China Infrastructure Construction Corp's newconcrete production Xi'an plant in China has begun operations

Because of high labor and operating costs, many Chinese companies have begun to move their operations from eastern China to western China, where labor and operating costs are considerably less expensive than in the more developed coastal regions. Significant infrastructure and logistics systems upgrades and expansions are expected in China's western provinces in order to support growing fixed asset investments by governments and businesses in the region.

Xi'an, located in Shaanxi Province and often referred to as the "Gateway to the West," is expected to benefit from massive investments in infrastructure by the Chinese central government as well as regional and local authorities for many years to come. Xi'an is poised to become a "super city" with a population of 10 million people or more by 2020, compared to approximately 8.3 million today.

China Infrastructure Construction Corp. (CHNC)'s new concrete production plant in Xi'an, China has begun operations and contributed to total revenues in line with management's expectations for the first fiscal quarter ended August 31, 2010