Name

Project on Manufacturing Hot Rolled Plate with Annual 4 Million-ton in Yanhe Industrial Zone, Yuxi City

Organizer

Investment and Cooperation Department of Yanhe Industrial Zone Administration Committee, Yuxi City

Location

Dapotou Area, Yanhe Industrial Zone, Yuxi City

State

New project

Introduction

The project makes use of iron ore resource and iron & steel resources in Yuxi to focus on building a production base for industrial materials of Yunnan Province. The completion of project will largely promote adjustment of Yuxi’s industrial structure.

The project will cover an area of 1,200mu. The project will construct: two newly-built steelmaking production lines of 160-ton top-bottom combined blowing converters, two 1,650mm continuous casting production lines of double flow slabs, one 1,780mm hot rolled plate production line, manufacturing shop and other supporting facilities; Construction scale: molten steel for 4 million ton/year; plate blank for 4.08 million ton/year; hot rolled plate for 4 million ton/year. The construction period is 2 years.

Implementation Principle

1. The project complies with Industrial Structure Adjusting & Guiding Contents (2011) issued and implemented by National Development and Reform Commission;

2. The project complies with Yanhe Industrial Zone Overall Plan and Industrial Development Plan

Construction Condition

The project is located in mild slops of low mountains and hills with stable stratum, so the construction condition is favorable; the infrastructures such as water, electricity ,roads and culture, sports and sanitation are complete; the transportation is convenient, and the location is the junction and transport corridor communicating China’s land traffic to the  Southeast Asian countries.

Supply of Main    and Supplementary Materials and Availability of Labor Resources

Raw and Supplementary Materials: Scrap iron and molten iron as main materials can be purchased within Yuxi City; the supplementary material mainly includes rare metals that be used in smelting alloy. It's easy to purchase and transport as a small amount of it is needed.  The main fuels are electricity and liquefied petroleum. The water and electricity in the Zone can meet the need.

Labor Resources : There are about 7,500 annual graduates from vocational colleges (including professional technology person) and about 20,000 local people available in Yuxi City; the labor cost is about RMB1,500-2,000/month/person.

First-Phase Preparations and Progress

The feasibility study has been complied and the project can adopt the method that “matters should be consulted according to the needs of the occasion.”

Preliminary Evaluation on Environmental Impact

Waste water, exhaust gas, construction noise and solid wastes will be made by constructions. Prevention and management measures will be adopted to reduce the pollution and that will be eliminated along with end of construction.

The project will lead to certain degree environment impact on the surroundings. The prevention and management measures should be wholly implemented to minimize pollution and make pollutant emission within relevant national standards.

Investment Estimation & Fund Raising

Investment estimation: total investment of about RMB4.63 billion.

Way of fund raising:corportion self-financing

Preliminary Economic Benefit Analysis

The project has a promising market prospect with annual sales revenue of RMB12.2 billion (excluding tax) and annual profit of RMB410 million. The payback period (including 2-year construction period) is 10 years. The project can create 3,000-4,000 employment posts, which has a favorable economic benefit and social benefit.

Ways of Cooperation

Sole proprietorship, joint venture, cooperation

Contact Info

Contact Unit: Yuxi City Yanhe Industrial Zone Management Committee Investment & Cooperation Bureau，Yuxi Municipality, Yunnan Province, P. R. China

Contact Person & Mobile Phone: Liu Haishan 86-13577759655

Sun Fajian 86-15808779211

Tel & Fax: 86-877-2991101

Email: yxyhzsj@163.com