Line: Metallurgy

Introduction to the project
Description of the project: Precision alloy steel and non-magnetic stainless steel is widely used in aviation, spaceflight, electronics, transportation and military industry. At present, the domestic demand for the products is not less than 16,000 tons. In China, only several manufacturers are available in Beijing, Dalian, Shanghai and Shenyang. The production capacity is low and about 10,000 tons have to be imported.

Market analysis: Now precision alloy steel market is gradually expanding. Present products can not meet the demand of market. With the rapid development of aviation, spaceflight, military industry and electronics in our country, the demand for precision alloy is increasing. So the products are prospective both at home and abroad.

Project type: To be newly established         Construction period: 1 year           
Rate of return on capital stock: 82.8%       Static payback period: 3 years
Cooperative ways: Joint venture
Total investment: RMB 68 million Yuan
Total investment from the initiator: RMB 15 million      Investment ways: Fund
Total investment from the investor: RMB 43 million      Investment ways: Fund
Introduction to the initiator
Company name: Liaoning Hongda Special Steel Co., Ltd.
Legal person: Hong Zongxian      General manager( Director):Hong Zongxian
Company Add: Liuhe Village, Huanren Town, Huanren Man Autonomous County, Benxi City, Liaoning Prov.       
Postcode: 117200                Contact person: Hong Zongxian       
Tel: 0414-8911719                Fax: 0414-8911793           
Ownership: Private
Registered capital: RMB 5 million     Employees: 77     In which Technicians: 7
Introduction to the products: High speed tool steel, mould steel, stainless steel and precision alloy steel.
Main equipments: The company covers 22,000 m2 of factory area and 52, 00 m2 of building area with melting workshops, inspection workshops, heavy melting workshops, forging workshops, grinding workshops and machinery repair workshops.
Initiator qualification: ISO9000 system authenticated
Main financial index: Sales income: RMB 9.67 million in 2002; RMB 19.05 million in 2003; RMB 25.34 million in 2004. Profits after tax: RMB -730,000 in 2002, RMB -0.28 million in 2003, RMB -360,000 in 2004.