Dongyue Chemical Based in Zibo, Shandong Province, China, the Dongyue group of companies (Dongyue Group) commenced initial operations in 1987 with the production of small quantities of hydrogen fluoride anhydrous (AHF) and has since become one of the largest fluorine chemicals and polymers producers in the world.  The Dongyue Group consists of three operating companies, namely, Shandong Dongyue Chemical Limited (Dongyue Chemicals), Shandong Dongyue Polymer Materials Co., Ltd (Dongyue Polymers), and Shandong Dongyue Fluorine-Silicon Material Co., Ltd (Dongyue F-S).  The main products of Dongyue Group include various fluorine-based refrigerants with a production capacity of 120,000 tpy, PolyTetraFluoroEthylene (PTFE) with a production capacity of 20,000 tpy, and chloride methane products with a production capacity of 120,000 tpy.  The group has an integrated value chain in the fluorine chemical industry, from intermediates to finished products.  In 2005, the group ranked amongst the top 100 chemicals enterprises in China, according to a survey published by the Chinese Petroleum & Chemistry Industry Association.     The proposed project has two main components:    - undertake a corporate restructuring project (Corporate Restructuring) by setting up an offshore holding company (Dongyue Holding), which will own majority of the Dongyue Group and target a listing on the domestic or offshore stock market; and - implement various capital expenditures including setting up a greenfield organic silicon project, expanding its existing R134a refrigerant production capacity, and implementing a clean development mechanism (CDM) project (collectively the Capital Expenditure Program). The project will have a significant development impact with regard to employment generation and supporting the local economy as follows:     The Capital Expenditure Program will create employment opportunities.  It is expected that the organic silicon project will employ 225 people on permanent basis.  Also, Dongyue Chemicals will hire around 50 new staff to work in its expanded R134a plant and in its under-development CDM plant.  In addition, significant local employment will also be generated on temporary basis during the construction period of the greenfield and expansion plants.  Moreover, the Corporate Restructuring will significantly accelerate the growth of Dongyue Group, thus generating additional employment opportunities in various functions and various parts of the group.  The proposed project will contribute to the development of the local economy.  First, Dongyue Group plans to rely exclusively on Chinese contractors and construction workers for the implementation of its Capital Expenditure Program.  Second, Dongyue Groups main raw material for its existing operations is fluorite, which is sourced from mines located within China.  The increased demand on fluorite will stimulate investments in fluorite mines, some of which are located in the less developed Chinese provinces (e.g. Inner Mongolia).  Similarly, the groups proposed organic silicon plant will utilize silicon powder and methanol as the main raw materials, both of which are also sourced from Chinese producers.  And being primarily an export-substitution project, the company expects to sell its entire production of organic silicon domestically, and in many cases in the form of intermediate products for further processing by other Chinese manufacturers, thus generating significant local investment opportunities.   The key development indicators that are proposed to be monitored during the life of the IFC investment are:   - direct employment levels,  - volume of silicon monomers further processed within China into final products, and  - value of construction contracts awarded to local firms.