Type of Project: Mechanical & Engineering Industry

Name of Project:

Modification Project of the Production Line of Paper PE Cups, Dinner Boxes

Project Content: This project is to utilize the existing equipment and facilities, modify the present processing line so as to produce paper PE cups by 120 million pcs/y and dinner boxes by 100 million pcs/y.

Construction Condition: This project conforms to the state industry policy and is good for environment protection. The sponsor has sufficient workshop and power and water supply and good technique and work staff.

Investment & Composition: Total investment amounts to US$ 2.5 million, of which, fixed assets of US$ 2 million, working capital of US$ 0.5 million. The sponsor invests US$ 1.5 million and the partner for US$ 1 million.

Economic Benefit Evaluation: After being put into operation the annual sales volume reaches US$ 13.3 million, profit and tax of US$2.9 million, investment payoff term of 2.5 years.

Project Status: The feasibility study has been prepared; the project has been approved.

Mode of Cooperation: Cooperation or leasing. For cooperation, the sponsor invests by means of the existing equipment and workshop; as for leasing, the sponsor gives its equipment and workshop to lease on very favorable conditions.

Introduction to Sponsor: The sponsor, Hubei Dongguang Paper Products Company now owns registered assets of US$1.58 million, work staff of 310.