Newchin Corporation, China

Request for Proposals (RFP's)

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We, the Newchin Corporation, together with the Chinese Governemnt Delegation, submit the following request for proposals form foreign investors interested in forming an automobile manufacturing joint venture with said entities.

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Aims of project:

The project is proposed for the mutual benefits of both international car manufacturers and the Chinese Government. The goal of the joint venture is to develop an automobile manufacturing plant in China for the production of small passenger cars (compact) with the requirements listed below.

Compact car technical characteristics:

The automobile to be produced will be:

1. Fuel economic

2. High mileage

3. Low maintenance

4. Low emissions

5. Low cost and reliable

6. Natural gas, electric or other alternative energy sources would be explored by our future partner

Plant production capability:

1. Initially, 300,000 car production capability per year and 25% of which produced for export

2. Expansiion capabilities of up to 600,000 cars in the next five years will be required

Ownership:

1. 60% Newchin Corporation

2. 40% our future partner

Management:

Board of Directors - total of 12

1. 7-The Newchin Corporation

2. 4-Our future partner

3. 1-Foreign investment commission of China

Financing:

Contribution toward total capitalization:

1. 40% Equity

-60% to be provided by our future partner

-40% to be provided by Newchin Corporation

2. 60% to be borrowed in the form of bonds by our joint venture

Locations:

Two possible free-trade zone locations are to be considered:

1. In the municipality of Tianjin

2. In the municipality of Xiamen

Newchin Corporation development key concerns:

1. Immediate needs:

-Rapid training of Newchin Corporation technicians and management

2. Future needs:

-Rapid and meaningful technology transfer (to be discussed during

course of simulation)

-After the first four years, 100% of components to be supplied within China

Regards,

Newchin Corporation


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