in solar battery panel and other electronic products. The growth of LCD has greatly driven the demand of electronics industry for main materials for LCD processing and production.  

At present, China has become one of main production countries of TN-LCD products, which are largely used in calculator, electronic (clock) watch, thermometer and other small displays. China has constructed more than 100 LCD production lines with annual demand for ITO transparent conductive film glass over 10 million m2. Scores of ITO transparent conductive film glass production lines have been established, with annual production capacity of millions of square meters. The market gap is very large.  

With electronics industry developing rapidly, the application fields incessantly expanding, and large-scale production and popularization of TN-LCD, LCD has become main display component next only to CRT. At present, China is developing toward high grade STN-LCD products, and has constructed several production lines. In the future 10 years, China is expected to become the largest personal computer market in the world, and the demand for LCD glass will surge sharply.

② Application in industry, traffic, building and other fields

Special glass: as the surface heating element, ITO transparent conductive film glass can be used to produce multifunctional special processing glass, such as airplane, train, automobile windshield glass, aerospace craft windows, tank laser range finder, onboard optic detector and periscope inspection windows, which can play a role of thermal insulation and temperature reduction, and remove ice after being charged. Therefore, it has been also widely used in traffic, space navigation and national defense industries.  

In construction, large area ITO transparent conductive film glass can also be used as valuable commodity anti-theft shop windows of various commercial buildings. When the glass is broken up by the robber, conductive film and sensor can timely give alarm signals.

Solar glass: ITO transparent conductive film glass can also be used to produce multi-purpose construction glass for industry, scientific research and national defense, such as liquid crystal dimming glass, electrically heated glass and electrochromism glass, anti-theft glass, electromagnetic shielding glass and large area solar glass, etc. Some architects have adopted transparent conductive film glass to produce large area solar battery roof. Total energy consumption of this building is from solar battery supply of the roof, and solar glass (ITO transparent conductive film glass) plays a very important role. Such building with solar glass roof has been hailed as clean ecological environment building.

Electromagnetic shielding glass: ITO conductive film generates attenuating property for microwave, and the attenuation rate is not less than 85%, so electromagnetic shielding glass made from ITO conductive film has been used as the window glass or curtain wall glass of special buildings, and can be extensively used in doors and windows glass of computer room, studio, industry control system, military buildings and diplomatic department buildings, as well as the places with confidentiality requirement or anti-interference requirement. This kind of ITO film electromagnetic shielding glass has attenuation 30-50dB shielding capacity at 1GHz frequency (only 1/1,000 of incidence quantity). The anti-electromagnetic interference transparent electromagnetic interference used in computer room, radar shielding protection zone and national defense and military buildings can completely prevent from electronic equipment's error arising from the invasion of external electromagnetic wave and reveal of confidential information. High grade anti-shielding glass can attenuate the external electromagnetic microwave to 80dm, which is the preferential glass for national defense and war industries.  

At present, the inspection door of the increasingly popular domestic electric microwave oven is also replaced with ITO film shielding glass. The protective glasses produced with ITO film glass has ultraviolet-proof and infrared ray reflection functions, which are more popular in the glasses glass industry.

Heat insulating glass: in recent years, China's high-rise buildings have been largely equipped with glass as wall material, especially the high-rise buildings in alpine regions, glass curtain wall will enable indoor heat to dissipate to the outside in winter and increase the heating energy cost. If LOW-E coefficient ITO film glass is used in the inside of double-layer hollow glass of curtain wall, the energy can be saved by as much as 40%. In hospital and scientific research facilities, ITO transparent conductive film glass has been used as greenhouse glass, transparent heating incubator and thermostatic bath.

China has annual demand for freezer door glass as many as over 600,000m2, and it was all imported. This kind of ITO film glass can completely replace the traditional double-layer heat insulating glass, which is used in refrigeration cabinet that has anti-condensation and infrared ray reflection function, and can energy by about 40%. With building facilities of bank, postal service, airport and tourism industries' stations developing to be modern, ITO film glass is requested to produce man-machine conversation computer service devices made of transparent finger-touch control panel and display operator. If software can be adopted for assistance, pattern surface can be equipped with multiple keys, providing simple and direct multi-instrument centralized control and operation in the industry.

1.1.3 Technical Analysis

This ITO conductive film glass project proposes to adopt the domestic mature production technology that is formulated by production technicians and research and development technicians. The technology to be used is featured by high quality and high level of environmental protection. The products produced in this project have been deeply accepted in domestic and foreign market.

Raw materials

Inspection

Pretreatment

Processing

Assembly

Inspection

Surface treatment

Fine processing

Inspection

Coordinated installation

Finished product warehouse entry

Schematic Diagram of ITO Conductive Film Glass Production Process is as follows:

 

 

1.1.4 Advantageous Conditions of Project Construction

(1) Policy conditions

Since Baicheng Economic Development Zone was constructed, it invested more than 200 million yuan to complete 4km2 of start zone's infrastructure construction of "seven accesses and one leveling" (road, water supply and drainage, power supply, heating and communication). The 4km2 start zone has total length of roads 8.5km, road area 140,000m2, total length of drainage pipeline 18.7km, and density of drainage pipeline 4.68km/km2. The Development Zone has constructed Jihe Square (37,000m2) and Yangguang Square (52,000m2), total area is 89,000m2. In 2012, the Development Zone planned to invest 580 million yuan, newly construct 5 roads, 1 square, completed the construction of automobile trade road network and Chunyang Road transformation and expansion project, continuously enhanced project construction and industrial development bearing capacity, and improved the urban functions.

(2) Location advantage

Baicheng has railway and highway extending in all directions, convenient for goods transportation, which is located at the junction of Jilin, Heilongjiang and Inner Mongolia Autonomous Region, in the southwest of Heilongjiang, belonging to the only path from northeast of Inner Mongolia to Shanhai Pass. The city has total highway mileage 9291.3km. Hunchun-Ulanhot Expressway, Tumen-Ulanhot Highway (302 National Highway) and Qiqihar-Shuangliao Highway (207 Provincial Highway) pass through the city. Siping-Qiqihar Railway, Changchun-Baicheng Railway, Baicheng-A'ershan Railway and Tongliao-Ranghu Railway insect here, resulting in the traffic extending in all directions. Foundation laying and construction of Baicheng Section of Nenjiang-Dandong Expressway covering four counties (cities, districts) have started. Baicheng-A'ershan Railway energy expansion and transformation has started. Baicheng-Changchun Express Railway has passed the approval of the State. Baicheng Chang'an Airport project has constructed and predicted to open to navigation in 2014.

(3) Technical advantage

This ITO conductive film glass project proposes to adopt the domestic mature production technology that is formulated by production technicians and research and development technicians. The technology to be used is featured by high quality and high level of environmental protection. The products produced in this project have been deeply accepted in domestic and foreign market.

(4) Industrial basis advantage

Baicheng City is in the center of Northeast Grid and electric load of East Mongolia, which has annual power generation capacity of 20 billion kW·h, one 500 KV substation, five 220 KV substations, and 90 66 KV substations. The thermal power project of Baicheng Power Generation Company of Baicheng Power Generation Company located in the Economic Development Zone is one of important projects of energy base construction in Baicheng City, having total installed capacity 5.32 million KW, including Phase I 2×660,000KW thermal power project, with estimated investment 4.7 billion yuan, annual coal combustion quantity over 4.4 million tons and annual power generation 7 billion kW·h, creating advantageous conditions for the projects with big energy consumption.

Baicheng City has abundant electric resources, land resources and labor resources, which can provide good production guarantee for this project. The convenient traffic can also provide unimpeded sales network for this project. The Economic Development Zone gives preference to the investment attraction projects concerning finance, land, power consumption and cost charging. For the projects in investment industry and emerging service industry with fixed assets investment above 30 million yuan, after production and operation, the enterprise's annual actually paid value-added tax and income tax reserved by the Development Zone will be returned to the enterprise in full in the first three years since the year of benefit earning, and returned by half in the last two years. Based on the advantageous resources and governmental support, this project construction is very necessary.

1.2 Content and Scale of Project Construction

1.2.1 Product Scheme and Scale

(1) construction scale

Annual production capacity is 6 million pieces of ITO conductive film glass.

(2) Product scheme

This project product is STN ITO transparent conductive glass, which is mainly used in high grade STN LCD liquid crystal for transparent conductive glass.

1.2.2 Construction Content

It proposes to cover an area of 30,000m2, including plant area 10,000m2, and mainly constructs 6 million pieces/year ITO conductive glass.

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

10000

83.33%

 

2

Circulating capital

4000

16.67%

 

 

Total investment of the project (1+2)

14000

100

 

1.3.2 Capital Raising

Table 2                  Capital Raising List              Unit: RMB10,000

No.

Capital Classification and Source

Amount of Capital

Proportion of Total Investment (%)

1

Construction investment

10000

83.33%

2

Circulating capital

4000

16.67%

3

Raised capital

14000

100

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes (see Table 3)

Table 3: List of Major Indexes for Forecast of Economic Benefits    Unit: RMB10,000

 

 

 

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/year

35000

Normal year

3

Total profit

RMB10,000/year

6222.22

Normal year

4

FIRR of all investments

%

30

After income tax

5

FNPV (Ic=8%)

RMB10,000

11704.95

After income tax

6

Period for recovery of all investments (after tax)

Year

3

 

1.4.2 Social Evaluation

According to the result, the project profitability is much higher than the average level of traditional industry. This project has high investment return rate. In the calculation period, the capital is surplus every year, and financial balance is achieved. Assets-liability ratio is low. This project is mostly constructed with self-raised capital, so the net assets of this project can fully make up liabilities.

1.5 Cooperative Ways of the Project:

Sole proprietorship of the investment enterprise

1.6 Construction Site of the Project:

Baicheng Economic Development Zone

1.7 The On-going Condition of Project:

Project proposal has been completed.

2 Introduction to Partner

2.1 Basic Conditions

Name: Management Committee, Baicheng Economic Development Zone, Jilin Province

Address: Room 1009, Kaifa Building, No. 88, Xingfu South Street, Baicheng City

Legal Representative: Liu Fubiao

2.2 Overview

Baicheng Economic Development Zone is a provincial-level economic development zone, adjoining Baicheng downtown. It is located at the junction of Jilin, Heilongjiang and Inner Mongolia provinces (zones), covering an area of 171km2. In 2011, the zone had total production value 2.4 billion yuan and total fiscal revenue 530 million yuan, ranking the 20th position among 44 development zones in the province. Through more than 10 years of development, a host of enterprises in and out of the province, including American Delphi Packard, China Power Investment Corporation, Jishida Electric, Zhongyi Precision Forging, Tongye Mechanical Equipment, Four Seasons Harvest, Jinshi Industry and Trade and Sinopharm Group, have successively entered in the zone to invest in new projects. The Development Zone has appeared good tendency of joint progress of automobile parts, coal power, textile and medicine leading industries. During the Twelfth Five-Year Plan, it will mainly plan to construct "six industrial parks", that is: Moving Machinery and Part Supporting Industrial Park, Coal Power and High Load Energy Industrial Park, Biological and Pharmacy Industrial Park, Textile and Clothing Industrial Park, Commerce and Trade and Logistics Industrial Park and Cultural Originality Industrial Park. In 2015, total regional production value, fixed assets investment and fiscal revenue will accomplish "678" target. "6" is total regional production value of 6 billion yuan; "7", is fixed assets investment 7 billion yuan; and "8" is fiscal revenue 800 million yuan. Total regional production value: 6 billion yuan in 2015. At that time, the comprehensive rank will belong to provincial-level development zone, increasing from 20th position to top 10.

Introduction to legal representative: Liu Fubiao, director of Management Committee, male, born in 1969, Han nationality, from Da'an City, Jilin Province, member of the Communist Party of China, graduate degree, Economic Management major, worked as secretary of Youth League Committee, secretary of the Township Party Committee, secretary of Politics and Law Committee and secretary of Discipline Inspection Committee.

2.3 Contact Method

Contact Unit: Economic and Technical Cooperation Bureau of Jilin Baicheng Economic Development Zone

Address: 10F, Kaifa Building, No. 88, Xingfu South Street, Baicheng City, Jilin Province

Contact Person: Li Haiping 

Fax: 0436-3561067

Postal Code: 137000

E-mail:jlbclhp@163.com

Website: http://www.bcjjkfq.gov.cn

 

 

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