|We constructed a new CO2 plant in Hainan
which uses gaseous emissions from Fudao Phase II to produce
and supply food-class carbon dioxide. The plant commenced
operations in February 2006 and is as of the latest practicable
date, is in trial operation. Carbon dioxide is a colorless
gas used in the production of carbonated beverages.
Liquid and solid carbon dioxide are important refrigerants,
especially in the food industry where they are employed
during the transportation and storage of ice cream and
other frozen foods. Solid carbon dioxide is called 'dry
ice' and is used for small shipments where refrigeration
equipment is not practical. We also intend to sell our
food-class carbon dioxide to producers of carbonated soft
drinks and soda water.