Shanghai-based China Precision Steel Co. Ltd has announced that it will issue and sell 7,100,000 of its common shares on the Shanghai Stock Exchange in order to raise $47,925,000. $18 million of this figure will be spent on purchasing a new hydrogen annealing furnace as well as a new 1,700 mm cold rolling mill. Meanwhile, $22 million will be used to repay the company's existing bank debts and for general corporate purposes.
China Precision Steel is a precision steel processing company principally engaged in the production and sale of high precision cold rolled steel products. It also provides value-added services such as heat treatment, in addition to the cutting of medium and high carbon hot rolled steel strips. China Precision Steel produces high precision ultra-thin and high-strength (0.03 mm to 7.5 mm) cold rolled steel products primarily for automotive components, food packaging materials, saw blades and textile needle manufacturing companies.