THE 1997 PEP YEARBOOK CHINA

China has a vigorous chemical industry that is ambitiously expanding, with a targeted annual growth rate of 8-9% through 2000. The growth rates, in terms of value, were 8.3% for chemical output, 15.7% for chemical export, and 4.4% for chemical import in 1997. Although state-owned companies still generate the majority of chemical output, foreign investment–both in small-scale operations and large projects–is mounting. Companies planning ventures in China often ask questions such as, "How much does it costs a state-owned company to produce a certain chemical product using a particular technology in China?" and "If you produce a certain chemical in China, how much will it cost?"

SRI Consulting’s Process Economics Program (PEP) is pleased to announce the publication of the second edition of the PEP Yearbook China. The 1997 PEP Yearbook China contains up-to-date process economics for over 800 processes used to make more than 500 products: chemicals, polymers, adhesives, plastic films, plastic bottles and containers, fibers, specialty products, and petrochemical feedstocks. It also provides an introduction to China’s chemical industry, which is under major reform as a result of recent restructure of government ministries.

The PEP Yearbook China includes estimates of capital investment, production costs, and product values (production cost, plus 25%/yr before-tax return on total fixed capital) for each product at 3 plant capacities. The base capacity is for a world-scale unit; the larger and smaller capacities are presented to show the effects of scale. Investment estimates are calculated for a China Bohai location. The representative region, centered in Beijing and Tianjin, includes Hebei, Liaoning, and Shandong provinces. Labor costs and productivity, maintenance costs, taxes and insurance, and depreciation also reflect local practices. Raw materials prices and costs of utilities are obtained from sources in China, industry contacts, and journals. For each of the 3 design capacities, production costs and product values are given for operation at 100%, 75%, and 50% of capacity. In addition, we will also provide cost factors, relative to the representative region, for the other two major regions, i.e., Shanghai and Guangzhou areas.

All information for each process–a brief process description, a detailed production cost table, and PEP report references–is provided on one page. Features in the PEP Yearbook China include a chemical price list, an alphabetical list of raw materials that indicates their unitary consumption in product manufacture, and classification of all products according to their chemical composition.

The PEP Yearbook China is printed in metric units and is offered separately from the PEP Yearbook International. A proposal is attached. For more information, please contact Dr. Shao-Hwa (Sean) Wang by telephone at (650)859-2272, by fax at (650)859-5134, or by email at swang@sric.sri.com.