Construction scale of the project
The project adopts the process of ion membrane to produce 300,000 tons of caustic soda per year, use calcium carbide process to produce 300,000 tons of PVC, and a supporting project of annual 400,000 tons of carbide, equipped with fully-closed boiler, is also to be built.
Based on taking full advantage of rich chemical limestone resource of Hebi City, mine salt resources of Puyang City, and advantages of coal, electrical power and thermal power industries of HBCG, the project is planned to produce ionic membrane caustic soda with raw salt and brine as main raw materials, produce calcium carbide with limestone and electric energy, and take by-products of calcium carbide and caustic soda as main materials for PVC production. The proved chemical limestone reserves in Hebi City is about 50 million tons, which provide high-quality raw materials for calcium carbide. HBCG has rich coal resources and a 2×135MW thermal power plant that can provide electricity and heat directly. These are important conditions for producing limestone and the cost is very low, the limestone market is in short supply.

The underground salt resources of Puyang city is rich, the proved reserves is 47.85 billion tons according to the exploration by Zhongyuan Oilfield, prospective reserves is more than 120 billion tons; monolayer thickness of salt bed is between 7-40 meters, superposed thickness of salt bed is at least 80 meters, some sections up to 800 to 1000 meters. Generally, the buried depth of salt mine is between 2100-2700 meters, and the distribution area is more than 500 square kilometers. The underground salt resources of Puyang City is rich in reserves, but also quality in nature. The impurity content of brine is very low, and it is rare in the salt mines found in the whole country. Especially, the contents of calcium, magnesium and sulfate ion，which are critical to chemical production, are very low, for example, 10 to 100 times lower than that in Yexian county. So it is an obvious advantageous for us to produce the salt chemical projects and can reduce cost greatly.

Investment estimation and economic benefits
The projected investment is 1.7 billion yuan, including annual 300,000 tons of caustic soda project and annual 300,000 tons of PVC project. After completion, the average annual sales income will be 2.326 billion yuan, and the profit on sale will be 475 million yuan, financial internal rate of return of the project is 24.92%(after income tax), financial investment payback period of the project 5.53 years (after income tax, including building period two years). For the supporting project of annual 400,000 tons of carbide (equipped with fully-closed boiler), the investment is 860 million yuan, the average annual sales income will be 1.24 billion yuan of the project, and the average annual sales profit is about 200 million yuan after completion.

Progress of the project
At present, the feasibility research report has been finished. On Jan. 19, 2008, the HBCG signs an joint-venture agreement with Henan Guocheng Investment and Development Co., Ltd. on the salt chemical and salt mine project, preliminary work is getting on smoothly now.