Proposal

      In the International Trading market, Central and South America are as important as leading components. Over these years, all of the western developed countries have been affected by economic depression, the market turns out to be sluggish and shrunk. But, most of the countries in Central and South America are in the development instead, and the market is expanding promptly as well, which makes the territory become a major trading business area for the countries all over the world.

      Due to all kinds of factors, no direct access to introduce trading products into Central and South America markets, more intermediate segments, as well as custom tariff hindrance policy, Chinese trading products can hardly ever develop its superiority in the Central and South America and may loose the best chance to earn the foreign currency through exportation.

      Since there is an export processing zone in the city of Laredo, an important city around the national border of U.S. southern states with all kinds of convenient conditions and favored policies provided, Chinese products can be introduced into the markets of Central and South America in no time if people can fully take advantage of those. Therefore, GK outlet company & Hangzhou Siyuan Industrial Co. hereby draw up the investment plan with all the detailed descriptions stated as the following.

1. Background:

     Laredo City, located around  national border between U.S. southern states and Mexico, is as important as the port with a long and far-reaching history, where carries the trading amount of Central and South America markets as much as 54% of total U.S. trading amount. Over many years, Laredo City of America has turned into an indispensable requirement for a complete administrative control system and social economic components over the trading business of Central and South America. Above all, most of the banks have built up an efficient trading calculation operation procedure and reliable capability of loan collection.

GK outlet company & Hangzhou Siyuan Industrial, a company involved in Central and South America Trading business for a long time, an internal trading company with family consortium background in South America, has many subsidiary companies all over Brazil, Mexico, Paraguay, Hong Kong and China, which do not only have Central and South America markets under control in certain levels and areas; but also have built up a good relationship with all the local governments, especially, Laredo city of America for many years. Therefore, there is a lot of support provided by local banks, financial agencies, and chamber of commerce, large department stores and importers and exporters in the common trading activities in Central and South America. In the meantime, GK outlet company. & Hangzhou Siyuan Industrial has a lot of confidence and expiriences on Chinese products being introduced into U.S. and Central and South America Markets.

Over the years, China has insisted on the policy on improvement and opening, which leads Chinese products to play a lending role in the international trading business. Besides, the price and quality carried on the products, they do surely have some outstanding attraction to the Central and South America markets. Therefore to manufacturers the products through processing  zone and to obtain some help and cooperation from government, banks, large trading enterprise in U.S. and Central and South America, can not only build up Chinese product’ image and reduce intermediate segments, but also can directly get into U.S. , Central and South American markets and increase a lot capability of competition in the markets.

1. Plan:

Speaking of the significance of business plan, it can be divided into two steps, which are described as follows:

The first step: to plan the step on the basis of investment environment

1. Based on the proposal provided by GK outlet company., production factory is to be built in the export processing zone around U.S. national border so as to reach the principle of free quota and convenient transportation; the price for all types of products  is to be selected and organized, quality and delivery date are to be in compliance with the basic requirement for the product in U.S., Central and South America markets.

The second step: to pass investment environment review and establish an access for a long term and direct large supply

1. By establishing factory in the processing zone to build up Chinese product image, it can lead to obtain the access and build up long-term cooperation relationship with national large trading enterprise or department stores in the U.S., Mexico, Guatemala, Peru, and Brazil due to those countries and areas congregate the most parts of Central and South America trading markets.

1. Pursuant to the outcome of the contact and discussion among GK outlet company, large trading enterprise and department stores in the above stated countries and areas, long term orders for direct supply will be obtained only if the factory is established in the processing zone around national border.

III  Investment Scope

1. Investment Amount: US$600,000
2. Production Employees: 60 persons
3. Machinery Equipment: 64 pieces
4. Factory, office and dormitory: 8,000 square feet

IV Division of Duty

1. Kingnex International Inc.

1. To contact administration department and chamber of commerce in the export processing zone; arrange all the matters related to the establishment of factory and the application of business certificate.
2. To be in charge of the matters related to file production machinery with custom house, storage and preservation.
3. To be in charge of the matters related to contact and arrange the Technicians’ visa.
4. To be in charge of contacting and establishing the relationship of long term and direct product supply with large department stores in U.S., Central and South America.

1. Hangzhou Siyuan Industrial Co.

1. To be in charge of importing machinery equipment
2. To be in charge of all matters related to process the documents to obtain the approval for the technicians and managers including to manage the application of passport.
3. To be in charge of supplying information regarding raw materials of production and economic efficiency analysis of products.
4. To be in charge of matters related to product quality control, and personnel’s production-job training.

1. Other:

                 This proposal is arranged and presented on the basis of GK outlet  company’s trading experiences undertaken  in the U.S. and Central and South America for many years, as well as the actual situation in the said. But it still needs a lot of help from all the resources to have a great success on the factory-established investment around national borders.