July 7, 2004

Construction of Shandong Xiwang Group's Lysine Production Facilities Nearing Completion

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Construction of the Shandong Xiwang Group's 60,000-ton lysine production plant and its ancillary support facilities is reported to be nearing completion. Construction of over sixty percent of the basic production facilities has been completed. Silos for storage and fermenting have also been put in place. Currently, the main production facilities are being installed.

The two-phase construction work on the plant began in February 2003. Currently, the RMB 600 million investment project is in its first phase of construction. To produce lysine economically with a minimum of waste, the plant will make use of the mother liquor (by-product) from sugar production as the raw material and the fermentation technology will be adopted.            

Upon completion, the plant will be the new focal point of growth for Xiwang Group' business. Using recycling technology, the production of industrial waste will be reduced and the plant will be a showcase of the Group's efforts at balancing industrial development and environmental protection.