1. Haiyu Industrial Park

Haiyu Industrial Park is located in Kuitun Economic and Technical Development Zone, 18 km from Dushanzi and 130 km from Kelamayi. It can be reached directly through Wu-Kui Highway.

The park is 1,300,000 square meters in size. At present, there are five planned projects, namely, 60,000 MT/Y of spirally welded pipes, 120,000 MT/Y of longitudinally welded pipes, 30,000 MT/Y of denatured ethanol for fuel, 300,000 of DDGS high protein feed, and a center for technology development. The second stage projects are Acrylic sheets and products, MMA, C5-C9 petroleum resin and the Industry, Information and Marketing Center of Haiyu.

Planned Layout of Haiyu Industrial Park
Ports in Xinjiang

Lin Hanxiong, former Minister of the Ministry of Construction, is inspecting the Haiyu Industrial Park.
Kuitun Development Zone

2. Introduction to Projects

A. 180,000 MT/Y of Steel Pipe Project for Petroleum and Natural Gas Transmission ( 60,000 MT/Y of spirally welded pipes and 120,000 MT/Y of longitudinally welded pipes )

The purpose of the project is to provide high-quality large-diameter spirally welded pipes and longitudinally welded pipes for the "West-East Gas Pipeline Project", Xinjiang's oilfields, Sino-Kazakstan crude oil pipeline, Sino-Russian crude oil pipeline, etc. The annual output is 60,000 MT/Y of spirally welded pipes and 120,000 MT/Y of longitudinally welded pipes, with total output value of 1,195.2 million yuan. The project has been listed into the provincial major construction projects and the "Torch" projects. It will adopt the most advanced equipment from Germany and Britain, equipped with interior and exterior coating facilities. The products will reach the international API standards and the national industrial standards for petroleum and natural gas.

1. Introduction

a. The feasibility study of the project has been approved by the Provincial Planning Commission. State-level designing units, Chongqing Steel and Iron Designing Institute, Xinjiang Steel and Iron Designing Institute and Xi'an Jiaotong University, took part in working out the feasibility study. And cooperative contracts have been concluded.

b. Many investigations on the domestic and international markets have been conducted. Guided by the national policy of transporting western gas to east, technological assessment was made by authorities and experts organized by Li Helin, Academician of Chinese Academy of Engineering and President of Tubular Goods Research Center of CNPC, and the provincial Planning Commission.

c. Under the full support of Kuitun government, land acquisition for Haiyu's steel pipe project has been completed, with an area of 2000 mu. A special railway line has been approved by the department in charge. The project has been listed into the provincial Torch plans and the major provincial constructional projects in 2001.

2. Production Scale / Product / Supply of Raw Material:

After the completion of the planned workshop for large diameter welded pipes, the annual output of steel pipes for petroleum and natural gas transmission is 180,000 MT/Y, of which 120,000 MT/Y is longitudinally welded pipes with submerged arc, with a diameter range of 406.4-1524 mm and wall thickness range of 6.4-31.8 mm; 60,000 MT/Y of spirally welded pipes with submerged arc, with a diameter range of 508-1930 mm and a wall thickness range of 5.6-17.5 mm. Among the two types of pipes, 162,000 MT are high quality pipes with corrosion proof coating.

The workshop needs 192,840 MT/Y of hot-rolled steel plate, including 126,360 MT/Y of steel plate with thickness between 6.4-31.8mm and width between 1260-4780mm for longitudinally welded pipes, and 66,480 MT/Y of steel plate in coil with thickness between 5.6-17.5mm and width between 1000-1800mm for spirally welded pipes.

3. Technology and Equipment:

Key equipment imported is adopted in both production lines for spirally and longitudinally welded pipes, which is most advanced in the world at present. The two lines share common finishing and coating facilities. The other supporting equipment is from home, both ensuring the advanced level and reducing cost.

4. Total Investment of the Project:

Total Investment: USD 59.751 million
    of which: construction and installation: USD 10 million
        equipment cost: USD 23.5 million
        operating capital: USD 16.6637 million
        other expenses: USD 9.03 million
        interests during construction: USD 0.5573 million

5.Economic and Technical Norms

a. Total investment: USD 59.751 million
b. Annual sales volume: USD 144 million
c. Tax Addition: USD 0.2854 million
d. Total Annual Cost: USD 100.6502 million
e. Total annual profit: USD 43.0642 million
f. Annual income tax: USD 6.4596 million
g. Annual profit after taxation: USD 36.6046 million
h. Profit rate of investment: 62.26%
i. Period for recovery of investment: 1.63 year
j. Analysis of Breakeven Point

 

1120.27
BEP ==
1 14400.009137.2828.56

B. 300,000 MT/Y of Denatured Fuel Ethanol

The annual production of gasoline in Xinjiang is 15 million MT. Calculated according to the motor ethanol gasoline, the annual demand for denatured fuel ethanol is 1.5-2 million MT/Y in Xinjiang. The annual increase of gasoline is 10% in Xinjiang. The consumption of denatured ethanol will be increased several times over.The total investment of the project is USD 180 million, and the annual consumption of corn is at about 0.9 million MT/Y. The main products are: denatured fuel ethanol, high-grade alcohol, high protein DDGS feed, oil from embryo of corn, fusel oil and aromatics. The waste gas will be made into liquid carbon dioxide.

This is a high-tech project listed in the provincial Torch projects.

C. 50,000 MT/Y of Methyl Methacrylate Project

Methyl methacrylate, abbreviated as MMA, is widely used in optical fiber, high-grade lens, laser disks, windshield on airplanes, construction materials, coating, plexiglass, acrylic resin and modifier for hardened PVC, etc. The domestic demand for the products is big, but the production capacity is far from meeting from the demand, a large amount is imported per year. The product market is good, and there is abundant raw material from Dushanzi in the district.

The project establishment has been approved by the Provincial Planning Commission, and this project has been listed into the provincial Torch Projects. The overall plan has been completed, and the site of construction is in Haiyu Industrial Park, with a total investment of USD 80 million. The raw material will be provided by Dushanzi Petrochemical Works and Urumqi Petrochemical Works.