Feasibility Study for Cold Rolling Project in Eastern Cape, South ... steel feasibility study.pdf · following the principle that main raw material storage and finished product storage

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NON-COPY, WITHOUT PERMISSION

Feasibility Study

for

Cold Rolling Project in Eastern Cape, South Africa

of

Tailong Mechanical Engineering Group Co., Ltd.

Oct. 2015

http://www.wisdri.com/�

Tailong Mechanical Engineering Group Co., Ltd. Feasibility Study for Cold Rolling Project in Eastern Cape, S. Africa

Copyright © WISDRI 2015 I

Table of contents 1. Generals ...................................................................................................................... 1

1.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 Construction principle and guiding phi losophy of the project . . 1

1.3 Scope and content of project construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.4 Production scale and product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.5 Incoming material and balance of metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.6 Main l ine conf iguration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.7 Main uti l i ty faci l i t ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.8 General plan layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.9 Construction schedule of the project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.10 Investment estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2. Market analysis ........................................................................................................... 7

3 Rolling process and equipment ................................................................................. 8

3.1 Production scale and product mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3.2 Incoming material and metal balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.3 Main l ine conf iguration and production process f low . . . . . . . . . . . . 10

3.4 Shop working system and annual working hours . . . . . . . . . . . . . . . . . . 12

3.5 Shop plan layout and l i f t ing & transportation equipment . . . . . . 12

3.6 Main techno-economic indices of shop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3.7 Main equipment and production capacity of various l ines . . . . . 14

4 Power supply and electrical control ........................................................................ 22

4.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4.2 Power supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4.3 Power supply & distr ibution solution and faci l i t ies . . . . . . . . . . . . . . . 22

4.4 LV power supply & distr ibution system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4.5 Electrical drive and control of l ine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4.6 Electrical room and pulpi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

4.7 Lighting and movable faci l i t ies of the main bui lding . . . . . . . . . . . . . 27


Copyright © WISDRI 2015 II

4.8 Crane of the main bui lding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

4.9 Uti l i ty faci l i t ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

4.10 Cabl ing and f i re f ighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

4.11 Lightning protection and earthing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

5 Utility facilities ............................................................................................................. 29

5.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

5.2 Water supply & drainage faci l i t ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

5.3 Thermal power faci l i t ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

5.4 Fuel gas faci l i t ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

5.5 Description of other uti l i ty faci l i t ies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

6 General layout & transportation .............................................................................. 40

6.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

6.2 General plan layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

6.3 Vertical arrangement and si te drainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

6.4 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

6.5 Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

6.6 Safety and f i re f ighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

6.7 Main techno-economic indices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

7 Investment estimate .................................................................................................. 43

7.1 Project overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

7.2 Main l ine composit ion and auxi l iary faci l i t ies . . . . . . . . . . . . . . . . . . . . . . 43

7.3 Investment estimate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

7.4 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

8 Analysis and evaluation of economic benefit ........................................................ 45

8.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

8.2. Captial demand and capital raising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

8.2.1 Total investment of project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

8.2.2 Construction period and designed capacity scale-up Period . . 46

8.2.3 Financial calculation and analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46


Copyright © WISDRI 2015 III

8.2.3.1 Price of raw materials and products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

8.2.3.2 Cost and expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

8.2.3.3 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

8.2.3.4 Business tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

8.2.3.5 Total prof i t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

8.2.3.6 Financial viabi l i ty analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

8.2.3.7 Financial prof i tabi l i ty analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

8.2.3.8 Debt-paying abi l i ty analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

8.2.4 Economic benef i t analysis of project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Calculation sheets are attached hereinafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Attached drawings

1 General Plan Layout

2 Process Plan Layout


Copyright © WISDRI 2015 1

1. Generals 1.1 Overview Project name: Cold Rolling Project in Eastern Cape, South Africa

Project site: COEGA Industrial Development Zone (IDZ) in Eastern Cape, South

Africa

1.2 Construction principle and guiding philosophy of the project 1) This project is built mainly to improve steel deep-processing industrial

chain in the IDZ, enhance structural upgrading of the whole IDZ and

supply high-quality, qualified cold rolled & galvanized products to the

local markets.

2) Employing the state-of-the-art process and equipment in China, it aims

to embark on a new industrilization road featuring high technological

level, good economic benift, low resource consumption, less

environmental pollution and giving full play to human resource

advantage.

3) Following the cosntruction guideline “less input, more output, high

starting point, quick effect and good quality”, advanced, practical and

reliable technical equipment shall be adopted to ensure advanced

general equipment level and optimum economic benefits.

4) Compact and reasonable shop layout shall be designed to ensure

smooth process and consider future sustainable development. Full play

shall be given to overall design of the plant to combine and symplify

configuration of utility facilities for improving labor productivity.

5) Cleaner production shall be vigorously promoted strictly in accordance

with relevant national, industrial and local policies, laws and regulations

in respect of energy saving, environmental protection, fire fighting, safety,

industrial hygine and anti seismic. Actively implementing the scientific

outlook on development and giving full play to advantage of

comprehensive resource, utilization ratio of raw material, energy and

water resource shall be increased to realize recycling of resources.

1.3 Scope and content of project construction Scope of the project construction includes annual output of 200,000t cold rolled

galvanized commercial products delivered in coils. The construction content of



the project consists of:

Push-pull type pickling line 1

Single-stand reversing mill 1

Continuous galvanizing line 1

The following lines to be reserved for future:

Continuous color coating line 1

Recoiling & tension levellling line 1

Corresponding power supply & distribution system, electrical control system,

water supply & drainage, power, heating, ventilation, machinery repairing, lab.,

general layout & transportation, architecture, energy and fire fighting. And the

main utility facilities include 10kV switchgear station, acid regeneration plant,

circulation water station, waste water treatment station, demi-water station and

air compressor station, etc.

1.4 Production scale and product Tailong Mechanical Engineering Group Co., Ltd. plans to invest in Eastern Cape

to build a cold rolling pant mainly for producing galvanized products with

production scale of 200,000t/a galvanized products.

Main products of the project are as follows:

Table 1-1 Product mix

No. Product name Size Variety Output

Remarks t/a %

1 Hot galvanized

products

Thickness:

0.4~2.5mm CQ 140000 70

Galvanized

products Width:

800~1250mm DQ 60000 30

Subtotal 200000 100

Total 200000 100

1.5 Incoming material and balance of metal (1)Incoming material

~219,300t hot coils are required as incoming materials, which will be purchased

from the market. Grade and size of the incoming coils are as follows:

Steel grade: hot rolled low carbon steel

Strip thickness: 2.5~5.0mm



Strip width: 800~1250mm

I.D. of coil: Φ762mm

O.D. of coil: max.Φ2000mm

Coil weight: max.25t

(2) Metal balance sheet and chart

Metal balance sheet of this project is as follows:

Table 1-2 Metal Balance Sheet

No. Product name

Amount of

incoming

material

Finished product

output

Crop, trimming and

loss, etc. Yield

(t/a) (t/a) (t/a) (t/a) % %

1 Galvanized

product 219300 200000 19300 8.8 91.2

See Fig. 1-1 for metal balance chart of this project.



Fig. 1-1 Balance chart of metal

1.6 Main line configuration The cold rolling plant consists of the following lines:



Continuous hot dip galvanizing line 1

The following lines are researved:

Continuous color coating line 1

Recoiling & tension leveling line 1

1.7 Main utility facilities



1.7.1 Power supply & distribution facilities One 10kV switchgear station is designed to supply power for main production

lines and relevant utility facilities. Sub-switchgear-station of lower level could be

designed as necessary. The 10kV power source required for the switchgear

station is fed from outside.

1.7.2 Water supply & drainage facility It is composed of water circulation station, waste water treatment plant, acid

regeneration station and relevant pipe network of the main building.

（1） Circulation wate station

Capacity of circulation water station:

Flow of circulation water Q=1200 m3/h, emergency water Q=30 m3/h

Feed temperature of circulation water: ≤33℃, return temperature of

circulation water ≤43℃

Feed pressure of circulation water: 0.4～0.5MPa

（2） Waste water treatment plant

Waste alkali water: 15 m3/h

Waste emulsion: 4 m3/h

（3） Acid regeneration plant

Annual amount of strip pickled: 219,000 t/a

Iron loss from pickling: 0.40%

Waste acid amount: 1300 l/h

Designed acid regeneration capacity: 2100l/h, spraying roasing method

adotped

1.7.3 Thermal power facility (1) Air compressor station

It is going to build one air compressor station, including three 50Nm3/min air

compressors with exhausting pressure 0.8MPa. Power of each compressor

motor is 280KW, and voltage is 10kV. Three 50Nm3/min combined type

compressed air dryers are also foreseen.

(2) Demi-water station

It is going to build one demi-water station with output of 25t/h. Quality of output

water reaches class 1 standard of demi-water (conductivity＜5μS/cm), and

quality of the demi-water could fully meet requirements of the process lines.



(3) Steam supply

Max. comprehensive steam consumption of this project is 20.3t/h, and all the

steam required are supplied from external steam source.

1.7.4 Fuel gas media Liquified petroleum gas, nitrogen and hydrogen required for the project are all

supplied via pipe from outside to the plant.

1.7.5 Other facilities The project is also designed with roll grinding facility, lab. facility and special fire

fighting facility, etc.

1.8 General plan layout Given the fact that comprehensive transportation mode is road transportation

and the project site is nearby wharf, the generally layout will be designed

following the principle that main raw material storage and finished product

storage are arranged close to entry/exit for the purpose of convenient

transportation.

The main building of the cold rolling plant is arranged nearby the south of the

battery limit. Electrical room of PL, electrical room of rolling mill (incl. 10kV

switchgear station), entry electrical room of CGL and exit electrical room of CGL

are arranged around the main building. Waste water treatment plant, circulation

water station and air compressor station are arranged one after another from

west to east across the road to the north of the main building. The

comprehensive building is arranged to the east of the main building and to the

south of the entry/exit.

1.9 Construction schedule of the project According to overall planning of the project, it is expcted to be built in 24 months

after effectiveness of the Contract, not including enquiry, negotiation and

feasibility study in the prophase period as well as hot load test and function test

time after startup.

1.10 Investment estimate The static investment of the project is $53,820,000 USD.

See the investment estimate table for details.



2. Market analysis See the market analysis completed by special organization entrusted by the

Owner.



3 Rolling process and equipment 3.1 Production scale and product mix 3.1.1 Production scale Tailong Mechanical Engineering Group Co., Ltd plans to invest in Eastern Cape


production scale of 200,000t/a galvanized products. This projects consists of

one (1) push-pull type pickling line, one (1) 12-hi reversing mill and one (1)

continuous galvanizing line.

3.1.2 Product mix a) See table 3-2 for the product mix based on grades

Table 3-2 Product mix——distributed as per grades

No. Product name Size Grades Output

Remarks t/a %

1 Hot galvanized

products

Thickness:

0.4~2.5mm CQ 140000 70

Galvanized

product Width:

800~1250mm DQ 60000 30

Subtotal 200000 100

Total 200000 100

b) See table 3-2 for the product mix based on size

Table 3-2 Product mix——distributed as per size

Thickness Typical

thickness

Width(mm)

Total 800~950 ﹥950~1100 ﹥1100~1250

900 1000 1200

mm mm t/a ％ t/a ％ t/a ％ t/a ％

0.4-0.6 0.5 4000 2 8000 4 10000 5 22000 11

>0.6-0.8 0.7 6000 3 34000 17 40000 20 80000 40

>0.8-1.0 0.9 6000 3 26000 13 22000 11 54000 27

>1.0-1.5 1.25 4000 2 14000 7 12000 6 30000 15

>1.5-2.0 1.75 2000 1 2000 1 4000 2 8000 4

>2.0-2.5 2.25 2000 1 2000 1 2000 1 6000 3

Subtotal

2400

0 12 86000 43 90000 45 200000 100

Ave. size: 0.9mm (thickness)×1078mm(width)



c) Delivery status and standard

Galvanized products: delivered in coil; max. coil weight: 25t; min. coil weight: 4t.

3.2 Incoming material and metal balance 3.2.1 Incoming material ~219,300t hot rolled incoming materials are required for this project. Grades and

size of the incoming coils are as follows:

Steel grades: hot rolled low carbon steel

Strip thickness: 2.5~5.0mm

Strip width: 800~1250mm

I.D. of coil: Φ762mm

O.D. of coil: max.Φ2000mm

Coil weight: max.25t

3.2.2 Metal balance and process flow Table 3-3 Metal Balance Sheet

No. Product name

Amount of

raw material

Amount of

finished

product

Crops, trimmings and

loss, etc. Yield

(t/a) (t/a) (t/a) (t/a) % %

1 Galvanized

products 219300 200000 19300 8.8 91.2

See Fig. 3-1 for metal balance of this project.



Fig. 3-1 Balance chart of metal

3.3 Main line configuration and production process flow 3.3.1 Main line configuration The cold rolling plant consists of the following lines:



Continuous galvanizing line 1

Color coating line (for future) 1

Recoiling & tension leveling line (for future) 1

3.3.2 Production process flow The incoming hot coils are transported by truck from the hot rolling plant to the



raw material warehouse for storage, and then lifted by crane in the warehouse to

the saddle in the entry section of the push-pull type pickling line, where manual

confirmation of coil No., manual removal of strap and coil preparation take place.

The coil is then delivered by coil car to payoff reel. The strip head, after leveling

and scale breaking, enters through steering device to the entry shear for cutting

of the unqualified part before going to hydrochloric acid pickling tank for removal

of scale on strip surface. The pickled strip goes to rinse tank for rinsing before

being sent to hot air dryer for drying. The pickled, rinsed and dried strip goes to

the tension reel. When coil weight or strip length reaches the specified value, it

will be divided at the exit shear. The strip coil is unloaded by coil car and sent to

the exit saddle for strapping and label printing before being lifted by crane to the

storage before the rolling mill.

The pickled coil goes further to the cold rolling process and hot dip galvanizing

process.

The coil for rolling is lifted by crane to entry saddle of the rolling mill, and then

sent by coil car to the payoff reel. The coil, after uncoiling and leveling, goes to

the rolling mill. After two or three wraps of strip head have been built on the reel,

tension is established and a certain reduction is given, the payoff reel, rolling mill

and tension reel are accelerated to the rolling speed for stable rolling. The speed

is decelerated when rolling of one coil is almost finished. After stop, reverse

movement starts for reversing rolling. At the last pass of the rolling, the offgauge

part at the strip tail is cut at the exit shear. Based on different rolling passes, the

rolled coil and pup coil are respectively coiled by two tension reels before being

unloaded to coil car. The coil is then conveyed by the coil car to the rolled coil

storage in galvanizing bay.

The coil is then lifted by crane to the coil car in front of the payoff reel of the

galvanizing line, and unloaded by coil car to mandrel of No.1 and No.2 tension

reel. Height/width measurement, centering and manual strap removal are

carried out before the coil is delivered to the payoff reel. ,

After being loaded to the payoff reel, the strip head goes to pinch flattener for

flattening and entry shear for cutting of the disqualified part. It is then delivered to

the welder for being welded to the tail part of the previous coil. The welded strip,

after weld detection and size notching, is accelerated to the process speed



before going to the cleaning section via entry looper. In the cleaning section, the

strip undergoes alkali spraying, alkali brushing, electrolytic cleaning, water

brushing, hot water rinsing and hot air drying to obtain clean surface before

entering the annealing furnace.

The strip undergoes preheating, heating, soaking and cooling in the annealing

furnace before going via snout to the zinc pot for hot dip galvanizing, and then

undergoes cooling, quenching and drying followed by skin passing, tension

leveling and chemical treatment until to the exit looper. The strip from the exit

looper then passes vertical inspection, oiling and cutting processes before

entering No.1 and NO.2 tension reel for coiling.

The coil is delivered by exit No.1 and No.2 coil car to exit saddle for weighing,

strapping and labeling, and then lifted by crane to the finished product storage

for manual packaging and storage.

3.4 Shop working system and annual working hours Three-shift continuous working system is adopted for the shop working system

without any rest in holidays. See table 3-4 for annual working time of the lines.

Table 3-4 Working system and annual working time of the lines

No. Line

Calendar

time

(h)

Non-working time (h) Annual

rated

working

time

(h)

Non-planned

stop time

(h)

Annual

planned

working

time

(h)

Annual

overhaul

Regular

maintenance Subtotal

1

Push-pull

type pickling

line

8760 360 600 960 7800 1300 6500

2 Single-stand

reversing mill 8760 360 600 960 7800 1300 6500

3

Continuous

galvanizing

line

8760 360 600 960 7800 800 7000

3.5 Shop plan layout and lifting & transportation equipment 3.5.1 Shop plan layout



The main building of the project is composed of pickling & rolling bay and

galvanizing bay. Total length of the main building is 348m, total width is 63m, and

total area is 21924m2(axis area). The tensioning & recoiling bay is reserved,

which is 96m long and 18m wide, and the total area is 1728m2 (axis area). Span

size and level are given in table 3-, and see the process plan layout for detail.

Table 3-5 Size and level of each bay of the main building

No.

Bays Main size of the main building

Remarks Name Line No.

Span Length Rail top level Area

(m) (m) (m) m2

1 Pickling bay B-C 27 348 11 9396

2 Galvanizing bay A-B 36 348 12-34-12 12528

3 Recoiling &

tension leveling bay

C-D 18 96 9 1728 For future

3.5.2 Lifting and transportation equipment Seven double-girder overhead cranes are provided for the bays in the main

building for production and equipment maintenance. In addition, maintenance

hoists are provided for the cranes of the main building and maintenance of line

equipment. See table 3-6 for specific crane configuration.

Table 3-6 Crane list of main building

No. Bay Crane No.

Lifting weight

(t)

Span/crane (m)

Rail top

level (m)

Q’ty Working class

Weight of the crane

proper (T)

1 Pickling bay

1-1 25/5 27/24 11 1 A6 46 2 1-2 45/10 27/24 11 1 A6 59 3 1-3 25 27/24 11 1 A5 46 4 Galvanizing

bay

2-1 25/5 36/33 12 1 A6 53 5 2-2 25/5 36/33 34 1 A5 53 6 2-3 20 36/33 12 1 A6 42 7 2-4 20 36/33 12 1 A6 42

3.6 Main techno-economic indices of shop



Table 3-7 Main techno-economic indices of shop

No. Consumption per ton

finished product Unit Hot galvanized product

1) Metal t 1.064

2) Electric power kW×h 131.4

3) Liquefied petroleum gas kg 35.8

4) Hydrogen Nm3 3.5

5) Nitrogen Nm3 18.6

6) Demi-water m3 0.54

7) Circulation water m3 31.3

8) Hydrochloric acid kg 1.5

9) Degreasing agent kg 4

10) Steam kg 205.5

11) Compressed air m3 207

12) Rolling oil kg 0.6

13) Passivator kg 0.14

14) Roll kg 0.62

15) Zinc ingot kg 29.6

16) Refractory kg 0.13

17) Packaging material kg 4

3.7 Main equipment and production capacity of various lines 3.7.1 Push-pull type pickling line

(1) Selection of process

At present, the push-pull type pickling technology is widely used in

medium-and-small steel plants in the world for pickling of strip surface.

Compared with continuous pickling line, it is characterized by simple equipment,

less occupation area, convenient process operation, flexible production and less

investment, etc. This technology has been widely used since it was developed in

1970s, and approx. 100 such lines are operated in the world. The push-pull type

pickling line we provide for the cold rolling plant in Eastern Cape, South Africa is

used to supply materials for the single-stand reversing mill in the cold rolling

plant. Besides the above-mentioned characteristics, it also has the following

features:

1) The line adopts fully digital VVVF drive system featuring energy saving,



reliable operation, convenient maintenance and accurate control.

2) The tension for uncoiling and coiling is automatically controlled.

3) Turbulence shallow tank pickling technology which has remarkable

advantages is designed for the pickling section. Acid liquid is sprayed onto the

strip from both side walls and bottom of acid tank for thorough spray cleaning.

Each pickling section is provided with independent external heating system and

acid circulation system. Each circulation tank is foreseen with acid liquid

temperature measuring device to automatically control the heating condition to

achieve optimum pickling effect by adjusting temperature and concentration of

each pickling section. Thanks to less amount of acid and short starting time, the

strip slides on the thin acid film to reduce scratch on bottom side of the strip.

4) With the four-stage countflow cascade rinse system adopted, a small amount

of rinse water is required to ensure cleaning quality of strip surface.

5) Between 1# squeegee roll and 2# squeegee roll at entry of acid tank are

installed two pairs of spray boom to remove residual liquid on strip surface

during reversing of strip so as to avoid corroding the equipment by liquid acid

carried out by the strip.

6) Automatic coil dividing function is provided at exit of the line.

7) To ensure the strip to enter the side trimmer in a centering way, CPC is

installed at 2# pinch roll to improve side trimming accuracy of the strip.

8) Automatic threading and tailing out are provided for the line.

9) It is designed with automatic tracking system of strip head and tail.

10) ITV monitoring system is installed at entry and exit pulpit to perform dynamic

tracking of running status of the whole line.

(2) Type selection of main equipment:

1) Side trimming equipment

High-accuracy side trimmer with advanced technology is adopted for automatic

adjustment of knife gap (gap and overlap between the two knives).

2) Pickling process

Shallow tank turbulence pickling process is adopted for the design. Improvement

of acid tank structure and increase of acid liquid cycling times increase the

pickling speed, shorten the pickling time and further reduce quantity of acid

tanks.



(3) Main technical data of the line

1) Annual capacity: 219,300 (amount at entry side)

2) Incoming material and product

Item Entry Exit

Strength limit: σb≤590MPa σb≤590MPa

Yield limit: σs≤345MPa σs≤345MPa

Strip thickness: 2.5~5.0mm 2.5~5.0mm

Strip width: 800~1250mm 800~1250mm

I.D. of coil: ∅762mm Φ610 mm

O.D. of coil: max∅2000mm max∅2000mm

Coil weight: max.25t max.25t

3) Line data

Line speed:

Process speed: max.50m/min

Threading speed: max.50m/min

Jogging speed: 20m/min

Pickling data:

Pickling capacity: max.42t/h

Iron loss from pickling: max.0.4％

Pickling type: Venturi turbulence pickling

Design of acid tank: 2, total effective length: 25m(12.5m for each)

Rinsing type: Cascade compact type rinse

(4) Main equipment composition of the line

Entry coil saddle, entry coil car, snubber roll, payoff reel, peeler & deflector roll,

1# side guide roll, 5-roll pinch leveler, crop shear & scrap collecting device, taper

shear, pickling tank, rinse tank, acid circulation system, rinse water circulation

system, hot air dryer, fume exhausting & cleaning system of pickling and

cleaning system, squeegee roll, hot air dryer with side blowing device, 1# pinch

roll, pivoting table of looper, 2# side guide roll, 2# pinch roll (with CPC), side

trimmer, scrap box & car, 3-roll tensioning device, inspection table, crop shear &

scrap collecting device, 3# side guide roll, exit deflector roll, tension reel (with

EPC), exit coil car, exit coil saddle (with weighing device), manual strapping



device, entry hydraulic station, exit hydraulic station, pneumatic system,

interconnecting piping, steel structure platform, special tool and anchor bolt.

3.7.2 Single-stand reversing mill

(1) Description of type selection

The cold rolling mill is the key equipment for cold rolling production; the rolling

mill is of great significance to surface quality, thickness tolerance and

mechanical property of strip in addition to the incoming hot rolled material.

Several types of rolling mills could be used for producing cold rolling strips, such

as CVC rolling mill, 6-hi UCM or 12-h reversing mill, etc.

Considering that the project mainly produces thin base plates for galvanizing, it

adopts 12-h single stand reversing mill with high rolling capacity and strong

shape control, which is equipped with hydraulic thickness automatic control

system to produce thin steel sheet with good shape and high thickness

accuracy.

Based on process characteristics, process equipment configuration of the line

has the following features:

1) Fully digital DC speed control and thyristor power supply are adopted for

the main rolling mill, payoff reel and both tension reels (one at entry and

one at exit). The line is controlled by PLC, and automatic tension control

system is foreseen.

2) Hydraulic expanding/collapsing mandrel is adopted for the two tension

reels, which are driven by two D.C. motors. The two motors work

simultaneously in case of big tension and one work in case of small

tension.

3) It adopts fully hydraulic screwdown and computer-based automatic

gauge control (AGC) system. The hydraulic AGC is provided with

two-level computer control, including such functions as constant roll gap

control, constant tension control, thickness pre-control, supervision and

mass flow control, etc.

4) Emulsion lubrication cooling system is adopted for process lubrication,

and three-stage filter is provided.

5) Centralized oil lubrication system is adopted for main gearbox and



gearbox of the two tension reels.

6) It is provided with sensitive axial and radial roll shape adjustment

mechanism.

7) Roll compensation adjustment mechanism is provided.

8) CPC automatic centering function is foreseen for the payoff reel.

9) Quick change device is provided for work roll, intermediate roll and roll

cartridge.

10) Interlock mechanism is foreseen for movement of the rolling mill.

11) The electrical system of the rolling mill includes overload protection,

strip breakage protection and emergency stop safety protection systems;

the rolling mill and the tension reels have strip tail automatic deceleration

function and accurate stop function; the tension reel has wrap memory

function.

12) It is provided with speed control of rolling mill, speed/tension control

of payoff reel and tension reel and digital display.

13) The level of the passline could be quickly adjusted.

14) The rolling mill is provided with complete operation & supervision

display system, fault diagnosis and alarming system. The process data

of rolling could be displayed and stored. Meanwhile, trend curve could

be used to display, on real time basis, the change trend of the process

data such as speed of the mill, rolling pressure, roll gap, tension,

thickness, etc.

15) The line is provided with presetting system of process data as well

as measuring and display system of process data and key equipment

data.

(2) Main technical data of the line

1) Annual capacity: 215,000t (amount at entry)

2) Raw material and finished product

Item Entry Exit

Strip thickness: 2.5~5.0mm 0.4~2.5 mm


I.D. of coil: Φ610mm Φ610mm



O.D. of coil: Φ1000~2000 mm Φ1000~2000mm

Coil weight: Max. 25t Max. 25 t

3) Data of line

Type of rolling mill: single-stand 12-h reversing mill

Rolling speed: Max.700 m/min


Main rolling mill, main drive unit, payoff reel, tension reel, 3-roll flattener, bridle

roll unit, cross cut shear, thickness gauge, 4-roll deoiler, side guide, hold-down

plate, loading/unloading car, saddle, wrapper, hydraulic system, process &

bearing lubrication system and equipment lubrication system.

3.7.3 Continuous galvanizing line

(1)Type selection of equipment

It is a continuous, multi-functional production line of high efficiency, integrated

with such processes as strip surface precleaning, annealing, hot dip galvanizing,

zinc coating annealing, after-pot cooling, skin passing, passivation, oiling, side

trimming, dividing and surface defect inspection, etc.

According to the above process characteristics, configuration of the process

equipment has the following features based on the type selection of the CGL:

(1) It adopts improved Sendzimir production process, featuring well-proven and

reliable technology, less investment, easy operation and high thermal efficiency,

etc.

(2) Cleaning quality of the cleaning section: magnetic filter and automatic alkali

liquid concentration control are arranged in the alkali cleaning circulation system

to keep the concentration of the alkali liquid during the cleaning and reduce

impurity content in the alkali liquid.

(3) It adopts the annealing furnace featuring big heating capacity, high cooling

speed, high accuracy of temperature control and good roll shape control to meet

the annealing requirements of multiple grades and high quality.

(4)The thickness of the zinc coating could be controlled by adjusting pressure

and flow of injection air at knife lip via adjusting rotating angle of one sleeve in

the knife chamber.

(5) Roller coating type passivation equipment is adopted.

(6) In order to prevent the dirt (zinc dross) on the roll from damaging the strip



surface, scraper is installed on the rolls which could easily damage the strip after

annealing so as to avoid strip damage caused by defect on roll by constantly

scraping off the impurities from the roll.

(7) High-accuracy roll drive system (A.C. vector control drive system) is adopted

for the whole line to ensure synchronization between the strip and the roll for

preventing strip damage.

(8) Vertical inspection station is arranged at the exit section to perform shape

inspection on marble table for the strip in case of stoppage of the line.

(9) Energy saving device is provided for overheated water conversion by waste

gas of furnace and reutilization of water.

(2) Main process data of the line

（1） Annual capacity of the line: 212,800 t/a

（2） Incoming material and product

Item Entry Exit

Strip thickness: 0.4~2.5 mm 0.4~2.5 mm


I.D. of coil: Φ610mm Φ508mm

I.D. of coil: Φ1000~2000 mm Φ1000~2000mm

Coil weight: Max. 25t Max. 25 t

（3） Data of the line

Speed at entry section: Max. 200m/min

Speed at process section: Max. 150m/min

Speed at exit section: Max. 200m/min

Entry looper: ~440m

Exit looper: ~360m

Heating capacity of annealing furnace: Max.37t/h

Q’ty of zinc pot: 1


Entry coil conveying, coil loading, payoff reel, entry shearing equipment & scrap

handling device, welder, strip surface cleaning equipment, entry looper,

horizontal annealing furnace, hot galvanizing equipment, cooling device, skin

pass mill, post treatment (passivation/anti-finger print) equipment, exit looper,



horizontal inspection equipment, oiler, exit shear, coiling & unloading

equipment and coil conveying, etc.



4 Power supply and electrical control 4.1 Overview Production scale of the project is 200,000t, mainly including the following

production lines:

Push-pull type pickling line: 1


Continuous hot galvanizing line 1

Color coating line (for future) 1

Recoiling & tension leveling line (for future) 1

Relevant utility facilities, such as acid regeneration plant, roll shop,

waste water treatment plant, circulation water station, air compressor

station, demi-water station, and 10kV switchgear station

4.2 Power supply HV (3-phase A.C.) 10kV

LV (3-phase A.C.) 380V, 220V(for lighting)

Frequency 50HZ

Control voltage (single phase A.C.) 220V AC

Power supply of solenoid valve 24V DC, 220V AC

Power supply of signal lamp 24V DC

PLC power supply 24V DC

Remarks: Voltage of some A.C. motors with big capacity will be determined as

per requirement of electrical package supplier and process.

4.3 Power supply & distribution solution and facilities 4.3.1 Power supply & distribution solution

One 10kV switchgear station is designed to supply power to the main production

line and relevant utility facilities, and substation of lower level could be foreseen

as necessary. The 10kV power of the switchgear station is fed from outside.

Total installed capacity of the project is approx. 24400kW, including approx.

9682kW for the reversing mill, approx. 6710kW for the CGL, 3746KW for future

and 2691kW for auxiliary power of the line and utility facilities of the plant.

Total calculated load of the project is Pjs=12080kW, Sjs=14209kVA, and natural

power factor is approx. 0.85.

Annual power consumption of shop is 4.83×107kWh.



The 10kV switchgear station and LV electrical room are built together, including

HV power distribution room and control room. The location of the switchgear

station is preliminarily determined close to the electrical room of the rolling mill

nearby the main building.

4.3.2 Main power supply & distribution facilities

Incoming feeder of the 10kV switchgear station and sectionalized switchgear

cubicle could be controlled on micro-processor-based background in a

centralized manner, and the transformer circuit could be directly operated on

switchgear cubicle or the micro-processor-based background.

Micro-processor-based line and transformer protection device are adopted for

incoming feeder and outgoing feeder of the 10kV switchgear station. One set of

micro-processor-based supervision device is arranged in the electrical control

room to perform control, protection, measurement, emergency supervision,

emergency signal display, tracing & recording of emergency and printing of

report, historical data and picture, etc. for all the 10kV circuits by communication

management computer. Communication interface is reserved for easy

communication with upper-level switchgear station in future.

Digital type comprehensive 10kV energy meter in installed at 10kV incoming

feeder of the switchgear station for measuring current, active power, reactive

power and power factor, etc. Voltmeter is installed at busbar side as

conventionally and ammeter at various outgoing feeders.

KYN28-12 central fixed type HV switchgear cubicle is used as 10kV HV cubicle,

and it is equipped with vacuum circuit and spring operating mechanism. The

breaking current is 31.5kA.

It adopts DC220V 100/100Ah D.C. power supply device with maintenance free

lead acid accumulator.

Domestic micro-processor-based protection device is adopted.

4.4 LV power supply & distribution system Transformer and load center are designed as per lines to reduce loss and

ensure reliable power supply. 3-phase-&-3-wire system is adopted for power

supply & distribution system of main drive of the line, and 3-phase-&-4-wire

system for lighting, the main building crane and other power supply & distribution

systems. 1 set of UPS is provided for each line to power the computer, PLC and



special instrument.

The line load is powered by one circuit; crane, lighting and utility facilities are

powered by two circuits.

4.5 Electrical drive and control of line 4.5.1Push-pull type pickling line

Total installed capacity of the line is approx. 1573kW, including 665.5kW for

variable-speed motors and 907.5kW for constant-speed motors.

Fully digital A.C. speed controlled device is used for power supply to

A.C.speed-controlled motor. Impulse encoder is used as speed feedback to AC

drive control system for realizing closed loop control; the drive unit

communicates via network with the upper level basic automation system.

A.C. constant-speed motor is powered by motor control center (MCC) where

remote I/O station is arranged; it is communicated via network with PLC.

The basic automation control system of the line is composed of PLC and

industrial control computer. Industrial Ethernet is used for connection between

PLCs and between PLC and HMI, and field bus for connection between PLC and

drive unit. In order to reduce cable and construction fee, remote I/O stations will

be arranged as much as possible, and it is connected via network with PLC. The

remote I/O station is mainly arranged in operating desk/box, MCC cubicle and

single equipment control cubicle area.

Including the following main control functions:

• Automatic threading

• Speed control

• Tension control

• Welder control

• Looper control

• Automatic deceleration

• Emergency stop control

• Sequence control

• Strip tracking

• Operation and supervision

• Fault display and alarming



• Recording and printing

4.5.2 Single-stand reversing mill

Total installed capacity of the single-stand reversing mill is approx. 9682kW,

including 9100 kW for A.C. speed-controlled motor, and 582 kW for A.C.

constant-speed motor.

A.C. motor is adopted for main drive (including payoff reel, rolling mill and

tension reel); fully digital A.C. speed control system is adopted; power supply

model and power element of frequency converter of the main drive will be

determined in the next phase.

All the other AC speed controlled motors will be powered by fully digital AC

speed control device. Impulse encoder is used as speed feedback to AC drive

control system for realizing closed loop control; the drive unit communicates via

network with the upper level basic automation system.











• Speed control

• Tension control

• Automatic gauge control of strip

• Strip shape control

• Bending roll control

• Data acquisition and processing

• Sequence control

• Exchange with process data

• Emergency supervision and diagnosis



• Recording and printing

4.5.3 Continuous galvanizing line

Total installed capacity of the line is approx. 6710kW, including approx. 2100kW

for speed-controlled motor and 4610kW for constant-speed motor & welder. One

diesel generator unit is designed as emergency power to supply power to the

control cubicle of zinc pot, furnace bottom rolls and pump unit of the water

cooling system in emergency case of normal power source.

All the other AC speed controlled motors will be powered by fully digital AC

speed control device. Impulse encoder is used as speed feedback to AC drive

control system for realizing closed loop control; the drive unit communicates via

network with the upper level basic automation system.











• Speed control

• Tension control

• Looper control

• Material tracking

• Interlock sequence control

• Operation and supervision

• Fault display, alarming, recording and printing

4.5.4 Acid regeneration plant

Total installed capacity of the ARP is approx. 200kW. AC speed-controlled motor

will be powered by fully digital AC speed control device, while AC

constant-speed motor by MCC. One set of electrical-instrument integrated

control system is designed for the ARP.



4.5.5 Color coating line (for future)

Total installed capacity of the line is approx. 1876kW, including 1226kW for

speed-controlled motor and 650kW for constant-speed motor.

4.5.6 Recoiling & tension leveling line (for future)

Total installed capacity of the line is approx. 1870kW, including 1400kW for

speed-controlled motor and 470kW for constant-speed motor and welder.

4.6 Electrical room and pulpit One electrical room is designed for the PPL, one electrical room for the

single-stand reversing mill, entry & exit electrical rooms (2 in total) for CGL and

one electrical room for utility facilities. Refer to the process layout for specific

location.

The pulpit is arranged as per process requirement.

4.7 Lighting and movable facilities of the main building Lighting area of the main building is approx. 23652m2. Two transformers are

foreseen for supplying power to the lighting and crane. LV tie switch is arranged

at secondary side of the two transformers to ensure that the other transformer

could be switched over by the tie switch to supply power in case that one

transformer fails for the purpose of increasing power supply reliability of lighting

and movable facilities of the whole plant. The lighting transformer is arranged in

the electrical room of the pickling line.

Lighting distribution boxes, dispersedly arranged in shop, are powered by the

lighting load center in the power distribution room in a radial way. The lighting in

the main building is powered by different lighting distribution boxes in a

crossfeed manner so as to ensure reliability and continuity of the power supply.

4.8 Crane of the main building 8 cranes are arranged in the main building with total installed capacity approx.

655kW. Two transformers are foreseen for supplying power to the lighting and

crane. LV tie switch is arranged at secondary side of the two transformers to

ensure that the other transformer could be switched over by the tie switch to

supply power in case that one transformer fails for the purpose of increasing

power supply reliability of lighting and movable facilities of the whole plant. The

lighting transformer is arranged in the electrical room of the pickling line.

4.9 Utility facilities



The utility facilities mainly include acid regeneration plant, waste water treatment

plant, circulation water station, air compressor station and demi-water station,

etc.

Total installed capacity of the utility facilities is approx. 1835.5kW. The substation

with two transformers is arranged in the circulation water station. LV tie switch is

arranged at secondary side of the two transformers to ensure that the other

transformer could be switched over by the tie switch to supply power in case that

one transformer fails for the purpose of increasing the reliability of power supply.

Independent load center and MCC are provided for each station, and PLC

control system is adopted.

4.10 Cabling and fire fighting 4.10.1 Cabling

The cable is laid in a combined way of cable channel, tunnel, spreading room,

tray and conduit, etc.

4.10.2 Fire prevention of cable

Explosive area and fire protection zone shall be avoided for cable routing;

otherwise, corresponding fire prevention measures shall be taken.

Fire separator and fire caulking material shall be used to block the entry and exit

of cable in electrical room and pulpit.

Fire prevention trunking is arranged at regular interval for cables in cable

channel, cable trench, cable spreading room and cable tray.

Fire alarming device is installed at transformer room, electrical room, pulpit,

cable spreading room and cable tunnel, etc.

4.11 Lightning protection and earthing The earthing system is designed as follows:

Lightning protection and earthing to be arranged as per buildings and

structures;

Protection earthing of electrical equipment and electrical component,

etc.

Working earthing of power supply system

Independent earthing system for PLC and variable-frequency and

speed control device, etc.

The final earthing system will be designed based on actual conditions.



5 Utility facilities 5.1 Overview Tailong Mechanical Engineering Group Co., Ltd. plans to invest in Eastern Cape

to build a cold rolling plant mainly for producing galvanized products with

production scale of 200,000t/a galvanized products. This cold rolling plant is

located at an industrial park in Eastern Cape, South Africa.

Various energy media are required for the lines of the project, mainly including

compressed air, circulation water, demi-water, industrial water, living water,

emergency water, steam, liquefied petroleum gas, nitrogen and hydrogen.

It is going to building circulation water station, waste water treatment plant, air

compressor station and demi-water station in the cold rolling plant to supply

compressed air, circulation water, demi-water and emergency water necessary

for production. Other water, steam, liquefied petroleum gas, nitrogen and

hydrogen required for production will be supplied to the location nearby the plant

by the industrial park.

The production waste water from the plant will be treated by the waste water

treatment station in the plant before discharging.

5.2 Water supply & drainage facilities 5.2.1 Overview

Tailong Mechanical Engineering Group Co., Ltd plans to invest in Eastern Cape

to build a cold rolling plant mainly for producing galvanized products with

production scale of 200,000t/a galvanized products, including pickling line,

rolling mill and CGL. The corresponding facilities include circulation water

treatment facility, waste water treatment facility, ARP and water supply &

drainage pipe network inside and outside shop.

5.2.2 Current status of external pipe network and production water amount

Living water, production water, domestic sewage pipe and rain water pipe are

provided around the project to meet the requirements of this project.

5.2.2.1 Production water amount required for this project

Table 5-1 Production water amount

No. Designation Water flow m3/h

1 Makeup water of

circulation water

18



2 Makeup water of

demi-water station

32

3 Water consumption of the

main building

10

Total 60

Production water amount of the project is 60m3/h.

5.2.3 Circulation water facilities

5.2.3.1 Circulation water flow

Circulation water flow Q=1200 m3/h, emergency water Q=30 m3/h

Feed temperature of circulation water≤33℃, return temperature of

circulation water≤43℃

Feed pressure of circulation water: 0.4～0.5MPa

5.1.3.2 Process flow of circulation water

Cooling water from consumer flows in pipe via residual pressure to cooling tower,

and the cooled water enters the cold water tank followed by being boosted and

supplied by main circulation pump to the consumer for recycling. The designed

circulation rate is 98.5%, and the concentration times is 5. Designed makeup

water flow is 18m3/h, and blowdown water flow is 4m3/h.

Production makeup water is required as water amount of the system is reduced

due to splashing and evaporation of the cooling tower as well as system

blowdown during normal operation of the whole system.

Circulation water is supplied in normal case and the main water feed pump is

provided with two circuits of independents power supply. Emergency water is

sourced from the emergency water tower.

5.2.3.3 Main equipment and construction

Cold water tank, main circulation pump, FRP cooling tower, side-stream filter,

emergency water tower, bypass pump, pump house and dosing facilities, etc.

5.2.4 Waste water treatment facilities

5.2.4.1 Amount of waste water system

Waste water from the line includes waste emulsion, alkali waste water, acid

waste water and coating waste water; the last two will be entrusted to external

company for treatment.

The discharging amount is as follows:



Waste emulsion: 3 m3/h acid waste water: 9 m3/h

Alkali waste water: 9 m3/h coating waste water: 1 m3/h

Treatment capacity of the system is as follows:

Alkali waste water: 15 m3/h

Waste emulsion: 4 m3/h

5.2.4.2 Effluent water indices of WWTP

PH:6～9 SS:≤ 30mg/l

Oil: ≤ 3mg/l COD:≤ 60mg/l

5.2.4.3Process flow of waste water

(1) Waste emulsion treatment system

Oil/emulsion bearing waste water from lines→→buffer tank→→ lift pump →→

reaction tank→→flocculation tank→ air floatation device→→outlet water to alkali

waste water treatment system

Concentrated oil from buffer tank → emulsion breaking tank→outlet water to oily

waste water buffer tank

Oily sludge→→filter press of waste water treatment system

(2)Alkali waste water treatment system

Alkali waste water from the lines→→ buffer tank→pump→stage-1 reaction

tank→→stage-1 flocculation tank→→stage-1 air floatation tank →→stage-2

reaction tank→→stage-2 flocculation tank→→stage-2 air floatation tank→→final

PH regulation tank→→intermediate water tank →→cooling tower→contact

oxidation reaction tank →→inclined plate sedimentation tank→→quartz sand

filter tank→→discharging

Part of the sludge from air floatation tank→→ pump→→sludge concentration

tank→→plate & frame filter press→→sludge transported to outside

5.2.4.4 Main facilities

(1)Oil/waste emulsion bearing waste water treatment system

Waste emulsion buffer tank, waste emulsion lift pump, waste oil collection tank,

emulsion breaking tank, emulsion waste water sump pit, drainage pump,

reaction tank, flocculation tank and air floatation tank.

(2) Alkali waste water treatment system

Alkali waste water conditioning tank, alkali waste water lift pump, stage-1

reaction tank, stage-1 flocculation tank, stage 1 air floatation tank, stage-2



reaction tank, stage-2 flocculation tank, stage-2 air floatation tank, intermediate

water tank, cooling tower, contact oxidation reaction tank, sedimentation tank,

quartz sand filter, dross tank, dross pump and filter press.

(3) Chemical dosing system

Sulphuric acid dosing facility, NaOH dosing facility, PAM dosing facility and PAC

dosing facility

5.2.5 Acid regeneration facility

Annual pickling amount: 219,000t/a

Iron loss from pickling: 0.40%

Working time of the pickling line:

Net production hours: 6000h/a (production time for calculating the acid

regeneration capacity)

Waste acid amount: 1300 l/h

Designed acid regeneration capacity: 2100l/h, with spray roasting adopted.

5.2.5.1 Process flow

The waste acid enters the separator at the bottom of the preconcentrator of the

acid regeneration plant; part of the acid is circulated by circulation pump in the

preconcentrator, and the other part is sent to the roaster. During the circulation

process, the waste acid undergoes full heat exchange with the hot gas from the

roaster, and the concentrated waste acid to the roaster is boosted and delivered

by the liquid feed pump of the roaster to the two booms at the top of the roaster.

In the roaster, the acid drop and FeCl2 react in the following way under a certain

temperature:

4Fe Cl2＋4H2O＋O2＝2Fe2O3＋8HCl

The solid Fe2O3 from reaction falls at the cone bottom of the roaster, and is

discharged via breaker and rotary discharging valve. Water, HCl gas and fine

Fe2O3 go from the top of the roaster to the double-cyclone separator, and

separated oxide powder is returned via the rotary valve to the roaster. The

dedusted gas enters the preconcentrator.

The gas from the preconcentrator with low HCl gas temperature and low content

of iron powder goes to the bottom of the absorption column, where the gas

contacts with the counterflow rinse water from top to bottom, and the HCl in the

waste gas is absorbed in water to form hydrochloric acid solution. The gas from



the absorption column goes to stage 1 & 2 scrubber followed by being

exhausted via chimney to atmosphere.

The whole acid regeneration plant is kept at a constant negative pressure by

variable frequency and speed regulation control of the exhaust fan so as to avoid

leakage of HCl gas from the system. The gas is sucked by the exhaust fan

through roaster, preconcentrator, absorption column and scrubber up to the

chimney for discharging to atmosphere.

The oxide powder discharged from the bottom of the roaster is sucked to the

storage bin by the negative pressure caused by the exhaust fan. It is then

discharged via the rotary valve at the bottom of the bin to the bagging machine

with weigher for packaging and bag sealing for sale.

5.2.5.2 Main equipment and construction

Waste acid storage tank, regenerated acid storage tank, new acid storage tank,

rinse water storage tank, new acid pump, waste acid pump, circulation pump of

preconcentrator, acid feed pump of roaster, regenerated acid pump, rinse water

pump, water feed pump of absorption column, water feed pump of scrubber,

roaster, double-cyclone separator, preconcentrator, absorption column, 1#

scrubber, 2# scrubber, exhaust fan and pipe system and oxide powder station.

5.2.6 Water supply & drainage pipe network inside/outside shop

Mainly including the following content:

● Circulation water and emergency water pipe network

● Production fire water pipe network

● Oily waste water pipe network

● Acid waste water pipe network

● Coating waste water pipe network

● Alkali waste water pipe network

● Living water supply system

● Production water, living water and rain water drainage system

(1) Indirect circulation water and emergency water pipe network

Feed and return main of the indirect circulation water, with diameter D530x9 and

material of steel, are embedded from the circulation water pump house to the

main building, and then laid overhead along the building column to various

consumers. Emergency water pipe, with diameter DN100 and material of steel,



is embedded from the circulation water pump house to the main building, and

then laid overhead along the building column to various consumers.

(2) Production fire water pipe

Circular pipe network is adopted for indoor production fire water; the pipe

diameter is D159x6, and a fire hydrant is arranged every 30m. Circular pipe

network is adopted for outdoor production fire water; and a fire hydrant is

arranged every 120m. Two TOPs are connected from external pipe network to

the project.

(3) Oil/emulsion bearing pipe

Water drain pump (with seamless steel pipe) is installed at mill oil cellar, oil fume

scrubbing system and emulsion room. The oil/emulsion bearing pipe is laid

overhead along the building column to the outside of shop, and then laid via rack

to the water treatment station.

(4) Acid waste water pipe

The acid waste water pipe (dia.: DN80 and material: PPH) from the pickling line

is laid to the shop outside, and then piped to tank car for regular transportation to

outside.

(5) Coating waste water pipe

The coating waste water pipe (dia.: DN80 and material: stainless steel) from the

CGL is laid to the shop outside, and then piped to tank car for regular

transportation to outside.

(6) Alkali waste water pipe

The alkali waste water pipe (dia.: Φ108×4.5 and material: seamless steel) from

the CGL is laid overhead to the alkali waste water buffer tank of the waste water

treatment plant.

Drain water from sump pit of payoff reel and tension reel is respectively lifted by

pump and piped (seamless steel) overhead or along the trench to diluted alkali

waste water pipe of the main building. One submerged pump and valve are

arranged respectively in the sump pit.

(7) Living water pipe

Living water is taken from TOP of external pipe network to this project for water

supply to sanitary facility. Galvanized steel pipe with TOP dia. DN80 is used, and

the water consumption is 8m3/h.



(8) Water drain pipe

Drain water from sump pit of entry and exit looper of the line is lifted respectively

by pump and piped in an overhead or embedded way to TOP of the main

building. Seamless pipe is adopted. Submerged pump and valve are arranged in

the sump pit, 1 at each sump pit.

Roof rain water, ground rain water and production water drained reaching

related standards after treatment are collected and discharged to rain water pipe

network of the plant. Recurrence interval for rain water is designed as 5 years,

and checked as 10 years.

The living drain water is collected and discharged to the living water pipe

network of the plant.

5.2.7 Main techno-economic indices

Production water: 60m3/h

Discharging waste water reaching related standards: 28 m3/h

5.3 Thermal power facilities 5.3.1 Overview

The thermal power facilities for the cold rolling project include:

● Compressed air supply & air compressor station

● Steam supply

● Demi-water supply and demi-water station

● Thermal power pipe inside/outside shop

5.3.2 Compressed air supply

5.3.2.1 Consumption of compressed air

Consumption of compressed air of the project is shown in the following table:



Table 5-2 Consumption of compressed air No.

Consumer Consumption

Nm3/min Pressure

MPa Remarks Ave. Max.

1 Push-pull type pickling line 8.4 11.7 0.5~0.7 Continuous

2 Single-stand reversing mill 26.7 38.2 0.5~0.7 Continuous

3 Continuous hot galvanizing line 14.2 16.7 0.5~0.7 Continuous

4 Color coating line (for future)

12 18 0.5~0.7 Continuous

5 Waste water treatment plant

3 5 0.5~0.7 Intermittent

6 Demi-water station 2 4 0.5~0.7 Intermittent

7 Circulation water station 4 8 0.5~0.7 Intermittent

8 Purging of ITV 1 2 0.5~0.7 Intermittent

1~7 total (Σqmax) 71.3 103.6

Loss and unforeseen coefficientK1=1.2, simultaneity factor K2=0.7, correction factorφ1=1.0

Self-consumption factor of air dryer α=1.07

Max. comprehensive consumption qv=Σqmaxαφ1K1K2=77Nm3/min

According to the above table, max. comprehensive consumption of compressed

air of this project is 94Nm3/min, and all the above compressed air will be

supplied by the air compressor station to be built.

5.3.2.2 Air compressor station

It is going to build one air compressor station for the project. In the station are

arranged three 50Nm3/min air compressors with exhausting pressure 0.8MPa.

Power of each compressor motor is 280KW, and the voltage is 10kV. Three

50Nm3/min combined type compressed air dryers are designed for the air

compressor station.

Silencer is designed for air discharging of each compressor to reduce the

discharging noise.

An outdoor 5m3 air receiver is provided for each air compressor for buffering and

pressure stabilization.

5.3.3 Steam

5.3.3.1 Steam consumption



Steam consumption of this project is shown in the following table:

Table 5-3 Steam consumption

No. Consumer

Consumption (t/h) Pressure

MPa Service

system Remarks Ave. Max.

1 Push-pull type pickling

line

6.4 9.6 0.5～0.7 Continuous

2 Single-stand reversing

mill

0.8 1.2 0.5～0.7 Continuous

3 Continuous hot

galvanizing line

2.5 4.5 0.5～0.7 Continuous

4 Color coating line (for

future)

3.5 5 0.5～0.7 Continuous

1~3 total (qmax) 13.2 20.3

Based on the above table, max. comprehensive consumption of the steam is

20.3t/h, and all the above steam required is supplied from external steam

source.

5.3.4 Demi-water and demi-water station

5.3.4.1 Demi-water consumption

Demi-water consumption of the proposed project is shown in the following table:

Table 5-4 Consumption of demi-water No.

Consumer Consumption t/h Pressure

MPa Remarks Ave. Max.

1 Push-pull type pickling line

8 10 Continuous

2 Single-stand reversing mill

1.2 10 Continuous

3 Continuous hot galvanizing line

8.5 10 Continuous

4 Color coating line (for future)

4 6 Continuous

1~3 total (qcp) 21.7 36

Based on the above table, average comprehensive consumption of the

demi-water is 21.7t/h; according to technical requirement of cold rolling line and

boiler, the conductivity of the demi-water is≤5μS/cm.

All the above demi-water will be supplied by the demi-water station to be built.



5.3.4.2 Demi-water station

It is going to build one demi-water station, including 1 set of plate type heat

exchanger, 2 sets of multi-media filters (1 working and 1 standby), 3 sets of

active carbon (1 working and 1 standby), 4 sets of fully-automatic reverse

osmosis units (1 working and 1 standby), 4 sets of mixed bed (1 working and 1

standby) as well as corresponding pumps, water tanks, dosing devices and

other equipment.

Output of demi-water station is 25t/h, and the effluent water quality reaches

class 1 demi-water standard (conductivity ＜ 5μS/cm). The quality of the

demi-water could fully meet the requirements of the process line.

The demi-water station is arranged in an independent single-storey building.

5.3.5 External thermal power pipe outside shop

The thermal power pipes mainly include steam pipe, compressed air pipe and

demi-water pipe; it is divided into the part inside the shop and that outside the

shop.

The thermal power pipes are laid overhead. The pipes outside shop will be laid

together with other pipes as much as possible with separate support installed as

necessary. The pipes inside shop are arranged along shop column and beam.

Natural compensation is mainly adopted for thermal compensation of the pipes,

and bellow compensator will be arranged as necessary.

5.4 Fuel gas facilities 5.4.1 Requirements for consumption and quality of fuel gas media

Consumption of fuel gas is shown in the following table:

Table 5-5 Consumption of fuel gas Media

Item

LPG (kg/h) Nitrogen (m3/h) Hydrogen (m3/h)

Max. Ave. Max. Ave. Storage amount

Max. Ave.

CGL 1560 1020 800 560 1500 150 120

CCL (for

future) 465 310

Total 2025 1330 800 560 1500 150 120

Quality requirements of the consumer for fuel gas are as follows:

a) LPG



Calorific value 45200~46100 kJ/kg

b) Nitrogen

Purity 99.999%

Oxygen content ≤10ppm

Dew point -60℃

Pressure 0.5～0.6MPa

c) Hydrogen

Dew point -60℃

Pressure 0.35～0.5MPa

Oxygen content ≤10ppm

Dew point -60℃

5.4.2 Supply of fuel gas

LPG, nitrogen and hydrogen required for the project will be supplied from TOP of

supply system to pressure regulation station for pressure regulation and

stabilization up to the pressure desired before being sent to respectively to CGL

and CCL. Corresponding spherical tank shall be prepared for nitrogen.

5.5 Description of other utility facilities

（1） Roll grinding facility

One universal grinding machine is designed for grinding of roll; meanwhile, lathe

and miller will be provided correspondingly.

（2） Lab. facility

No special lab. center is designed for the project, and a lab. room is arranged

nearby the line (mainly CGL) to meet production inspection requirements.

（3） Special fire fighting

The special fire fighting of this project will be designed as per relevant local

codes in South Africa. Necessary fire extinguishing apparatus and facilities

shall be provided.



6 General layout & transportation 6.1 Overview Tailong Mechanical Engineering Group Co., Ltd. plans to invest in Eastern Cape



The cold rolling plant is located at COEGA Industrial Development Zone in

Eastern Cape, South Africa. See the regional location map for the preliminary

location.

Regional location map of the plant site

6.2 General plan layout 6.2.1 Main shop composition

1) Main building of cold rolling plant: including raw material storage, PPL,

single-stand reversing mill, CGL, roll shop and finished product storage, etc.

2) Auxiliary facilities: electrical room of PPL, electrical room of reversing mill

(incl.10kV switchgear station), entry electrical room of CGL, exit electrical room

of CGL, WWTP, circulation water station, demi-water station and air compressor

station, etc.

3) Office & living facilities: comprehensive building and door guard.

6.2.2 General plan layout

Given the fact that comprehensive transportation mode is road transportation

and the project site is nearby wharf, the generally layout will be designed



following the principle that main raw material storage and finished product

storage are arranged close to entry/exit for convenient transportation.

The main building of the cold rolling plant is arranged nearby the south of the

battery limit. Electrical room of PL, electrical room of rolling mill (incl. 10kV

switchgear station), entry electrical room of CGL and exit electrical room of CGL

are arranged around the main building. Waste water treatment plant, circulation

water station and air compressor station are arranged one after another from

west to east across the road to the north of the main building. The

comprehensive building is arranged to the east of the main building and to the

south of the entry/exit.

See the general plan layout for detail.

6.3 Vertical arrangement and site drainage Detailed topographic map and relevant information of this area are available,

which will be considered in the next design stage.

6.4 Transportation Road transportation is considered for all the materials of the project. The total

transportation volume is 479,415 t/a, including 230,370t/a input (mainly of hot

rolled coil, HCl, spare parts, new rol, lubricant and cleaning agent, etc.) and

249,045 t/a output (mainly of finished coil/sheet, scrap/crop, worn-out equipment,

waste roll and waste acid, etc.

All the transportation vehicles will be arranged by means of social collaboration.

Urban road is designed for all new roads. Width of the entry/exit road is 7m, and

that of other roads 4m.

6.5 Landscaping Landscaping of the plant will be designed as per the requirements of the owner

for a better environment. Landscaping land rate is considered as 30%.

6.6 Safety and fire fighting 1.80m high metal fence with concrete column is arranged around the plant to

ensure production safety of the plant. 10m wide electrically-operated door is

arranged at the main entry/exit, another 5m wide door is arranged at such

location as for easy connection with the development zone.

Transportation road with width no less than 4m is arranged surrounding the main

building, and it could also be used as fire road.



6.7 Main techno-economic indices Table 6 Main techno-economic indices

No. Index Unit Q’ty Remarks

1 Construction are of the plant m2 52090 Area inside the enclosure

2 Area of building and

structure

m2 25080

3 Building coefficient ％ 48.1

4 Road length inside plant m 790

5 Landscaping area m2 15630

6 Coefficient of landscaping

land ％ 30

7 Road transportation volume

Including: input

output

104t/a

47.9415

23.037

24.9045


7 Investment estimate 7.1 Project overview A new cold rolling and hot dip galvanizing project is planned to be built in the

Cold Rolling Plant located in Cape Province of South Africa and of which the

annual production capacity is 200,000 t galvanized products.

7.2 Main line composition and auxiliary facilities Push-pull type pickling line 1


Continuous hot dip galvanizing line 1

Auxiliary facilities include: roll shop, waste water treatment plant, circulation

water station, demineralized water station, air compressor station, 10KV

switchgear station and ARP.

7.3 Investment estimate The investment budget is prepared based on the above mentioned contents.

The static investment of the project is: USD 53.82 million

In which:

Civil work: USD 11.67 million

Equipment and installation work: USD 36.38 million

Other costs: USD 5.77 million

For details, refer to project investment budget list.

7.4 Notes (1) In this investment cost, the subsoil treatment cost is not included.

(2) Other cost and contingency fee of the project construction and budgetary

reserves is considered as 12%.

(3) The investment estimate mentioned herein is the static investment only. It

does not include the interests incurred during the construction period and initial

working capital.


Table 7 Project investment estimate for feasibility study of 200,000 t/a cold rolling project in Cape Province, South Africa

No. Work and cost

designation

Investment budget (unit: 10,000USD)

Civil work Equipment Installation Other cost Total

1 Work cost

1.1 Main building

1.1.1 Civil work 892 892

1.1.2 Production line process

equipment 2386 387 2773

1.1.3

Lifting and

transportation

equipment

72 4 76

1.1.4

Internal network of the

shop, lighting,

ventilation, overall plant

telecommunication and

fire alarming facilities,

etc

100 133 233

Sub-total for item 1.1 892 2559 524 3974

1.2 Auxiliary utilities 275 432 124 831

Total for item 1 1167 2991 647 4805

2

Other costs and

reserve fund of the

project

576.65 577

Total for item 1 and 2 1167 2991 647 577 5382


8 Analysis and evaluation of economic benefit

8.1 Overview

Tailong Mechanical Engineering Group Co., Ltd. plans to invest in Eastern

Cape to build a cold rolling pant mainly for producing galvanized products with


The economic benefit analysis of the design is made according to the related

regulations in the Methods and Parameters for Economic Evaluation of

Construction Projects (Rev.3) issued by National Development and Reform

Commission and Ministry of Housing and Urban-Rural Development.

The economic calculation and evaluation contained herein is made on the

project benefit with the assumption that the project is an independent financial

entity. The price calculation made herein does not include taxes

In the calculations, USD will be applied as pricing currency and the prices

involved as RMB and South African Rand will be converted to USD at current

exchange rates.

8.2. Captial demand and capital raising 8.2.1 Total investment of project Total investment of the project is USD 53.82 million and the interest in the

construction period is 3.49 million USD. Refer table 8-1 for the total investment

of project.


Table 8-1: Economic evaluation of total investment (unit: 10,000USD)

No. Item Value

1 Static investment of the project 5,382

In which: equity fund 2,153

Long term loan 3,229

2 Interest incurred in construction period 349

3 Initial working capital 309

4 Total investment for construction (Total cost

of item 1, item 2 and item3)

6,039

5 Loan as working capital 720

6 Total investment under economic evaluation

(Total cost of item 4 and item 5)

6,760

Capital raising conditions are described as follows:

1) The project construction investment will be paid by equity fund of the

company in 40％ and by loan in 60％.

2) South African bank’s yearly loan rate, i.e. 12%, is considered for long term

loan.

3) The interest incurred during construction period will be paid by company’s

equity fund.

3) The working capital will be paid by company equity fund in 30% and by loan

in 70％.

4) South African bank’s yearly loan rate, i.e. 12%, is considered for short term

loan. 8.2.2 Construction period and designed capacity scale-up Period The construction period of the project is 24 months and the designed capacity

scale-up period is 2 years. 80% of the designed capacity will be reached in the

first year and 100% in the second year.

8.2.3 Financial calculation and analysis 8.2.3.1 Price of raw materials and products The document of High Level Assessment of the Galvanized Steel Coil /Sheet

Market in South Africa is used as the reference for the project product prices.


Table 8-2: Galvanized coil and sheet prices in South Africa

Product Export Price (ZAR) Q1

2015

Import Price (ZAR)

Q1 2015

Domestic Price

(ZAR) Q1 2015

Galvanized

coil

10,700 12,700 9,400

Galvanized

sheet

10,600 10,500 10,000

Based on current market currency exchange rate, the local galvanized coil

price in South Africa is approximately USD 617 per Ton (not including tax).

The raw material is hot rolled coils which are considered to be imported from

China to South Africa. The price of hot rolled coils is approximately 330

USD/Ton considering that the FOB price of hot rolled coils from Tianjing harbor

is 260 USD/Ton and the cost of shipping, insurance and customs clearance is

approximately 70 USD/Ton in total.

To conclude, the estimated product price is 617 USD/Ton and the raw material

price is 330 USD/Ton.

8.2.3.2 Cost and expense As the market prices for the auxiliary material and energy media in South

Africa are not clear in current stage, the prices used for calculation is

tentatively estimated based on the pricing level of the enterprises in China.

It is proposed to have 205 manning staffs and the average annual salary and

welfare of each person is calculated on the basis of 15,800 USD/ Year*person.

The residual rate is 5% and the comprehensive depreciation period is 15 years.

The depreciation of the fixed assets is calculated based straight-line method.

Table 8-3: Product unit cost estimate

No. Item Unit Unit Price Unit

consumption Cost (USD)

1 Raw material

351.12

Hot rolled coil t 330.00 1.064 351.12

2 Auxiliary materials

78.03


HCL kg 0.09 0.24 0.02

Degreasing agent kg 0.11 4.00 0.43

Emulsion kg 1.58 0.60 0.95

Passivator kg 2.36 0.14 0.33

Zinc ingot kg 2.05 29.60 60.61

Roll kg 4.10 0.62 2.54

Refractory material kg 0.47 0.13 0.06

Packing material kg 3.15 4.00 12.60

Others

0.50

3 Fuel and power

77.09

Electricity kW.h 0.07 131.40 9.26

Liquefied petroleum gas kg 1.52 35.80 54.24

Demineralized water m3 1.58 0.54 0.85

Recirculated water m3 0.07 31.30 2.22

Potable water m3 0.52 0.55 0.28

N2 Nm3 0.05 18.60 0.88

H2 Nm3 0.68 3.50 2.37

Compressed air m3 0.01 207.00 1.63

Steam kg 0.02 205.50 4.85

Others

0.50

4 Salary and welfare

16.14

5 Manufacturing expense

(depreciation not included)

8.59

Repairing fee

7.09

Others

1.50

Manufacturing cost

530.97

8.2.3.3 Revenue The revenue will reach USD 123,320,000 in the year when the designed

capacity is reached.


8.2.3.4 Business tax The VAT levied by customs in the year when the designed capacity is reached

is 14%.

8.2.3.5 Total profit According to the related tax incentives of the industrial park, the business

income tax is not necessary to be considered and the public accumulation fund

is taken as 10% of the after-tax profit (tentative). Based on calculation, the total

normal annual profit is 11,550,000 USD.

8.2.3.6 Financial viability analysis Within the calculated period of the project, the values of the net cash flow and

the accumulated surplus are positive in every year, meaning that sufficient net

cash flow every year is available to maintain the normal operation of the

project and the project is financially sustainable.

8.2.3.7 Financial profitability analysis For the main financial evaluation indices, refer to table 8-4.

Table 8-4: Main financial evaluation indices

No. Item Unit Amount

1 Financial internal rate of return of the project

investment (FIRR)

%

21.81

2 Financial net present value of the project investment (ic=10%)

USD 104 3876

3 Pay-back period of the project investment a 6.40

incl. the construction period

4 Financial internal rate of return of

enterprise’s equity (FIRR)

%

26.25

8.2.3.8 Debt-paying ability analysis

In the debt-paying ability analysis, “monthly repayment of equal principal and

different interest” method is assumed. The loan repayment period is 5 years

with the paying equal principle. The interest coverage rate and the debt service

coverage ratio of each year in repayment period are higher than 1, indicating

that the project has strong reimbursement ability. For detail debt paying indices,

refer to Table 8-5.


Table 8-5: Debt-paying indices Year 3 4 5 6 7 8 9

The interest

coverage rate 1.77 2.97 3.42 4.03 4.92 6.30 8.76

The debt service

coverage ratio 1.22 1.77 1.89 2.02 2.18 2.36 2.58

8.2.4 Economic benefit analysis of project From the financial profitability analysis, it is shown that the after income tax

FIRR of the total investment is 21.81% which is higher than the base earnings

ratio of the project and the interest rate of long-term loans of the bank. The

investment payback period (including construction period) is 6.4 years. The

uncertainty analysis shows that the project has a good profitability and

repayment ability.

For the main economic indices, refer to table 8-6.

Table 8-6: Main economic indices No. Index designation Unit Amount Remarks


No. Index designation Unit Amount Remarks

1 Construction investment USD 104 5382

2 Interest in construction period USD 104 349

3 Working capital USD 104 1029

4 Annual revenue USD 104 12332 Normal year

5 Annual cost USD 104 11177 Normal year

6 Net profit USD 104 1155 Normal year

7

Financial internal rate of

return of project investment

(FIRR)

％ 21.81

Net present value of project

investment (NPV) USD 104 3876

Payback period for the project

investment (Pt) Year 6.40

Including

construction period

Financial internal rate of

return of enterprise’s equity

(FIRR)

％ 26.25

Calculation sheets are attached hereinafter.





















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Feasibility Study for Cold Rolling Project in Eastern Cape, South ... steel feasibility study.pdf · following the principle that main raw material storage and finished product storage