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1. Project Name: Project for Deep Processing of Rice Straw, Zhaoyuan Farm

2. Location for Construction of the Project: Zhaoyuan Farm, Heilongjiang Province

3. Profile of the Project Principal:

    綏化農墾招商網訊：Zhaoyuan Farm is located on the left side of the lower reaches of the Nenjiang River in Zhaoyuan County, Daqing City in southwest Heilongjiang Province. The place is easily accessible by means of highways, railways or waterways. It is 9 km away from Xinzhao Railway Station, 30 km from Lin-Zhao Highway, 150 km from Daqing and 230 km from Harbin. Its west side is just opposite to Da’an City, Jilin Province across the Nenjiang River. A simple wharf by the river is built by the farm. The total land area under control of the farm is 117,000 mu, including 58,000 mu of farmland all for rice growing, with annual output of 40,000 tons of rice straw. Xinzhan Town that neighbors the farm has about 200,000 mu of paddy field, with annual output of about 160,000 tons of rice straw. Construction of the project is firmly backed by sufficient supply of raw materials.

3. Project Construction

A rice straw deep processing factory will be built on a land area of 20,000 square meters, with annual processing capacity of 200,000 tons of straw.

4. Source of Raw Materials and Market Situation

Sources of raw materials: The raw material rice straw for the rice straw processing factory will be supplied from the local area. The rice planting area of the farm and its surrounding rural area is 300,000 mu. The resource of rice straw is abundant.

Market Situation: Zhaoyuan Farm is a specialized rice growing farm. Each year, after rice harvest, rice straw is abandoned and burned out except only a small part of it used as fire-straw for cooking purpose. This is a waste of resource and it causes environmental pollution. Rice straw contains rich cellulose. Its cellulose content is close to the wood of broadleaf trees and coniferous trees. Wood-based panels can surely be produced with rice straw, so that less wood materials will be used in wood-based panel industry in our country. The contradiction between supply and demand will be effectively alleviated this way. Development of this project will be of great value and its prospect is promising.

5. Estimate on Investment in the Project

It is planned to invest totally 10 million Yuan in the project, including 8 million Yuan as investment in fixed assets and 2 million used as working capital.

The construction period for this project will be 1 year. The payback period of the project will be 2 years, with a rate of return at 50%.

6. Economic Benefits of the Project

After the project is put into production, 40,000 tons of rice straw can be processed each year, with an output value of 30 million Yuan and profit of 5 million Yuan.

8. Patterns of Cooperation: Joint venture or cooperation