September 07, 2008

Jinan’s listing plan approval by its board of directors

Jinan Iron and Steel announced on its first provisional shareholder meeting held on November 22nd 2007 that a plan to issue additional A shares has got approval, which meant Jigang Group has moved a crucial step towards overall listing on the stock market.

Jinan Steel proposes to raise money by issuing another less than 380 million A shares to purchase certain asserts in Jinan Iron and Steel Group Corporation a big shareholder in Jinan Steel.

The targeted assets include continuous HR plant, CR plant, gas based power project, power plant, transportation department, automatic department and other relative assets with net value of CNY 6.736 billion.

HR plant was founded on March 10th 2005 and put into production in January 2006 with design capacity of 2.5 million tonnes per year. It mainly produces HR coils with ordinary carbon, premium carbon structure, low alloy and pipeline grade. The CR plant was founded on September 19th 2005 and come into operations at the end of 2006.