Following the signing of the commercial contracts of the Ukraine Kiev Infrastructure Project and the Construction Project for the Rail Transit linking Borispol International Airport and Kiev (with a total contract value of USD 2.372 billion) on April 18th, the SINOMACH Group has scored another one in the Ukrainian market. On June 20th, the SINOMACH Group signed new contracts for the Gas-Fired Power Station Project in Scholkino of Crimea, Ukraine, 300MW Solar Power Station Project and Livestock Breeding and Processing Base Project with a total contract value of nearly USD 3 billion under the witness of officials including Mr. Dai Bingguo, the Chinese State Councilor, Mr. Yang Jiechi, the Chinese Foreign Minister, Mr. Chen Deming, the Chinese Minister of Commerce and Mr. Andriy Klyuyev, the Ukrainian First Vice Prime Minister.

Among these, the contract value of the Gas-Fired Power Station Phase I Project in Scholkino of Crimea is USD 1.5 billion, including an 850MW gas-fired power station, natural gas pipelines and power transmission and transformation projects. The contract value of the 300MW Solar Power Station Project is EUR 820 million (approximately USD 1.16 billion), including engineering design, equipment supply, civil works and equipment installation etc. The project also represents a major achievement of SINOMACH in the area of solar engineering. The total contract value of the Livestock Breeding and Processing Base Project is USD 250 million. The Phase I construction includes the design, procurement, construction and personnel training for the dairy farm, and eventually the project will be gradually developed into a livestock breeding and secondary product processing base covering the whole industry chain and consisting of 4 dairy farms and 1 dairy processing base.

Over recent years, the economic and trade cooperation between China and Ukraine has advanced significantly. The pragmatic cooperation mechanism has been improved and the level of cooperation has been taken to new heights. The countries have established a deputy-prime-minister-level inter-government cooperation committee with 6 sub-committees, namely, economy and trade, agriculture, science and technology, aerospace, education and culture to coordinate, plan and guide the cooperation between the countries in various areas. The countries have signed agreements for key economic and technological cooperation projects and sustained healthy development of economic and trade cooperation. In 2010, the bilateral trade volume quickly recovered to USD 7.73 billion, up by 33.8% from the previous year. The bilateral trade volume over the first four months of this year has reached USD 3.06 billion, a year-on-year growth of 48.8%. The trade volume is progressing steadily towards the goal of USD 10 billion by 2012 set by the heads of both countries.

As an important overseas project contractor of China, the SINOMACH Group has seized the opportunity and leveraged its great strength in numerous engineering fields such as energy, transportation, communication and agriculture to become a pioneering enterprise in China-Ukraine economic and trade cooperation. Meanwhile, Mr. Ren Hongbin, the Chairman of the SINOMACH Group, is holding the position of the Chinese chairperson of the China-Ukraine Bilateral Entrepreneurs Council and making unremitting efforts to promote the China-Ukraine economic and trade cooperation. Ukraine has also become one of the project contracting markets in which SINOMACH has realized the fastest growth in the past few years.