In the morning of June 2, Baosheng Prysmian Cable Co., Ltd. held an opening ceremony of the new tower of the 500KV UHV cross-linked cable project. Leaders from the municipality and the county including Xie Zhengyi, He Jinfa, Zhong Sheng, Zhang Yaowu, Han Guozhu, Zhou Yubao, Yang Shanhui and Gu Changrong as well as Mr. Paul Bazzoni, CEO of Prysmian (China) Investment Co., Ltd. and the Chairman of Baosheng Prysmian Cable Co., Ltd. and Mr. Romeo, the Chief Executive of Energy Cable Business of Prysmian Headquarter in Milan, Italy attended the ceremony of commencement of work.

On the ceremony, Xie Zhengyi, Vice Secretary of the Municipal Party Committee and Mayor, gave a speech. He firstly congratulated the commencement of the project on behalf of the Municipal Party Committee and the Municipal Government. He said that in the past 11 years, Prysmian and Baosheng strongly associated and cooperated to develop the joint venture one of the largest cable suppliers in China and Asia-pacific area. This was not only a leading enterprise of industrial economy, but also the sign of success of the economic globalization of Yangzhou. The commencement of the construction of the 500KV UHV cross-linked cable project Phase II was an important issue for both parties of the joint venture, and also a happy thing for the economic development of Yangzhou and Baoying.

Xie Zhengyi said that Yangzhou had been entitled as the only ‘Industrial Base of Smart Power Grid of the Province’, having carried out cooperation with companies as China Power Grid in large extent. The project of Prysmian Phase II complied with the strategy of the development of Chinese power grid, in compliance with the strategy of economic development of Yangzhou and also in compliance with the key of support from Yangzhou Municipal Government. The increase of investment of Prysmian this time had great vision. As important growth pole of county economy in Yangzhou and important recipient of smart power grid, Baoying had gathered a batch of top 500 enterprises and important transnational companies, and had become a paradise for domestic and foreign investors as well as a hot spot for establishing enterprises. He expected that the local government of Baoying would actively strengthen the service to make all the supporting work deeper, more in details and more accurate, so that the project of Prysmian Phase II would be finished and launched for production earlier and get the effects earlier. Xie Zhengyi also hoped that through sincere cooperation between the two parties, Prysmian would be bigger and do better in Baoying, trying to build the ‘best in China and top-rank in the world’ production base for high voltage cables

Zhong Sheng, Secretary of the County and Executive of the NPC Standing Committee of the County, said in his speech that the day was a happy day because the new tower of Baosheng Prysmian being expected started. He wanted to extend heated congratulation on behalf of the Party Committee, the NPC Standing Committee, the Government and the CPPCC of Baoying and the 920,000 people, and wanted to show sincere appreciation to Mayor Xie, all municipal leaders, and the Italian friends that attended the ceremony and all the employees of Prysmian. In the past a few years, Baosheng Prysmian had achieved great performance. He congratulated beforehand that Baosheng Prysmian achieve more success and the project would be completed successfully.

Mr. Bazzoni, the representative of foreign shareholders of Baosheng Prysmian, CEO of Prysmian (China) Investment Co., Ltd. and the Chairman of Baosheng Prysmian Cable Co., Ltd. and Mr. Romeo, the Chief Executive of Energy Cable Business of Prysmian Headquarter in Milan, Italy as well as Xia Licheng, the representative of Chinese shareholders of Baosheng Prysmian and President of Board of Directors of Baosheng Group also made a speech respectively.

At last, Xie Zhengyi, Zhong Sheng, Zhang Yaowu, Mr. Paul Bazzoni and Mr. Romeo earthed up the foundation stone.

In June last year, the Investment Committee of Prysmian approved the capital increase plan of second phase of Baosheng Prysmian. The total amount of increased capital is 18.8 million Euros, in which increased registered capital 15.5 million USD. In January this year, the technological innovation project of the 500KV UHV cross-linked cable was approved by Yangzhou Economic and Trading Committee. The planned total investment is over 280 million RMB, in which investment in fixed assets over 170 million RMB. All the investment will be made or financed by Baosheng Group and Prysmian Italy. The actual construction area of the project is 9,500M2, in which vertical tower 6,000 M2, and height 115.7M. The project is expected to launch the production in 2011, after which the production capacity of 374KM 200-500KV high voltage or UHV cross-linked cable will be increased. After the production is launched, the annual sales revenue will become 390 million RMB, which will make Baosheng Prysmian Cable Co., Ltd. achieve leading level in China.