Yantai Investment Opportunities in Yantai, China

Energy:
EDA Western Thermal Power Plant

Food and Beverage

Manufacturing Various

General chucks, High-speed power chucks and high-speed rotary oil cylinders

Leather Products

130 Ton Nanometer Coating Material for Functional Glass

Alumina Chinaware Project

Extrusion Foaming Heat Preservation and Insulation XPS

CO2 Polymer for Medicine

Yantai Moon Industrial Park Project

Cooling Liquid Filtering Equipments and Cuttings auto Conveyer devices Project

Digital Controlled Machine Tool Manufacturing project

Low Gram Coated Paper for Offset Printing

Polyurethane Color Powder ?Chemical

Environment Protection

Domestic Garbage Disposal Project

Sewage Treatment Plant Project

Retail

Yantai International Shopping Mall Project

Industrial Park

Tourism

Automotive

Yantai Automobile Manufacturing Project

Aluminium Casting Project

Car Engine Piston Project

Load-Carrying Vehicle Braking Hub Project

Automotive Spare Parts Processing Project

New Tape Aluminum Alloy Modified Automobile Project

Metro and Bodywork Spare Parts Project

Automotive Spare Parts (Automotive Electronics) Project

Automotive Electronic Products Joint Developing and Manufacturing Project

Seaport

Yantai Port Project

Penglai Shipbuilding Base

HaiDa Logistics Park Project at Longkou Port

Metal

Smelting Project

Gold Smelting - Arsenic Separation Technology

The Deep Processing of Gold and Silver

The Deep Processing of Gold in Muping

Enameled copper wire, tinned copper wire and copper enameled steel wire project

Region: Yantai Economic & Technological Development Area(YEDA) Shandong Province
Contact Person: Mr. Tang Yubin
Tel: 0086-535-6396615,6396612　 Fax: 0086-535-6396666
Email: Japan@yantaiinvest.gov.cn

Form of Investment: Equity J.V., contractual J.V., wholly foreign-funded enterprise

Project Description:
Yantai Resources Recycling Demonstration Zone is jointly set up by the Administrative Committee of Yantai Economic & Technological Development Area and the attached service center of the State Administration of Environment Protection. Located in Dajijia Community Office of YEDA, the demonstration zone is a special garden which is mainly engaged in recycling of waste and used resources and encouraged by relevant preferential policies with a planned area of more than 20 kilometers. According to the standard of a garden city, the demonstration zone has been given an overall plan and will be developed in several stages. In terms of the categories of the waste and used materials, the demonstration zone is divided into different exclusive processing zones including used plastics, waste paper, used timber, used hardware products, used steel, and used mechanical and electronic products, and so on. There will be an intensive monitoring and series of harmless processing methods which includes collecting, purifying, incinerating, burying on waster water, waste gas, and waste residue. Meanwhile, a series of basic facilities such as road network, green land, theme park, parking lot, school, standardized processing workshops, and so on is going to be constructed.

Region: Yantai City, Shandong Province
Contact Person: Xiaojun jiang
Tel: 0086-535-6396609，6396611　 Fax: 　0086-535-6396666
Email: asia@yantaiinvest.gov.cn

Project sponsor: The People liberation army (PLA) medical scientific institute radiology medical agency; Yantai lansen Technology CO., ltd

Brief introduction to the project:
　　Yantai hanlin Development Company and the PLA medical scientific institute signed the cooperation contract on cooperating to develop the new medicine to cure AIDS "double H" with the official name is FUCOIDAN-GLYCOCALYX CAPSULES (F-GC). On October 1,2002, Yantai lansen technology CO., ltd is registered to be found in Yantai Economic and Technological Development Area (YEDA) with the registered capital is 2 million RMB, which is producing and researching the new medicine to cure the AIDS
　　 The resource of material of FUCOIDAN-GLYCOCALYX CAPSULES (F-GC) is nature algae and the modern biology engineering technology and biology active technology is used, In addition to, it has not chemical treatment and to be a natural select medicine as well as not has any poisoning function .The raw material is all solved in domestic and the cost is very cheap with covering 1/50-1/100 of the international same kind medicine .The PLA medical scientific institute has been taking fundamental research about the project for at least 10 years. The data of experiment is showing that the production has the strong interactive and killing function to the virus of AIDS as well as has good protection and strengthening for the immune Molecule and Cell hurt by AIDS. The industrial research of the product is list to be the plan of State Key Technologies R&D Programme and achieved the support of the fund of 2000-year national new medicine research.
　　 On Jan 1 2003,The PLA Community Service Group and State food and drug administration. accepted the new medical application of FUCOIDAN-GLYCOCALYX CAPSULES (F-GC) presented by Yantai hanlin Development company and the PLA medical scientific institute radiology medical agency together. It is register to belong to Chinese Drug, the fifth kind in natural medicine and on Jan 27 it has been applied to be Clinical reported to State food and drug administration.

Region: Yantai city Shandong province
Contact Person: Minyan Zhao
Tel: 0086-535-6396607　 Fax: 0086-535-6396666
Email: korea@yantaiinvest.gov.cn

Project Description:
Oceanwin Companies of Beijing and its subsidiary Yantai Oceanwin Information are responsible for the master-planning, development and construction, service and management of YITIA. Yantai government and the Administrative Committee of the YEDA are responsible for the infrastructure construction, including "nine smoothness" (road, rainwater, sewage, water supply, natural gas, power, telecommunication, heating and wire of cable TV) and "one evenness" (land surface).
　　According to the master plan, YITIA will set up different areas for residence, research and production, trade, exhibition and incubators. Adhering to the principle of developing IT-oriented industry, YITIA encourages the development of hi-tech enterprises in the following fields: Manufacturing of wired and wireless telecommunication equipment;
　　Development of wired and wireless Internet technology and equipment manufacturing;
　　Manufacturing of semi-conductor and integrated circuit board
　　Liquid Crystal Display (LCD) Products
　　Office automatic (OA) equipment
　　Photoelectric technology
　　Integrated Mechanical-Photo-electrical equipment
　　SHD optical telecommunication system
　　Fundamental scientific research and development
　　Computer software development
　　Manufacture of other electronic products
　　In order to boost the development of the leading industries, YITIA also plans to attract enterprises to provide necessary support service, such as real estate development, garbage and sewage disposal, financial information consulting, food, and tour, etc. Oceanwin Companies has plan to build other auxiliary facilities in YITIA, including incubation building, business center, golf course, theme park attraction, five-star hotel, university and college, research institution, shopping center, high-end villas, etc.
　　Our plan is that, by 2008, YITIA will be constructed to be a first-class, modern "city of electronic information", which combines scientific research, production with excellent living conditions and achieves harmony of work, leisure and nature environment.

Region: Yantai City Shandong Province
Contact Person: Wang Lin
Tel: 0086-535-6396602，6396605　 Fax: 0086-535-6396666
Email: America@yantaiinvest.gov.cn

Region: Yantai City Shandong Province
Contact Person: Mr. Wang Lin
Tel: 0086-535-6396602，6396605　 Fax: 0086-535-6396666
Email:America@yantaiinvest.gov.cn

Responsible Organization: Sino Rail Construction Development Center of Ministry of Railways Yantai Communications Investment Company Dalian Construction Investment Company Second Bureau of Sino Rail Co., Ltd

Region: Yantai City Shandong Province
Contact Person: Meitang Wen
Tel: 00086-535-6396609，6396611　 Fax: 0086-535-6396666
Email:asia@yantaiinvest.gov.cn

Project Sponsor: YEDA State Owned Assets Management Company Yantai Hongyuan Power Industry Co., Ltd.

Brief Introduction To The Project:
YEDA State Owned Assets Management Company Is The Investment Company Directly Under The Administrative Committee, Yantai Hongyuan Power Industry Co., Ltd. Is Registered By Yantai Industrial & Commercial Bureau, Both Of Which Are With Rich Experience In The Field Of Enterprises Management. According To The Heat Supplying Plan Of YEDA, The Heat Needed By The Area To The West Of Huasha Road Will Be Met By YEDA Western Thermal Power Plant. The Demand Of Heat For Industrial Use Has Been Increasing With The Fast Development Of The Western Part. With 43.15% Of The Land For Industrial Use In The Western Part Of YEDA And A Residential Area Of 587,000 Sq. Km, It Is Very Urgent Now To Build The Western Heat Resource, For Which, An Investment Is Needed To Be Introduced. It Is Proposed To Install A Double Exhausting Air Condensing Heating Sets Turbo Generator And Two Circulating Fluid Bed Boilers Preliminarily; The Final Scale Will Be Four Boilers And Three Generators. The Raw Materials Are Available In The Local Market. An Annual Output Value Of RMB 49.22 Million Yuan Will Be Realized, Among Which, RMB 20.17 Million Yuan Is From The Power Generation, RMB 29.05 Million Yuan Is From Heat Supplying. With The Interior Profit Rate Of 15.8% And Profit Rate From Investment Of 16.2%, A Profit Including Tax RMB 17.4 Yuan Will Be Realized. The Payoff Period Of The Investment Will Be 7 Years.

The port project of the Yantai-Dalian(YANDA)Train Ferry Project has two port areas, the south and the north. The south one is located on the north sid of the side of the Situti of the Yantai harbor. The north one is located at the Yangtouwawan of Lushun, Dalian.

The south port: one 181 m long ferry berth, one 50 m long working boat berth, bank protection work and associated facilities on land.

The north port: one 200 m long ferry berth, one 220 m long maintenance and repair berth, protection work and the associated facilities on land.

The south port is of pier type layout and pile-on-foundation structure. Within the range of 38 m around the pile root is the pier area with the front end thumbing up to the north by 15 degree in a saw-tooth shape and measures 181 m long.

The north port is of pier layout and of gravity type structure. There are two anti-impact blocks located at the root. The front-end measures 200 m long. The maintenance and repair berth is 220 m long, located to the southeast of the ferry terminal.

Automobile ferry service: The automobile flexible truss bridge rests on the side of the boat tail at 45 degree and the automobiles get on and off the boat from the same side. The automobile trestle bridge is of a raisable type plate beam structure. The bridge deck is 4.5 m wide and 29 m long with a maximum slope of 10%. The movement is powered by the hydraulic system.

On/Off boarding: Passenger trestle bridge is designed to be of steel truss structure with the front end extendable and completely enclosed and the raising and extending are controlled by the hydraulic system.

They include the general office building, waiting room building, maintenance and repair shop, fare collection station, boundary walls and substation. The general building, waiting room building and the maintenance and repair shop are all of frame structure.

* Power supply and illumination: There shall be built one substation at the south port and two substations at the north port.

* Water supply: The water supply capacity for each of the south and north ports is 1200stere/d.

*Fire-fighting system: Water used for fire-fighting shall be supplied by the railway yard at the south port while at the north port there shall be built a fire-fighting water pool, equipped with pumps housed in a pump room.

*Sewage discharging system: There shall be built a consummated sewage pipe network.

* Environment protection: There shall be established the oil and sewage separation processing system one each at the south and north ports. After processing, the water will be piped to city sewage discharging and processing system.

*Communication and piloting : There shall be established the program-controlled telephone exchange system and ultra high frequency wireless telephone communication system, INMARSAT F station, industrial TV monitoring system, and ship automatic identification system(VHF AIS). Lighted buoys shall be used to indicate the navigation channel and the turn-round water region.

*Fuel supply: A fuel depot shall be established at the north port to supply fuel to the ferryboat. The fuel supply system shall be automatically controlled.

The investment of the south and north ports is 4,725,900 Yuan in total, 2,593,700 Yuan for the south port and 2,132,200 Yuan for the north port.

The estimated investment is USD 5.20 million.A sanitary landfill disposal field with a 90 ton/day 憇 treatment capability will be constructed in the first phase. For the second phase, we plan to build a biochemical disposal project with a 150 ton/day 憇 treatment capability and a sanitary landfill disposal field with a 50 ton/day 憇 treatment capability.

The estimated investment is USD 11.70 million. The designed treatment capability is 400 ton/day.

The estimated investment is USD 15.30 million.The treatment capability is 500 ton/day. In the first phase, we plan to use innocent treatment technology and the treatment capability is 300 ton/day. For the second phase, anaerobic digestion disposal and electricity generation will be constructed with a 200 ton/day抯 treatment capability.

4).Domestic Garbage Innocent Treatment Project in Lougang Development Zone of Lonkou City: The estimated investment is USD 10.80 million. The designed treatment capability is 300 ton/day.

The estimated investment is USD 14.50 million.In the first phase, we plan to build a sanitary landfill disposal field, sewage treatment station and related accessorial equipments, For the second phase, a biochemical disposal site and a burning treatment field will be finished.

The estimated investment is USD 14.50 million.A sewage treatment plant with a daily treatment capacity of 100,000 m? including sewage collection system and part of accessorial equipments.

The estimated investment is USD 3.60 million. A sewage treatment plant with a daily treatment capacity of 3150 tons will be build on South Changshan islet and another 300 tons?plant will be build on North Changshan islet. Also, the sewage collection pipline, rainwater collection pipline and three sewage takeup pump stations will be built.

The estimated investment is USD 7.90 million.A sewage treatment plant with a daily treatment capacity of 40,000 m?including a 28-kilometer long drainage pipeline network . In the first phase,the capacity will be 20,000 m?day.

The estimated investment is USD 7 million.A sewage treatment plant with a daily treatment capacity of 40,000 m?.In the first phase,the capacity will be 20,000 m?day.

The estimated investment is USD 8.30 million. The daily treatment capacity of the former sewage treatment plant will be expanded from 20,000 m?to 40,000 m?

Yantai International Mall Project, locating in Yantai High-tech industrial zone, with a total area of 187,023 m? is developed by Panjin Zhenghe Co.,Ltd.of Liaoning Province. Beijing ZhongGuanCun International Co., Ltd.,Canadian CaiDeLe Architect Office and Capital Tour Stock Co. provide commerce plan, construction design and administration for it respectively.

The mall will be runned under the most popular international mode,combining shopping, amusment, leisure, eating and tour, etc. The total planned area is 220,000 m?

The estimated yearly turnover is RMB 1.5 to 2.2 billion yuan, yearly revenue is RMB 80 million yuan.

Lougkou HaiDa Logistics Co., Ltd. is a full subcompany of Longkou Port Group, the group has a total assets of RMB 1 billion yuan, net asset of 470 million yuan and 2350 employees. Longkou port, located at north part of Shandong peninsula, is among the 18 important coastal ports, with a planned turnover of 10.23 million tons. In 2004, the turnover is 11.67 million tons.

The project is located in Longkou industrial zone,,with convenient transportation, good supply of water,electricity and communication.

The project covers an area of 358,400 m? Till now, 26,180 m矑s buildings have been constructed. According to the plan, 78,000 m矑s park for containers and bulk cargo will be build; a 100,000 m矑s spare land will be preserved for future use. The logistics park will combine with the port area, export-processing zone and free-tax zone after the project is completed.

The total investment of the project is USD 25 million, in which 50% will be invested by Lougkou port, the rest need to be solved by investment introduction.

The estimated yearly income is RMB 60 million yuan, with a profit of RMB 23 million yuan.

Yantai Automobile Factory was founded in 1948, which is a subsidiary of Shandong Automotive Industry Group, Ltd. It is now a comprehensive state-owned enterprise producing light truck, agricultural vehicle, tractor and automotive parts. The company passed the National 3C Certification in 2003 and 2004.

The company plans to build an automotive park in Laiyang Economic Development Zone, which covers an area of 35 hectares. The main products will be various automotive parts, SUV cross-country vehicle and light truck.

The company has mature technology, R & D capability and well-established market network, which strongly support the project to achieve target.

The total investment of the project is 43,380,000 US dollars. The Chinese party will contribute in the form of workshop and equipment, while the foreign investors are proposed to contribute by cash. The shareholding structure is negotiable.

The designed production capacity for the 1st phase is 10,000 cross-country vehicle, sales revenue will come up to RMB2 billion with profit and tax of RMB 0.2 billion and the period for recovery of investment is two years.

Yantai Shougang Dongxing (group) corporation is a pillar subsidiary of Shougang Group for its development in costal open city. It mainly engages in mechanical processing, heating processing, punch treatment, surface treatment, surface recovery, pre-protecting, powder metallurgy, electronic device, estate development and hotel etc. The company has rich technical resources, superior devices and well-equipped accessory devices. So far, perfect international authentication system has been established and authenticated by ISO-9002 of quality guarantee system, ISO-14001 of environmental management system and QS-9000, its chemistry and physics metrological center is classified as national class B.

Shougang Dondxing industrial park, with planned area of 300,000 m2, will establish automobile relative industry, such as automotive air-condition system manufacturing, crystallizer manufacturing, automotive parts and hard alloy manufacturing etc. It plans to build technical design R&D institute and business function area. The first phase of project is drawing to the end and the whole planning and development will be accomplished in five years, with total investment of RMB 1 billion.

The projects have come into the park: crystallizer project, automotive air-condition system project.

Automotive parts industrial area- punch production, electronic and injection production.

Environment protective equipment industrial area- dust cleaning device, smoke desulfurizing and rubbish burning device.

Design R&D institute- mould design manufacturing, new material technology and automotive air-condition technology.

Equity joint venture, contractual joint venture, renting standard industrial workshop, processing with supplied drawings and OEM.

The construction of the factory includes melting and casting producing line, machinery processing line (flexible and rigid automatic line) and auxiliary facilities.

Engine: oil pan, support-camshaft, body-oil pump, body-water pump, bracket-alternator etc;

According to 揂utomobile Industry Development Plan of Yantai? there are specialized areas for concentrated automobile development within 10 Km from Dongyue company. These areas are seated in national level development zone and APEC hi-tech industry zone, enjoying all kinds of preferential policies for foreign investors. It has complete infrastructure, good conditions for building modern factories. Specialized companies can provide services such as logistics and transportations etc. Yantai enjoying abound human resources, has some large scaled professional education institutes for training technicians. Further more, its beneficial geographical location and human culture environment could attract many excellent human resources from the whole country.

Shanghai GM Dongyue Automobile company and shanghai GM Dongyue Power Assembly Ltd. have established and gone into operation in Yantai, with the producing scale of cars and power assembly: 300,000 for first phrase and over 600,000 for second phrase. There is a bright future for casting producing enterprises because these two companies need a lot of aluminium alloy casting parts that should be processed nearby.

Qixia Yinyun Piston Hydraulic Part Co., Ltd., a private owned company in Qixia city of Yantai, manufactures many models of aluminum alloy piston, hydraulic pump and sump pump. The annual producing capacity of piston reaches 4 million, mainly matching for domestic diesel engine and partly exported to India, America and Canada etc.

To bring in foreign capital for producing inlay ring, empiecement, wearable specially treated load truck piston, car piston and engineering car gear pump.

Qixia city, enjoying completed infrastructure, absolutely is able to meet the manufacturing and living need of enterprises in supplying of water, electricity and gas etc.

There is a big demand for piston because of the establishment of SGM Dongyue in Yantai. The engine output of SGM Dongyue will come up to 600,000. In order to meet its need, the company wants to attract foreign investors as a partner to set up a new factory.

Joint venture. The shareholding structure is proposed to be 50:50 or negotiable.

Shandong Jilong Group Co., Ltd. is specialized in manufacturing braking spare parts, with a factory area of 12,000m2 and a semi-automatic casting production line. The annual sales revenue of the company reached RMB270 million in which export accounted for US$20 million.

It is planned to build up a new factory of 10,000m2 and fetch in a full-automatic casting production line and twenty sets of modern processing equipment for expanding production scale. After completed, the sales revenue will come up to RMB530 million in which export will take US$40 million.

Longkou city is famous for being an automotive parts export manufacturing base and has concentrated industrial scale and technical resources. Enjoying complete infrastructures, it has convenient transportation and abounding resources of electricity, gas and coal.

The total investment of the project will be US$7.23 million in which front-end engineering account for US$4.82 million.

There will be a huge potential market for braking hubs because of the great development of load-carrying vehicle in china in the future.

Conglin Group is a national level enterprise group and one of 136 main enterprise groups of Shandong province. All companies in the group have been authenticated by ISO9000 of international quality guarantee system. The assets of the group have reached RMB3 billion, owning a provincial enterprise technology center and one industrial aluminum material engineering technology R&D center, which is the only one in Shandong.

Adopting US GM automobile manufacturing technology and standard, the casting and melting spare parts involved in the project can meet the capability need of economical cars and come up to advanced world standards. The annual output of economical cars casting and melting parts reaches 300,000 sets.

The group owns workshops for which the project needs and can supply water, electricity and heating. Nearing national highway 206, it is very convenient for communication and transportation.

The total investment of the project is US$33.74 million, in which company self-raises funds of US$11.8 million and bank loan accounts for US$ 21.94 million.

The project engages in manufacturing casting and melting parts such as car doors, covers and bodyworks etc, mainly assorting for all kinds of cars produced by Shanghai GM Dongyue. It also researches and develops to produce aluminum alloy automotive parts (aluminum antishock mounting, aluminum bumper, aluminum transmission shaft and bodywork frame etc), the main characteristics of which are weight reducing and energy saving. Coming up to advanced world standards, all productions can meet the light weight needs of economical cars and has a huge potential market. After going into operation, the sales volume will reach RMB650 million and profit and tax RMB120 million and foreign exchange US$10 million.

Introduction of Japanese advanced technology and special van production line and using industrial aluminum alloy section bar, aluminum multifunctional wing opening van is a kind of hi-tech products, which is in accordance with the demands of dramatic development of transportation sector. Its main characteristics are light dead load, excellent performance of airproof, dustproof and waterproof; easy operating, two sided opening, facilitated load and unload, saving labor and high efficiency; good looking figure, streamline shape and urban style; corrosion preventing, non- pollution and exempting from maintain. It is planned to build an aluminum alloy van production line with annual output of 2000 sets.

The group owns workshops for which the project needs and can supply water, electricity and heating. Nearing national highway 206, it is very convenient for communication and transportation.

The total investment of the project is US$6.03 million in which company self-raises funds of US$2.1 million and bank loan accounts for US$ 3.93 million.

Aluminum multifunction wing opening van has huge demands and marketing developing space and is a hi-tech substitute for traditional carrying vehicles, which is suitable for food frozen, post, electricity, military supplies and aircraft sectors etc.

Adopting 6005A large scale hollow thin-wall aluminum alloy section bar and aluminum plate, the project engages in manufacturing aluminum alloy bodywork and structure for assembling bullet train, metro and light rail etc, including underframe, sidewall, inside and outside endwall and heelpost etc. Being key parts of those track vehicles, the main characteristics of them are light weight, good deformability, corrosion preventing, weldable and good looking figure etc. It is a hi-tech project, which is in accordance with the development of city track communication sector in our country. After going into operation, the output of all kinds of bodywork parts and functional modules will reach 1500 sets, the sales volume will rise RMB100 million and profit and tax rise RMB18 million and obtain foreign exchange of US$3.53 million.

The group owns workshops for which the project needs and can supply water, electricity and heating. Nearing national highway 206, it is very convenient for communication and transportation.

The total investment of the project is US$6.03 million, in which company self-raises funds of US$2.1 million and bank loan accounts for US$ 3.93 million.

At present, there is a huge domestic demand for aluminum alloy bodywork material of metro, light rail and magnetic suspension train. Up to 2005, it will reach 1.5 million tons. Adopting German technical standard and equipment, all productions involved in the project assort for metro, light rail, magnetic suspension train and bullet train, some of which will export to Europe markets such as Germany and France etc.

Yantai Dongfang Electronics Information Industry Group Co., Ltd. is a large scale hi-tech enterprise integrated R&D, manufacturing, marketing and services in one. The assets of the group totaled US$280 million and it has 2,100 employees among which there are 26 doctors, 261 masters and 805 bachelors, with national level enterprise technology center and state owned enterprise post-doctoral work station. The main production of the group is power dispatch automation system.

Through cooperation with international transnational companies, employing their brand, technology and management advantages combining its own human resource advantages, the main purposes of the project are to push international management and administration of the group and develop automotive electronic products such as automotive parts, automotive meter, wiring harness, ABS brake and security system etc.

The group owns 80,000 m2 of Dongfang electronic software park and has IT human resources and complete facilities.

Total composition of the project is US$10 million and the shareholding structure is negotiable.

With the development of China automobile industry and improvement of automotive parts demands, China automotive parts industry has played an important role in the world. Along with Dongyue automobile company located in Yantai, it will push the development of Yantai automotive parts industry and there is a bright future and huge demand for this kind of products. After going into operation, annual sales revenue will reach US$14.5 million; profit will come up to US$3.8 million.

The base is located in northeast of Bozi village Beigou town Penglai city, 1000 meters east of national center finishing port and 600 meters north of shoreline, with an area of 667,000 m2. It is planned to build a 550 meters embankment of seawall in the northwestern of the shipyard, a 10 meters fitting dock and a 10 meters dock located in 760 meters of east and west coastline from the shipyard. Two 300,000 tons dry docks will be built in the central of the shipyard around which there will be workshops, shipbuilding rack areas, middle and small ship building and repairing areas. There will exist a material storehouse in the east of the shipyard. The main elevator equipments include one 300 tons portal jib crane for each dry dock, two 30 tons portal jib crane with span of 60 meters in workshops and two gantry cranes with 30 meters brachial in the dock. The total area of the dock is 1.18 million m2, in which land area is 0.72 million m2, sea area is 0.46 million m2 and main shipbuilding yard area is 33 million m2. The project mainly engages in manufacturing all kinds of large-scale vessels and ships above 10,000 tons, including bulk ships, multifunction working ships, liquefied gas containers, chemical carriers, large-size roll-on-roll-off ships, marine petroleum drilling platforms, container carriers and finished oil carriers etc, with an annual building capability of 700,000 tons (one ship of 300,000 tons, one and half ships of 150,000 tons and four ships under 50,000 tons) and repairing capabilities of 150,000 tons.

Penglai bozidong shipbuilding Base enjoys excellent natural conditions and complete infrastructure, having 10-12 meters of the depth of water, good bay covering condition, moderate rainfall, a little influence of tide and wind, no mud and sand aggradation, favorable geographic structure and preventing from damage of typhoon. Two sets of 30KW firepower generator are under construction, which could directly provide electricity to the shipbuilding base and only 2 km away from the base. Nearing Yantai international sea-route and connecting with domestic and overseas main ports, the base has advantages in navigation and communication. The industrial gas can be supplied nearby which is needed for shipbuilding. The solid machinery manufacturing industry in Penglai lays a good foundation for development of shipbuilding industry.

With the development of international economy and trade, world sea transport has been increasing steadily. A great number of old vessels need updating. The annually average transaction of new ships will amount to 27 million tons in a few years. The capacity of world抯 ship maintenance industry has been increasing 10% every year which gives the industry a huge developing potential and bright future.

In order to meet the demand of Japanese ,European and American market, our company planned to introduce new products and expand the production capability.

The plan consists of a workshop with an area of 10,000 m? 4 production lines for vegetable processing and flavor treatment, two 1000-ton warehouses with constant temperature.

1).According to forecast, there are increasing demand for vegetable and flavored food in Japanese, Southeast Asia, Euprean and American markets. Therefore 90% of our products will be exported to overseas.

2).We have extensive production base for raw materials which reached international food standard.

3).The estimated annual income will be RMB 0.3 billion yuan, with RMB 30 million yuan抯 profit.

The plan is to develop new high-class flavoring meat products and expand the production scale of the company. To build standard workshop of 120000 square meters with 20 sets of production equipment.

Flavoring food of different kind, especially flavoring meat product can not satisfy the market demand. After the project go on stream, the annual production capacity will reach 10000 tons and sales will be 250 million RMB yuan with profit of 25 million RMB yuan.

Shandong Zhaojin Group Co., Ltd. is a state owned enterprise founded in 1974. The main products include gold and silver bullion, copper electrolysis, sulfuric acid, plastic pipes, xanthate, gold and silver jewellery, steel ball, potassium cyanite, electric wires and cables, engine oil filter, etc. The company has formed a complete production system incorporating gold prospecting and mining, ore dressing, gold smelting and refining, gold and silver processing, mine engineering machine manufacturing. The gold prospecting scale has now reached 10000 tons per day, smelting scale 1700 tons per day. The annual prospecting capacity is 3.3 million tons. The annual gold production has reached 80000 ounces, taking up one seventh of the total in China. Shandong Zhaojin Group Co., Ltd. is now one of the most profitable largest companies with largest output in China.

Zhaojin Group has advanced technology and rich experiences in gold smelting. The company plans to introduce production facilities with annual output of 3000 tons of arsenic, 250000 tons of compound gold ore and facilities that can retrieve valuable elements.

The total investment of the project is USD 30 million with an expected cooperation period of 20 years.

To employ high purity simple substance arsenic as the electronic material and the gold enjoys a high market price.

After going on stream, the annual production of gold will reach 1 ton, gold salt 5 tons, and arsenic 3000 tons. The annual sales will be 30 million USD.

The Introduction of Arsenic Separation Technology for the Technological Innovation of the Smelting of 200 Tons of Fine Gold Ore Containing Arsenic

Shandong Hengbang Smelting Stock Holding Company was established in 1986. There are 3300 staff members with 366 technical managerial employees. The total assets of the company were 38.69 million USD with registered capital 6.046 million USD. The annual output of gold was 5.5 tons, sulfuric acid 200,000 tons. The company passed ISO9002 quality certification in Feb. 1999.

To introduce advanced arsenic separation technology from Sweden, to purchase advanced key equipment from abroad, to establish a processing system of 200 tons of fine gold ore containing arsenic and to produce 3125 kilos of gold, 1.27 tons of silver, 1110 tons of negative brass and 60000 tons of sulfuric acid.

With the economic recovery of Asian countries and economic restructuring of China, the demand of gold, silver and brass is increasing all the time. The market prospects are good.

After the establishment of the system, the total profit will be 3.75 million USD, profit after tax will be 2.51 million USD.

Penglai Jinchuang Group is a collectively owned enterprise established in 1989 with 2000 employees, among which 600 are technicians. The company has total assets of 130 million USD, registered capital 7.73 million USD. The main products include gold and gold related products; stainless steel, copper, ferric oxide, wood products, food, wine, beverage, Chinese patent medicine etc. The company enjoys high technology and is in good operation.

The project is a joint venture between Penglai Jinchuang and Hongkong Gold Application Stock Holding Co., Ltd established in 2001 with Penglai Jinchuang contributing 40% of the capital. It is located in Penglai Economic Development Zone. The company employs advanced equipment and testing instruments from Japan, Germany, Australia and America. It is engaged in gold refining, production of gold foil, gold salt and gold and silver crafts. The annual capacity will reach 5 tons after the first phase in full operation and 16 tons after the second phase in full operation. The company is a member of the Shanghai Gold Exchange. It is certified for gold bullion certification.

The total investment volume is 10 million USD with an expected cooperation period of 30 years.

China at present ranks No. 4 in terms of gold consumption, behind India, America and Middle East. The demand of gold in the second quarter of 2001 reached 49 tons, increased by 7%. Now the annual output of gold is only 180 tons while the demand is 300 tons with a big gap, which means a promising market.

After in full operation, the sales of the company will be 77 million USD with profit and tax 12 million USD.

The Muping Gold Mine Company in Shandong is a state owned company established in 1983 with 991 employees, among which 87 technical managerial staff members. The total assets of the company are 13.30 million USD with registered capital 3.9 million USD.

The company is a pillar gold mine enterprise in Yantai , prospecting and mining 400 tons of gold ore every day. The plan is to find partners for deep processing of gold with annual output of 3.5 tons of ornament, gold foil and gold thread.

The total investment volume is 20 million USD with an expected cooperation period of 20 years. The Chinese party can invest in the form of cash or land use right, taking up 40 % and the foreign party is expected to invest in the form of cash, taking up 60% of the shares.

60% of the products will be sold domestically and 40% sold abroad. The annual profit and tax will be 4.42 million USD and sales 10 million USD.

Yantai Evergreen Precision Machinery Co., Ltd (the former name: Yantai No.2 Machine Tool Accessories Factory) was established in 1966. As the leading manufacturer of manually operated 3-aw chucks and 4-jaw chucks, power chucks and filtering equipment, its main products are chucks for machine tools, filters and other mechanical and electrical products. ISO9001: 2000 authentication has been approved. The main products enjoy high reputation in domestic and abroad market and have been awarded by National Mechanical Ministry and Shandong Province. Also, we have gotten the Export Quality License issued by China Commodity Inspection Bureau and National Mechanical Ministry. The annual production capacity of manually operated 3-jaw self-centering chucks (K11 series) and 4-jaw independent chucks (K72 series) are about 120 thousand sets, ranking second in the same trade in China. The scale and the quality of the products come out top in China and there are more than 100 sizes of chucks are available from K1180 to K11400A, K72160 to K72630. The products are sold well to the 29 areas of China and exported to Europe, Southeast Asia and America etc, such as the PBI LTD in England, DONGNAM INTERNATIONAL LTD of Korea, VITOR & BUONO LTDA. of Brazil, GUVEN ITH ITR.TIC LMT STI of Turkey and etc. There are about 40% of total production are exported and the annual amount of export is above USD1000, 000.00.

For the purpose of match CNC machine tools, we have researched and developed the power chucks, filters and chip conveyors in 1980s? At present, there are 22 series and nearly 100 specifications of the above products produced by our company. The products are sold throughout the country and perfect sales network has been established in the southern and the eastern China, including 200 stable customers. In the recent years, Yantai Evergreen Precision Machinery Co.,Ltd has successfully offered matching service for a quantity of companies, such as TOYOTA MACHINE WORKS. LTD., Shanghai Volkswagen, FAW Car Co., Ltd, Shanghai Baoshan Steel Group, Shenyan No.1 Machine Tool Works, Shenyang CNC Machine Tool Works, Jinan No.1 Machine Tool Group, Ningxia Great Wall Machine Tools Plant, Baoji Machine Tool Works, Dalian Machine Tool Group and Dalian Yidariping(?) Co.,Ltd and etc.. Also we have exported these products to Korea, Southeast Asia and Europe.

The annual sales amount of our company is up to USD8.9 million, the general assets is about USD9.8 million, the annual production capacity of various manually operated chucks is about 120 thousand sets and power chucks & rotary oil cylinders 2400 sets. Our company takes up land of 75 thousand square meters, composed by developed lots of 38 thousand square meters and vacant lots waiting for further development of 37 thousand square meters. At present, we have built two double-span workshops with the area of 13 thousand square meters, one single-span workshop with area of 1.8 thousand square meters for heat treatment, one four-floor office building with the area of 3 thousand square meters, one 3-floor dormitory building with area of 2.6 thousand square meters. In our company, there are 296 sets of machining and testing equipment, more than 550 staff and workers including 63 engineers and technicians. In 2000, our company has been through the certification of ISO9001 Quality Management System Standard certified by Det Norske Veritas. Painstakingly design, precision manufacture and sincerely service quality principle is our quality guideline; continual improvement, unceasing development, to meet our clients?requirements farthest is our management tenet.

As the leading products of the company, manually operated chucks have a widespread influence on the domestic same trade by both its quantity and quality. There are two series chucks, K11 series cylinder center mounting and direct mounting self-centering three-jaw chucks and K72 series four-jaw independent chucks. More than 100 sizes of chucks are available from K1180 to K11400A, K72160 to K72630. Characterized by long history of development, high centering precision, good rigidity, high centering precision for repetition of mounting, complete items and specifications, the products are sold well around the world, including areas of Europe, America and Southeast Asia.

Power chucks and rotary oil cylinders are designed and developed by the company itself at the end of 1980s?to match mainly the CNC machine tools. The main series are as follows:

To cooperate to manufacture the general chucks, high-speed power chucks and high-speed rotary oil cylinders to match the CNC machine tools; to manufacture the special power chucks for motorcars, motorcycles and oil industry.

For the further development of general chucks, high-speed power chucks and high-speed rotary oil cylinders, and in order to make them reach advanced international standard and increase the market share, we decided to attract foreign investment for the above mentioned products. The primary production program is as follows: 30 thousand sets of general chucks, 7200 sets of power chucks and 7200 sets of rotary oil cylinders.

The manually operated chucks manufactured by Yantai Evergreen Precision Machinery Co., Ltd are characterized by advanced design, reasonable construction, stable and reliable quality. All of the technical feature indexes reaches the level of the international congener product and wins deep trust from domestic and international clients. The mentioned products have been awarded by National Mechanical Ministry and Shandong Province and approved to be one of first export mechanical enterprises whose products have quality guarantee. Also export quality license issued by China Commodity Inspection and National Mechanical Ministry. K51 series power chucks have passed the provincial accreditation on technique achievement; KD11 series electric 3-jaw self-centering chucks have obtained the third-class award of province scientific and technological progress. The technology on power chucks, developed together with Taiwan Dahe Precision Co.,Ltd on the basis of technology from Japan Kitagawa, has been reached the level of international congener products.

At present, we have built two double-span workshops with the area of 13 thousand square meters, one single-span workshop with area of 1.8 thousand square meters for heat treatment. These workshops are installed with 5-ton single-beam cranes. In addition, there are about 37000 m?vacant lots waiting for further development.

We get the power supply from Laishan District Power Administration through the 10 kilovolts of overhead wires. Also, one newly built transformer substation in our company can supply 0.4/0.22KVA of output voltage. The total capacity of all the electric equipment installed in our company, including equipments, apparatus, lighting, is 2500KW.

The water in our company supplied from the urban running water is mainly used for production and the daily amount of water consumption is up to 150 cubic meters.

The drained water mostly is dirty liquid, rainwater and wastewater yielded from production procedure. There are four drainage pipelines linking with the main pipeline in the Industrial Park. After being processed, the wastewater and dirty liquid can enter into the urban drainage pipeline.

The newly built workshops can basically meeting the requirements of the interior natural lighting and ventilation. Heating system is available. In order to reduce the harm to workers?health caused by the dust and powder produced from dry-milling machines, we adopted dust-removing equipment and installed additionally box-type dust remover with fabric bags. These instruments assure the dust removing efficiency up to 99% and the purified air comes up to the interior circulating standard. In paint 杝praying shop and knife-grinding shop, dust collectors and axial-flow fans are installed to ventilate the shops. In summer, to prevent heatstroke and to lower temperature, natural draught is basic and partially, ventilation to lower temperature is also applied. The compressed air used for machining tools, assembling, testing, and paint spraying is supplied by two sets of 3L-10/8 air compressors which supply air by 120CM/H, satisfying the production need.

After the development for over 40 years, we have established the complete coordination system. Our coordinating company and allied company supply us the castings, forgings, heat treatment and some machining parts; If there is no special material in need, the local suppliers can meet our demand for materials to manufacture general chucks, high-speed power chucks and high-speed rotary oil cylinders.

The gross investment of the project is about USD12 million, including USD10 million in fixed assets and USD2 million in current assets. The capital source: Chinese side makes the investment at a discount with its lands, facilities, workshops and equipment and the foreign side with technology, cash and key equipment.

In recent years, prompt development occurred in machine tools industry in China. Since the recovery of machine tool industry in 1999, the rising rate becomes higher and higher year by year and it reached 33% in 2004. According to development trend, we can see the growth rate of machine tool trade has entered high growth cycle. Among the various demands for the machine tools, the demand for the general machine tools will remain vigorous and the demand for the NC ones will rise fast. In 2004, 75 thousand sets of metal-cutting machines have been sold. Our government pays close attention to the development of the NC machine tools and supports the industrialization of the functional parts. Mr. Ma Kai, the chief of National Development and Reform Committee, has put forward the point that 搕o increase the variety of high-speed, high-precision and high-efficient NC machine tools and promote function part industry? National Mechanical Industry Federation recently held meeting to arrange matters on functional parts industrialization specially. National attention and supporting policy and the vigorous demand for machine tools cause more than 70 manufacturers of NC metal-cutting machines in the whole country, among them there are 45 manufacturers which produce NC lathes, 14 manufacturers with annual production capacity of more than 1000 sets in 2004, and production quantity of all kinds of metal-cutting machines up to 190 thousand sets in 2004, including 50 thousand sets of NC metal-cutting machines. With the prompt development of machine tools industry, the demand for all kinds of machine tool accessories grows fast accordingly. The demand for machine tools increases, certainly the demand for general chucks, power chucks and rotary oil cylinders, which are the essential accessories of various machine tools, will increase too. The domestic demand for all kinds of power chucks and rotary oil cylinders was 30,000 sets in 2004, valued 36 million dollars, and the domestic production ability is fewer than 30% of demand. All the other relies on import. It is estimated that from 2005 to 2008, the annual domestic demand for the power chucks can be up to 40,000 sets valued 50 million dollars. The potential market is large. So Chinese government has regarded the high-speed power chucks as one of the four important NC machine tools accessories to support specially. The general chucks are a kind of traditional and mature product and used widely in large quantity. The rising demand for chucks is not only in domestic market but also in abroad. It is estimated that in 2005-2005, the annual domestic demand would be up to 800 thousand sets and abroad demand would be 300 thousand sets.

When the investment project implemented, the annual sales income would be USD18.8 million (USD12.8 million for manually operated chucks and USD6 million for power chucks & rotary oil cylinders), including USD13.02 million of product cost, USD2.26 million of sales tax and additional tax, USD1.12 million of sales fees and USD2.38 million of net profit. The payback period of investment is expected to be 5 years.

We hope to operate joint venture by the way of technical support and investment.

Yantai Leather Manufacturing Co. Ltd is a modern company incorporating leather research, manufacturing and processing. The company takes up an area of 60000 square meters consisting of two sections: leather manufacturing and leather products. The company now has 1200 employees. The total assets amount to nearly 25 million USD and the annual sales revenue 36 million USD. It is a pillar enterprise in the leather industry in China and also one of the first batch of enterprises in China to be certified to have the right to label the products as 搕rue and ecological leather? The company has 3 leather manufacturing plants, one leather products plant, one leather chemical processing branch and one scientific and technological institute for leather industry.

The plan is to introduce advanced technology and equipment for the manufacturing of leather garment; leather covers for the seats and beds, leather gloves, leather bags, artificial fur garment and knitting wear series.

The company has 5000 sq meters of internationally standard workshop with convenient transportation and completes public facilities.

The total investment volume is 8 million USD. The percentage of the shares is to be negotiated.

The accession of the WTO has brought opportunities to the leather deep processing industries. The leather products will enjoy better market prospects.

After in operation, the annual sales revenue will be 6.15 million USD and profit 1 million USD.