Cosmos Machinery Enterprises

An agreement for establishing a joint venture to manufacture plastic injection moulding machines was entered into by and between UBE Machinery (Shanghai) Ltd. (Board Chairman: Yuzuru Yamamoto), a legal person subsidiary (in Shanghai) of UBE Machinery Corporation, Ltd. in Japan (Headquarters: in Ube City of Japan; President: Yuzuru Yamamoto) and Cosmos Machinery Ltd. (Board Chairman: Stephen Wong), a subsidiary company solely owned by Cosmos Machinery Enterprises Limited (CEO: Stephen Wong) in Wuxi City, Jiangsu Province, PRC on 23 March 2007. Each party will contribute 50% capital to the joint venture. Following the signing of the agreement, the procedures for applying business license will be carried out in succession and the joint venture will be formally put into operation in this May. The cooperation between UBE and COSMOS dated back March of 2002, when UBE Machinery Corporation, Ltd. and Wuxi Grand Tech Machinery Group Ltd. - a subsidiary company of Cosmos Machinery Enterprises Limited concluded a technology transfer agreement for the production of UBE¡¯s ST and PZIII series plastic injection moulding machines in Wuxi Grand Tech Machinery Group Ltd. and these manufactured machines received recognition from both domestic and foreign customers soon after. Along with the development of automobile industry in China, the demand for large-sized plastic injection moulding machines will increase year after year. Therefore, UBE and COSMOS decided to facilitate their cooperation through establishing a joint venture so as to extend the production scale of UBE¡¯s plastic injection moulding machines. They expect to manufacture high cost-performance products through strengthening economic cooperation and technical exchange as well as adopting advanced and scientific business administration mode. The production base is currently located in the cooperative factory in Wuxi Grand, but it will be moved to a new factory in the Industrial Park Zone of Wuxi in 2008 and it is estimated that the annual production output will be up to 650 million Japanese yen. This joint venture project was greatly supported by the local government of Wuxi. The following honoured guests attended the signing ceremony: Mr. Han Zhizhong, Director General of the Foreign Trade and Economic Cooperation Bureau of Binhu District, Wuxi City; Mr. Chen Guozhong, Secretary of the Party and Labour Committee of Helie Subdistrict; Mr. Tang To, Board Chairman of Cosmos Machinery Enterprises Limited; Mr. Richard Yan and Mr. Raymond Li, Executive Directors of Cosmos Machinery Enterprises Limited; Mr. Yasuhiro Inoue, Sales Director of the Plastic Injection Moulding Machines Business Department of UBE Machinery Corporation, Ltd.; Mr. Takeshi Kawamoto, Director and General manager of UBE Machinery (Shanghai) Ltd. and Mr. Yasushi Utsunomiya, Director and Vice General Manager of UBE Machinery (Shanghai) Ltd. Yuzuru Yamamoto, the President of UBE Machinery Corporation, Ltd. noted, ¡��We are glad to establish the joint venture to produce machines together. From ¡��Cooperation¡�� to ¡��Joint venture¡��, the relationship between both parties will be enhanced further. We are convinced that the quality of GRAND-UBE plastic injection moulding machines will be more stable and will gain higher faith from our customers. At present, the jointly manufactured machines are only sold in China and henceforth the joint venture in Wuxi will be oriented as our factory in China. I believe that in the near future, the plastic injection moulding machines manufactured in our joint venture will be sold to USA, Southeast Asia, and all over the world. Tang To, the Chairman of Cosmos Machinery Enterprises Limited expressed, "Based on the continuation of our past cooperation, both parties will incorporate all their own technologies, capacity, intelligence and culture into the joint venture team through this close cooperation. We have common philosophy that the cooperation means helping each other, gaining win-win results and sharing honour or disgrace. During the eleventh five-year plan period, the Chinese government will actively facilitate the enterprises to carry out technological improvement and the overall quality of equipment will be improved. The macro-environment is more favourable to the market expansion of those products manufactured by our joint venture, so we will achieve more ideal results in the cooperation with UBE."