Exhibit 10.12

                      SALES CONTRACT OF INDUSTRIAL PRODUCTS
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                                                                      NO.: 03010
                                                               SIGNED AT: Tai'an
                                                          DATE: January 12, 2003

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: Steam Surge Tank

UNIT: PIECE

QUANTITY: One

UNIT PRICE: RMB 558,350.00 yuan

TOTAL AMOUNT:  RMB  558,350.00  yuan (five hundred and fifty eight  thousand and
three hundred and fifty) yuan

DATE OF DELIVERY: February 22, 2003

Article 2: QUALITY STANDARD

The seller will manufacture the objects according to the National  Standards and
the drawing sheet provided by the Buyer.

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

Article 4: NUMBER OF NECESSITIES, SPARE PARTS, TOOLS TO BE PACKED WITH THE SAID
EQUIPMENT, AND METHOD OF SUPPLY: In accordance with the requirements indicated
in the drawing sheet.

Article 5: 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.



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Article 6: MEANS AND PLACE OF DELIVERY: The site where the buyer uses the goods.

Article 7: MODE OF TRANSPORAT AND DESTINATION AND COST ALLOCATION:  By road; the
Seller shall pay the cost.

Article  8:  STANDARD,  METHOD,  and PLACE  AND TIME  LIMIT OF  INSPECTION:  The
inspection  will be done  pursuant  to Article 2 at the place of  delivery.  Any
dispute shall be raised within three days.

Article  9:  METHOD,  TIME AND PLACE OF  PAYMENT:  50% shall be paid  after this
contract becomes effective. 40% shall be paid after the object has been made and
delivered; and the remaining amount of money shall be paid off within one year.

Article 10:  TERMINATION  OF THIS  CONTRACT:  When the  contract  has been fully
performed and after the remaining amount of money has been paid off.

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/ Gong Xingyu                                /s/ Wang Wei
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AUTHORISED SIGNATURE                          AUTHORISED SIGNATURE