Longhai commenced production from its second facility in Xingtai, Hebei province, China in the fourth quarter of 2011. The new state of the art steel production facility is capable of producing higher grade wire products used in various end markets including steel belted radial tires.

Production in the first quarter of 2012 was limited due to factory closures related to the Chinese New Year and the availability of higher quality steel billet.

Longhai Group a related party controlled by Longhai Chairman is currently expanding its steel billet capacity at a mill adjacent to Longhai second production facility. Once this steel billet capacity expansion is complete by early mid third quarter of 2012, Longhai will have access to sufficient steel billet supply to reach full operating capacity at its second facility.

Source - Longhai Group

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