Hodeidah Industrial Zone (HIZ). The total cost of the project is $45 million.The project is constructed on an area of 194,000 square meters in the HIZ."The project is composed of three phases,” said General Director of the HIZ Abdullah Al–Bukari. “During the first phase, the company started building concrete bases for the new factory as well as for its residential compound last November. It will be opened officially next May." Yang Shomen, General Manager of the project, said "The first phase of the project costs $15 million. This phase will provide job opportunities to 200 Yemenis besides 100 Chinese engineers. The daily production in this phase is 200 tons of iron a day." He indicated that the second phase would be finished in 2010 and the third phase in 2011, clarifying the Chinese part of the project has 80 percent of the shares while the Yemeni part has only 20 percent. However, he asserted the high value of the factory for Yemenis and Chinese alike. "We have visited other iron factories in the country but our factory will be the greatest one in the country. Its daily production output will be 500 tons," said Shomen.For the production of iron, the project will depend on imported raw materials and on fusing collected metal scraps from scrap merchants, stated Al-Bukari. The project, in its three phases, will provide 1500 work opportunities to Yemeni labors. Its annual production will eventually be increased to YR 400,000 thousand, or $2 million. It will help Yemen's development and will invigorate the national economy with foreign currency.Concerning electricity, the project manager said they could not access the public electricity supply. As a result, the company bought 26 generators with a power output of 13 megawatts. Regarding this issue, Al-Bukari said that since Yemen already suffers from energy shortages, operating such great factories will increase the problem of electricity blackouts. However, when the new electric gas stations in Mareb and Dhamar begin operations, these factories will benefit from public electricity.Pertaining to environmental measures, Al-Bukari said the General Authority for Protecting the Environment has conducted a study for getting rid of waste generated by such factories. "Environmental measures are necessary; the company has considered this issue and has agreed with the Environment Authority on every environmental issue concerning the factory," stated Al-Bukari.He continued to say that the HIZ zone provides tempting offers to investors, such as free land as well as customs and tax exemptions, in order to encourage companies to invest in the zone.The factory is the third one in the country besides the iron factories in Lahj and Aden.The Hodeidah Industrial Zone was established five years ago upon the cabinet's decision within the government's plan to establish industrial zones across the country in order to encourage investment. So far, the zone has granted licenses for constructing three factories that will produce iron and sugar. It also granted a license for an industrial compound for manufacturing fiberglass and small boats.