Utilization of corn stalk to produce man-made fiber pomace and
extract xylitol
A
Profile of Chinese enterprise
1. Status of the enterprise
(1)
Name: Liaoyang Fuhai Agricultural High-technology Development Co., Ltd.
(2)
Date of foundation: Feb.19,2001
(3)
Ownership: private
(4)
Staff and workers: 48
(5)
Skilled workers: 7 technicians; 2 high school graduates; 4 persons with
senior technical title
(6)
Business scope: producing and marketing of xylitol, fiber pomace and its
by-products
(7)
Business address: Liaoyang GongChangLing Industrial Development Zone
(8)
Legal representative: Ma Haijun
(9)
Present equipment: The production of pomace and xylitol equipment is in
process.
(10)
Net assets: 2.05 million USD
(11)
Credit rating: None
2. Analysis of relevant historical figures
(1) The comprehensive analysis for the growing trends of general assets and
total fixed assets in the past 5 to 10 years, through graphics and words.
The growing trends of general assets and total fixed assets are unable to
be shown in words and graphic due to the late purchase and take over of
the ownership of GongChangLing Tieshan Shoe Industry Co. in Jul.25, 2001.
(2) Analysis of the growing trends for the sales income and total profit and
tax in the past 5 to 10 years, through words and graphics
The above-mentioned items are unable to be reflected due to the fact that
the enterprise has not been put into operation yet.
3. Description of the major products
(1) Major products and their production capacities
Plant fiber pomace:
17,000 t/y
Xylitol:
2,000 t/y
Mother liquor
2,000 t/y
Green diet pellet
Green ferment bacterial manure
30,000 t/y
50,000 t/y
(2) Technical level of major products
The above-mentioned products are developed by experts through many years’
research, and the pilot-production of the products and the corresponding technical
appraisements were conducted in three different cities, respectively. The
unanimous conclusion was reached by the invited experts of the meeting after
listening to the introduction of pilot productions by the project inventors.

The proposed pilot-production plans, regarding the production of corn
stalk-based man-made fiber xylitol, were tested in such places as
Henan and Guangzhou Province, and the test results prove that the
technical
route
of
the
pilot
production
is
reasonable
and
feasible,reaching up to the domestically–advanced level of straw
pulp.

The technical documents of the project are complete, and the test data
are reliable.

The pomace, made in the pilot production, can meet the technical
requirements of production, when applied in the production of film,
rayon, filament and staple fiber.

The various indexes of the pomace, made in pilot production, are found
to meet the requirements of FJ518-82 《 Rayon Fiber Wood Pulp 》
Standard.
(3) Market share and major selling areas
There is a heavy demand for pomace, xylitol, diet pellet and ferment bacterial
manure. As the main raw materials used in the production of paper, paperboard,
filament and staple fiber, pomace has to be imported from abroad in large quantity,
which costs a total of 6.4 billion USD of foreign exchange. Every year, there is
a shortage of 16.91 million tons of pomace in domestic market, which cannot be settled
even though another 10 or 20 pomace plants are set up. Also, such products as xylitol,
diet pellet and ferment bacterial manure sell well in Southeast Asia and West Europe,
with prices but no stock.
B
Description of cooperative project
1. Brief introduction to the proposed cooperative project:
The production of plant fiber pomace based on corn stalk skin is a breakthrough
and development in the sectors of paper, textile, agricultural and sideline products.
As the main raw materials, pomace are widely used in the production of plant fiber
filament, staple fiber, glass paper, high-grade office paper, high-grade industrial
paperboard, fully-degradable agricultural land film, as well as film, spray paint
and cellulose ether.
It is first invented in China to extract xylitol and its mother liquor. As a
sweetener containing no heat, xylitol is the only sugar substitute with top choice
for the patients with diabetes, high blood fat, cardiovascular & cerebrovascular
diseases and obesity, and the development of xylitol also follows the trend in
food additive sector.
The leave and core of corn stalk can be uses as the best pollution-free forage
for cattle, sheep, pig and fowl. At present, such products have the largest market
share in Korea and Japan.
(1) Name of the project: Utilization of corn stalk to produce man-made fiber
pomace and extract xylitol and its mother liquor
(2) Estimated total investment: 16 million USD
(3) Conditions to be offered by Chinese partner and the proportion of
investment by Chinese partner: contribution of present fixed assets and
patents as the main investment body with a total estimated value of 5.54
million USD, making up 40 percent of the investment
(4) Conditions to be offered by foreign partner and the proportion of
investment by foreign partner: 10 million USD of investment, making up
the other 60 percent of investment
(5) Technical investment to be introduced
All the equipment are made in China
2.
Selection of factory site and its basis
(1) The proposed factory site and its areas:
The factory site of the project is located in Liaoyang GongChangLing Industry
Development Zone, which occupies a total area of 40,357 square meters and has a floor
area of 4,500 square meters.
(2) Condition of communications and transportation:
The future factory site is accessible conveniently by railway and road in different
directions.
(3) Capacity of water supply and sewage
The majority of the water for the project shall be taken from underground, and
350 tons of water shall be consumed for one tons of pomace produced. The wastewater
cannot be discharged outside of the plant, considering the extraction of xylitol
and its mother liquor from waste liquor of pomace, however, the waste water after
the extraction of xylitol can be transformed into industrial recycling water except
for the evaporated impurity, with a recovery rate of 70 percent. The shortage can
be compensated by underground water.
(4) Heat supply capacity
It is estimated that two 20 tons of boilers be used in the project, and
energy-efficient and pollution-free types of products shall be adopted.
(5) Communication condition: excellent (2 computers, two telephones, fax machine,
scanistor, printer, duplicator)
(6) Storage capacity: The existing floor areas total 4,500 square meters, and shall
be expanded by 9,000 square meters, including 3,000 square meters of storehouse.
(7) Capacity of heat supply: steam
(8) Technical strength: A scientific research institute is established especially
for the production of pomace and xylitol, which consists of 17 staff—one director
of the institute (senior engineer as well as textile expert), 3 researchers (senior
engineer), and 13 workers (with diplomas of college and above)
(9) Natural environment of the enterprise: The enterprise is located in the
downstream area of Tanghe Reservoir, where the terrain is wide; the 4 seasons are
clearly demarcated; the mountains and waters are nearby; the frost-free season lasts
as long as 135 days. The area is located in the middle part of the corn belt of Liaoning
Province.
3. Production guideline
(1) The products to be developed and its production scale
Major products to be developed:
First-phase project (2003)
pomace :
xylitol:
17,000 t/y
2,000 t/y
mother liquor: 2,000 t/y
diet pellet:
30,000 t/y
ferment bacterial manure: 50,000 t/y
tableware:
22.6 million pieces/y
(2) Construction scale and cycle: The construction scale shall be reached in two
phases. The first-phase project costs a total investment of 10 million USD, which
consists of one 17,000 t/y pomace production line, one 2,000 t/y xylitol
production line, one 30,000 t/y diet pellet production line, one 5,000 t/y
agricultural land film production line. The total construction cycle shall be
10 months.
(3) Resources and supporting materials for the project: Abundant resources of
different kinds are available for the project.
(4) Production process: omitted
(5) Environment-protection measures: Though there is no wastewater to be discharged
outside of the plant, the most advanced environment-protection equipment are
adopted, which cost nearly 0.84 million USD.
(6) Technologies and standards to be adopted: omitted
4. Market forecasting
(1) Technical standards, market statuses and growing trends in the sector
So far, there is no normal standard available in China regarding the production of
corn stalk-based plant fiber pomace and the extraction of xylitol from waste liquor,
however, such standards as FZ518-82, GB/T114.63-93, GB/T13758-92, used in the wood
pulp and cotton pulp, are implemented in reference.
It is expected that the supply shall fail to meet the demand in the next 20 years
continuously.
(2) Competition vantage of the products in both domestic and overseas market
According to our study, the advantage of making corn stalk-based pomace is great,
reflected by the abundant and low cost raw materials supply. The following
cross-reference is made:
Cost of corn stalk pomace:
Wood pulp:
430 USD
600USD
Cotton pulp:
940 USD
(3) Market share of the products in domestic market after the project is put into
operation and its development trend
After the completion of the project, the products can only meet the demand from
markets in Liaoning Province rather than whole domestic market due to its production
scale. Should the price reasonable, we shall concentrate on exploring the overseas
markets.
5. Profit appraisement
(1) Investment composition
The total investment of the first-phase project shall be 10 million USD
1. Planning and design: 289,000 USD
2. Civil engineering: 542,000 USD
3. Equipment: 5.18 million USD
4. Supporting utilities: 626,000 USD
5. Sales service center: 240,000 USD
6. Scientific research institute: 300,000 USD
7. Local agents in rural areas (40): 600,000 USD
8. Auxiliary production materials: 277,000 USD
9. Sales network (including advertising) : 180,000 USD
10. Raf forestation within the factory areas: 96,000 USD
11. Sewage treatment fees:
12. Pilot production fee:
13. Working capital: 500,000USD
14. Unknowable fees: 217,000 USD
(2) Cost analysis
Please refer to the profit analysis table
Comprehensive analysis of the economic benefit after the corn stalk project is put
into operation and operates as designed.
A.
number
Unit: RMB
Item
Fully
Pomace
Xylitol
Mother
degradable
liquor of
multi-func
xylitol
Total
tional
film
pomace
1.
2.
Selling
15.500
5.300
price
RMB/T
RMB/T
Unit cost
9,511.56RM
3,568.6RM
B/T
B/T
51.000 RMB/T
6.000
RMB/T
11.800RMB/T
1.568RMB/
T
3.
Output(ton)
5.000
10.000
2,000
2,000
19.000
4.
Sales income
7,750
5.300
10,200
1,200
24.450
5.
Total cost
4,755.8
3,568.6
2,360
313.6
10.998
6.
Value-added
1,317.5
901
1,734
204
4,156.
tax
7.
Sales profit
5
1,676.7
830.4
6,106
682.4
9,295.
5
8.
Sales profit
22
16
60
57
38
1,676.7
830.4
6,106
682.4
9,295.
rate
9.
After-tax
profit
5
10.
Output value
7,750
5.300
Remark
Return on investment: 1.87 year
10,200
1,200
24.450
The table should also be referred as standard for Item 3, 4 and 5
Return on investment: 1.89 year
C.
Conclusion
Making good use of local abundant regenerate resources, the comprehensive
development and utilization of corn stalk not only increase the annual income of
local farmers by 243.7USD when calculated by annual output of 17,000 tons of pomace,
but also solve the problem of disposing such materials. Because of the mature and
reliable technology and process of the patent technology, the project can bring about
significant economic benefit, and high value-added deep-processed products, with
short time period for recovery of investment and great market potential. As a project
with a promising future, it can be classified as agricultural industrilization
project.
D.
Contact
Unit: Liaoyang Fuhai Agricultural High Technology Development Co., Ltd.
Contact person: Du Chaokun
Phone: 0419-5606760
Fax: 0419-5606212