Motor Vehicle Tail Gas Catalyst to Be Produced in
            Chinese-German Joint Venture Enterprise
The letter of intent has been  signed  for  establishing  a
motor  vehicle  tail  gas  catalyst  company  by  Shanghai
Pacific Chemical Industrial (Group) Co. ,   Ltd. ,   China
Automobile Industrial Corporation and Degussa Co., Ltd. of
Germany.
The joint venture company will have a total  investment  of
30 million marks and a tail gas catalyst  capacity  for  2
million automobiles and 1 million motorcycles. The project
will be implemented in Wujing Chemical  General  Plant  of
Shanghai Pacific Chemical Industrial (Group) Co., Ltd.  in
phases and completed in June 1999.