Project No.34

    I.Name of project:Straight Seam Arc-buried Welding Steel tubes of 
Large-diameter

    2.Mode of cooperation: Joint venture; cooperation; equipment trade-in

    3.Total investment: 283.5 million RMB

    4.Form and quantity of Chinese investment: Self-financing: 34
Million RMB; Qinhuangdao Investment Company: 110.9 million RMB; Other 
Chinese partners: 56 million RMB

    5.Form and quantity of foreign investment expected: 82.6 million RMB of cash

    6.Period of returns on investment anticipated: 3.58 years

    7.Profile of the project: The key equipment will be imported and the other 
frailties of the project will be purchased in China. The processes of 
single-sheet-shaping, double surface arc-buried welding and mechanic 
diameter-extending are adopted. Its production capacity is 0.1-0.11 million 
tons of |?457-1625 steel tubes with American API-5L standard. The single 
tube length is 8-12m; and thickness of walls is 6-40mm. The competitive 
ability of the products is strong. They can be applied in oil and gas 
transportation. The utilization rate is 55% in developed countries. Now similar 
products used in China are imported. 

    8.A brief introduction of Chinese party: Shanhaiguan Industry Company of the 
Nuclear Industry No.404 Plant owns a land area of 48 hectares, fixed assets 
of 260 million RMB as well as 300 engineers and senior engineers. At present, 
there are 8.7 hectare of free land and 2000m2 of idle workshops that can be 
used for the project.

    9.The project status: The project recommendation is finished. Now the 
feasibility study is undergoing.

    10.Contact With:
    Full Name: Din Xinjie, Gong Lifeng
    Tel:  0086-335-8054640
    Fax:  0086-335-8056974