1. Project advantage analysis

(a) Geographical Advantage

Quwo county is located in the central region of southern Shanxi, at the junction of Shanxi, Shaanxi, and Henan provinces within the Yellow River Golden Triangle. It is close to the Beijing-Tianjin-Hebei economic circle and the Central Plains Economic Region, located at the central nodes of Taiyuan, Xi'an, and Zhengzhou. It takes two hours to reach provincial capitals by high-speed rail, and 50 minutes by car to reach Yuncheng Yanhu International Airport and Linfen Yaodu Airport.

The area boasts convenient and extensive transportation networks, with the Datong-Puzhou Railway and National Highway 108 running north-south, and the Houma-Yueshan Railway, Datong-Yuncheng Expressway, and Yangcheng-Houma Expressway traversing north-south and east-west. It is one of the counties with the densest highway network in China, offering convenient transportation and low logistics costs.

(b) Resource advantages

Quwo and its surrounding areas are rich in coal, providing ample raw material supply for the project. Its open economic zone has established a relatively complete coal chemical industrial chain, offering supporting services for the project.

(c) Platform advantages

Quwo has developed a mature coal chemical industry chain, and its chemical industrial park is currently under approval, providing a comprehensive platform foundation and supporting infrastructure for the project.

2. Project benefit analysis

(a) Economic benefits

Based on a DMC market price of 6,000 yuan ($842.75) per metric ton, the project is expected to generate an annual income of 600 million yuan and a net profit of approximately 120 million yuan (with a gross profit margin of 25 percent) once it reaches full production. The total investment in the project is about 450 million yuan, with a post-tax investment payback period of approximately four years (including the construction period).

(b) Social benefits

The project will create approximately 200 jobs, boosting local employment. It will drive industrial upgrades in Quwo, forming a new materials industry cluster. It will facilitate the transition of Quwo's coking industry from "traditional coke" to "high-end chemicals," enhancing the added value of the industrial chain.

(c) Environmental benefits

The project is able to utilize 200 million cubic meters of coke oven gas annually, reducing CO₂ emissions by 30,000 tons.

3.Project supporting elements

(a) Surrounding transportation

The proposed location of the project is the Quwo million-ton level ultra special steel industrial park, which provides industrial natural gas. The park has four major water supply systems: the Huihe River, Tianhe River, Fenhe River, and Qiyi Reservoir, with a daily water supply capacity of 100,000 cu m.

Additionally, the Yumenkou water lifting project is capable of suppling 50 million cu m of water to the park. The park can treat up to 20,000 cu m of comprehensive sewage daily. The park is also equipped with 220 kV and 110 kV substations, with a total power supply capacity of 600,000 kVA. The park's road network consists of crisscross roads, totaling 72 kilometers, and includes dedicated railway lines with an annual throughput capacity of 13 million tons.

(b) Industrial park situation

The application for the Quwo Economic and Technological Development Zone's Chemical Industrial New Materials Park has been approved by the municipal government, and the provincial government procedures are being expedited. The development zone already has the foundation to build a special steel materials and modern coal chemical industry cluster, with a solid platform foundation.

4. Project investment proposal

Target investors: Attract relevant production enterprises to set up operations in the park.

Proposed investment: 450 million yuan.

5. Contact information for investment promotion project

Contact: Zhang Shaojie, deputy director of Quwo Foreign Investment Promotion Service Center

Phone: +86 15803570821

Email: qwxzsj2015@163.com