Investment case. Privately held investment fund “Caspian Investment” is carrying out an ambitious investment project right in the heart of the western chinese trade region, Urumchi. The project foresees construction of steel factory for manufacturing different type of steels. Company's factories would be well-equipped with highly-efficient automatic production devices. The average monthly productivity of all kinds of steel products is 15,000 metric tons. For urgent requests, the monthly production output can reach 25,000 metric tons. The products include all kinds of Built-up section, high-rise building structures, factory structures, bridge structures, machinery structures, petro-chemical pipe supporting system and so on. All of them are sold widely in domestic and foreign markets.

Finance. We estimate that realization of the project would require around $60 mln, of which $25 mln account for the acquisition of the territories and obtaining approvals and licences, with the rest of the sum falling to the share of construction itself. Taking into consideration the large number of objects, the life span of the project is estimated roughly at 3-4 years. During that period we expect steadily increasing cash flows to the project, as new objects come into operation. Fully invested, the project is expected to generate an annual net income of $10-12 mln, extending thus the payback period to six years.

Project progress. Up to now, the fund has worked out the business plan and the master plan, performed the project’s valuation, concluded the talks with the city authorities and obtained titles for the sites as well as relevant licences. Besides, it has attracted co-investors to start works on three objects as early as in mid 2011 At this stage we look for strategic investors to jump into the project and finish the works on it. This project is really safe investment for every private investments - so do not hesitate and contact us for more information.