Optical Fiber Preform Project

The demand for basic telephone services by a population of over 1.30 billion people has generated a hardship for even the world's largest carriers. To meet and satisfy such a huge number of telephone users also causes difficulties for PRC telephone carriers. The acute shortage of Optical Fiber Preform is rising exponentially with the rapid growth of PRC's recent optical fiber industry. PRC's current annual production of Optical Fiber Preforms falls short of the market requirement. This huge manufacturing gap has prevented mass production of low cost optical fiber. It has created a lack of competitiveness for the PRC's Optical Fiber products on the global market.

The Optical Fiber Preform Factory is a joint cooperation between Nugget Point Corporation, and China Putian. The select project site is the Shanghai Industrial & Business Park. 100,000m2~150,000m2 acres of land has been reserved for the Optical Fiber Perform Plant. The Shanghai Foreign Economic and Trading Committee Administration will issue project approvals.

This development will enjoy preferential policies from the local authorities and the PRC Government. Development in this Park will be granted tax relief and policy reductions including a two-year tax holiday followed by three-year half rate tax holiday. Moreover, the Shanghai Governmental Authority and Fengxian District have also committed to provide additional tax benefits for the Project.

Total Development Costs of Optical Fiber Preform Project accounts for US $220,000,000. The Investment Return Period is estimated to be 5 years including a 1-year Construction Period. The Project will bring an annual gross profit of approximately US $68,800,000.