We believe the time is very much ripe to undertake this exploratory mission

Ree-Chok, Ministry of Foreign Trade

Workers look on as the machines turn. Some clean the clearly ageing equipment. Huge bright pictures, with exhortations from the Communist Party, adorn the walls.

And at the entrance is a commemorative stone, carved with words and portraits of the country's founder, the late Kim-Il-Sung, and his son, the current leader, Kim Jong Il.

Plant manager Kim Song Man said the factory was renamed to commemorate the day the two leaders paid a visit.

"The development history of our factory, how it's been managed and operated," he said, "has closely followed the wise guidance of our leaders."

But the low-tech factory clearly needs more help. And that help may soon come in the form of a joint venture with the Swiss company ABB. Impoverished and reclusive North Korea is finally wooing foreign investors.

Problems and potential

In a meeting with the first ever British trade mission to North Korea, Ree-Chok, Deputy Director-General of the Ministry of Foreign Trade, is open about the problems his country has faced.

This is most certainly not a get-rich-quick market

Keith Bennett Member of UK trade mission

He says there are three reasons: the collapse of the former Soviet Union, US economic sanctions and a series of natural disasters. North Korea called that period "the arduous march".

Mr Ree said that while the worst has been overcome, electricity and food shortages are still a problem.

"Following the establishment of diplomatic relations, we believe the time is very much ripe to undertake this exploratory mission, in which we will find out the likely potential for commercial and business opportunities," he said.

Pictures of Kim Jong Il adorn the country's workplaces

The British trade mission is a rare chance for businessmen to get a better insight into the reclusive state, and assess areas for possible development. Several other countries who have recently formed ties with North Korea have already sent trade delegations to the Communist state.

The potential is there and so are the problems. But Keith Bennett, a member of the UK trade mission and a consultant specialising in the Far East, believes there will be increasing interest in doing business with North Korea.

"Nearly all opportunities that may be here are of a medium to long-term nature. This is most certainly not a get-rich-quick market. At the same time, we have a country which is coming into the international community with huge developmental needs. It's not possible for the country to address them all at once," he said.

"But, as they address them step by step, hopefully, that will inevitably create major opportunities for business. And of course this is an extremely mineral-rich country, with great potential.

"There are enormous problems with actually bringing that potential to fruition - problems of energy supply, infrastructure, transportation, markets and so on. But in the long term, every challenge is also an opportunity in business."

Success stories

Power shortages mean many factories are lying idle. But there are success stories. Korea Unhar General Trading Corporation is the biggest garment-processing company in the country, employing more than 30,000 workers.

It exports clothes to Europe, Asia and the US. Pakyon Gyun, Executive Director of the Korea Textile and Clothing Association, said the industry has rapidly expanded.

"It's the main part that we can develop easily and where we can have enough major labour force. And also our workers are very skilful," he said.

Several pioneering foreign companies are now working in North Korea, but many are still nervous

The materials are often not made locally. "For local domestic needs, we produce by ourselves. But in order to export to the international market, we import most of the fabrics," said Pakyon Gyun.

"Sometimes we do the designing, sometimes the customers send their designs - everything, the technical documents even, so that we can follow them exactly."

Even at this showcase centre, there's a need to modernise equipment. Unhar's management are pursuing joint ventures to get access to much-needed foreign currency.

Several pioneering foreign companies are now working in North Korea, but many are still nervous. The North remains undecided about whether it will adopt economic reforms following the Chinese model.

But it is looking at clarifying legal procedures and other investment codes - signs that the country is serious about opening its doors to foreign business.