Zinc is the third most used Non-ferrous metal, next only to copper and aluminum. It is extensively used in galvanized sheets, alloy materials, paints, pharmaceutical, chemical, electrical and other industries. The rapid development of China's industry stimulated the growth of zinc smelting industry in our country. Since 2003, this industry saw a more than 10 per cent increase every year. Product quality has reached international advanced level.

China's major zinc production enterprises all organize production in accordance with national standards that are stricter than international advanced standards. So their zinc ingots have higher quality than international level. These enterprises were certified by and registered in the London Metal Exchange one after another. This part of business of the Shaanxi Non-ferrous Metal Holding Group Ltd. is operated by Hanzhong Bayi Zinc Industry Co., Ltd. and Shaanxi Zinc Industry Co. Ltd.

Taking zinc smelting as primary business, the Hanzhong Bayi Zinc Industry Co., Ltd. (HBZIC) is a medium-sized comprehensive corporation which integrates scientific research, manufacturing and trading efforts, and combines Non-ferrous metals mining, dressing, smelting and integrated recovery, industrial lubricants production, lead and zinc smelting design and research, and Non-ferrous products import and export in one. As a core member of Shaanxi Non-ferrous Metal Holding Group Ltd., HBZIC is a lead & zinc smelting base. Through technological innovation, now, HBZIC has an annual production of 120,000t high purity zinc and 200,00t sulfuric acid that are made through leaching process with high concentration of sulfuric acid at high temperature, and deep purification. This China¡¯s largest production line was developed by the company itself in combination technical introduction and assimilation with independent intellectual property right and noticeable effect in environmental protection and energy saving. As one of the eight enterprises in line with the state¡¯s industrial policy in 2006, HBZIC yielded zinc ingots 108,500 tons and industrial sulfuric acid 180,000 tons this year, entering the ranks of China¡¯s top 10 lead & zinc enterprises, and attaining total industrial output value 2.537 billion Yuan, sales revenue 2.513 billion Yuan, and profit & tax 266 million Yuan, of which, profit 106 million Yuan. Electrolytic zinc production ranked the seventh place in China for two consecutive years. In 2007, HBZIC produced zinc ingots 120,000 tons and industrial sulfuric acid 200,000 tons, achieving both total industrial output value and sales income over 3 billion Yuan, and profit & tax 350 million Yuan. HBZIC passed the China National Centre for Quality Supervision and Test of Heavy Non-ferrous Metals¡¯ on-site sampling inspection for five consecutive years. Its products have been recommended as preferred brand by the Shanghai Non-ferrous Metal network, starting in 2005. High-purity zinc was awarded ¡°Gold Prize for Non-ferrous Metal Products¡± by China Non-ferrous Metals Industry Association for two consecutive times, respectively in 2005 and 2007, and named as ¡°Shaanxi¡¯s Famous Brand¡± in 2007. HBZIC was recognized as "Advanced Enterprises in Taxing" by Hanzhong Municipal Government, and as "Class A Taxpayer" by both Shaanxi National Taxation Bureau and Shaanxi Local Taxation Bureau, and awarded the title of "Advanced Enterprises in Scientific and Technological Innovation" by Hanzhong Municipal Government in 2007.

The Shaanxi Zinc Industry Co. Ltd. Shangluo Plant was transformed from Shangluo Smelting Plant in line with stock system. As a key construction project listed in Shaanxi¡¯s Seventh Five-Year Plan, it was the first enterprise engaged in large-scale zinc smelting in Shaanxi province. The plant was founded in 1987, and put into operation in 1990, and passed provincial acceptance check in 1993, and arrived at full production capacity in 1994. Its original annual production capacity is 8,000t electrolytic zinc and 12,000t sulfuric acid. After more than 10 years of rolling development, in 2007, its annual production capacity has reached 55,000t electrolytic zinc, 20,000t sulfuric acid, and with a variety of byproducts such as cadmium ingots, nicotinic acid, zinc powder, zinc oxide, etc.

Through repeated technical renovations, now, the enterprise is provided with advanced production technology and equipment, and complete monitoring facilities, and is already accredited to ISO9000:2000 quality system. Its "QinZinc" branded zinc ingots was awarded the title of ¡°Shaanxi Province¡¯s Excellent Products¡±, and the brand of "QinZinc" was rated as ¡°Shaanxi Province¡¯s Famous Trademark¡±. The products enjoy a high reputation in the market, not only sell well in China¡¯s more than 20 provinces, cities and autonomous regions, but exported to Japan, Korea and Southeast Asian countries.

Currently, the 100,000t electrolytic zinc and 180,000t sulfuric acid expansion project is being implemented, which complies with the state¡¯s industrial policy, and have passed safety and environment assessment. By June 2008, annual production capacity of electrolytic zinc will reach 100,000 tons, and reach 200,000 tons in 2009.