I. Project name: Project toward producing 300,000sets/annual light, medium and heavy-duty auto driving axle

II. Project address: Wennan County of Xintai City

III. Ways of cooperation: Joint venture and cooperation

IV. Total investment: 550 million yuan ($87.23 million)

V. Brief introduction to the project: This project plans to cover an area of 20 hectares with a building area of 110,000 square meters. It will purchase 93 domestically and internationally advanced production and testing equipments, adopt new process and technology, as well as newly build a production line toward producing 300,000 sets/annual light, medium and heavy-duty auto driving axle.

VI. Construction conditions of the project: The project address closes to Laigang Group and Xinwen Mining Group, and the raw material such as power, coal and steel is abundant. The project unit owns domestically advanced hot forging line, CNC milling machine, lathe and machining line. The products are mainly sold to many large enterprises, and the sales network is perfect.

VII. Analysis of the economic benefit: After the project puts into operation, it can newly increase the sales income of 1 billion yuan, and profit and tax of 200 million yuan annually as well.

VIII. Cooperation unit of the project: Shandong Detai Machinery Manufacturing Group Co Ltd was established in November, 1998 with 960 employees. It has a total assets of $ 22.5 million with a registered assets of $ 2.5 million. More than 20,000 tons of steel is in need and 3 million sets of automobile chassis, steering system, truck casting and front axle will be produced each year.

IX. Contact ways:

Contact unit: Xintai City Economic Cooperation Bureau

Person to contact: Xu Hui, Zheng Kun

Tel: 0086-538-7235997

E-mail: my7235997@126.com