UK-China Business Bulletin (Issue 2)

(1) Chinese hi-tech company in Northern China seek equity and technology JV partner for a new plant of optical cable manufacturing



This communications company, founded in 1995, specializes in R&D and the manufacture of smart grid and low-carbon energy products, with 67 domestic patents and 6 international ones under its name.

The proposed optical cable plant will produce 50,000 km of optical and electrical cables. The company has acquired 6.67 hectares (100 Chinese mu) of land and obtained planning permission (the deed) for the premises which will include the factory, office buildings, laboratories, exhibition halls and other associated facilities.

The cable manufacturing JV will build three cable production lines. The total investment required is estimated to be US$ 23 million and the company is seeking equity investment of US$ 15 million.

Site preparation including land, road, utilities and communication will be provided by the industrial park.   About 16,000 square meters of factory floor space has already been built.

The new plant’s projected annual sale is US$ 120 million.  Projected annual profit of US$ 12.3 million. The capital return period is estimated to be 2 years and annual return on capital investment is 53.48%.

(2) Chinese Industrial Park seeks investment for a planned new factory to manufacture of  PVC profiles and double-wall corrugated pipes




The invited investment (suitable for foreign JV or wholly foreign-owned enterprise) will produce the projected market demand of 140,000 tons of PVC sections and pipes a year.  Projected total investment requirement is about £48 million (including £32 million for foreign exchange)

Door and window assemblies made of PVC profiles are energy efficient, uses less material, are environmentally friendly, and are of high performance against weather, corrosion, and fire.  Market demand is predicted to be high.

The proposal plant will use already available PVC raw materials. Annual sale estimated to be RMB 2.4 billion.

(3) Investors sought for a new Automotive industrial center for Parts and Components Manufacturing, trading and after sale service, located next to a number of global car makers



Located near to a number of global car makers the planned industrial centre is 15.4 hectares (231 mu) in size with a calculated factory floor space of 154,000 square meters. The vehicle makers nearby include Hyundai, Mercedes-Benz, Toyota, Foton, Baoding ZTE, Great Wall, Tianjin FAW.

The vendor is seeking a partnership to build a multi-functional auto industrial centre, including part production, vehicle service and repairs, and a trading hall.

Located at the heart of the Beijing-Tianjin-Hebei economic super-region and within the surrounding industrial zone of 10.6 square kilometres, this is the only remaining prime industrial land in the super-region.

15 km of seven trunk roads have been built in the park. Land preparation, power, communication and other utilities have been completed.  The industrial park is also near to ports and airports.

Total investment required is estimated to be RMB 620 million (around £65 million), including RMB 460 million (around £48 million) for construction and RMB 160 million (around £17 million) for operational capital.

Projected annual sales are RMB 720 million (around £76 million) and projected annual profit is RMB 150 million (around £16 million).

Partnership options: Equity Joint venture, wholly-owned foreign enterprise or other suitable proposal.

(4) Jinan corporate-wear clothing company seeks UK market partners



This Chinese uniform company seeks an agent and distributor in the UK market.

The Sangdong based clothing company is a manufacturer in the production, design and product development of woven garments, including uniforms for chefs and waiters of high-end restaurants and other professionals.

Products are exported to international markets including Germany, Austria, Belgium, Australia and other countries and regions. The company employs 100 staff. The factory is equipped with more than 90 sets of equipment of various types.

Manufacturing capacity: One million pieces of garments of various kinds per year.

(5) South China Petrochemical Industrial Park seeks Investment for a new 100,000 tons vinyl acetate plant



Located in Guangdong Province, the city where the plant has been planned is a petrochemical hub of Southern China.

As a colourless, transparent and flammable liquid with a special smell, vinyl acetate is an important monomer material and one of the organic chemical products with the largest output in the world.

It is mainly used for the production of polyvinyl acetate, polyvinyl alcohol, polyvinyl acetyl, vinyl acetate – vinyl acetate copolymer emulsion or copolymer resin, polyethylene – vinyl acetate copolymer, propylene acetate – vinyl acetate copolymers and other polymers, and it is widely used in construction, machinery, automotive, paper making, packaging, textile, printing and dyeing, tobacco, furniture, printing, etc.

Local market demand is projected to be high. Total investment requirement is estimated to be RMB 300 million (around £31.6 million).

(6) South Chinese City seek investment in a new 100,000 tons epoxy resin plant



The new plant is planned and located in the main petrochemical manufacturing city in Guangdong Province with a production capacity of 100,000 ton per year. The factory will meet local demand for of polymers widely used in industries such as protective coating, packaging materials for electronic and electrical products, adhesives, composite materials, and so on.  Market demand for epoxy resin is projected to be increasing year by year.

Investment required: RMB 500 million (around £56 million).

Investment options: negotiable.

(7) UK vehicle seat testing equipment needed by Chinese importer for stress test for seat safety



UK testing equipment for the safety of vehicle seats is sought by Chinese importers for the testing of stress on seat backrests and headrests.

Stress force range for testing: 0 ~ 5,000N; seat backrest rotating positions: 90° ~ 165°; headrest position range: 0 ~ 656 mm

(8) Opportunity to be involved in Chinese logistic industry: Equity JV partner sought for a RFID-based import and export logistics management system.



The RFID has been developed to provide practical and low-cost modern management system for the logistics industry involved in import and export, capable of handling and processing logistics information. The system has already been piloted in some logistics companies.

Total investment required for the project is: RMB 2 million (around £210,000).

The Chinese companies will price the investment so far in designing and testing the system at RMB 1.02 million (around £107,000) which will be converted to 51% of shares in the JV.

Investment of RMB 980,000 (around £103,000) is sought in return for the remaining 49% of shares.

The estimated capital return is set at 1.5 years

The company is based in modern office (50 square metres) with water, electricity, communications and other necessary facilities.

Detailed project proposal available on request directly from vendor.

The proposed investment is within the permitted category of Chinese government foreign investment guidelines.

(9) Western China Investment Opportunity: Investment sought for a new factory for CNC (Computer Numerical Control) carbide alloy cutting tools



Proposed by a local economic development zone in one of the South-western Chinese provinces, this authorized proposal is seeking investment for a new production plant of CNC carbide alloy cutting tools.

The proposal is to extend the existing carbide tool-cutting facility by building a 26,000 square meters new factory and other building facilities. The new investment will increase CNC grinding machines, CNC optical profile grinding machine, CNC millers, CNC automatic millraces, edging machines, sharpening machines, cutting tool grinding centre, fine grinders, roundness measuring instrument and other equipment and instruments.

The new expanded factory will aim to produce 20 million PCB cutting tools and 1.5 million CNC machine tools per year.

Total investment estimated: RMB 200 million (around £21 million). Total sale is projected to be RMB 300 million (around £31.5 million).

The plant will occupy 10 hectares of land (150 mu).

Partnership sought: Equity JV, wholly foreign-owned enterprise or other cooperation.

(10) Chinese economic development zone seeks investment for a new manufacturing plant of steel wire cords for radial tyres



The official zone of a Southwest Chinese province is inviting investors to set up the production lines of steel tyres cords to supply the demands for radial tyres from vehicle manufacturers of various tyres for trucks, buses, cars and other vehicles. The planned capacity for the plant is 10,000 ton per year. This factory will supply to a new manufacturing factory of radial tyres which has an annual output capacity of 20 million sets and is already under construction.

Land planned for the factory is 2 hectares (around 30 mu). Total investment required is estimated to be £52.6 million (around RMB 500 million)

Partnership sought: Joint venture or Wholly-Owned Foreign Enterprise

(11) Investment sought for building of a 1 million KWH vanadium battery production lines



A local government department, Bureau of Industry and Information Technology, in a Southwest Chinese province is seeking investors for the above new company.

The vanadium battery is a new green battery technology that has the most promising application in new power storage systems.

Compared with other secondary batteries, the capacity can be readily increased through increasing the quantity of electrolytic solutions.  It can be charged and discharged consistently.  It has a service life ranging from five years to ten years which significantly outperforms other types of batteries. It can be completely discharged without causing damage to the battery. By replacing the electrolytic solution the battery can be reused. Vanadium batteries are extremely versatile and can be widely used for power storage for grid power compensation, electric vehicles and other means of transport, energy storage and power generation in remote areas; and for supplying power for telecommunications facilities, railway, radio broadcasting stations and other sites.

There is abundant reserve of vanadium locally sufficient to meet long-term supply requirement of the factory and market demands.

Required level of investment is £63.2 million (RMB 600 million).  Types of partnership sought: Joint venture, sole proprietorship or a cooperative operation.

(12) Production project of 100,000 tons of high-precision copper sheets and strips



Investment is sought for a new project to produce 100,000 tons of high grade copper strips. Required total investment £395.8 million (RMB 3.8 billion)

With the advantage of local available supply of raw materials, the new investment is sought to build facilities for producing 100,000 tons of high-grade copper strips. The main products will be high-performance, high-grade copper and copper alloy sheets and strips such as copper strips for lead frames, transformers, cables, pipes-welding, and tin-phosphor bronze strips.

The rapid growth of China’s power, electronics and telecommunications industries has brought about opportunities for copper sheets and strips. The consumption, which grows annually on average by 22.6%, has led to a new round of expansion. China is to become one of the world’s leading producers and consumers of copper sheets and strips.

Types of partnership: Sole proprietorship, joint venture or a cooperative operation

(13) Investment sought for manufacturing of light calcium carbonate production



A county level local Chinese inward investment agency is seeking investors for a new 300,000 tons factory which is located near local limestone quarries that have an ensured supply of raw materials.

The production of precipitated calcium carbonate will take advantage of the abundant high-quality limestone resources locally in the South-western province of China. The main products will include precipitated calcium carbonate, activated calcium carbonate and nano calcium carbonate.

These products have promising market prospects, as precipitated calcium carbonate is widely-used as an inorganic filler, which is heavily in demand in international markets. As a result of extensive use of PVC in a wide range of construction products, the demands in replacing steel pipes with plastic in water supply and drainage, and alkaline sizing technology being increasingly used in the paper-making industry, as well as other high grade construction products, activated calcium carbonate and nano calcium carbonate are ever more in demand.

The land planned for the project is located near to the limestone quarries therefore the supply of raw materials is local. The factory site is only eight kilometres away from Yangping Station of Zhuzhou-Liupanshui duel track Railway line, within similar proximity of G65 motorway and China National Highway 320. There are two transformer substations of power grid at 220KV and 110KV in this area. Other infrastructure such as water supply and communication are completed.

Estimated total investment required £ 47.4 million (around RMB 450 million)

Types of partnership sought: Sole proprietorship or a cooperative operation

(14) Investment sought for commercial exploration of confirmed shale gas resource (onshore)



A local governmental department is inviting an estimated investment of RMB 4 billion (around £421 million) for the commercial exploration and utilisation of recently discovered shale gas.

Shale gas is natural gas trapped within dark clay shale and high-carbon clay shale that is considered as a new energy and as a potential substitute for conventional energy because it is clean and environmentally friendly.  Shale gas has tremendous potential in the China market.

The location of the shale gas reserve has been identified and confirmed by the first pilot well, drilled to 1500 meters in China by a national team from the Ministry of Land and Resources in this South-western Chinese province.

It has been estimated that the catchment area containing shale gas is about 260 square kilometres and the reserve capacity for production is estimated to last for 80 years.

(15) Investment sought for new the production of traditional Chinese herb medicine



A local governmental agency is seeking an investment of £15.8 million (RMB 150 million) into the production of Chinese herb medicines.

The county where the new medicine factory is to be located is known for the production of more 200 varieties of herb used in Chinese medicines, such as bupleurum, salvia miltiorrhiza, tall gastrodia tuber, ginkgo seed, hawthorn, flos carthami, honeysuckle flower, paeonia suffruticosa, eucommia bark, and mint.

In recent years more than ten varieties of Chinese traditional herbs have been successfully cultivated locally. They are rhizoma corydalis yanhusuo, rhubarb, adenophora, heterophylly falsestarwort root, rehmannia glutinosa libosch, indigowoad root, paeonia sterniana fletcher in journ, radix platycodonis and eucommia bark. A 3,000-mu (200-hectare) plantation of polygonum multiflorum has also been completed.

The new proposed project is to cover a land area of 60 mu (4 hectares). The new company will set up a production line for an annual 1,000-ton Chinese herb medicine tablets and a 1,500-ton production line for the extracts of Chinese herbs, a production line of 200 million capsules, a production line for 200 million pills, and a production line for  40 million bags of dissolvable herb extract.

The project includes sewage treatment facilities along with water purification equipment. The proposal conforms to the industrial policies of China and is in the plan of the local authority.


(16) Investment sought for building giant salamander eco-farming bases and the development of related subsidiary products



An agricultural commission of a local authority in China is seeking an investment partner for land requisition and construction of a new giant salamander eco-farming in a number of counties.  Total investment of the project is estimated to be RMB 980 million (£103 million).

At present, the number of giant salamanders spawned is more than 6,000. In the past decade demand for giant salamanders has increased in both domestic market and overseas markets. In the domestic market the price of giant salamanders has increased from RMB 1,000 per kilogram (£105/kg) in 2002 to RMB 2,400 per kilogram (£253/kg) in 2008 because the market is under capacity. In Southeast Asia the price has reached up to RMB 6,000 per kilogram (£650/kg).

Giant salamanders are cold-water amphibians that prefer a living environment with clean and high-quality water (water temperature ranging from 1℃ to 23℃). The locations chosen for the investment meet the requirements for giant salamanders whose reproduction thrives in habitats such limestone caves, underground rivers, brooks with dense vegetation and a low noise environment.


(17) Investment and cooperative partners sought for new golf courses



The local tourism authority has a plan to construct 6 new golf courses in the region and is seeking investment partner for the ambitious project that is estimated to need total investment of  RMB 4.8 billion (£505 million).

The locations for the 6 golf courses have been identified and are planned to be different yet linked up as a part of the overall tourism development master plan.

Partnerships sought: Joint venture, sole proprietorship or cooperative operation

(18) Partners sought for New Production-Trading Centre to house 500 shops for tourism products and native culture products



The new multi-purpose trade centre will house 500 workshops with shop fronts for the manufacturing and trading of tourism products and native craft products in a popular ethnic tourism area.

Skilful craftsmen and native artisans in making local costumes, silver ornaments, embroideries, tin embroideries, batik, Lusheng (a kind of native musical instrument), clay whistles, root carving, bird cages and paper-cut will be the tenants for these units..

The land planned for the production-trading centre will be more than 1,000 mu (about 66.67 hectares) with potential floor space of 200,000 square meters. All the constructions are to be built in wooden structures in accordance with the traditional building styles of the local people.

Facilities to be built will include houses, water and power supply systems, fire-control equipment, sewage-treatment facilities, landscaping, roads, parking lots and washrooms for tourists, etc.

The total investment required is estimated to be RMB 800 million (about £84 million).

Types of partnership: Joint venture, sole proprietorship or cooperative operation

(19) Chinese manufacturer of stoneware processing machinery seeks UK market agents and distributors



A Chinese manufacturer specializing in stoneware processing machinery is looking for agents or distributors established in the UK market to represent their product, including installation, maintenance and after-sale services for their customers.

The company is sincerely looking forward to cooperation with agents or distributors in the UK and can provide OEM service.

(20) Chinese logistic company seeks international freight agent partner



The logistics company in a South China port city is looking for a partnership with an international freight agent and is importing stoneware processing machinery or other products from China.

(21) Chinese import and export company seek partner in textile



An import and export trading company has its own weaving factory, dyeing and finishing factory and garment factory.

Current main products:  garments and blankets

The company welcome partnership proposals from British companies for cooperation, especially those seeking product agents and service agents and those manufacturers that need outsourcing.

(22) Chinese Outdoor shoe manufacturer seeks distributors



Chinese manufacturing and trading company specializing in the production and distribution of outdoor shoes is looking for a distribution partner and other cooperation for their outdoor and mountaineering shoes. It also is interested in potential investors interested in shoe-manufacturing.

Partnership sought: Sole proprietorship or equity joint venture

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