Beijing Samvon Andesite Co., Ltd.

Business Plan

Complied by Beijing Fenghua Tianbu Investment Consulting Ltd.

June 2006

Beijing Samvon Andesite Co., Ltd.

Business Plan

S/N: 2006 No.（  ）

Confidential Promise

This business plan that involves the commercial secret of Beijing Samvon Andesite Co., Ltd. is open to the investors who are intent to invest. Therefore, the investing agencies who have received our business plan should promise:

1、To take good care of the business plan; never reveal the related commercial secret to any third party without the permit of Beijing Samvon Andesite Co., Ltd.; and it is strictly prohibited for any other business purpose except this project.

2、To be responsible for the damage caused by the violation of the Promise on the Beijing Samvon Andesite Co., Ltd.

    Stamp of Acceptance Agency:

Signature of Project Manage:

Acceptance Date：      

Business plan

Name of Project: Exploitation and Production of Natural Andesite

Project Organization: Beijing Samvon Andesite Co., Ltd.

Address: RmA606, No.5 Zhixin East Rd, Haidian, Beijing, China

Tel: 8610－82370802  82370803

Fax: 8610－82372588

E-mail: cnsamvon@126.com

Project Secretary: Zhao Wei, Gao Fei

Beijing Samvon Andesite Co., Ltd.

June 2006

Content

Summary …..........................................................................1

Part I Basic Information of Company .................................. 6

Part II Managers of Company...............................................9

Part III Product ................................................................13

Part IV Research and Development ..................................21

Part V Industry and Market ...................................................26

Part VI Marketing Strategy.................................................35

Part VII Manufacture ………………....................................37

Part VIII Management .......................................................40

Part IX Financing................................................................44

Part X Financial Plan...............................................47

Part XI Risk Control ...........................................................52

Part XII Project Schedule ..................................................55

Part XIII Others ..................................................................56

Summary

Part I Basic Information of Company

Name: Beijing Samvon Andesite Co., Ltd. (hereinafter referred to as “the company”)

Registration No.:1101082885610

Established on 25th, Aug 2005

Registered Address: Zhongguancun Science & Technology Park, Haidian District, Beijing, China

Registered Capital: 500,000 CNY

Shareholders and allocation of shares: Wang Xingguo 44％;

Li Jianfeng 44％; Yan Chongguang 12％

Main Business: Research, exploitation, design, production and marketing of natural andestie products.

Headquarters Address: RmA606, No.5 Zhixin East Rd, Haidian, Beijing, China

Workshop Address: Inside of Jilin Samvon Industry Co., ltd., No.1 Samvon Cave, Longjing Town, Jilin Province

Part II Main Directors

1.     Chairman of the Board

Wang Xingguo, male, 58, was born in Hailun, Heilongjiang Province, engaged in the enterprise management for 19 years.

Experience: From Sep,1968 to May,1972, he served as secretary for political department of the fourth division of Railway Army; From May, 1972 to July, 1999, served as secretary for general political department, secretary in charge of discipline inspection in Production Management Bureau Head Politics Ministry, commissar in Beijing Jingouhe Official Rest Home Head Politics ministry; July, 1999 until now, he is the board chairman of Jilin Samvon Industry Co., Ltd. and Beijing Samvon Andesite Co., Ltd.

Outstanding Achievement: He committed himself to the establishment of Tiancheng Corp Group and Jilin Samvon Industry Co., Ltd.; as he took the post of secretary in charge of discipline inspection in Production Management Bureau Head Politics ministry, he had taken charge of the board and as SEC for party committee many times and had done very good job.

2. General Manager

Yan Chongguang, Male, 44, was born in Wei town, Hebei province, engaged in the enterprise management for 18 years.

Experience: From Sep.1978 to Nov. 1989, he served as instructor for the auto company of Qingzang army and as secretary for political department of back office; From Nov., 1989 to May, 1999, project manager for Asia and Pacific Construction Joint-stock Company, and general manager for Donghui Real Estate Company; From May 1999 to Aug. 2005, assistant of general manager for China Petrol North China Industry Co., Ltd.; Aug. 2005 until now, general manger for Beijing Samvon Andesite Co., Ltd.

Outstanding Achievements: He created and developed the theory of mental control of China modern enterprise management theory, based on the theory and methods of western modern management; involved in many companies’ set-up, such as Donghui Real Estate Co., Ltd., China Petrol North China Industry Co., Ltd., Henan PetrolChina Speedway Oil Products Company Limited and East Resource Co., Ltd., and completed the start-up projects of all those companies.

Part III Description of Product

The stone the company exploits and manufactures is a kind of rare natural andesite plagioclase of strong acid-resistance, alkali resistance, hydrofluoric acid resistance, high temperature resistance, abrasion resistance, impact resistance, osmosis-resistance and radiation protection, which is the appointed anticorrosive material for China Military Industry as well as the necessary anticorrosive material for cold-rolling thin slab pickling unit, chemical industry acid washing tower, vitriol concentrator and electromechanical pickling tank; which can be used for building facing due to its compact structure, dirt non-stick, corrosion resistance, break resistance, strong reliability, moderate gray and elegance.

Part IV Research and Development

Construction Research Institute China Metallurgy Group and WISDRI Engineering & Research Incorporation Limited were entrusted to make research and tests on our product for a long time. Now it has been successfully applied in the vitriol concentrator of Jilin Chemical Plant and the production line for cold-rolling sheets of Baoshan Steel, Wuhan Steel, and Anshan Steel. At present, further research is made on the manufacture and application scopes of high precision irregular products so as to be applied in the petrol acid washing tower and such equipments.

Engineering Research Institute CAS was entrusted to make a test on the product, indicating that besides graphite, andesite plagioclase is also hydrofluoric acid resistant while granite, aragonite, acid-proof ceram, casting stone, basalt and other kinds of andesite don’t have such speciality.

China Construction Scientific Research Institute and Stone Material Quality Inspection and Test Center of China Building Material Industry were entrusted to make a test on the application of the product in the building facing, finding out its main properties are superior to marble, granite, limestone and  sandstone, and its color, grey, is sole in the international stone market.

Part V Trade and Market

The company owns the exclusive right for the exploitation of Maanshan andesite plagioclase mine in Samvon cave, Longjing, Jilin province. The mine is the only one in the world while another andesite mine of similar lithofacies in German is owned by German MANZ Company. Now both mines can meet only 20% of the demand for andesite that such industries as war industry, metallurgy, nuclear power, non-ferrous industry、petroleum, printing and dyeing, building, decoration need 50,000 m3 andesite per year.

Forecast of Marketing Sales of the Company as Following:

Part VI Marketing Strategy

Start with the establishment of sales network in China, Asia, then America, and Europe, Africa; Firstly apply it in the cold-rolling pickling line and building dressing, then spread it to the war industry, chemical industry, nuclear power, petroleum, mechanics and printing and dyeing industry all over the world; Build long business relationship with big customers in the world.

Part VII Manufacture

Owing the andesite mine, the company can manufacture products according to the customers’ order. The production is equipped with the internationally advanced Italy diamond wire sawing machine and multistrand diamond wire sawing machine, Computer Numerical Control Machining Center (CNC), automatic slab production line and automatic sheet production line.

Taking the international anti-corrosion standard for reference, the company complies the enterprise standard Q/HD APS001－2006 Natural Anticorrosive Stone  Andesite and Q/HD APS002－2006 Natural Andesite Building Slab, which are put forward and set down for the first time in the world and now are being applied as the Industrial Standard in China Anti-corrosion Industry and Stone Material Industry.

Part VIII Management

The company is divided into five departments and one center, such as administration department, sales department, financing department, workshop, engineering department and research center. On the basis of the principles of high efficiency, intelligence and capability, logic and agility, the company provides staff with favourable salary, good working and study environment, and awards sales and technology persons with promised rewards, and encourages them to be active and aggressive.

Part IX Financing

Total investment 51,489,900 CNY, achieved 41,489,900 CNY，still need 10000000 CNY, that is , 10 financing agencies, 1,000,000 CNY each agency, totally 10000000 CNY. The company puts the investment mainly on the purchase of Italy stone exploitation machines, as well as spare parts and consumables (2,000,000 CNY) and some processing machines, as well as spare parts and consumables (8,000,000 CNY).

The company mortgages stock or mining right to the investor who will get not less than 20% fix return per year. As along as two-year expiration, the company will repay investors all their investment and fix returns while the mortgage is released. The company promises to confer investors with the company’s stock equivalent to half the amount of their investment if the company has successfully come into the market of Hongkong or South korea.

The company mortgages the mining right to get the usufruct of the machines by financing leasehold. The mortgage will not be released until expiration.

Part X Main Economic Data and Evaluation Standards

Part XI Risk Control

Internationally the application technology of natural stone products has grown mature. Furthermore, the company has brought in the advanced CNC and technology for production and design. The company owns exclusive right for exploitation of andesite mine. So there is no risk in technology and management. Risk hardly occurs until a new kind of anticorrosive material comes into the market and overtops the previous one in the property and reliability so that the previous one has to face the reality of being substituted. Since building facing material is a newly developed material, what challenges us is just how to spread it widely in the international market. The company is of high technology enterprise in Beijing and the product is of the one our country encourages to develop, moreover, the company enjoys tax privileges of being free of income tax for three years and turning in half income tax for another three years in China, so there is no risk in China policy. Risk is controlled by the way of keeping our technology and products’ design internationally advanced, carving out new fields for its application and deepening its spread in the market.

Part XII Others

    The company holds 85% stock of Jilin Samvon Industry Company Limited, which signed on 28th, September 2003 with Yanbian Korea Self-government the assignment of a contract of the assets of Jilin Samvon Building Plant and so owned the whole assets of former Jilin Samvon Building Plant (State-owned plant 9239) as well as the exclusive right for exploitation of andesite mine. The 191 accepted employees and 239 retired workers had been properly arranged by the company according to Arrangement of Former State-owned Enterprise Staff in Jilin Province.

Part I  Basic Information of Company

1. Basic Information

⑴ Structure of Company and Its Capital

Company Name: Beijjing Samvon Andesite Co., Ltd.

Registration No.: 1101082885610

Established on 25th, August 2005

Registered Capital: 500,000CNY

Capital already owned: 16 million CNY cash has been already put into the company and Jilin Samvon Industry Co., Ltd. by Wang Xingguo, Li Jianfeng and Yan Chongguang; Wang Xingguo, Li Jianfeng and Wang Jiulin transferred 85% stock of Jilin Samvon Industry Company Limited to the company without any repay after the company established.

Registered Address: RmA606, No.5 Zhixin East Rd, Haidian, Beijing, China

Nature of Company: Limited company, without any state capital or foreign capital

Present Condition of Shareholders:

Certificate for the Cognizance of High and New Tech Enterprise in Beijing, Unified Code 0511008A13745

Standing director of China Industry Anticorrosive Technology Association (CIATA)

Standing director of China Stone Industry Association

⑵ Departments

⑶ Jilin Samvon Andesite Co., Ltd.

Established on 26th, July 1999, registration No. is 2224051001218, registered address is No.1 Samvon Cave, Longjing town, Jilin province, the registered capital is 10 million CNY. On September 2003, it took over Jilin Samvon Building Plant and gained its whole capital and the exclusive right for the exploitation of andesite mine.

Established in 1956, Jilin Samvon Building Plant (State-owned plant 9239) was a war industrial enterprise governed by both National Fifth Mechanical Industry Ministry and Jilin Province National Defense Ministry, afterwards under the administration of Jilin Yanbian Korea self-governed state. The plant broke down due to the failure of “Emulsion” project in 1996. It was transferred to Jilin Samvon Industry Company by the people government of Korea self-governed state in September 2003. Li Jianfeng, one of the shareholders of the company, purchased the related plant with over 700 million CNY. 

⑷ Main Business

Research, exploitation, design, manufacture, sales, construction and technology consultation of natural andesite plagioclase

⑸ Staff

Totally 63 persons, including 5 managers, 15 salesmen, 7 researchers, 2 administrators, 26 workers, 3 engineers and 8 guarders

2. Company’s Objectives

⑴ Objective of Near future

Build sales network in China, Asian and Pacific Regions; Quickly take up the markets of irregular products used for pickling units for metallurgical cold-rolling sheet and for chemical pickling equipments in China mainland, China Taiwan, South Korea, Japan, India.

Endow 1000 square meters of sheet to Olympic Games for its gyms’ construction as the displayed sample to open the door of Asian and Pacific market for andesite used as top-graded building facing material.

⑵ Objective of future

Develop and spread the high-precision stone in the international anticorrosion industry and building dressing field by bringing in advanced equipments; under the direction of  our brand “Samvon”, both the technology level of exploitation and production of andesite and the market occupancy become first in the world.

⑶ Marketing Occupancy Rate

⑷ Stratagem for Development

Standing in the frontier of world scientific technology and industry, the company takes advantage of internationally advanced equipments to produce the most excellent environment protected materials for anticorrosion and building facing in the world; promotes a tech revolution in the modern anticorrosion and building dressing fields; contributes to saving the limited resources we human have and improving the quality of our daily life. 

Part II Managers of Company

1. Board of Directors

2. Managers

⑴ Chairman

Wang Xingguo, male, 59, born in Hailun Heilongjiang Province, bachelor degree, nationally top-grade screenwriter

Experience: From Sep,1968 to May,1972, he served as secretary for political department of the fourth division of Railway Army; From May, 1972 to July, 1999, served as secretary for general political department, secretary in charge of discipline inspection in Production Management Bureau Head Politics ministry, commissar in Beijing Jingouhe Official Rest Home Head Politics ministry; From July, 1999 until now, he is the board chairman of Jilin Samvon Industry Co., Ltd. and Beijing Samvon Andesite Co., Ltd.

Technical Skill: During 15 years before 1998, he was in charge of t enterprise management and had gained much experience.

Creation Spirit: During he assumed the office of chairman in several corporations supervised by Head Politics Ministry, he groped out a set of army management mode for enterprise that he replanted the strict army management into enterprise management and so carved out the way to standard army-enterprise administration manage of our country.

Pioneering Ability: Strong capability of enterprise; during he consumes the office of checking SEC in Production Management Bureau Head Politics Ministry, he was often assigned to secondary units to take up the post of chairman and secretary of party committee. He groped for enterprise management based on the science and fact and gained outstanding achievement.

Main Achievement: He completed the incorporation of Great-wall Culture company, Tiancheng Industry Group of General Politics ministry, Great-wall Film Co., ltd. and reformation of Jilin Samvon Industry Co., ltd.

⑵ General Manager

Yan Chongguang, male, 44, born in Wei town Hebei province, Master’s degree, researcher

Experience: From Sep.1978 to Nov. 1989, he served as instructor for the auto company of Qingzang army of services and as secretary for political department of general logistics department; From Nov., 1989 to May, 1999, project manager for Asia and Pacific Construction Joint-stock Company, and general manager for Donghui Real Estate Company; From May 1999 to Aug. 2005, assistant of general manager for China Petrol North China Industry Co., Ltd.; Aug. 2005 until now, general manger for Beijing Samvon Andesite Co., Ltd.

Technical Skill: Modern project management

Creation Spirit: Integrated with the research fruits on psychology, sociology, philosophy, he, based on the western theory of behavior management, put forward the spirit control theory of China modern enterprise management and developed and enriched the theory and methods for it.

Pioneering Ability: He directed and reformed many corporations.

Main Achievement: He had incorporated many companies, such as Donghui Real Estate Co., Ltd., China Petrol North China Industry Co., Ltd., Henan PetrolChina Speedway Oil Products Company Limited and East Resource Co., Ltd., and completed the start-up projects of all those companies.

⑶ Sales Manager and General Manager of China Region

Zhang Jiansheng, male, 43, born in Zhangjiakoiu Hebei province, bachelor degree, senior economist

Experience: From September 1981to July 1995, he served as soldier for land army, as student in Shenyang Artillery Academy, as company commander for some division of land army, as secretary for campaign company; from July 1995 to March 2002, he took charge of oil storeroom of PetrolChina Luoyang Fuel Company,  of business affairs, and manager and the associate general manager of branch company;  From March 2002 until now, he takes up the post of project manager of China Petrol North China Industry Co., Ltd, sales manger and general manager of China region in Beijing Samvon Andesite Co., ltd.

Technical Level: He is so accomplished in project management and market development that he could correctly find the very market for the product, especially has his own idea on the development of a new market.

Main Achievement: When working in China Petrol North China Industry Co., Ltd, he set up such a big customer’s group for China Petrol in Beijing and Tianjin that its business grew fastest in the North China area.

⑷ General Manager of Asian and Pacific Region

Wang Zhuangfei, female, 44, born in Dalian Liaoning province, Master’s degree, professor

Experience: From August 1979 to July 1993, she was the student in Sichuan University, instructor in Northwest Light Industrial College; from July 1993 to August 2002, she was graduate student of master and doctor in Iran Teheran University, representative of China International Tech Cooperation Company stationed in Iran, and professor in Xian Geology University; From August 2002 until now, she consumes the office of president assistant of Asian region of U.S Continent Energy Technology Corporation, and the general manager of Asian region of Beijing Samvon Andesite Co., Ltd..

Technical Level: She has rich experience in international trade, is capable of analysis of enterprise information and negotiation, is accomplished in the communication with government directors.

Main Achievement: She has made success in many cooperation projects of U.S Continent Energy Technology Corporation in China.

⑸ Manager of Workshop

Xu Xiangming, male, 43, born in Beijing, Master’s degree, senior engineer

Experience: From September 1981to July 1988, he was student and graduate student in Beijing Steel College; from July 1988 to August 1998, associate section chief and then section chief in National Building Material Bureau; from August 1998 until now, sales manager in Beijing Office of Italy Marini and Pedrini , and the manager of workshop of Beijing Samvon Andesite Co., ltd..

Technical level: He is a top-ranking expert in the mining and production of granite in China; ever wrote books about the exploitation of stones.

Main Achievement: He took charge of the stones’ mining for many companies, which all has gained much and whose market occupancy rate is going up gradually.

⑹ Manager of Administration

Zhao Wei, male, 29, born in Huanghua, Hebei province, Bachelor degree

Experience: From September 1995 to July 1999, he was the student in Beijing Industrial and Commercial University; from July 1999 until now, cashier in China Petrol North China Industry Co., Ltd., project accountant, associate director of financing office in China Commercial Unite Petroleum Co., ltd., and manager of administration in Beijing Samvon Andesite Co., Ltd..

Technical Level: Familiar with the administrative procedure regards industry and commerce, tax affairs, Custom, environment protection, land, and good at computerized account.

Main Achievement: Experienced in management of project financing affairs; when taking up the post of project accountant in China Petrol, he applied planology into the dispatch and usage of capitals of the project for financing programming, therefore, the capitals were reasonable dispatched.  

⑺ Manager of Financing Department

Tao Xiuying, female, 29, born in Hailun, Heilongjiang province, Bachelor degree

Experience: From July 1999 to August 2000, she took charge of cashier and personnel in Beijing River Communication Co., Ltd.; from July 2002 to December 2003, accountant in Beijing Wanjuan Yiyou Culture Development Co., ltd.; from December 2003 to January 2005,  audit assistant in Beijing Jihangtong Tax Collectors Office; from January 2005 to December 2005, audit assistant in Beijing Jingcheng Lixin Accoutants Office; from December 2005 until now, manager of financing department in Beijing Samvon Andesite Co., Ltd..

Technical Level: Familiar with financial affairs and computerized account.

Part III Product

  1. Description of Product

The stone the company exploits and manufactures is a kind of rare natural andesite plagioclase of strong acid-resistance, alkali resistance, hydrofluoric acid resistance, high temperature resistance, abrasion resistance, impact resistance, osmosis-resistance and radiation protection.

The andesite plagioclase is of porphyritic texture with crystal and vitreous materials intertwined together. The porphyritic crystals are common augites which are of simple and double crystal and double poly-piece double crystal. The andesite plagioclase are chiefly composed of long strip-shaped plagioclase micro crystal, tiny augite that are easily changed, magnetic iron and vitreous materials, and are stuffed with small amount of tiny needle-shaped red stones. Porphyritic crystals are well-proportioned inside; and of less air holes, compact texture, fine and smooth surface. Therefore, it is named as “Andesite Plagioclase” in the circles internationally, which is the most superior stone among the varieties of andesite stones.

Because of the location of andesite plagioclase of the company in Samvon Cave, Longjing town, Jilin province, it is called “Samvon stone”, “Samvon andesite”, “Samvon acid-proof stone”; it is the appointed anticorrosive material in China War industry, as well as necessary anticorrosive material for pickling units of Metallurgical cold-rolling sheet, chemical pickling tower, vitriol concentrator of War industry and Electromechanic pickling tank. Before 1982, Samvon stone products were forbidden to spread beyond War industry, not least to be exported. In 1982, it was permitted to be used for test in the pickling units of Wusteel and Baosteel in order to substitute German product.

In 2006, the company successfully applied andesite plagioclase for the building facing , gravestone and cleaning means; also in this year, the company attended 13th STONETECH 2006 in Shanghai New International Expo Center on which the product was displayed as the only andesite product in the world and attracted much attention from this industry.

⑴ Number One in the World

In 2005 international authoritative organization IS.I.M provided its high evaluation upon inspection, and commented: the said stone are fine in material, free from any impurities, strong acid-resisting, strong alkali-resisting, strong wear-resisting, high temperature-resisting, breaking-resisting and press-resisting. Such stone was seen for the first time since the Research Institute was found in 1996.

International Societies for Corrosion and Protection recognized that the quality of Samvon stone is better than the one from Germany. Out of the 16 physical and chemical inspection items included in the international evaluation standards, Samvon stone are superior to the one from Germany in 13 items.

⑵ Only One in China

So far, there are only two anticorrosive stone mines in the world, one is in Germany, which has been exhausted, and the other one is in Samvon Cave of Longjing, Jilin Province, China, of which Jilin Samvon Industry Company has the exclusive right for the exploitation for 50 years. The mine now is in good state without having been cosmically exploited. From 1944 when the Samvon stone were found by Japanese to 1956 when the Samvon stone mine started to supply anti-corrosion and protecting material for the national defense of our country, until now, there has not ever been any stone that are equal to Samvon stone in quality in nearly 60 years.

⑶ Superior Quality

The product has been proved much superior to German equivalent products and marbles after its usage in the acid-contacting equipments by Baosteel, Wusteel, Ansteel and Jilin Chemical for a long time. The product’s price is much lower than Germany imported one. Its service life-span extends over 3 times compared with other anticorrosive materials, the cost and time for the repairing of production line is therefore greatly reduced and working efficiency is accordingly promoted.  

During the test on building facing, the product is not changed in color, and dirt non-stick and weathering resistant although used under acid atmosphere owing to its compact structure and lack of any air holes. Its bend strength, twice as that of granite, marble and limestone, determines its higher safety and reliability under the same circumstance. Also because of its strong bend strength, andesite stones can be machined into super thin sheet (thickness ≤18mm) for the building facing, weight of buildings is lightened and the cost of steel and stone materials is according economized.

Nowadays the thin sheet technology uses chemical materials as lining, such as beehive sheet, polythene sheet and polythene web, which have only 20 to 30 years’ life-span. The repairing cost will be 5 times as that of natural stones as building facing sheet. Andesite’s service life-span is over 300 years if used as building facing sheet, the repairing cost of the building is therefore greatly reduced.

⑷ Comparison of Properties’ Indexes

① Compared with Marble, Granite

② Compared with German Acid-proof Stone

⑸ Comparison of Chemical Composition (%)

⑹ Comparison of Acid-resistance

2. Intellectual Property

⑴ Patent Application

The company has submitted the patent application for Application of Andesite in the Acid-contacting Equipments and Application of Andesite for Building facing to State Intellectual Property Office.

⑵ Trademark’s Registration

The Trademark Application of “三峰”, “SAMVON” , “大清正灰”, “三峰洞” as the trademark has been submitted to State Administration for Industry and Commerce Trademark Office and the trademark register organizations of 25 countries in America, Europe and Asia.

3. Target Market

⑴ Steel Industry: “Steel pickling” is used to eliminate the rust on the steel’s surface. Target: shallow-tank pickling unit of pickling and cold-rolling united production line, acid reclaiming unit and electro-galvanization unit.

⑵ Chemical Industry: Pesticide and fertilizer, about 750kg sulphuric acid are needed for producing one ton of ammonium sulphate. Petroleum industry, used to remove the inside sulphide and unsatrurated hydrocarbon from crude oil, and used for production of chemical fiber and plastic. Acid is also necessary in making medicine, such as sulfonamide, aspirin and caffeine. Target: Acid washing tower of chemical industry, reaction kettle, distilling tower and neutralization machine.

⑶ War Industry: 360kg sulphuric acid is needed to produce one tone of TNT; 1300kg suophuric acid is needed to produce one ton of picric acid. Target: Surphuric acid concentrator, platform for launching carrier rocket.

⑷Non-ferrous Industry: To Electrolyze and refine Cu, Zn, Ni, the electrolyte should be prepared with sulphuric acid. Target: Drying tower and absorbing tower of acid producing system.

⑸ Nuclear Power Industry: Acid-proof coat of nuclear power station’s reactor

⑹ Mechanism Industry: Electromechanical pickling tank, electrolyzing tank, acid storing tank

⑺Building Industry: Inside and outside building wall dressing, floor, working table-board, cleaning means, gravestone

4. Substitute

⑴ Anticorrosion Industry

Acid-proof ceram, man-made casting stone, graphite, carbon material and natural acid-proof stone are of acid-proof and high temp. Resistant ones among nonmetal anticorrosive materials, thereinto, only the natural acid-proof stone is abrasion resistant. Natural acid-proof stone includes granite, quartzite, andesite and aragonite, among which it is andesite that is of moderate hardness, fine texture, good machining, strong pressing and breaking resistance. 

Such materials as metal, some nonmetal, rubber, plastic and glass fiber reinforced plastics have short service lifespan or high cost or is easy to cause secondary pollution, so in recent decades natural stones have been used as anticorrosive materials in America and Europe. Natural anticorrosive stone materials have become necessary for cold-rolling pickling unit, sulphuric acid concentrator, acid-proof coat of nuclear power station and platform for launching carrier rocket

⑵ Building Dressing Industry

Among building facing materials, andesite will substitute granite and tufa to be used for inside and outside building facing.

5. Standards of Product

⑴ International Standard

    Standard of European Anticorrosion Association---Nonmetal Anticorrosive Material

    Standard of American Corrosion Engineer Association--NACE Standard RP

    Standard of American Building Engineer Association---ASTM

⑵ National Standard

    GB 50212－91 GB/T 50212－2002 Specification for Construction And Acceptance of Anticorrosion Engineering of Buildings

    GB 50224－95 Standard for Inspection And Evaluation of Anticorrosive Engineering Quality of Buildings

    GB 8488－87 Acid-proof Brick

GB/T 191－2000 Packing-Pictorial Markings for Handling of Goods（eqv ISO 780:1997）

GB/T1182-1996 Geometrical tolerancing---Generalities, definitions, symbols, indications on drawings（eqv ISO 1101：1996）

GB/T 2479－1996 Grinding Material　 White Alundum

GB/T 2828.1 Sampling Procedures for Inspection by Attributes - Part 1: Sampling Schemes Indexed by Acceptance Quality Limit (AQL) for　Lot-by-lot Inspection

GB 6566-2001 Limit of Radionuclide of Building Materials

GB/T 9966.1－2001 Test Method for Natural Facing Stones  Dry, Wet and After Freezing Test Method for Compressive Strength

GB/T 9966.2－2001 Test Method for Natural Facing Stones  Test Method for Flexural Strength

GB/T 9966.3－2001 Test Method for Natural Facing Stones  Test Methods for Bulk Density, True Density, True Porosity and Water Absorption

GB/T 13890－1992 Terms for Natural Facing Stones

GB/T 13891－1992 Test Methods of Specular Gloss for Decorative Building Materials

GB/T 17670－1999 Unified Codes of Natural Stones

GB/T 18601-2001 Natural Granite for Building Slab

GB/T 1800.3－1998 Limits And Fits--Bases--Part 3: Numerical Values Tables of Standard Tolerances and Fundamental Deviations（eqv ISO 1829：1975）

⑶ Industry Standard

YSJ 411－89 Operation Criterion of Anticorrosion Construction

YHS 4-3－75 Charts Collection for Nonmetal Lining Anticorrosive Storing Tank

HGJ 29－90 Chemical Lining Equipment of Brick Slab

HG 26197－91 Maintenance Specification for the Lining Equipment of Brick Slab

JC/T 847.1－1999 Irregular Brick Stone  Part I: Arc Face Sheet

JC/T 847.2－1999 Irregular Brick Stone  Part II: Bloom

JC/T 847.3－1999 Irregular Brick Stone  Part III:Solid Column

JC 830.1－2005 Stone Cladding Facing Materials and Metal hang-up

Part I: Stone Cladding Facing Materials

    JC/T 204－2001 Natural Granite Quarry

⑷ Enterprise Standard

Q/HD APS001－2006 Natural Anticorrosive Stone  Andesite

Q/HD APS002－2006 Natural Andesite for Building Slab

6. Competitive Advantage

⑴ Quality

    By adopting internationally advanced Italy equipments for exploitation and production and with the assistance of laser marking and thickness fixing system, the product can be machined of thickness <0.3mm, which is the precision only a few domestic stone production machines can reach. 

⑵ Technology

The company can produce any types of andeste products according to the drawing and technical data that customers offer.

⑶ Performance

It can meet the requirements of all kinds of irregular products in the world, letting the workpiece achieve the optimization in its performance and efficiency.

⑷ Price

The price of our product is 30% lower than that of German one. We are hoping to build long-term and close business relationship with customer at any moment and we promise to offer the best price and after-sales service.

7. After-sale Network and Customer’s Technical Support

    The company sets up general managers in four distribution regions as Asia and Pacific, America and Atlantic, Europe and Africa, China. Through net communication with sales department and research center of the company and our strong production ability, we can provide customers with reliable service and technical support. 

Part IV  Research and Development

1. Fruits of Research and Development

⑴ The Stone Material Specially Used in the Cold-rolling Acid Washing by Wuhan Steel, Technology Appraisal Certificate Awarded by Ministry of Metallurgy Industry of People’s Republic of China: No: (83) Metallurgical Science Steel Words No321

⑵ Development Report of the Stone Material Specially Used in the Cold-rolling Acid Cleaning by Wuhan Steel, Metallurgy Ministry Construction Research Institute Stuff Department of Wuhan Steel Corporation, 1983

⑶Application of Andesite in the Cold-rolling Acid Washing, Metallurgy Ministry Construction Research Institute, 1984

⑷ Development of the Special Acid-proof Stone Material

Appraisal Orgnization：Liaoning Science & Technology Committee

Completing Unite: Anshan Steel Design Research Institute; Harbin Construction Engineering Institute（Code: Liaoning Province Science & Technology Appraisal Certificate [1990] No.124）

⑸ Test and Analysis Report of Anti-corrosive Liner of Baoshan Steel Group Research Institute, Shanghai Construction Research Institute, 1996

⑹ Introduction of Application of Jilin Andesite as Anti-corrosion Equipment in the Pickling Line of Baoshan Steel Cold-rolling Plant, Baoshan Steel Equipment Department Cold-rolling Workshop, 1997

⑺ Application of Natural Andesite as Anti-corrosion Liner in the Anti-corrosion Equipment, Beijing Metallurgy Equipment Research Institute, 1997

⑻ Summary of Spot Conference for Spreading Acid-proof Stone Technology Metallurgy Ministry, New Metallurgical Technology Spreading Center, Promotion Center for the Productivity of Metallurgical Industry, 1997

⑼ Testing Report of Material, Report No. B97－0375，B97－0376，B97－0377, Shanghai Construction Research Institute, 1997

⑽ Chemical Analysis Report, Report No. CW97－141，CW97－142，CW97－143, Shanghai Construction Research Institute, 1997

⑾ Speciality and Application Effect of Samvon Andesite, Metallurgy Information Standardization Research Institute, Metallurgy New Technology Developing & Spreading Center, 1997

⑿ Application of Andesite Irregular Workpiece in the Acid-contacting Equipment Instead of Standard Board, Beijing Samvon Andesite Co., Ltd., WISDRI Engineering & Research Incorporation Limited.., 2005

⒀ Application of Andesite for Building Facing, China Construction & Science Research Institute, Beijing Samvon Andesite Co., Ltd., 2006

⒁ Application of Andesite as Anticorrosive Lining in the Hydrofluoric Acid Contacting Equipment, CAS Engineering Research Institute,  Beijing Samvon Andesite Co., Ltd., 2006

⒂ Production Technology of Andesite Building Thin Sheet, Beijing Samvon Andesite Co., Ltd., Italy Pedrini Group, 2006

⒃ Testing Report (Stone［2006］Quality Checking No.06082102, No.06082201, No.06082301), State Building Material Industry Stone Material Quality Supervise Checking & Testing Center, 2006

2. Standards’ Setting up the Company Participated In

⑴ National Standard

GB 8488－87 Acid-proof Brick

⑵Industry Standard

YHS 4-3－75 YHS 4-3－75 Charts Collection for Nonmetal Lining Anticorrosive Storing Tank

HGJ 29－90 Chemical Lining Equipment of Brick Slab

HG 26197－91 Maintenance Specification for Lining Equipment of Brick Slab

⑶ Enterprise Standard

Q/HD APS001－2006 Natural Anticorrosive Stone  Andesite

Q/HD APS002－2006 Natural Andesite for Building Slab

The company will promote the enterprise standards to the industry standard in 2007 and submit application to ISO; promote it to national standard in 2009 so as to fill the empty of national standard in this field.

3. Domestic and Oversea Research and Development

⑴ Similar product manufactured overseas by one company matching with German SMS Demag Aktiengesellschaft. This company, family company, locates in German Saarland, and has exploited the mine that now is nearly exhausted since 1920. It can manufacture common irregular products. Its products have been used in metallurgy, chemical industry, war industry, spaceflight and nonferrous industry all over the world. Owing to the long-term cooperation with the German and Japanese taskmasters who take charge of the cold-rolling sheet all over the world, the bedding stones in most cold-rolling pickling unit are offered by them.

⑵ Methods our Company has taken to improve our competitive ability

Based on the functions of the numerical control equipments imported from Italy, we will make a secondary development on the computer numerical control system (CNC) soft ware and create milling cutter head, so that these equipments can not only machine stones into all kinds of shapes, but also drill the inside of stones, remaining its suitable function of its inner structure.

Secondary development of CNC software: A new CNC system will be under the control not only of the original machining software controlling the external shape of tridimension, plane and rotary, but also of internal hollowing and structure machining software developed by ourselves besides. The system includes: external shape machining control subsystem, double universal manipulator subsystem, laser assistant locating and testing subsystem, flexible manufacturing subsystem and encrypted transmission and entering subsystem, of which the later four subsystems are developed by ourselves.

Full dimension numerical control diamond milling cutter bit: The original equipment has only one alloy milling cutter, which can machine the external surface. We replace the single milling cutter with a set of double universal manipulator developed by ourselves, matching with milling cutter stock system, laser assistant locating system, and hardness induction frequency conversion system. The flow: input data→put quarry stones on chuck→automatically choose fretsaw or milling cutter→laser assistant marking→hardness induction of fretsaw and milling cutter bit→external shape machining→automatically choose milling cutter→internal hollowing and structure machining→laser assistant testing. Milling cutter stock: three-blades milling cutter team, saw milling cutter team, notch milling cutter team, slot milling cutter team, corner milling cutter team and vertical milling cutter team, totally 6 teams 22 cutters

⑶ Performance Level of Equipments

     Our company put forward the slogan “We are able to manufacture any product only if you can think out.” Our ability is of internationally top level in machining stones. We can machine super size product. The external diameter of super size product that can be successfully machined just once is not more than 2000mm in the foreign country while we can extend the diameter to 4000mm. The company applies their own created double universal manipulator to the production equipment of anticorrosive stones, integrating the technologies of flexible manufacturing, frequency conversion, laser marker and precision test under its control. The simplex milling cutter bit becomes a milling cutter stock.

4. Input on Technology Development

So far, the company put 1.6 million on the technology development, cooperating mainly with Engineering Research Institute CAS, China Construction Science Research Institute, and WISDRI Engineering & Research Incorporation Limited.