PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 4. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

	December 31,
	2012			2011
Machinery and equipment	$	33,393,352		$	30,856,247
Furniture and office equipment		278,853			178,045
Motor vehicles		528,137			443,870
Buildings		32,346,098			25,777,820
Construction in progress		3,078,514			-
Subtotal		69,624,954			57,255,982
Less: accumulated depreciation		(17,444,857	)		(12,978,754	)
Net property and equipment	$	52,180,097			44,277,228

There were no impairment provisions made at December 31, 2012 and 2011.

Depreciation expense included in general and administration expenses for the year ended December 31, 2012 and 2011 was $391,532 and $444,877, respectively. Depreciation expense included in cost of sales for the year ended December 31, 2012 and 2011 was $4,023,824 and $2,931,041, respectively.