Hunan Valin Steel Co Ltd, in which ArcelorMittal holds a 29.48% stake said in the bulletin released that the Hunan Valin Xiangtan steel's stainless steel project only stays in the intent letter period, but not under construction.

However in the bulletin, Valin steel clarified that the letter is only a preparative for acquisition of land used for building not a confirmed project. Its board has not made any formal decision, and a final decision will not be made this year. Approval form shareholders and relevant authorities will also be necessary.

The steelmaker emphasized that the figures mentioned by the media on September 19th are just pro forma number in the letter, which hasn't been confirmed yet.

On September 19th 2008, it was reported that a strategic cooperation agreement between Hunan Valin Xiangtan Iron and Steel Co Ltd and The Xiangtan Government has been inked with the former to pour CNY 9 billion to build 700,000 tonnes per annum stainless steel and longitudinally welded pipe production lines in local. The estimated annual production value will reach over CNY 13 billion.

Listed Hunan Valin Steel Co Ltd owns 94.52% stake of Hunan Valin Xiangtan Iron & Steel Co Ltd.