October 12, 2008

Shougang to build CR JV in Beijing

Shougang announced on November 28th 2007 that Shougang Company, the controlling shareholder of Shougang Corporation and the Beijing Automobile Investment Company to jointly invest to set up Beijing Shougang cold rolled sheet Limited company.

The new company is the key project for Shougang removing and adjusting product structure, the total investment is about CNY 6.4 billion and the registered capital is CNY 2.6 billion. Beijing Shougang and parent Shougang Corp. plan to invest CNY 2.08 billion together for controlling 80% stake of the factory and Beijing Automobile Investment Co. get the remaining share.

The new 1.5 million tonnes per year CR mill located in the capital's Shunyi District and two HDG lines with a combined capacity of 800,000 tonnes per year will follow later this month. The CRC mill is capable of producing coil up to 1,900mm wide coils. About 800,000 tonnes of its output will feed the HDG lines and 400,000 tonnes will be used to make automotive outer body panels for car makers in the Beijing area.

Shougang Qian'an Steel Co Ltd would supply the HRC to feed Shougang's CRC mill according to a framework agreement signed between Beijing Shougang and Qian'an Steel.