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file X

UNIDO PROJECT8

LACTIC ACID PROJECT

COUNTRY: CHINA

PROJECT NO.: IPSCN/99/064

ISIC:2411 Manufacture of basic chemicals, except fertilizers and nitrogen compounds

Producing Lactic Acid

DESCRIPTION:
L-lactic acid is mainly used as a chemical synthesis raw material in brewing, beverage, pharmacy, leather tanning, dual-degradable mulch film and meat food storage. It has extensive application fields. Kazuo County Organic Acid Co. of Liaoning province has acquired many years' experience in lactic acid production and management. As there is a great supply shortage in both the domestic market and the international market, the product has a broad sales prospect. It is therefore planned to construct a new 10,000-t/a L-lactic acid production line. The total investment of the project is 20.53 million US dollar. According to UNIDO IPS-China IPAC's evaluation through Computer Model for Feasibility Analysis and Reporting System (MINI COMFAR Ⅲ), the NPV is 28.52 million US$ at 12.00% discount rate; IRR is 32.64%.
PRODUCTS TO BE MANUFACTURED:
90%-95% L-lactic acid
ANNUAL CAPACITY:10,000 tons
AVERAGE ANNUAL SALES REVENUE:
28.41 million US$
AVERAGE ANNUAL INCOME TAX:
2.8 million US$
AVERAGE ANNUAL NET PROFIT:
6.52 million US$
TOTAL INVESTMENT: 20.53 million US$
Local: 4.41 million US$
Foreign:16.12 million US$
FOREIGN PARTICIPATION SOUGHT:
Joint Venture
BACKGROUND ECONOMIC INFORMATION AVAILABLE:
Feasibility study

Contacts:

Ms. Zhang Rongrong/Project manager/UNIDO IPS-China Investment Project Assessment Center

Tel: (0086-10) 68364927 / Fax: (0086-10) 68364915
E-mail:
zhangrr@cecic.com.cn





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