(II) The brief introduction of Zhejiang Materials Industry Logistics investment Co., Ltd.
    Zhejiang Materials Industry Group united Zhejiang Materials Industry Holding (Group) Co., Ltd., Zhejiang Metal Materials Co., Ltd., Zhejiang Materials Industry International Co., Ltd. and Zhejiang Materials Industry International Freight Service Co., Ltd. to found Zhejiang Materials Industry Logistics Investment Co., Ltd. with 100 million yuan investment. Zhejiang Materials Industry Logistics Investment Co., Ltd. can be a basic logistics platform, with which Zhejiang Materials Industry Group could combine the main business and modern logistics organically, develop and upgrade business flow, goods flow, capital flow and information flow of the group’s original business and improve each business department’s reaction ability and further service ability to meet the customers' demands. All of these can improve the efficiency of circulating systematically in an all-round way, realize the promotion and expansion of group's business field and make the circulation, which is the main business, bigger and more powerful.
At present, Logistics investment Co., Ltd. starts the project of construction of Zhejiang Materials Industry Group’s logistics base in Hangzhou. Around the target of building logistics base of the fine works, the company concentrates on developing trade logistics and puts forth effort to build three centers. On the base of Hangzhou Coal Yard, the company will build a modernized multimodal transportation center by improving such transportation infrastructure conditions like the railway, port and highroad of logistics base. Regarding metal material as the main target market, the company will launch the metal products transit services and structure a metal material trade and logistics delivery center to realize the appreciation of circulating and processing and to make the logistics base become the metal material delivery and transit pivot. Establish Materials and Industry Group's trade and logistics associated administrative center, with the goal of centralization of supply chain and information system. On this basis, regarding assets as the tie, delivery as the means and information as the support, Zhejiang Materials Industry Logistics investment Co., Ltd. can set up distribution sites and logistics delivery centers, actively develop and guide the terminal customer, try to realize the organic integration of distribution and logistics and try to realize circulation marketing network system at a good time in an area which is economically developed, has large market, is consuming centralized and easily accessible.

(III) The brief introduction of Zhejiang Materials Industry, Hangzhou
    logistics base Zhejiang Materials Industry Hangzhou logistics base is located in Liangzhu town Yuhang district Hangzhou city. It faces Jinghang canal on the east, ties to Moganshan road and Shixiang road on the south, depends on Hangning highway on the west (Shangtang trestle’s extending part), and connects Xuanhang railway and Hangzhou round city expressway on the north. It is 2 kilometers far away from 104 national highroad. It has an obvious transportation location advantage.
The total planning area of Hangzhou logistics base of Zhejiang Materials Industry is 21.6 hectares. The base has quays and special-purpose line meet with Xuanhang railway, possesses the facilities of the highroad, waterway and railway transportation, which can help to combine various kinds of transportation resources and give play to changing trains and linking up the function of various kinds of transportation.
Zhejiang Materials Industry Hangzhou logistics base regards metal material as its main service object and comprehensive logistics (transport, transit, storage, delivery, circulation and processing etc.) as the key function. Supported by this, the base will develop such value-added services like trade, information interchange, the show of the goods, commercial affair service, etc.. According to the idea of modern logistics, the base has carried on scientific, rational and systematic plan to each function block (the steel shears and process center, steel trade house , showing the house of the trade , steel warehouse, comprehensive office zone, service for life area, etc.), combining the actual need of the target service object of metal material.
After the base builds up, it will become a large-scale, multi-functional and modernized production materials circulation center, which combines logistics, trader flow, information flow and capital flow. It will become a delivery and transit pivot of metal materials in north Zhejiang, basing on Hangzhou, offer service to the whole province and affect the Changjiang River trigonometry area and even the whole country.

(IV) Advantage of investment:
1. Position advantage of the transportation: Zhejiang Materials Industry Hangzhou logistics base is located in Liangzhu town Yuhang district Hangzhou city. It faces Jinghang canal on the east, ties to Moganshan road and Shixiang road on the south, depends on Hangning highway on the west (Shangtang trestle’s extending part), and connects Xuanhang railway and Hangzhou round city expressway on the north. It is 2 kilometers far away from 104 national highroad. It has an obvious transportation location advantage.

2. Market advantage: With the overall expansion of planning and design of Hangzhou city and urban area traffic control, several steel trade markets of urban area certainly will take apart and move to surrounding area of Hangzhou. Facing this opportune time, the base leads in Zhejiang steel spot market (Zhejiang Materials and industry metal Corporation (Group) makes the investment to build it, up to 2003 trading volume 950,000 tons, 3,300 million yuan turnover) in advance, drive popularity coming with market, drive logistics by business flow. After the base builds up, the first annual amount of steel will reach 1 million tons (among them, 750,000 tons of waterways, 250,000 tons of railways). It will reach 3 million tons in long-term steel amount per year (among them, 2 million tons of waterways per year, 1 million tons of railways per year).

3. Information-based advantage: The base will introduce the advanced information system (Including electronic settlement system, electronic monitoring system, LED display screen and information issuing system of touch-sensitive screen, comprehensive administrative system, the basic platform of information, data-switching system, etc.) and promote the specialized logistics service ability of the base in an all-round way:
(1)Realize the information management of the base infrastructure, give full play to "enterprise's cluster" coordination advantage, show further the industry assemble effect of the base;
(2)The business operation of the enterprises customer's in the base offers strong logistics information technical support, promote rationalization of the logistics operation, reflect coordination effect of the multi-mode jointly transport operation center ;
(3) Support high sharing of the logistics information between the base and each supply chain members and realize logistics information and logistics resources all-round combination and rational distribution;
(4)Support to regard the base as the operation platform, support the dynamic reorganization of the logistics supply chain or the dynamic alliance among numerous enterprises inside or outside the base, show complementary advantage of trade and logistics united administrative center.

4.High-quality customer service advantage: Combining the customer's actual need, the base will introduce the functional department like the Customs, industry and commerce, bank, postal service, car administrative etc., in order to perfect the whole function on the base.

5.The government's support: Zhejiang Materials Industry Hangzhou logistics base is the key project in Yuhang district and in Zhejiang Province. It has already been listed in the circulation special structural adjustment national debt special project list in 2004 by the National Development and Reform Committee. It has got the strong support of the governments at all levels.