Sub: Invitation to cooperate to build a printed circuit board manufacturing Plant in Bangladesh. Dear Sir We are implementing a double sided and multi-layer PCB manufacturing plant in Bangladesh We invite you to duplicate the PCB manufacturing plant of your country in Bangladesh. The reasons for selecting Bangladesh: The key incentives to come to Bangladesh are the lowest infrastructure, the lowest overhead expenses, and the cheapest skilled and unskilled labor in the world. The Board of Investment of Bangladesh put the following advertisement: Bangladesh has the lowest cost to production ratio in the world. Which means that no matter what you make, it will be much, much more economical to make it in Bangladesh. Add to that fact we have one of the lowest inflation rates in the whole of Asia, and a pro-investment policies have encouraged some of the biggest names in the business to set up operations in Bangladesh. Names like UNILEVER, BRITISH AMERICAN TOBACCO, HOECHST, BATA, CIBA-GEIGY, BASF, MARUBENI, CHIYDA, SINGER, SIEMENS, TOOTAL, NESTLE, AKZO NOBEL,NEW ZEALAND DAIRY BOARD, KUOK GROUP, OCCIDENTAL, DAEWOO, HYUNDAI, BOC, RHONE POULENC RORER. There's one name missing though, a name we'd love to add to this list. YOURS. But you'll want to know more about what Bangladesh can do for your business. You could write to any of the organizations, but it would be easier to get in touch with us. We're standing by for your call. BOARD OF INVESTMENT Prime Minister's Office, Shilpa Bhaban, 91 Motijheel C/A, Dhaka 1000, Bangladesh, Tel: 880-952-63573,9567541 Fax: 880-2-9562312, E-mail: [log in to unmask] or [log in to unmask] We invite you to join with us to make this effort a successful one and open the window to explore unlimited opportunities that exists in this part of the world. We are looking forward to your cooperation in technology transfer for implementing the PCB plant, training the engineers for maintenance of the plant, equity participation, procuring and financing of the plant equipments. With your cooperation and guidance this project will be sure success and will place us in a lead role in this industry. If we put our honest and sincere effort to take the benefits of this part of the world, we will establish a bridge to revolutionize the economy of the world. You can devote more of your resources for improving the technology and for new innovative efforts in your country and the repetitious work like manufacturing can be done in Bangladesh. If we cooperate with each other we firmly believe that this project will surpass our goal and we will be able to deliver aggressive offshore pricing while maintaining the quality and reliability. With the use of new telecommunication technology in Internet such as web phoning, we will feel no difference about this PCB Plant in Bangladesh than compare to one in any other country. Rather it will be a better one using the numerous advantages available in Bangladesh. The plant will be in Export Processing Zone (EPZ) in Bangladesh. The labor situation and other facilities in EPZ is as good as any States in USA. Using the abundant cheap manpower available in Bangladesh we can be very prompt and can be far ahead of the deadline of our customers in USA and other part of the world. From my education, work experience in plants and microprocessor based device in PCB, and business development experience in USA, we don't see any reason for our joint venture partners in USA not go for this lucrative project. After the completion of this project, we desire to involve ourselves in other part of PCB industry i.e. from substrate manufacturing, assembly, testing troubleshooting to shipping the finished product. We are also advancing to implement the following projects: 1. Printed Circuit Board manufacturing industry in Bangladesh. 2. Improving the Internet services in Bangladesh in collaboration with USA companies. 3. Start Data entry projects in Bangladesh. 4. Complete the data entry part in Bangladesh for the Professional Recruiting and Specialized Consulting Franchise venture of INTELLECTS INC. in USA. 5. Create skilled manpower for software and hardware development in Bangladesh. 6. Bring USA hardware and software companies to take the advantage of abundant and cheap labor and create another Silicon Valley in Bangladesh. 7. Improving the telecommunication services in Bangladesh in collaboration with USA companies. 8. Start telemedicine-remote diagnosis in Bangladesh with institution like Massachusetts General Hospital. 9. Improve the power situation in Bangladesh through Nuclear Power Plant. PCB Project: The project under discussion is a project of 2, 4, 6 & 8 layer Printed Circuit Board of 30,000 sqm/year at 100% capacity. A recent study conducted by SAARC fund for regional development for Printed Circuit Board has revealed that the projected world PCB Market by year 2000 is expected to reach US $ 31.9 billion for all types of PCBs. The market for Multilayer Printed Circuit Boards will grow by 11% in US market. The Asian average growth rate is estimated to increase by 10.2% from 5.2 billion dollar in 1990. The present estimated project cost is approx. 227 million BD. Tk. or US $ 5.33 million (includes Building & Civil Works, Plant & equipment & others). Cost of the Project: Building & Civil works: US$ 254K Plant & Equipment US$ 4,320K Misc. Fixed Assets US$ 77K Prel./Pre-op expenses US$ 88K Int. during const. US$ 198K Margin on W/Capital US$ 149K Contingencies US$ 245K The project will have initi calapacity of Double Sided : 10,000 square meters Multi-layer (4,6,8 layer) : 20,000 square meters The capacity build-up in 1st 5 consecutive years is estimated to be as follows: I II III IV V % Capacity 43.00 66.67 83.67 93.33 93.33 Utilization Production 12,900 20,000 25,000 28,000 28,000 (Sq. Mtrs.) The rates considered: in US $ Type of boards 2X 4X 6X 8X Rate per Sq. meters US $ 161.00 380.00 589.00 791.00 Cost of manufacture & Profitability Estimates Units in US$ '000-Thousands(K) Year-1 Year-2 Year-3 Year-4 Year-5 Sales 4,498 6812 8589 9705 9705 Materials 2,593 4050 5188 5954 5954 Salary/Wages 161 223 303 318 334 Other FtyOH 271 398 531 69 583 Admn/Sales 157 238 301 340 340 Net Profit 408 1017 1437 1745 1797 The expected sales at full capacity is 413 million BD Tk. or 9.7 million US $. The cost of goods is 294 million BD Tk. or US $ 6.9 million. The expected gross profit of the project after full operation is expected to be 119 million BD Tk. or US $ 2.8 million and the expected net profit is expected to be 76.5 million BD Tk. or US $ 1.8 million. Financial and Economic Indicators 1. Gross Profit to Sales 29.94% 2. Net Profit to Sales 15.45% 3. Return to Equity 69.49% 4. Return on Investment 20.85% 5. Current Ratio 5.65% 6. Internal Rate of Return (IRA) 39.04% 7. Net Present Value (NPV) US$ 9,501K 8. Pay Back period 3-4 years 9. Debt Service Coverage Ratio 3.11 10. Generation of Employment 175 We are looking for foreign partners who can provide the following: Technical Collaboration - Supplying initial technology to start up and commission the project, train the local man-power, ensure quality acceptability by international importers, select appropriate machinery at an internationally competitive market price incorporating CAD/CAM system and keep the technology regularly updated. Marketing 0 It is imperative that 100% of the products of this factory be exported to USA and other industrialized countries. 0 The export price should be internationally competitive. The approximate present ruling market price has been estimated to be 0.104, 0.299, 0.375 and 0.507 dollar per sq. inch for 2, 4, 6 and 8 layer PCBs respectively as compared to the corresponding estimated imported material cost of 80.34, 160, 264, 373, etc. per sqm. Imported materials may be supplied by joint venture partners from abroad against each order. The list of major equipment is attached - please quote for the same items giving unit wise and detailed specification (preferably with catalog enclosed). Please further quote for a copper recovery and pollution control system. Equity Participation Estimated total cost of the project is about 5 million dollar which we anticipate to be financed as follows : Term Loan : 70% Equity : 30% The equity composition is proposed to be as follows : a. Sponsors and right share reserved 50% b. Public issue 50% Distribution of the sponsors equity and right share a. Local sponsor and share reserved for sponsors to be inducted -25% b. Foreign share holders - 25% The above mentioned sharing program may be reviewed upon more detailed discussion with all parties. On the above circumstances, we would like to discuss further the financial involvement and joint venture issues with the interested parties. We are eagerly waiting for a positive response at your earliest convenience. Thanks for your time and cooperation. We are looking forward to hear from you. Sincerely (Syed Arif Mahmud) President List of Major Equipment * CAD-CAM System with plotter * Computer controlled 4-headed drilling machines for 18"x24" pans,el w/automatic tool changers, Tape reader and control panel. * Programmer, computer controlled with accessories. * Modular conveyorised Etcher & Dry film stripper. * Scrubbers - inner & outer layers. * automatic gold Nickel Tip plater. * Acid Copper & Tin plating lines complete w/spurge lines, heater, controllers, filter system, 2000 Amp. rectifier. * Automatic programmable Electroless Copper plating line. * Conveyorised Tin/solder strip & Chemical clean lines. * Hot Air Leveller, with pre & post clean lines. * Semi Auto Screen Printing machines & Flip top Printer. * Hot Roll Laminators with cleaner : Exposure units - Double Drawers & Conveyorised Developer w/driver. * Power Shear, Hydraulic, Router, Beveler, Saw, Notcher. * Computerized numerically controlled Routers - 4 spindles. * Diazo Developer, Micro Modifier, Film Processor, Film Punch. * Electrical Bare Board Tester : 25000 test points. * Automatic Optical Inspection System (AOI) * Multilayer Laminating Presses : Hot & Cool * Prep rood Accessories, Caul Plates, Vacuum, Gel Tester, Arbor Press, Overarm Micrometer, etc. * Bottom Drill with TV Camera * X-ray machine with Polaroid Attachment Laboratory & Inspection Equipment * Metallurgical Microscope with attached camera * Micro-sectioning equipment * Non-destructive Testers * Magnifying circular lens for visual inspection * Microscopes, pull tester * and most importantly an electrical bare-board tester **************************************************************************** ****** * * * Syed Arif Mahmud * * Executive President * * OMNI High Tech Industries Ltd * * INTELLECTS INC. * * * * Bangladesh Office: USA Office: * * House No. 71/1 Austin, TX 78741 * * Road No. 7/A (New) Phone: 1-500-367-2743 * * Dhanmondi R/A Email: [log in to unmask] * * Dhaka 1209, Bangladesh Home Phone: (011-880-2) 871014 * * Phone: (011-880-2) 816543,9110364 Fax: (011-880-2)816546, 816648 * * * **************************************************************************** ****** *************************************************************************** * TechNet mail list is provided as a service by IPC using SmartList v3.05 * *************************************************************************** * To subscribe/unsubscribe send a message <to: [log in to unmask]> * * with <subject: subscribe/unsubscribe> and no text in the body. * *************************************************************************** * If you are having a problem with the IPC TechNet forum please contact * * Dmitriy Sklyar at 847-509-9700 ext. 311 or email at [log in to unmask] * ***************************************************************************