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Basic Materials SegmentWe believe demand will continue to be strong for basic materials, such as industrial chemicals, basic metals and minerals, forestry and wood products, and other basic resources, particularly in the PRC where the economy has been expanding to meet the needs of its populace. These portfolio companies are described below. Basic Materials Segment Portfolio Companies Shanghai Lang Chemical Co., Ltd. (“Lang Chemical”) In October 2006 we acquired a 51% interest in Shanghai Lang Chemical Co., Ltd. Lang Chemical sells and distributes industrial grade synthetic chemicals. Primarily Lang Chemical distributes four primary product categories; Glacial acetic acid and acetic acid derivatives, Acrylic acid and acrylic ester, Vinyl acetate-ethylene (“VAE”) and Polyvinyl alcohol (“PVA”) Products sold and distributed by Lang Chemical are used by customers as a raw material in the production of a variety of finished products such as: paint, glue, plastics, textiles, leather goods as well as various medical products. Lang Chemical is a distribution agent in the eastern section of China for manufacturers such as BASF YPC Co., Ltd, Celanese (China) Holding Co., Ltd and Lucite International (China) Chemical Industry Co., Ltd. Lang Chemical was established in January 1998. CDI Jingkun Zinc Industry Co., Ltd. (“CDI Jingkun Zinc”) In October 2007 we acquired a 95% interest in CDI Jingkun Zinc Industry Co., Ltd. CDI Jingkun Zinc located in Huayuan County, of the Hunan Province, is a manufacturer and distributor of zinc concentrate. Zinc concentrate is a product used in the production of pure zinc and zinc alloys, which is the result of a flotation process after the zinc ore has been mined and milled. CDI Jingkun Zinc supplies zinc smelting companies located in the counties of Huayuan, Baojing, Luqi as well as Zhuzhou city in Hunan Province. CDI Jixiang Metal Industry Co., Ltd. (“CDI Jixiang Metal”) In November 2007, we acquired a 100% interest in CDI Jixiang Metal Industry Co., Ltd. CDI Jixiang Metal, located in Yongshun County, of the Hunan Province, processes and distributes concentrated zinc and lead. Zinc concentrate is employed in the production of zinc metal and zinc alloys. Lead concentrate is used in the production of lead metal and lead alloys. CDI Jixiang Metal owns the mining rights to approximately 51 acres (0.2051 Km2) located in the Yongshun Kaxi Lake Mining area. The mining rights were obtained in 2004 from the Ministry of Land and Resources. The land holds both zinc and lead ore. The mining rights allow for the mining of an aggregate of 10,000 metric tons of zinc and lead annually.. |
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