Alliance among Handan, Wenfeng and Delong Steel

SteelOrbis Shanghai Handan, Wenfeng and Delong Steel inked strategic alliance agreement on March 23, 2006, signifying the very first step of restructuring in southern Hebei Province. Handan Iron and Steel Group Company Limited is a state-owned enterprise in Hebei Province producing 8 million metric tons of steel products per annum. Wenfeng Iron and Steel Company is situated in Handan, and Delong Iron and Steel Company is in Xingtai. Both companies are private enterprises with more than 2 million metric tons annual output. The companies have allied to cooperate in imported iron ore purchase, product sales, human resources, management and other similar fields. The companies will also examine restructuring possibilities in order to build an iron and steel group in southern Hebei. Hebei Province is the largest iron and steel producing province with many steel mills. It is also a key area on restructuring iron and steel industry. The provincial government has entrusted Tangshan Steel and Handan Steel with restructuring the industry in southern and northern Hebei respectively. Tangshan Steel has completed merging with Xuanhua and Chengde Steel so far and the new Tangshan Iron and Steel Group has become the second largest steelmaker of China after Baosteel. Meanwhile, Handan Steel's previously planned merger with Shi Jiazhuang and Xintai Steel had to stop as CiticPacific purchased Shi Jiazhuang Steel while Xintai Steel held an initial public offering (IPO) on Hong Kong Stock Exhange.