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Contents

31 The Project of Organic Silicon Producing

1 Background of the Project

All the compound that has Si-C bond is generally called Organic Silicon Compound, which also concludes conventionally compound that connect organic bond with silicon atoms by oxygen, sulfur and nitrogen. The most outstanding capabilities of organic silicon production are its excellent performs on heat-resistance, conduciveness, fire-resistance, physical inertia and low surface tension. The demand of organic silicon production on markets in and out of China is increasing continually, and it increases most quickly in Asia with a speed of 12 %-15% per year (except Japan). China is the market with the greatest potential.

2 Market Analysis

Up until now, organic silicon monocase mostly depend on importing. According the statistics, only in 2000 the gap in domestic market was over 75,000 tons, and it is forecasted to be as more than 150,000 tons in 2004. The consumption of organic silicon monocase in our country is increasing every year with the speed of over 20%. Meanwhile, the producing capability is not able to increase with the same time due to restrictions from many aspects.

3 Investment Assessment, scope and duration of the project

Total investment of this project is 130 million yuan, which is mainly spent on the workshop construction, equipment purchasing and technology development, ect.

The construction is going to last 2 years, after which equipments that can produce millions of tons organic silicon will be installed, and the producing of organic silicon monocase and its production per year will reach 50,000 tons and more.

4 Analysis of the profit It is forecasted that the sails revenue per year is 1 billion with a interest and tax of 90 million yuan.

5 Means of Cooperation

 The project can be completed by means of joint venture, cooperation of Chinese and foreign enterprise as well as foreign investment only.