1,000 Tons of Communications Grade PMMA Pellets Project

 

1. Introduction to the Project

1.1Project Background

1.1.1Product Introduction

The project product is polymethyl methacrylate resin, referred to as PMMA, commonly known as plexiglass, acrylic. PMMA has excellent transparency, has the highest rate of full-spectrum light transmission, and light transmission rate can reach 92%, with good gloss. PMMA also has good dielectric properties and electrical insulation properties, excellent arc resistance, also has good chemical resistance, solvent resistance, weather resistance, has cold and heat resistance, and can be used for casting, injection molding, extrusion, thermoforming and other processes. It also has excellent post-processing performance. It is advanced material suitable for light guide film, LED lamps, fiber materials, optical products, automotive parts, appliance parts, as well as daily necessities, and is referred to as "queen of plastics".

The project is targeted to high-end market - polymethyl methacrylate resin (PMMA) high-performance communication level aggregates.

1.1.2 Market Prospects

Plastic optical fiber (Plastic Optical Fiber, referred to as POF), is cylindrical linear optical fiber with methyl methacrylate (PMMA) etc. transparent conductive high polymer as the core optical material, PMMA and fluorineplastic etc. polymer as cladding material. It is a new type of optimal fiber used for the last 100-1000 meters of broadband access networks (FTTX), and is quality short-distance data transmission medium. Plastic optical fiber products can be widely used in the triple play, automotive, military industry, lighting and other fields. Our city owns Jilin Hangsheng Hongyu Company, 524 Factory etc. car audio and video products, missile guidance system etc. traditional markets. Extended to the provincial auto market, and the national and provincial triple play promotion, plastic optical fiber only in the province has impressive market outlook. In addition, the plastic fiber can improve the traditional lighting mode, can greatly improve the ability of energy saving and emission reduction, and has some potential in the lighting market.

According to the research report of U.S. IGIC Company, the total market size of the plastic optical fiber is approximately $ 854 million in 2005; by 2011, it increased to $ 3.243 billion, an average annual growth rate of about 25%. It is expected that in the coming period, POF market will be able to maintain high growth momentum; forecasted according to 26% growth, the total global market size of POF market in 2015 will reach $ 8.174 billion, of which the Chinese market can reach $ 1.635 billion (about 10.333 billion yuan). PMMA is the major raw material for production of plastic optical fiber. With the development of plastic optical fiber industry, the market demand for raw material PMMA will have a substantial increase.

Ordinary plastic optical fiber has low added value. Its scope of use is narrow, and market acceptance is low. We must develop high-performance communication level plastic optical fiber. The communication level plastic optical fiber must use high purity PMMA. Currently, the PMMA producing enterprises nationwide do not have absolute power, of which: high purity PMMA products do not have industrial production capacity. Most of the domestic famous plastic optimal fiber enterprises directly purchase the Japanese finished PMMA products. The price of PMMA high purity core material is around 60,000 yuan per ton, and high-quality leather is about 350,000 yuan per ton. The project’s construction can fill the blank of high-performance communication level PMMA pellets in local area, and replace import. The market prospects are broad, and benefits are considerable.

1.1.3 Technical Analysis

(1) Technical Source

The project intends to adopt the high-purity PMMA polymer technology developed by Changchun University of Technology. Changchun University of Technology has carried out research on the impact of antioxidants on PMMA resin thermal oxidative stability, and the key technology in industrialization of continuous mass method PMMA resin. The technology is in the international and domestic first-class level, and is comparable with the level of Japan's Mitsubishi Rayon Company. At present, it has had the trial ability. The school is organizing the installation of pilot production line in the North Campus. The initial idea is conducting production of communication level PMMA polymerization with annual output of 1,000 tons.

(2) Production methods

The project uses MMA bulk polymerization process for producing PMMA, i.e., under the conditions of not adding solution and other dispersant solvent in monomers, carry on polymerization reaction under the role of light initiator, or the action of light and heat. Through devolatilization, granulation of the polymer solution, the PMMA communication level plastic optical fiber products are obtained.

(3) Process

Production of high purity raw materials is the core technology of the new technology. From purification of monomer to the bulk polymerization of monomers, the key raw material needed for communication level plastic optical fiber is prepared. The process is as follows:

 

 

 

Figure 1: Flow chart of production of raw material PMMA unit

1.1.4Superior Conditions for Project Construction

（1）Advantage of Raw Material Resources

The project area has not yet had PMMA raw material needed for producing plastic optical fiber. But Jilin Petrochemical Company has the production capacity of annually producing 200,000 tons of MMA. The production capacity of methyl methacrylate (MMA) is the largest in China, accounting for about 40% of the domestic production capacity, 10% of Asia, and about 5% of the world. Product performance is excellent, which is a prerequisite for polymerization of PMMA. In MMA - PMMA - POF process, JilinCity occupies the source, with a lack of the middle. If Jilin Petrochemical Company or the chemical park can cooperate with Changchun University of Technology for the co-production of communication level PMMA (or through investment attraction to introduce communication level PMMA project), it will promote the rapid development of plastic optical fiber industry.

（2）Advantage of Industrial Foundation

The industrial park where the project is located in is the key demonstration park of JilinProvince. JilinChemicalIndustrial Park has CNPC, Jilin Fuel Ethanol Co., Ltd., Jilin Chemical Fiber Group Company etc. large enterprise groups that occupy an important position in the same industry of China. These leading companies, in the development process for many years, have laid a good foundation for the development of chemical industry in the park. Currently, the park has nearly 240 chemical production enterprises, more than 1,000 kinds of products, covering a number of areas such as basic organic chemical raw materials, synthetic materials, fertilizers, fine chemicals, bio-chemical products, with relatively distinct characteristics. Jilin Petrochemical Company, as a leading enterprise in the park, is a large refining integrated company, with more than 60 sets of major equipments, including 16 sets of equipment with production scale ranking the top three in the country. The production capacity of ethylene-propylene rubber, acrylonitrile, and methyl acrylate methyl nine sets of equipment ranks the first in the country; the production capacity of high-density polyethylene etc. three sets of device ranks the second in the country; the production capacity of styrene-butadiene rubber etc. four sets of device ranks the third in the country. In 2009, the output value of JilinChemicalIndustrial Park is 59 billion yuan, accounting for 47.5% of the total industrial output value of in Jilin petroleum and chemical industry. The park occupies an important position in the chemical industry in JilinProvince. The chemical industry of Jilin has a long history. After decades of development, it has formed complete production system including petrochemicals, synthetic materials, fertilizers, fine chemicals and bio- chemicals, and has become the pillar industry in JilinCity. The park has preliminarily formed refining, ethylene downstream, propylene downstream, aromatics downstream, ethylene by-product utilization, fertilizer, fine chemical, bio-chemical etc. major industrial chain.

（3）Advantage of Location and Transport

JilinChemicalIndustrial Park, where the project is located in, is located in JilinCity, which is important hinterland of Chang-Ji-Tu Development and Opening-up Pilot Zone. It is also important logistics node city of the integrated transport network in Chang-Ji-Tu region, the center of the Northeast Asian region and the new EurasianContinentalBridge, the nexus of contact of Northeast Asian countries. Through Hunchun port, it is closely connected to Russia Zarubino and North Korea Rajin port etc. port groups, as well as the eastern Mongolia and the Far East hinterland of Russian Siberia. It is the closest area of China's inland to the Sea of ​​Japan, and the overlay district of the northeast Asia economic Area, Greater Tumen economic circle, and the Northeast economic zone. Therefore, the location advantage is obvious. JilinCity has superior geographical location. It is located in central part of northeast China. It leads to North Korea and the Russian border in the east, Shenyang in the south, Changchun in the west, and Harbin in the north, all within 500 km away. It is the central city of JilinProvince; the traffic infrastructure is complete, and aviation, railways, highways etc. lead to all directions. It is one of the cities with considerable radiation in the northeast. The modern logistics development plan of JilinProvince will construct JilinCity into one of the two logistics centers.

（4）Advantage of Water and Power Resources and Infrastructure

The industrial park where the project is located in is located in the most important river system in northeast China - the SonghuaRiver. The per capita water resource amount is 3,875 cubic meters, 5.4 times that of China 's northern cities. With favorable natural conditions, water supply, power supply, heat supply, environmental protection etc. other infrastructure are relatively perfect. In the area, there is Sanjiazi waterworks, Jilin Central Water Plant, Chemical Fiber Water Plant etc. water supply plants, with the daily water supply capacity of 620,000 tons; in the park, there is adequate supply of electricity. It has established Xinli Primary, Jinzhu Primary etc. four 220KV substations and many 66KV secondary substations. The power supply capacity is 1,483,500 kilowatts; in the aspect of heating, the central heating system is basically built in the park. The total steam capacity of Jilin Thermal Power Plant, Jilin Power Plant, Songhua River Thermal Power Plant etc. heat supply companies is 8570 t / h; the environmental protection system in the park is sound. It has Northeast China's largest chemical sewage treatment plant and more than a dozen professional production waste water and sewage treatment plants, with daily sewage treatment capacity of 715,000 tons. Meanwhile, it is implementing infrastructure and utilities improvement project in the park, comprehensively promoting the construction of Bajiazi Pipe, Railway Special Lines, Longxing heating center etc. 31 basic and public supporting works. In 2013, the park can achieve the supply “integration” of major public works, thus saving businesses running costs, and realizing low carbon, green growth.

（5）Advantage of Human Resources and Technical Strength

The project area JilinCity has relatively strong education and scientific research strength. The whole province has 45 colleges and universities, including 26 undergraduate colleges; 19 ordinary three-year (vocational) colleges; and 10 independent colleges subordinate to universities. The province has 120 natural science research institutions, including 3 belonging to ChineseAcademy of Sciences, 48 belonging to provincial institutes. It has built ten national key laboratories, 15 provincial key laboratories, and 81 provincial Science and TechnologyInnovationCenters (including EngineeringTechnologyResearchCenter). JilinCity has five colleges and secondary vocational institutes, six chemical research and design institutes. Changchun Institute of Applied Chemistry, Jilin Chemical Company Institute, PetroChina Oil Engineering Company Northeast Branch etc. scientific research institutes possess the advanced level in the research and design of China’s chemical industry. Jilin Chemical Company is a state-owned enterprise constructed by the country during the “first Five-Year” period. Over the years, it has trained a large number of high-quality professional and technical personnel and industrial workers in chemical production, which offers a wealth of human resources for the development of JilinChemicalIndustrial Park. The big and medium-sized enterprises in the park have 38,000 junior and senior professional and technical personnel, and more than 100,000 technical workers. JilinChemicalIndustrial Park is the only chemical industry gathering area in Chang-Ji-Tu Development Pilot Zone. Resources and environment carrying capacity is strong, momentum of development is fierce, and chemical industry strength is solid. The production technology strength is strong, and research and design level possesses the leading domestic level. The park currently has National Engineering Research Center of Carbon Fiber, Jilin ChemicalFiberTechnologyCenteretc. five national enterprise technical centers and Jilin Fuel Ethanol laboratory etc. 11 provincial research institutions. The R & D strength is solid, and the technological innovation investment each year is more than 1.54 billion yuan.

（6）Advantage of Policy and Service Environment

The project is strategic emerging industry, is in line with national industrial policy. It is key investment project in the park. The park offers generous incentives in land, taxation, industrial support facilities. Relying on the chemical park, it will plan and construct plastic optical fiber industry demonstration zone, which has some practical feasibility. The park will make full use of the advantages in initiation, with building first-class development environment for enterprises as the goal, boldly breakthrough the shackles, change self-orientation concept in management, with developing big companies and promoting project as the core, and pursue "one-off" clarity, "one-stop "service," one-stop "settlement in service. The park focused on creating a 3,000 square meters of government hall, 18,000 square meters of headquarters base and entrepreneurship building, which provide first-class service soft environment for enterprises. For project with investment of more than 30 million yuan, the park is responsible for agency transaction, maximally saving construction time and reducing construction cost in terms of project entry, land planning, project environmental impact assessment, construction, entry of supporting facilities, completion and final acceptance etc. procedures.

1.2 Construction Scale and Product Scheme

1.2.1Construction Contents

The Phase I will establish 100 tons of test line. After successful of test, the Phase II will establish production line with annual output of 500 tons. The Phase III will establish production line with annual output of 600 tons. In the year of reaching full production capacity, the annual output is 1,000 tons.

1.2.2 Product Scheme

Project Phase I is 100 tons / year communication level plastic optical fiber aggregates, the Phase II is 500 tons / year communication level plastic optical fiber aggregates, and the Phase III can realize annual output of 1,000 tons communication level plastic optical fiber aggregates.

1.3Total Investment and Funds Raising of the Project

1.3.1Total Investment of the Project (detailed in table 1)

Table 1：Summary Table of Total Investment of Project       Unit: Ten Thousand Yuan

Note: the “Ten Thousand Yuan” in the table is in RMB.

1.4 Forecast of Economic and Social Benefits

1.4.1Economic Benefits (detailed in table 2)

After the project reaches full production capacity, its annual sales revenue will be 89 million yuan, annual profit will be 60.5 million yuan, and tax will be 15 million yuan.

Table 2：List of Main Indicators for Financial Benefits Forecast

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

  1.4.2 Social Benefits

The project has relatively low consumption of materials, and low energy consumption. The emissions of all pollutants can reach standards. It belongs to energy saving and emission-reduction project, and is high-tech industry. The project plays a positive role in promoting the local economy and the development of optical fiber and chemical industry.

1.5 Cooperation Method

Sole investment; other methods can be negotiated face to face.

1.6 What-To-Be-Invested by Foreign Party and Composition

Capital, technology, equipment etc.

1.7 Construction Site

JilinChemicalIndustrial Park

1.8 The On-going Condition of Project

The project has been approved; it is planned to start in September, 2014, and will be completed and put into production in October, 2016.

2. Introduction to Partner

2.1 Basic Conditions

Name：Demonstration Zone of Jilin chemical industrial circular economy

Address: No.6 of Hanyang South Street, Longtan District, Jilin City, JilinProvince

Legal representative：

2.2 Overview:

JilinChemicalIndustrial Park was established in October, 2008 by the provincial government in accordance with the strategic cooperation agreement signed between the provincial government and PetroChina. It has a planning area of ​​59.8 square kilometers. It enjoys the management privileges and preferential policies of provincial development zone. In JilinChemicalIndustrial Park, chemical industry base is solid, and it is an important chemical industry base in our province. At present, the park owns CNPC Jilin Petrochemical, Jilin North Chemical Company, Nebulae Trade and Industry etc. production-oriented enterprises, with a total of 172 (127 companies during production, and 45 companies with suspended production), the number of large-scale enterprises is 45. There are hundreds of chemical products, including basic organic chemicals, synthetic materials, fertilizers, fine chemicals, bio-chemical products; about over 60 kinds of them have large production scale, and occupy certain market share in the domestic and foreign market. They are mainly acrylonitrile, ethanol, ABS, styrene, ethylene, styrene, ethylene oxide. The park has basically formed refining ethylene, ethylene downstream, propylene downstream, aromatics downstream, ethylene by-product utilization, fertilizer, fine chemical, bio-chemical etc. several major product industrial chain. A relatively complete chemical industrial system has been basically formed. To the end of the 12^th Five-Year period, the production value of Jilin Chemical Industrial Park will reach 150 billion yuan, and Jilin Chemical Industrial Park will truly become an international eco- chemical industry manufacturing center, a logistics base radiating the northeast with international influence, international advanced new material base and new economic growth pole of Chang-Ji-Tu Development Pilot Zone. It will drive the economic development of related industries and regions in Jilin Province of Northeast China.

2.3 Contact Methods：

Contact Person of Project Unit：Zhang Huijun

Tel：0432-63041733  15044244991

Fax：0432-63020240

E-mail：longtanmail@163.com

Website of Development Zone：http://www.jlhgyq.gov.cn/

Contact Methods of ProjectCity (Prefecture)

 

Contact Person: Wei Xiaoli, Liu Aiguo

Tel：0432-62026489

E-mail：proinvest@126.com

Website：www.jlszsw.gov.cn