1. Project Name: Stainless Steel Welding Tube

2. Project Unit: Shandong Taishan Iron & Steel Co., Ltd.

This company is a synthesized iron and steel combined enterprise with the annual producing capacity of 1.2 million tons of pig iron, 1.6 million tons of steel bloom and 1.6 million tons of other steel products. It has the total assets of US$0.28 billion, all kinds of technicians accounting for 27% of its total staff and workers, and has set up a provincial grade technological development center and passed ISO9002. This company has a Taigang Industrial Zone covering a land area of 10 square kilo meters with scientific design, reasonable design and complete supporting facilities and is regarded by Laiwu City as a key iron and steel base. It is planned to turn out 5 million tons of iron and steel in 2007.

3. Project Content:

This project, to be located in Taigang Industrial Zone covering an area of 6700 square meters, is planned to construct a production line and corollary facilities with the annual output of 21000 tons of stainless steel welding tube in the specifications of Φ 21.34mm- Φ 152.48.

4. Total Investment: US$ 72 million

5. Cooperative Way: Joint venture, cooperation, financing or loan

6. Market Analysis:

Stainless steel products are widely used in the spheres of petroleum chemicals, electricity, automobiles, aerospace, drinks, textiles, medical treatment and medicine etc. for its good-looking, anti-corrosion, resistance to pressure and heat-resisting, At present, our domestic production capacity can not meet the market demand, so to make investment in this project has broad prospects.

7.Economic Benefits:

This project is to be completed in three terms. After this project is completed and put into operation, the estimated annual sale volume Will be US$0.156 Billion, profits US$48 million and the investment payoff period 1.5 years.