Need investment and a partner for joint wood pellets or charcoal production

Dear Sir/Madam,

We have pleasure in proposing you taking part in the project regarding wood pellets or wood charcoal production in the Far East of Russia.

Our company has been operating in the market sea products since 2004.

The given project is exclusive for our region. It is supported with availability of the saved stock of wood waste, approximate quantity is 500,000 mt. This stock belongs to the state woodworking enterprise. There is a constant tendency for its growth. We have a preliminary arrangement on wood waste use which is located on the territory being conformed with the Mayor of the region to be long-term rented under development of manufacture in utilization of the wood waste.

The attraction of the project is:

- that at the rather low price of waste raw material and the presence of the town administrative support (the ecological problem regarding cleaning town boundaries from the waste);

- the demand for "Charcoal" as kind of industrial and household energy in Japan is rather high that influenced the price for the USD 400/mt.;

- The Japanese part showed an interest in such kind of supply and as a result of this it was signed Agreement of Intentions on the charcoal supply.

The organization form of the given manufacture - is a common ., Ltd Compny organized by the two participants.

It supposed to attract extra capital for the equipment purchase, its delivery and installation, and also on organization of cargo handling works, warehousing and storage of ready production, transportation to sea port, ships freight for organization of sea transportation and expedition, employment of workers and industrial areas, accumulation of turnaround funds for the further production manufacturing process and profit reception as result.

In production manufacturing process it is planned to use the rented (or purchased) structures and areas, the purchased industrial equipment, the hired labour, the leased (or purchased) cargo vehicle for the raw material transportation to the processing place and delivery of ready production on the territory of loading terminal, cargo handling engineering for loading in vehicles and warehousings, port reloading terminal for loading on the freighted ships and further goods transportation by sea toward shipping port.

It is supposed to carry out a preparatory stage of project within 4-th quarter of 2007 year, so that on the 1-st quarter of 2008 year to install equipment and to start manufacturing by the beginning of March 2008 with the purpose of accumulation and sending in April - May, 2008 of the first charcoal set for buyer, quantity is approximately 500 MT. The further delivery will be carried out under the diagram coordinated with buyer, on all-year-round cycle during the nearest five years. Middle-year number of the personnel at a preparatory stage is planning 4 - 6 men Engineers on a constant basis and 5-10 men of the repair workers with temporary employment, but with the beginning of production manufacturing process to lead an aggregate number of staff up to 36 men. Further is by industrial necessity. The necessary industrial reserves in our region are available. The financial reinforcement is needed only.

The main competitive advantages of the given project are:

1) The absolute projects exclusivity in sphere of sawdust charcoal deliveries to consumers in Japan and further on other APEC countries from our territory;

2) Sea port terminals nearness from manufacturing place and storage of the delivered ?charcoal?;

3) The significant amount of the saved waste raw-material directly situated in city boundaries necessary for manufacturing;

4) Positive ecological factor of cleaning soiled territory in feature urban edges and support of Town Administration is agreed with it;

5) The opportunity of updating and adding a strategic stocks of raw material at the expense of the working enterprises of a wood industry;

6) The opportunity of enterprise scheduling for the coming five years without reorganization of basic manufacture.

7) The opportunity of the accompanied manufacturing development (producing of disposable wooden chopsticks for meal "waribushi" ) on the basis of prime manufacture.

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