Exhibit 10.16

                      SALES CONTRACT OF INDUSTRIAL PRODUCTS
                      -------------------------------------

                                                                    NO.:
                                                               SIGNED AT: Tai'an
                                                              DATE: July 5, 2004

This contract is made and entered into by and between  Shandong Shengda Chemical
Machinery Co., Ltd (hereinafter  referred to as the Seller) and Shandong Shengda
Chemical  Co., Ltd  (hereinafter  referred to as the Buyer);  whereby the Seller
agree  to sell  and the  Buyer  agree  to buy the  commodity  mentioned  in this
contract subject to the terms and conditions stipulated below:

Article 1: Object, Quantity, Price and Date of Delivery

NAME OF COMMODITY:  Absorption Tower, Equalizer Tank, Surge Tank, Liquid Ammonia
Tank

UNIT: PIECE

QUANTITY: Three, One, One, and Two Respectively

UNIT  PRICE:  RMB  165,200  yuan,   431,000  yuan,  96,200  yuan,  746,200  yuan
respectively.

TOTAL AMOUNT: RMB 2,515,200 (two million,  five hundred and fifteen thousand and
two hundred) yuan

DATE OF DELIVERY: Within forty-five days after receiving the advance payment.

Article 2: QUALITY STANDARD

Be  subject  to the GB 150 Trade  Standard  for  Containers.  In the case of the
liquid  ammonia tank,  the crack  detection will be done on a 100% basis and the
whole tank has to be undergone heat treatment.

Article 3: TERMS AND TIME LIMIT OF QUALITY  ASSURANCE  OF THE SELLER:  1 Year of
Quality Warranty

Article 4: TITLE TO THE GOODS SHALL BE PASSED  UPON  DELIVERY;  HOWEVER,  IF THE
BUYER  FAILS TO PERFORM  THE  OBLIGATION  OF PAYING THE FULL  AMOUNT OF PURCHASE
PRICE, TITLE TO THE GOODS SHALL REMAIN WITH THE SELLER.



<PAGE>

Article 5: MEANS AND PLACE OF DELIVERY:  The Buyer's factory.

Article 6: MODE OF TRANSPORAT AND  DESTINATION AND COST  ALLOCATION:  The Seller
shall be fully responsible.

Article  7:  STANDARD,  METHOD,  and PLACE  AND TIME  LIMIT OF  INSPECTION:  The
inspection will be done pursuant to the National Standards.

Article  8:  METHOD,  TIME AND PLACE OF  PAYMENT:  30% shall be paid  after this
contract  becomes  effective.  30%  shall be paid  after the  objects  have been
completed  50%;  and 85% of the total  will be paid when the  objects  have been
delivered.

Article 9: TERMINATION OF THIS CONTRACT: After the remaining amount of money has
been paid off.

Article  10:  BREACH  LIABILITY:  shall be  governed  by the  provisions  of the
Contract Law.

Article 11: METHOD OF SETTLING THE DISPUTE OVER THE CONTRACT:

IN THE PERFORMING OF THIS CONTRACT, IF ANY DISPUTE ARISES, THE TWO PARTIES SHALL
SETTLE IT THROUGH FRIENDLY DISCUSSIONS;  THE DISPUTE CAN ALSO BE MEDIATED BY THE
LOCAL INDUSTRIAL AND COMMERICAL ADMINISTRATION;  IF NO SETTLEMENT COMES FROM THE
DISCUSSIONS OR  MEDIATATIONS,  THE DISPUTE SHALL BE SETTLED BY LAWSUITS  THROUGH
THE PEOPLE'S COURT.

Article 12: THIS CONTRACT SHALL BECOME  EFFECTIVE  after having been  officially
signed by the two parities.


THE SELLER:                                   THE BUYER:
Shandong Shengda Chemical
Machinery Co., Ltd                            Shandong Shengda Chemical Co., Ltd

/s/ Zhang Shanhui                              /s/ Chen Zhongzhi
-------------------------                     ----------------------------------
AUTHORISED SIGNATURE                          AUTHORISED SIGNATURE