INVESTMENT PROJECT

INVESTMENT OFFER
Initiator of the project:
Company «CHUY FRP Composite».
The essence of the project:
Organization of manufacture of GRP pipes for water and wastewater systems, as well as pipes for the oil industry in the two-component epoxy binder and pipes for the formation water and highly corrosive wastewater.

The location of production:
Kyrgyzstan, Chuy region, Kara-Balta city, Jayil area, code 724411, street T.Kozhomberdiev 4.

Existing industrial area:
Total production land area - 16000m2
Two industrial case (24x60x8 and 15x36x5)
Warehouse for raw materials, an area of 576m2
An office building, an area of 144m2
The production area is located in an industrial area, fully fenced and paved, has a branch line, fully secured by electricity, water and sewerage system.

Project cost: 5950 000,00 EURO
1. Manufacturing, support and administrative buildings and facilities - 900 000 EURO
2. Arrangements for pre-project period (documentation, reconstruction of buildings and constructions) - 100 000 EURO
3. Two lines are complete, process, stationary equipment for the production of pipes for water supply - 700 000,00 EURO.
4. A complete line of mobile equipment - 250 000 EURO
5. Two lines are complete, technology (know-how) equipment for the oil pipe on the epoxy binder - 2,400,000 EURO
6. One line of complete equipment for the production of pipes for the two-component highly corrosive wastewater - 1,000,000 EURO
7. Installation and commissioning - 200 000 EURO
8. Supporting and lifting mechanisms - 130 000 EURO
9. Education and training of staff - 100 000 EURO
10. Working capital for start of production and certification of finished products - 170 000 EURO

The purpose of the investment proposal:
To attract an investment of ? 4,950,000 EURO for the purchase of equipment and working capital.
The products are:
1. GRP pipes for water supply and sanitation (GRP) with trumpet compounds produced by the winding of composite materials.
• diametrical number (DN): 50-2000mm
• Nominal pipe length (L): 6/9/12m
• stiffness (SN) H/m2-5000/10000/ and more
• Operating pressure (PN): 1/6/10/16/20/25/30/40bar (1 bar = 0,1 MPa)
2. GRP pipes for the transportation of crude oil (GRE) with a threaded connection on the epoxy binder.
• diametrical number: 40/50/65/80/100/150/200mm
• Nominal length: 9m
• Operating pressure: 25-250bar (1 bar = 0,1 MPa)
• Operating temperature (t °): 70/100/120 ° C
3. GRP two-pipe (GRP / UPVC) with a metal threaded connection for the transport of highly aggressive wastewater.
• diametrical number: 100/150/200/250/300/350/400/450/500/600mm
• Nominal length: 6/9/12m
• Operating pressure: from 25bar to 100bar.
• Operating temperature: up to 70°C.
4. Products made of fiberglass pipes, such as elbow, tee, adapter, etc., well, CND (sewage pumping stations), tanks, flanges, ventilation ducts and more.

Production capacity:
1. Stationary equipment for water supply
Project production capacity - 180km per year
Planned production capacity - 150 km per year
2. Mobile equipment for water supply
Project production capacity - 50km per year
Planned production capacity - 30km per year
3. Equipment for oil pipes with epoxy binder
Project production capacity - about 500 km per year
Planned production capacity - 300 km per year
4. Equipment for two-component tube
Project production capacity - 150 km per year
Planned production capacity - 100 km per year

Comparative value of finished goods:
Fiberglass Pipe DN1000mm/PN-6 bar/SN-10000H/m² / L12m (GRP)
- Market price of LPG over the condition EXW - 300 EURO per 1m.
- Planned sales price on the condition EXW - 191 EURO per 1m.
Fiberglass Pipe DN500mm/PN-6 bar/SN-10000H.m ² / L6m
- Market price of LPG over the condition EXW - 90 EURO per 1p.m.
- Planned sales price on the condition EXW - 60 EURO per 1p.m.
Fiberglass Pipe DN100mm/PN-70bar/L9m/t90 ° C (GRE-oil)
- Market price of LPG over the condition EXW - 45 EURO per 1p.m.
- Planned sales price on the condition EXW - 26.4 EURO for 1p.m.
Fiberglass Pipe DN200mm/PN-25bar/L9m/t70 ° C (GRP / UPVC)
- Market price of LPG over the condition EXW - 70 EURO per 1p.m.
- Planned sales price on the condition EXW - 46.2 EURO for 1p.m.

Financial:
Payback period - 4 years
The estimated break-even point - 187,3 km per year, namely,
• DN1000mm (GRP) - 20211m.
• DN500mm (GRP) - 16222m
• DN100mm (GRE) - 110071m
• DN200mm (GRP / UPVC) - 40796m
With a total of 31,5% of the planned production capacity of equipment.
IRR (rate of return) - 42,3%
Project NPV - 8,3 million EURO.