Shanxi HuaXing JinMei Co. Ltd.Business PlanProject Metal Mg ProducingContact Wu ZhengxinTitle General ManagerTel 0351-6586318 13934112890 13803431615Fax 0351-6586318E-mail xhsaasohu.comAddress No. 102 of the 4th Unit of West Building 3, West Park in Qian Feng South Road, Taiyuan, ShanxiConfidentiality NoticeThis business plan is given in confidence with its ownership belonging to the Shanxi Huaxing Jinmei Co. Ltd. The contents and materials contained in this business plan can only be delivered to the personnel who have got the permission from the president of the board and the general manager. The personnel who have received this business plan should ensure that the following rules would be observed,1. Receivers who dont want to get involved in this plan should return it in time according to the address given.2. The plan cannot be copied nor released fully or partially to others before the receivers get the written agreement from the Shanxi Huaxing Jinmei Co. Ltd.3. Please keep all the information contained in the plan confidential.The content contained in this plan is only open to the investor who has the intention to invest in our enterprise. The Program Manager of the company that wants to invest should commit himself to keeping this plan safe and secret.Program manager signature:Receiving Date: _ Serial number of the Plan: WXH2004（021）Authorizing Company: Beijing Hui Telong Investment Advisory Co. Ltd. Signature:Shanxi Huaxing Jinmei Co. Ltd.Date: 2004-5-31AbstractWith the development of scientific management, technology, and productive power, the products concerning the metal Magnesium have been developed in a diversified way involving Mg particle, Mg alloys, Mg powder, Mg ingot, Mg stick, Mg sacrificial anode and high performance sacrificial anode etc. The metal Mg, 2/3 density of the metal Aluminum, is one of the lightest metals. The potential application of the metal Mg is of great importance especially under todays situation that energy has been greatly lacked of and environmental protection greatly emphasized. Having rich deposits under the earth, the metal Mg is of very good qualities like high anti-seismic capability, anti-corrosive capability and intensity etc., which makes it possible being the basic material for alloy industry and thereby wins itself great attention in the application of the national defense industry. Mg is easy to burn and give strong light in the air. Mg powder is used as the raw material of combustion and lighting bomb for defense. The metal Mg of national standard is not only sold well in domestic market but also exported to Japan, USA, Germany, India, Taiwan and Hongkong.In the international market, more than 80 tons of Mg has been used in the desulphurisation of steel and iron each year. China is the main country in producing steel and iron, and it has been predicted by experts that China needs 300,000500,000 tons of Mg for industrial processing from now on to the year 2005. The consumption of the metal Mg has increased with an average rate of 6.6% each year during 1990s. Additionally, 109,000 tons of Mg has been consumed in making various foundry products used in automobiles, motorcycles, and electric crust etc. Some spare parts that can be fitted to automobiles like wheel hub, instrument board, chair frame, gear box, direction system, cylinder, air inlet tube and brake pedal frame have been put into use in a wild areas. The consumption of the alloy Mg in automobile-making industry will account for 14% among the total amount of Mg consumption in the following seven to eight years. After the Chinas entry into the WTO, the market can see a very bright future for the Mg products since the major object in the antidumping proposal issued by the U.S. and the EU is Mg ingot, whereas there is no requirement on the intensively-processed products. Some key enterprises in China are at the beginning stage in processing the metal Mg, therefore this is the right opportunity for their development. Mg processing is referred to as the promising industry by the experts in the 21st Century. At present, two major raw materials that can be used to produce the metal Mg have been found rich in Xinzhou City, Shanxi Province, China. They are dolomite ore and silicon iron. The local dolomite ore has a very good quality with the utilization rate being higher than 96%. Nearby the company there are several workshops producing silicon iron and rich dolomite ore deposit, which can not only guarantee the supply for producing the metal Mg but also reduce the cost of raw materials purchasing in an effective way.The funds that have been gathered up by the company will be mainly used in:1. Plant construction and equipment purchase in order to keep pace with the market development;2. Setting up the Central Institute for the purpose of m