Annual Output of 1 Million Kilometers of Plastic Optical Fiber Project

 

1. Introduction to the Project

1.1Project Background

1.1.1 Product Introduction

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.

1.1.2 Market Prospects

The communication applications of plastic optical fiber have become a global issue. Its advantage lies in the ability to replace five kinds of lines. It helps operators build an end-to-end all-optical network, and realize triple play within the family environment. In recent years, the developed countries apply the plastic optical fiber (POF) to the automotive, aircraft, ships and industrial control and medical equipment areas, with a great success. Since 2006, the EU has launched POF-ALL and POF-PLUS research programs. Through new optical devices and transmission technology, it supports the next generation of home networking and data center. European Telecommunications Commission promulgated the "access, terminals, transmission and multiplexing (ATTM); l00Mbit / s and 1Gbit / s plastic optical fiber system specification" in 2010.

(1) Status of Domestic and Foreign Plastic Optical Fiber Industry

For a long time, the plastic optical fiber industry has been monopolized by developed countries. After years of rapid development, China's plastic optical fiber industry has ushered in qualitative leap. Seen from the life cycle of China’s plastic optical fiber industry, the product life cycle is at an early stage of the market, and there is a certain distance away from the mature stage. In China, there is only Jiangxi Story, Zhongke Haitong, Sichuan Huiyuan, Inner Mongolia Golden Triangle etc. dozens of production enterprises. Affected by the raw materials, most of them are in intermittent production, and product quality is unstable. The industry is currently a sunrise industry on the Chinese market.

Internationally, Mitsubishi, Toray, and Asahi rank the top three. Mitsubishi accounts for about 62 percent of the global market share. In the field of chip, the chip technology of plastic optical fiber is mainly controlled by the Western countries. In the field of the module, the 650nm optical modules used for computer communication on the domestic market are mainly Japan Toshiba and European Firecomms. In terms of standards, the international MOST, the EN 50173 series standard of European2007 edition increase OPl, OP2 plastic optical fiber applications.

(2) Development Trend of Plastic Optical Fiber Industry in the World

In the coming years, due to the strong push of fiber manufacturers in Europe and other new technology companies, plastic optical fiber will show explosive forward trend.

In Europe, POF’s application to the field of telecommunications network communications is unrestricted; its market is expanding day by day. For example, in addition to applications to the field of automation of POF optimal fiber, the continuing desire of industrial control and medical applications has become the engine of development of plastic optical fiber. At the same time, the continuous development of new energy technologies, connectors and fiber optic technology also extends the application level of plastic optical fiber in many areas.

In China, the implementation of the “Broadband China” strategy will drive the development of the entire plastic optical fiber industry. “Optics promotion and copper elimination” is the inevitable choice for all-optical networks.

(3) Market Overview of Global Plastic Optical Fiber Industry

 In recent years, global demand for plastic optical fiber market has showed a rising trend. According to investigation, plastic optical fiber communications market will grow at a rate of 20% per annum. Seen from the pattern of plastic optical fiber market in the world, China is currently the world's largest consumption market of plastic optical fiber. But the production capacity is inadequate, and market penetration rate is relatively low. In addition, the main consumption markets also include Japan, South Korea, the United States, Europe and Brazil and other regions. Currently, the added-value of plastic optical fiber products is high. According to survey, the cost of the domestic plastic optical fiber is about 0.5 yuan / m (lower after mass production), and the sales price is at about 4-8 yuan / m. The profit margin is about 8-16 times.

1) The international market demand

According to the U.S. IGIC's study, in 2005, the total international market scale of plastic optical fiber is approximately $ 854 million. In 2011, it grew to $ 3.243 billion, an average annual growth rate of about 25%. It is expected that in the coming period, POF market can maintain high growth momentum. According to 26 percent growth forecast, in for 2015, the total global POF market will reach $ 8.174 billion, of which the Chinese market will reach $ 1.635 billion (about 10.333 billion yuan).

Forecast table of international and domestic plastic optical fiber market in 2015

(According to U.S. IGIC data)

2) Domestic Market Demand

According to the feasibility study report of the Advisory Company, in 2015, the demand for plastic optical fiber raw material may reach 4,350 tons, unit price is 50,000 yuan, a total of 218 million yuan; FTTH plastic optical fiber is 3.76 million kilometers, unit price is 30 million yuan, a total of 11.28 billion yuan; automotive plastic optical fiber is 456,000 kilometers, unit price is 100 million yuan, a total 4.56 billion yuan; plastic optical fiber of industrial control line is 1.35 million kilometers, unit price is 20 million yuan, a total of 2.7 billion yuan. That is, the total plastic optical fiber market in 2015 will amount to approximately 18.8 billion yuan.

  

Market demand table of domestic communication level POF in 2015 (according to the Consultative Engineering Company)

 

1.1.3 Technical Analysis

The project intends to adopt the technology approach of introduction, absorption, and innovation. The Physical and Chemical Institute of Chinese Academy of Sciences has mastered the whole set of technology from raw material purification, bulk polymerization to directly draw optical fiber technology. Its core technology is high –purity optical fiber level PMMA optical molding plastics (core material) and preparation technique of cortical material. In the development process, the Physical and Chemical Institute of Chinese Academy of Sciences has developed single-molecule diffusion transfer materials purification technology with proprietary intellectual property right, flat push thin tube with a composite body twin-screw system polymerization of high purity raw materials and fiber grade PMMA with the support of cladding materials technology, and has successfully resolved the issues related to industrialization. At present, the Institute has successfully developed automatic assembly line with daily output of 100,000 m PMMA plastic optical fiber. For several consecutive months, it has steadily produced PMMA optical fiber with light attenuation of 170-200dB/km. A cumulative hundreds of millions of meters of low-loss plastic optical fiber has been produced, indicating that this industrial technology has matured. Meanwhile, the Institute also has step-type PMMA optical fiber potential with light attenuation of 150dB/km, and products indicators have achieved the best level of similar products in the world. The advent of low attenuation PMMA fiber optic continuous mass production technology marks that China has possessed the advanced rank in the world in this area. After the project introduces this technology, depending on Changchun University of Technology and Jilin Chemical Fiber Factory, the company will constantly develop and improve itself.

1.1.4 Superior 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, 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 Jilin City 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 belongs to 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

1.2.1 Product Scheme

An annual output of 1 million kilometers of plastic optical fiber

1.2.2Construction Contents

The project covers 150,000 ㎡, with construction area of ​​70,000 ㎡. It will construct plant, research and development center, office building and supporting facilities, purchase equipment, and construct production line.

1.3 Total 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 is expected to reach 500 million yuan, realize profit of 100 million yuan, and tax of 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 construction is based on meeting the market demand. After putting into production, it can drive the development of related industries, and promote the development of optical fiber industry chain. It is conducive to the promotion of high-tech. The implementation of this project can solve the employment of 150 people, and generate considerable revenue for the local society, thus the social benefits are obvious.

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

1.8The 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

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