Asian Metal: Good morning, Mr Emoto. Thank you for accepting the interview. Firstly, please briefly introduce Dalian New Green Recycle & Resources Corporation and its main products.

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Emoto: Dalian New Green Recycle and Resources Corporation was established in October, 2010. And now we are in the final stage of construction job. In September or October, we will start the first stage of production. Our shareholders are mainly from Japanese corporations, including Itochu Group and Suzuki, which are some of main players of scrap business in Hokkaido Area. We have a couple of advantages compared with present recycling companies in China. First, our factory has the various recycling processing plants, such as Mega Threader having the 6,000 house power capacity, which is the largest threading machine in the northern China. And the other is the processing possess for cold mixed metals. By combining those two, technology advanced equipments, we can reduce the wasted materials after the processing, in other word, we can increase the productivity. Our product is quite high-quality material which is highly regarded by our future customers in China. On top of that, we will introduce the wasted home appliance processing facility as well as the wasted plastic processing plants.

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Asian Metal: Let's talk about one of your main products -- steel scrap. The market of steel scrap keeps sluggish this year and the price stays on the downward trend. After July, the price of steel scrap dropped sharply in China. Could you analyze the reasons why the sharp decrease occurs?

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Emoto: As we all know, the market always goes up and down. The present market seams to be on the down trend, but in the middle time, the market will go up. In my observation, this time, the main reason of such a decrease is EU financial crisis. It occurred last year and then it reflects to the metal industry. Half year or nine months later, the exports of various products from China to European countries are decreased. Hence, Chinese manufacturing companies are quite cautious to keep up with the high-level production. It arrests the steal industry and then steel scrap industry. That is the main reason.

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Asian Metal: As one of growing recycle and resources corporation, what is your comments on the corporation's development from now on as it faces such a slack market of steel scrap.

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Emoto: The present market of steel scrap is quite weak. In my prediction, the market will drop once or twice in the coming month. And then it happens that our factory starts up the production. In that sense, our corporation is quite lucky, because we will be able to start up our production when the market of steel scrap starts to recover.

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Asian Metal: Now it enters August, but the market of steel scrap remains dim. What are your opinion and prediction on the market in Q3 and Q4?

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Emoto: As I said, the market of steel scrap will be quite weak in Q3. In the first stage of Q4, the market will be double-down. And I do not know if market will remain the same for Q1 of next year, but for Q3 and Q4, I am not so optimistic about the market recovery.

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Asian Metal: Among processing bases of recycled resources, you think what is the advantage of your company.

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Emoto: There are a couple of advantages of our company. One is that the very strong fund and healthy companies are our shareholders. And the second is that by adopting the quite advanced factories from Japan, US and Europe, we are quite technologically advanced company. At the same time, through the long and deep experience, our partner Suzuki has very technical knowhow to process materials in quite absent mana. In addition, apanese company is quite cautious about the environment issue. So our company, Dalian New Green, will do the same way, environmental friendly, technological advance and modernized plant

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Asian Metal: Your company has a processing base of steel scrap in Dalian and would you mind sharing what status it is going and what is the company's blueprint in future.

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Emoto: For the short time of this period, we will focus on this factory. We start the production and we would like to try our best to reach the full production level as quickly as possible. The second is that we have now intension to stay in this area and the aim is to expand the industry base from the Changxing Island to other area in China even to the Asian countries.

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Asian Metal: Thanks again for your cooperation. Respectfully wish your corporation progresses day by day.

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Emoto: Thank you very much and welcome to come to our factory.

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