1.Project name: Annual output of 4000ton of silica gel.

2.Project unit: Penglai Phosphate Fertilizer Plant, Person in charge Sun Mingyun.
Tel: (0535) 5610680

3. General Survey of the project Unit:
Set up in 1974,Penglai Phosphate Fertilizer Plant is a staterun enterprise. It is situated in North of Sahe village, Penglai City. It Covers an area of 100,000 square meters with a building area of 15,000 square meters. The annual output is 15,000 ton of industrial sulphuric acid, 50,000 ton of calcium Phosphate, 44,000 ton of Cement, 3 million Pcs of PET bottles and 2,000 ton of silica gel Products. There are 400 workers and staff members including 15 technicians.

4. Project Content:
(1)Production Scale: During the second phase of the project we plan to set up another silica gel production line with the production capacity of 2,000 ton. Together with the old production line, the annual production capacity may be 4,000 tons.

(2)The raw material is sulphuric acid which can be supplied by this factory,the another material Sodium Silicate can also be guranteed locally.

(3) For this project, We should rebuild 2000 square meters of factory buildings with RMB 2.4 million yuan, purchase 40 sets of equipment with RMB 6 million yuan and RMB 1.6 million yuan for land and others.

5. Reasons for setting up this project:
The major raw materials are sulphuric acid and water-glass,among them,sulphuric acid is the main product of our factory. Now we have had a 2,000-ton of silica gel production line and the product has passed the inspection of Shandong Commodity Inspection Bureau. So Whether technology or equipments are no problem.

6. Market forcasting:
Silica gel belongs to inorganic chemical product. It has a big usage such as dampproof,dry,constant temperature,catalysis etc. It can also be used for improving quality and production value of family appliance, precise instrument, Camera, garments and construction. In the international Market the price of the silica gel is getting high and high. The product in this factory can be exported by Qingdao Foreign Trade Company.

7. Supply of raw materials and power:
The annual needed amount of sulphuric acid is 1,400 tons which can be provided in this factory. 9,000 tons of water-glass, water and power can be supplied well locally.

8. Investment:
The total investment of this project is RMB 10 million yuan, among them, RMB 6 million yuan for equipments, RMB 2.4 million yuan for construction, RMB 1.6 million yuan for land and others. The Chinese Party will invest in form of factory building,land and other facilities.

9. Economic profit:
The annual estimated output Value is RMB 14 million yuan with Profit of RMB 3.68 million yuan. The investment recovering period is 2.5 years.

10. Cooperation form:
joint venture or cooperative venture.