Beijing Samvon Andesite CoLtd Business Plan


    
    Beijing Samvon Andesite Co Ltd

    Business Plan




    Complied by Beijing Fenghua Tianbu Investment Consulting Ltd
    June 2006



    Beijing Samvon Andesite Co Ltd
    Business Plan
    SN 2006 No( )

    Confidential Promise
    This business plan that involves the commercial secret of Beijing Samvon Andesite Co Ltd is open to the investors who are intent to invest Therefore the investing agencies who have received our business plan should promise
    1To take good care of the business plan never reveal the related commercial secret to any third party without the permit of Beijing Samvon Andesite Co Ltd and it is strictly prohibited for any other business purpose except this project
    2To be responsible for the damage caused by the violation of the Promise on the Beijing Samvon Andesite Co Ltd
    Stamp of Acceptance Agency
    Signature of Project Manage



    Acceptance Date:


    Business plan

    Name of Project Exploitation and Production of Natural Andesite
    Project Organization Beijing Samvon Andesite Co Ltd
    Address RmA606 No5 Zhixin East Rd Haidian Beijing China
    Tel 8610-82370802 82370803
    Fax 8610-82372588
    Email cnsamvon@126com
    Project Secretary Zhao Wei Gao Fei


    Beijing Samvon Andesite Co Ltd
    June 2006
      
     

    Content
    Summary …1
    Part I Basic Information of Company 6
    Part II Managers of Company9
    Part III Product 13
    Part IV Research and Development 21
    Part V Industry and Market 26
    Part VI Marketing Strategy35
    Part VII Manufacture ………………37
    Part VIII Management 40
    Part IX Financing44
    Part X Financial Plan47
    Part XI Risk Control 52
    Part XII Project Schedule 55
    Part XIII Others 56


    Summary
    Part I Basic Information of Company
    Name Beijing Samvon Andesite Co Ltd (hereinafter referred to as the company)
    Registration No1101082885610
    Established on 25th Aug 2005
    Registered Address Zhongguancun Science & Technology Park Haidian District Beijing China
    Registered Capital 500000 CNY
    Shareholders and allocation of shares Wang Xingguo 44%
    Li Jianfeng 44% Yan Chongguang 12%
    Main Business Research exploitation design production and marketing of natural andestie products
    Headquarters Address RmA606 No5 Zhixin East Rd Haidian Beijing China
    Workshop Address Inside of Jilin Samvon Industry Co ltd No1 Samvon Cave Longjing Town Jilin Province
    Part II Main Directors
    1 Chairman of the Board
    Wang Xingguo male 58 was born in Hailun Heilongjiang Province engaged in the enterprise management for 19 years
    Experience From Sep1968 to May1972 he served as secretary for political department of the fourth division of Railway Army From May 1972 to July 1999 served as secretary for general political department secretary in charge of discipline inspection in Production Management Bureau Head Politics Ministry commissar in Beijing Jingouhe Official Rest Home Head Politics ministry July 1999 until now he is the board chairman of Jilin Samvon Industry Co Ltd and Beijing Samvon Andesite Co Ltd
    Outstanding Achievement He committed himself to the establishment of Tiancheng Corp Group and Jilin Samvon Industry Co Ltd as he took the post of secretary in charge of discipline inspection in Production Management Bureau Head Politics ministry he had taken charge of the board and as SEC for party committee many times and had done very good job
    2 General Manager
    Yan Chongguang Male 44 was born in Wei town Hebei province engaged in the enterprise management for 18 years
    Experience From Sep1978 to Nov 1989 he served as instructor for the auto company of Qingzang army and as secretary for political department of back office From Nov 1989 to May 1999 project manager for Asia and Pacific Construction Jointstock Company and general manager for Donghui Real Estate Company From May 1999 to Aug 2005 assistant of general manager for China Petrol North China Industry Co Ltd Aug 2005 until now general manger for Beijing Samvon Andesite Co Ltd
    Outstanding Achievements He created and developed the theory of mental control of China modern enterprise management theory based on the theory and methods of western modern management involved in many companies’ setup such as Donghui Real Estate Co Ltd China Petrol North China Industry Co Ltd Henan PetrolChina Speedway Oil Products Company Limited and East Resource Co Ltd and completed the startup projects of all those companies
    Part III Description of Product
    The stone the company exploits and manufactures is a kind of rare natural andesite plagioclase of strong acidresistance alkali resistance hydrofluoric acid resistance high temperature resistance abrasion resistance impact resistance osmosisresistance and radiation protection which is the appointed anticorrosive material for China Military Industry as well as the necessary anticorrosive material for coldrolling thin slab pickling unit chemical industry acid washing tower vitriol concentrator and electromechanical pickling tank which can be used for building facing due to its compact structure dirt nonstick corrosion resistance break resistance strong reliability moderate gray and elegance
    Part IV Research and Development
    Construction Research Institute China Metallurgy Group and WISDRI Engineering & Research Incorporation Limited were entrusted to make research and tests on our product for a long time Now it has been successfully applied in the vitriol concentrator of Jilin Chemical Plant and the production line for coldrolling sheets of Baoshan Steel Wuhan Steel and Anshan Steel At present further research is made on the manufacture and application scopes of high precision irregular products so as to be applied in the petrol acid washing tower and such equipments
    Engineering Research Institute CAS was entrusted to make a test on the product indicating that besides graphite andesite plagioclase is also hydrofluoric acid resistant while granite aragonite acidproof ceram casting stone basalt and other kinds of andesite don’t have such speciality
    China Construction Scientific Research Institute and Stone Material Quality Inspection and Test Center of China Building Material Industry were entrusted to make a test on the application of the product in the building facing finding out its main properties are superior to marble granite limestone and sandstone and its color grey is sole in the international stone market
    Part V Trade and Market
    The company owns the exclusive right for the exploitation of Maanshan andesite plagioclase mine in Samvon cave Longjing Jilin province The mine is the only one in the world while another andesite mine of similar lithofacies in German is owned by German MANZ Company Now both mines can meet only 20 of the demand for andesite that such industries as war industry metallurgy nuclear power nonferrous industrypetroleum printing and dyeing building decoration need 50000 m3 andesite per year


    Forecast of Marketing Sales of the Company as Following

    Year
    Output(M3)
    Sales proceeds(10 thousand CNY)
    Profit before tax (10 thousand CNY)
    Construction Period
    1
    000
    000
    000
    Operation Period
    2
    3000
    552000
    18118
    3
    5000
    920000
    164542
    4
    6000
    1104000
    260931
    5
    6000
    1104000
    335293


    6
    7500
    1380000
    478071
    Part VI Marketing Strategy
    Start with the establishment of sales network in China Asia then America and Europe Africa Firstly apply it in the coldrolling pickling line and building dressing then spread it to the war industry chemical industry nuclear power petroleum mechanics and printing and dyeing industry all over the world Build long business relationship with big customers in the world
    Part VII Manufacture
    Owing the andesite mine the company can manufacture products according to the customers’ order The production is equipped with the internationally advanced Italy diamond wire sawing machine and multistrand diamond wire sawing machine Computer Numerical Control Machining Center (CNC) automatic slab production line and automatic sheet production line
    Taking the international anticorrosion standard for reference the company complies the enterprise standard QHD APS001-2006 Natural Anticorrosive Stone Andesite and QHD APS002-2006 Natural Andesite Building Slab which are put forward and set down for the first time in the world and now are being applied as the Industrial Standard in China Anticorrosion Industry and Stone Material Industry
    Part VIII Management
    The company is divided into five departments and one center such as administration department sales department financing department workshop engineering department and research center On the basis of the principles of high efficiency intelligence and capability logic and agility the company provides staff with favourable salary good working and study environment and awards sales and technology persons with promised rewards and encourages them to be active and aggressive
    Part IX Financing
    Total investment 51489900 CNY achieved 41489900 CNYstill need 10000000 CNY that is 10 financing agencies 1000000 CNY each agency totally 10000000 CNY The company puts the investment mainly on the purchase of Italy stone exploitation machines as well as spare parts and consumables (2000000
    CNY) and some processing machines as well as spare parts and consumables (8000000 CNY)
    The company mortgages stock or mining right to the investor who will get not less than 20 fix return per year As along as twoyear expiration the company will repay investors all their investment and fix returns while the mortgage is released The company promises to confer investors with the company’s stock equivalent to half the amount of their investment if the company has successfully come into the market of Hongkong or South korea
    The company mortgages the mining right to get the usufruct of the machines by financing leasehold The mortgage will not be released until expiration
    Part X Main Economic Data and Evaluation Standards
    Order
    Project
    Unit
    Amount

    Economic data


    1
    Total investment
    10 thousand
    514899
    2
    Investment on fixed assets
    10 thousand
    160977
    3
    Operating income(annual average)
    10 thousand
    1610000
    4
    Sales tax and annexation (annual average
    10 thousand
    12387
    5
    Total expenses(annual average)
    10 thousand
    878279
    6
    Total profit(annual average)
    10 thousand
    595465
    7
    Income tax(annual average)
    10 thousand
    196503
    8
    Profit after tax(annual average)
    10 thousand
    398961

    Financial target


    1
    Rate of profit on sales

    3699
    2
    Rate of profit on investment

    11565
    3
    Financial internal rate of return

    8153
    4
    Financial net present value
    10 thousand
    3064252
    5
    Payback period of investment
    Year
    279
    6
    Yield rate of capital fund

    10000
    7
    Rate on prepaid interest

    3163
    8
    Rate on prepaid debt

    746

    Part XI Risk Control
    Internationally the application technology of natural stone products has grown mature Furthermore the company has brought in the advanced CNC and technology for production and design The company owns exclusive right for exploitation of andesite mine So there is no risk in technology and management
    Risk hardly occurs until a new kind of anticorrosive material comes into the market and overtops the previous one in the property and reliability so that the previous one has to face the reality of being substituted Since building facing material is a newly developed material what challenges us is just how to spread it widely in the international market The company is of high technology enterprise in Beijing and the product is of the one our country encourages to develop moreover the company enjoys tax privileges of being free of income tax for three years and turning in half income tax for another three years in China so there is no risk in China policy Risk is controlled by the way of keeping our technology and products’ design internationally advanced carving out new fields for its application and deepening its spread in the market
    Part XII Others
    The company holds 85 stock of Jilin Samvon Industry Company Limited which signed on 28th September 2003 with Yanbian Korea Selfgovernment the assignment of a contract of the assets of Jilin Samvon Building Plant and so owned the whole assets of former Jilin Samvon Building Plant (Stateowned plant 9239) as well as the exclusive right for exploitation of andesite mine The 191 accepted employees and 239 retired workers had been properly arranged by the company according to Arrangement of Former Stateowned Enterprise Staff in Jilin Province
    Part I Basic Information of Company
    1 Basic Information
    ⑴ Structure of Company and Its Capital
    Company Name Beijjing Samvon Andesite Co Ltd
    Registration No 1101082885610
    Established on 25th August 2005
    Registered Capital 500000CNY
    Capital already owned 16 million CNY cash has been already put into the company and Jilin Samvon Industry Co Ltd by Wang Xingguo Li Jianfeng and Yan Chongguang Wang Xingguo Li Jianfeng and Wang Jiulin transferred 85 stock of Jilin Samvon Industry Company Limited to the company without any repay after the company established
    Registered Address RmA606 No5 Zhixin East Rd Haidian Beijing China
    Nature of Company Limited company without any state capital or foreign capital
    Present Condition of Shareholders
    Shareholder
    Investment
    amount
    Capital form
    Proportion of shares
    Contact
    Tel
    Wang Xingguo
    22
    Cash
    44%
    Wang Xingguo
    010-82370803
    Li Jianfeng
    22
    Cash
    44%
    Li Jianfeng
    010-82370803
    Yan Chongguang
    6
    Cash
    12%
    Yan Chongguang
    010-82370803

    Certificate for the Cognizance of High and New Tech Enterprise in Beijing Unified Code 0511008A13745
    Standing director of China Industry Anticorrosive Technology Association (CIATA)
    Standing director of China Stone Industry Association
    ⑵ Departments

    Board of directors

    General Manager of China
    Region
    Research
    Center
    General Manager Manager
    Sales
    Department
    Financial
    Department
    Workshop
    Engineering
    Department
    Administrative
    Department
    General Manager
    of Asian & Pacific Region
    General Manager of Europe & Africa Region
    General Manager of America and Atlantic Region
    Jilin Samvon Industry Co Ltd
    Experts Committee

    ⑶ Jilin Samvon Andesite Co Ltd
    Established on 26th July 1999 registration No is 2224051001218 registered address is No1 Samvon Cave Longjing town Jilin province the registered capital is 10 million CNY On September 2003 it took over Jilin Samvon Building Plant and gained its whole capital and the exclusive right for the exploitation of andesite mine
    Established in 1956 Jilin Samvon Building Plant (Stateowned plant 9239) was a war industrial enterprise governed by both National Fifth Mechanical Industry Ministry and Jilin Province National Defense Ministry afterwards under the administration of Jilin Yanbian Korea selfgoverned state The plant broke down due to the failure of Emulsion project in 1996 It was transferred to Jilin Samvon Industry Company by the people government of Korea selfgoverned state in September 2003 Li Jianfeng one of the shareholders of the company purchased the related plant with over 700 million CNY
    ⑷ Main Business
    Research exploitation design manufacture sales construction and technology consultation of natural andesite plagioclase
    ⑸ Staff
    Totally 63 persons including 5 managers 15 salesmen 7 researchers 2 administrators 26 workers 3 engineers and 8 guarders

    Persons on the staff
    High school or technical secondary school
    Bachelor or Associate degree
    Master degree or secondary title of a technical post
    Doctor degree or top title of a technical post
    Manager


    1
    2
    Salesman

    10
    4
    1
    Finance

    5
    1

    Researcher

    3
    3
    1
    Administrator

    2


    Worker
    20
    2
    1
    1
    Engineer

    2
    1

    Guarder
    7
    1



    2 Company’s Objectives
    ⑴ Objective of Near future
    Build sales network in China Asian and Pacific Regions Quickly take up the markets of irregular products used for pickling units for metallurgical coldrolling sheet and for chemical pickling equipments in China mainland China Taiwan South Korea Japan India
    Endow 1000 square meters of sheet to Olympic Games for its gyms’ construction as the displayed sample to open the door of Asian and Pacific market for andesite used as topgraded building facing material
    ⑵ Objective of future
    Develop and spread the highprecision stone in the international anticorrosion industry and building dressing field by bringing in advanced equipments under the direction of our brand Samvon both the technology level of exploitation and production of andesite and the market occupancy become first in the world
    ⑶ Marketing Occupancy Rate
    Item
    2007
    2008
    2009
    2010
    2011
    Income(10 thousand)
    5520
    9200
    11040
    11040
    13800
    Occupancy rate(%)
    6
    10
    12
    12
    15

    ⑷ Stratagem for Development
    Standing in the frontier of world scientific technology and industry the company takes advantage of internationally advanced equipments to produce the most excellent environment protected materials for anticorrosion and building facing in the world promotes a tech revolution in the modern anticorrosion and building dressing fields contributes to saving the limited resources we human have and improving the quality of our daily life
    Part II Managers of Company
    1 Board of Directors
    SN
    Title
    Name
    Working in
    Education
    Tel
    1
    Chairman
    Wang Xingguo
    Jilin Samvon Industry Co ltd
    Bachelor degree
    82370803
    2
    Director
    Li Jianfeng
    Fushan Shunde Star Paper Industry Co Ltd
    Associate degree
    82370803
    3
    Director
    Yan Chongguang
    Beijing Samvon Andesite Co Ltd
    Master degree
    82370803

    2 Managers
    ⑴ Chairman
    Wang Xingguo male 59 born in Hailun Heilongjiang Province bachelor degree nationally topgrade screenwriter
    Experience From Sep1968 to May1972 he served as secretary for political department of the fourth division of Railway Army From May
    1972 to July 1999 served as secretary for general political department secretary in charge of discipline inspection in Production Management Bureau Head Politics ministry commissar in Beijing Jingouhe Official Rest Home Head Politics ministry From July 1999 until now he is the board chairman of Jilin Samvon Industry Co Ltd and Beijing Samvon Andesite Co Ltd
    Technical Skill During 15 years before 1998 he was in charge of t enterprise management and had gained much experience
    Creation Spirit During he assumed the office of chairman in several corporations supervised by Head Politics Ministry he groped out a set of army management mode for enterprise that he replanted the strict army management into enterprise management and so carved out the way to standard armyenterprise administration manage of our country
    Pioneering Ability Strong capability of enterprise during he consumes the office of checking SEC in Production Management Bureau Head Politics Ministry he was often assigned to secondary units to take up the post of chairman and secretary of party committee He groped for enterprise management based on the science and fact and gained outstanding achievement
    Main Achievement He completed the incorporation of Greatwall Culture company Tiancheng Industry Group of General Politics ministry Greatwall Film Co ltd and reformation of Jilin Samvon Industry Co ltd
    ⑵ General Manager
    Yan Chongguang male 44 born in Wei town Hebei province Master’s degree researcher
    Experience From Sep1978 to Nov 1989 he served as instructor for the auto company of Qingzang army of services and as secretary for political department of general logistics department From Nov 1989 to May 1999 project manager for Asia and Pacific Construction Jointstock Company and general manager for Donghui Real Estate Company From May 1999 to Aug 2005 assistant of general manager for China Petrol North China Industry Co Ltd Aug 2005 until now general manger for Beijing Samvon Andesite Co Ltd
    Technical Skill Modern project management
    Creation Spirit Integrated with the research fruits on psychology sociology philosophy he based on the western theory of behavior management put forward the spirit control theory of China modern enterprise management and developed and enriched the theory and methods for it
    Pioneering Ability He directed and reformed many corporations
    Main Achievement He had incorporated many companies such as Donghui Real Estate Co Ltd China Petrol North China Industry Co Ltd Henan PetrolChina Speedway Oil Products Company Limited and East Resource Co Ltd and completed the startup projects of all those companies
    ⑶ Sales Manager and General Manager of China Region
    Zhang Jiansheng male 43 born in Zhangjiakoiu Hebei province bachelor degree senior economist
    Experience From September 1981to July 1995 he served as soldier for land army as student in Shenyang Artillery Academy as company commander for some division of land army as secretary for campaign company from July 1995 to March 2002 he took charge of oil storeroom of PetrolChina Luoyang Fuel Company of business affairs and manager and the associate general manager of branch company From March 2002 until now he takes up the post of project manager of China Petrol North China Industry Co Ltd sales manger and general manager of China region in Beijing Samvon Andesite Co ltd
    Technical Level He is so accomplished in project management and market development that he could correctly find the very market for the product especially has his own idea on the development of a new market
    Main Achievement When working in China Petrol North China Industry Co Ltd he set up such a big customer’s group for China Petrol in Beijing and Tianjin that its business grew fastest in the North China area
    ⑷ General Manager of Asian and Pacific Region
    Wang Zhuangfei female 44 born in Dalian Liaoning province Master’s degree professor
    Experience From August 1979 to July 1993 she was the student in Sichuan University instructor in Northwest Light Indu
    strial College from July 1993 to August 2002 she was graduate student of master and doctor in Iran Teheran University representative of China International Tech Cooperation Company stationed in Iran and professor in Xian Geology University From August 2002 until now she consumes the office of president assistant of Asian region of US Continent Energy Technology Corporation and the general manager of Asian region of Beijing Samvon Andesite Co Ltd
    Technical Level She has rich experience in international trade is capable of analysis of enterprise information and negotiation is accomplished in the communication with government directors
    Main Achievement She has made success in many cooperation projects of US Continent Energy Technology Corporation in China
    ⑸ Manager of Workshop
    Xu Xiangming male 43 born in Beijing Master’s degree senior engineer
    Experience From September 1981to July 1988 he was student and graduate student in Beijing Steel College from July 1988 to August 1998 associate section chief and then section chief in National Building Material Bureau from August 1998 until now sales manager in Beijing Office of Italy Marini and Pedrini and the manager of workshop of Beijing Samvon Andesite Co ltd
    Technical level He is a topranking expert in the mining and production of granite in China ever wrote books about the exploitation of stones
    Main Achievement He took charge of the stones’ mining for many companies which all has gained much and whose market occupancy rate is going up gradually
    ⑹ Manager of Administration
    Zhao Wei male 29 born in Huanghua Hebei province Bachelor degree
    Experience From September 1995 to July 1999 he was the student in Beijing Industrial and Commercial University from July 1999 until now cashier in China Petrol North China Industry Co Ltd project accountant associate director of financing office in China Commercial Unite Petroleum Co ltd and manager of administration in Beijing Samvon Andesite Co Ltd
    Technical Level Familiar with the administrative procedure regards industry and commerce tax affairs Custom environment protection land and good at computerized account
    Main Achievement Experienced in management of project financing affairs when taking up the post of project accountant in China Petrol he applied planology into the dispatch and usage of capitals of the project for financing programming therefore the capitals were reasonable dispatched
    ⑺ Manager of Financing Department
    Tao Xiuying female 29 born in Hailun Heilongjiang province Bachelor degree
    Experience From July 1999 to August 2000 she took charge of cashier and personnel in Beijing River Communication Co Ltd from July 2002 to December 2003 accountant in Beijing Wanjuan Yiyou Culture Development Co ltd from December 2003 to January 2005 audit assistant in Beijing Jihangtong Tax Collectors Office from January 2005 to December 2005 audit assistant in Beijing Jingcheng Lixin Accoutants Office from December 2005 until now manager of financing department in Beijing Samvon Andesite Co Ltd
    Technical Level Familiar with financial affairs and computerized account

    Part III Product
      1 Description of Product
    The stone the company exploits and manufactures is a kind of rare natural andesite plagioclase of strong acidresistance alkali resistance hydrofluoric acid resistance high temperature resistance abrasion resistance impact resistance osmosisresistance and radiation protection
    The andesite plagioclase is of porphyritic texture with crystal and vitreous materials intertwined together The porphyritic crystals are common augites which are of simple and double crystal and double polypiece double crystal The andesite plagioclase are chiefly composed of long stripshaped plagioclase micro crystal tiny augite that are easily changed magnetic iron and vitreous materials and are stuffed with small amount of tiny needleshaped red stones
    Porphyritic crystals are wellproportioned inside and of less air holes compact texture fine and smooth surface Therefore it is named as Andesite Plagioclase in the circles internationally which is the most superior stone among the varieties of andesite stones
    Because of the location of andesite plagioclase of the company in Samvon Cave Longjing town Jilin province it is called Samvon stone Samvon andesite Samvon acidproof stone it is the appointed anticorrosive material in China War industry as well as necessary anticorrosive material for pickling units of Metallurgical coldrolling sheet chemical pickling tower vitriol concentrator of War industry and Electromechanic pickling tank Before 1982 Samvon stone products were forbidden to spread beyond War industry not least to be exported In 1982 it was permitted to be used for test in the pickling units of Wusteel and Baosteel in order to substitute German product
    In 2006 the company successfully applied andesite plagioclase for the building facing gravestone and cleaning means also in this year the company attended 13th STONETECH 2006 in Shanghai New International Expo Center on which the product was displayed as the only andesite product in the world and attracted much attention from this industry
    ⑴ Number One in the World
    In 2005 international authoritative organization ISIM provided its high evaluation upon inspection and commented the said stone are fine in material free from any impurities strong acidresisting strong alkaliresisting strong wearresisting high temperatureresisting breakingresisting and pressresisting Such stone was seen for the first time since the Research Institute was found in 1996
    International Societies for Corrosion and Protection recognized that the quality of Samvon stone is better than the one from Germany Out of the 16 physical and chemical inspection items included in the international evaluation standards Samvon stone are superior to the one from Germany in 13 items
    ⑵ Only One in China
    So far there are only two anticorrosive stone mines in the world one is in Germany which has been exhausted and the other one is in Samvon Cave of Longjing Jilin Province China of which Jilin Samvon Industry
    Company has the exclusive right for the exploitation for 50 years The mine now is in good state without having been cosmically exploited From 1944 when the Samvon stone were found by Japanese to 1956 when the Samvon stone mine started to supply anticorrosion and protecting material for the national defense of our country until now there has not ever been any stone that are equal to Samvon stone in quality in nearly 60 years
    ⑶ Superior Quality
    The product has been proved much superior to German equivalent products and marbles after its usage in the acidcontacting equipments by Baosteel Wusteel Ansteel and Jilin Chemical for a long time The product’s price is much lower than Germany imported one Its service lifespan extends over 3 times compared with other anticorrosive materials the cost and time for the repairing of production line is therefore greatly reduced and working efficiency is accordingly promoted
    During the test on building facing the product is not changed in color and dirt nonstick and weathering resistant although used under acid atmosphere owing to its compact structure and lack of any air holes Its bend strength twice as that of granite marble and limestone determines its higher safety and reliability under the same circumstance Also because of its strong bend strength andesite stones can be machined into super thin sheet (thickness ≤18mm) for the building facing weight of buildings is lightened and the cost of steel and stone materials is according economized
    Nowadays the thin sheet technology uses chemical materials as lining such as beehive sheet polythene sheet and polythene web which have only 20 to 30 years’ lifespan The repairing cost will be 5 times as that of natural stones as building facing sheet Andesite’s service lifespan is over 300 years if used as building facing sheet the repairing cost of the building is therefore greatly reduced
    ⑷ Comparison of Properties’ Indexes
    ① Compared with Marble Granite
    Item
    Average of marble
    Average of granite
    Average of Samvon andesite
    Bulk density gcm3
    2699
    2690
    259

    Water absorption
    0343
    0279
    033
    Compression strength MPa
    127568
    160405
    15160
    Drying
    Bend strength MPa
    15998
    18190
    3590
    Saturation
    700
    800
    2690
    HSD
    54293
    102165
    9700
    SiO2
    8920
    66683
    6218
    Al2O3
    1018
    14405
    1502
    Fe2O3
    1181
    3574
    452
    MgO
    8232
    2237
    447
    CaO
    42932
    3379
    735
    Na2O
    0216
    3465
    355
    K2O
    0268
    4709
    169
    TiO2
    0172
    0539
    087
    Loss on ignition
    39877
    0912
    156

    ② Compared with German Acidproof Stone
    SN
    Item
    German acidproof stone
    China acidproof stone
    Remark
    1
    Press Resistance (kgcm²)
    400
    2000
    True average value
    2
    Tensile Strength(kgcm²)
    80
    100
    True average value
    3
    Breaking Resistance (kgcm²)
    66
    400
    True average value
    4
    Impact Strength (kgcm²)
    332
    387
    True average value
    5
    Wear Resistance (gcm²)
    19
    145

    6
    Water Absorption Rate ()
    4
    <1
    48 hours’ water absorption
    7
    Acid Dissolving Rate ()
    <003
    <001

    8
    Softening Coefficient ()
    80
    42

    9
    Elasticity Modulus (kgcm²)
    14×105
    11×105

    10
    Heat Stability (time)
    >2
    >4
    350℃~20℃
    11
    Linear Expansion Coefficient (1℃)
    756×106
    631×106
    Room temp~200℃
    12
    Highest Applicable Temperature (℃)
    270
    350

    13
    VolumeWeight (kgl)
    20
    255

    14
    Hardness (M)
    50~55
    55~60

    15
    Osmosisresistance (Atmospheric)
    27
    3
    No osmosis

    16
    Oxidizability (℃)
    310
    400
    No oxidation

    ⑸ Comparison of Chemical Composition ()
    Composition
    SIO2
    Fe2O3
    TiO2
    CaO
    MgO
    AL2O3
    Na2O
    K2O
    Germany
    5724
    659
    115
    432
    177
    1824
    492
    277
    China
    6218
    452
    087
    735
    447
    1502
    355
    169

    ⑹ Comparison of Acidresistance
    Sample
    Appearance
    Method
    Aciddipping temp(℃)
    Aciddipping time(h)
    Loss of weight()
    Germany
    Grey rough surface
    Normal
    20
    24
    05
    Boiling
    98
    4
    4
    China
    Grey fine and smooth surface
    Normal
    20
    24
    04
    Boiling
    98
    4
    2

    2 Intellectual Property
    ⑴ Patent Application
    The company has submitted the patent application for Application of Andesite in the Acidcontacting Equipments and Application of Andesite for Building facing to State Intellectual Property Office
    ⑵ Trademark’s Registration
    The Trademark Application of 三峰 SAMVON 清正灰 三峰洞 as the trademark has been submitted to State Administration for Industry and Commerce Trademark Office and the trademark register organizations of 25 countries in America Europe and Asia
    3 Target Market
    ⑴ Steel Industry Steel pickling is used to eliminate the rust on the steel’s surface Target shallowtank pickling unit of pickling and coldrolling united production line acid reclaiming unit and electrogalvanization unit
    ⑵ Chemical Industry Pesticide and fertilizer about 750kg sulphuric acid are needed for producing one ton of ammonium sulphate Petroleum industry used to remove the inside sulphide and unsatrurated hydrocarbon from crude oil and used for production of chemical fiber and plastic Acid is also necessary in making medicine such as sulfonamide aspirin and caffeine Target Acid washing tower of chemical industry reaction kettle distilling tower and neutralization machine
    ⑶ War Industry 360kg sulphuric acid is needed to produce one tone of TNT 1300kg suophuric acid is needed to produce one ton of picric acid Target Surphuric acid concentrator platform for launching carrier rocket
    ⑷Nonferrous Industry To Electrolyze and refine Cu Zn Ni the electrolyte should be prepared with sulphuric acid Target Drying tower and absorbing tower of acid producing system
    ⑸ Nuclear Power Industry Acidproof coat of nuclear power station’s reactor
    ⑹ Mechanism Industry Electromechanical pickling tank electrolyzing tank acid storing tank
    ⑺Building Industry Inside and outside building wall dressing floor working tableboard cleaning means gravestone
    4 Substitute
    ⑴ Anticorrosion Industry
    Acidproof ceram manmade casting stone graphite carbon material and natural acidproof stone are of acidproof and high temp Resistant ones among nonmetal anticorrosive materials thereinto only the natural acidproof stone is abrasion resistant Natural acidproof stone includes granite quartzite andesite and aragonite among which it is andesite that is of moderate hardness fine texture good machining strong pressing and breaking resistance
    Such materials as metal some nonmetal rubber plastic and glass fiber reinforced plastics have short service lifespan or high cost or is easy to cause secondary pollution so in recent decades natural stones have been used as anticorrosive materials in America and Europe Natural anticorrosive stone materials have become necessary for coldrolling pickling unit sulphuric acid concentrator acidproof coat of nuclear power station and platform for launching carrier rocket
    ⑵ Building Dressing Industry
    Among building facing materials andesite will substitute granite and tufa to be used for inside and outside building facing
    5 Standards of Product
    ⑴ International Standard
    Standard of European Anticorrosion AssociationNonmetal Anticorrosive Material
    Standard of American Corrosion Engineer AssociationNACE Standard RP
    Standard of American Building Engineer AssociationASTM
    ⑵ National Standard
    GB 50212-91 GBT 50212-2002 Specification for Construction And Acceptance of Anticorrosion Engineering of Buildings
    GB 50224-95 Standard for Inspection And Evaluation of Anticorrosive Engineering Quality of Buildings
    GB 8488-87 Acidproof Brick
    GBT 191-2000 PackingPictorial Markings for Handling of Goods(eqv ISO 7801997)
    GBT11821996 Geometrical tolerancingGeneralities definitions symbols indications on drawings(eqv ISO 1101:1996)
    GBT 2479-1996 Grinding Material  White Alundum
    GBT 28281 Sampling Procedures for Inspection by Attributes Part 1 Sampling Schemes Indexed by Acceptance Quality Limit (AQL) for Lotbylot Inspection
    GB 65662001 Limit of Radionuclide of Building Materials
    GBT 99661-2001 Test Method for Natural Facing Stones Dry Wet and After Freezing Test Method for Compressive Strength
    GBT 99662-2001 Test Method for Natural Facing Stones Test Method for Flexural Strength
    GBT 99663-2001 Test Method for Natural Facing Stones Test Methods for Bulk Density True Density True Porosity and Water Absorption
    GBT 13890-1992 Terms for Natural Facing Stones
    GBT 13891-1992 Test Methods of Specular Gloss for Decorative Building Materials
    GBT 17670-1999 Unified Codes of Natural Stones
    GBT 186012001 Natural Granite for Building Slab
    GBT 18003-1998 Limits And FitsBasesPart 3 Numerical Values Tables of Standard Tolerances and Fundamental Deviations(eqv ISO 1829:1975)
    ⑶ Industry Standard
    YSJ 411-89 Operation Criterion of Anticorrosion Construction
    YHS 43-75 Charts Collection for Nonmetal Lining Anticorrosive Storing Tank
    HGJ 29-90 Chemical Lining Equipment of Brick Slab
    HG 26197-91 Maintenance Specification for the Lining Equipment of Brick Slab
    JCT 8471-1999 Irregular Brick Stone Part I Arc Face Sheet
    JCT 8472-1999 Irregular Brick Stone Part II Bloom
    JCT 8473-1999 Irregular Brick Stone Part IIISolid Column
    JC 8301-2005 Stone Cladding Facing Materials and Metal hangup
    Part I Stone Cladding Facing Materials
    JCT 204-2001 Natural Granite Quarry
    ⑷ Enterprise Standard
    QHD APS001-2006 Natural Anticorrosive Stone Andesite
    QHD APS002-2006 Natural Andesite for Building Slab
    6 Competitive Advantage
    ⑴ Quality
    By adopting internationally advanced Italy equipments for exploitation and production and with the assistance of laser marking and thickness fixing system the product can be machined of thickness <03mm which is the precision only a few domestic stone production machines can reach
    ⑵ Technology
    The company can produce any types of andeste products according to the drawing and technical data that customers offer
    ⑶ Performance
    It can meet the requirements of all kinds of irregular products in the world letting the workpiece achieve the optimization in its performance and efficiency
    ⑷ Price
    The price of our product is 30 lower than that of German one We are hoping to build longterm and close business relationship with customer at any moment and we promise to offer the best price and aftersales service
    7 Aftersale Network and Customer’s Technical Support
    The company sets up general managers in four distribution regions as Asia and Pacific America and Atlantic Europe and Africa China Through net communication with sales department and research center of the company and our strong production ability we can provide customers with reliable service and technical support

    Part IV Research and Development
    1 Fruits of Research and Development
    ⑴ The Stone Material Specially Used in the Coldrolling Acid Washing by Wuhan Steel Technology Appraisal Certificate Awarded by Ministry of Metallurgy Industry of People’s Republic of China No (83) Metallurgical Science Steel Words No321
    ⑵ Development Report of the Stone Material Specially Used in the Coldrolling Acid Cleaning by Wuhan Steel Metallurgy Ministry Construction Research Institute Stuff Department of Wuhan Steel Corporation 1983
    ⑶Application of Andesite in the Coldrolling Acid Washing Metallurgy Ministry Construction Research Institute 1984
    ⑷ Development of the Special Acidproof Stone Material
    Appraisal Orgnization:Liaoning Science & Technology Committee
    Completing Unite Anshan Steel Design Research Institute Harbin Construction Engineering Institute(Code Liaoning Province Science & Technology Appraisal Certificate [1990] No124)
    ⑸ Test and Analysis Report of Anticorrosive Liner of Baoshan Steel Group Research Institute Shanghai Construction Research Institute 1996
    ⑹ Introduction of Application of Jilin Andesite as Anticorrosion Equipment in the Pickling Line of Baoshan Steel Coldrolling Plant Baoshan Steel Equipment Department Coldrolling Workshop 1997
    ⑺ Application of Natural Andesite as Anticorrosion Liner in the Anticorrosion Equipment Beijing Metallurgy Equipment Research Institute 1997
    ⑻ Summary of Spot Conference for Spreading Acidproof Stone Technology Metallurgy Ministry New Metallurgical Technology Spreading Center Promotion Center for the Productivity of Metallurgical Industry 1997
    ⑼ Testing Report of Material Report No B97-0375B97-0376B97-0377 Shanghai Construction Research Institute 1997
    ⑽ Chemical Analysis Report Report No CW97-141CW97-142CW97-143 Shanghai Construction Research Institute 1997
    ⑾ Speciality and Application Effect of Samvon Andesite Metallurgy Information Standardization Research Institute Metallurgy New Technology Developing & Spreading Center 1997
    ⑿ Application of Andesite Irregular Workpiece in the Acidcontacting Equipment Instead of Standard Board Beijing Samvon Andesite Co Ltd WISDRI Engineering & Research Incorporation Limited 2005
    ⒀ Application of Andesite for Building Facing China Construction & Science Research Institute Beijing Samvon Andesite Co Ltd 2006
    ⒁ Application of Andesite as Anticorrosive Lining in the Hydrofluoric Acid Contacting Equipment CAS Engineering Research Institute Beijing Samvon Andesite Co Ltd 2006
    ⒂ Production Technology of Andesite Building Thin Sheet Beijing Samvon Andesite Co Ltd Italy Pedrini Group 2006
    ⒃ Testing Report (Stone[2006]Quality Checking No06082102 No06082201 No06082301) State Building Material Industry Stone Material Quality Supervise Checking & Testing Center 2006
    2 Standards’ Setting up the Company Participated In
    ⑴ National Standard
    GB 8488-87 Acidproof Brick
    ⑵Industry Standard
    YHS 43-75 YHS 43-75 Charts Collection for Nonmetal Lining Anticorrosive Storing Tank
    HGJ 29-90 Chemical Lining Equipment of Brick Slab
    HG 26197-91 Maintenance Specification for Lining Equipment of Brick Slab
    ⑶ Enterprise Standard
    QHD APS001-2006 Natural Anticorrosive Stone Andesite
    QHD APS002-2006 Natural Andesite for Building Slab
    The company will promote the enterprise standards to the industry standard in 2007 and submit application to ISO promote it to national standard in 2009 so as to fill the empty of national standard in this field
    3 Domestic and Oversea Research and Development
    ⑴ Similar product manufactured overseas by one company matching with German SMS Demag Aktiengesellschaft This company family company locates in German Saarland and has exploited the mine that now is nearly exhausted since 1920 It can manufacture common irregular products Its products have been used in metallurgy chemical industry war industry spaceflight and nonferrous industry all over the world Owing to the longterm cooperation with the German and Japanese taskmasters who take charge of the coldrolling sheet all over the world the bedding stones in most coldrolling pickling unit are offered by them
    ⑵ Methods our Company has taken to improve our competitive ability
    Based on the functions of the numerical control equipments imported from Italy we will make a secondary development on the computer numerical control system (CNC) soft ware and create milling cutter head so that these equipments can not only machine stones into all kinds of shapes but also drill the inside of stones remaining its suitable function of its inner structure
    Secondary development of CNC software A new CNC system will be under the control not only of the original machining software controlling the external shape of tridimension plane and rotary but also of internal hollowing and structure machining software developed by ourselves besides The system includes external shape machining control subsystem double universal manipulator subsystem laser assistant locating and testing subsystem flexible manufacturing subsystem and encrypted transmission and entering subsystem of which the later four subsystems are developed by ourselves
    Full dimension numerical control diamond milling cutter bit The original equipment has only one alloy milling cutter which can machine the external surface We replace the single milling cutter with a set of double universal manipulator
    developed by ourselves matching with milling cutter stock system laser assistant locating system and hardness induction frequency conversion system The flow input data→put quarry stones on chuck→automatically choose fretsaw or milling cutter→laser assistant marking→hardness induction of fretsaw and milling cutter bit→external shape machining→automatically choose milling cutter→internal hollowing and structure machining→laser assistant testing Milling cutter stock threeblades milling cutter team saw milling cutter team notch milling cutter team slot milling cutter team corner milling cutter team and vertical milling cutter team totally 6 teams 22 cutters
    ⑶ Performance Level of Equipments
    Our company put forward the slogan We are able to manufacture any product only if you can think out Our ability is of internationally top level in machining stones We can machine super size product The external diameter of super size product that can be successfully machined just once is not more than 2000mm in the foreign country while we can extend the diameter to 4000mm The company applies their own created double universal manipulator to the production equipment of anticorrosive stones integrating the technologies of flexible manufacturing frequency conversion laser marker and precision test under its control The simplex milling cutter bit becomes a milling cutter stock
    Item
    MANZ equipment
    Our creation
    Domestic level
    Computer longdistance control



    Numerical control program



    Crossbeam moving front and back



    Knife rest moving right and left



    Power head swaying lifting falling



    Saw whirling



    Milling cutter whirling



    Working table moving whirling



    Numerical control universal diamond milling cutter



    Milling cutter’s head replaced automatically



    Internal hollowing completed once



    Inside machining completed once




    Laser assistant marker



    Hardness induction



    Precision tested by laser assistant




    4 Input on Technology Development
    So far the company put 16 million on the technology development cooperating mainly with Engineering Research Institute CAS China Construction Science Research Institute and WISDRI Engineering & Research Incorporation Limited

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