Baosteel and Arcelor Signed Agreement to Set Up JV and Letter of Intent for Technology Transfer

On July 28, Baosteel and France-based Arcelor Company signed an agreement to set up a Joint Venture for Laser Tailor Welded Blanks Co., Ltd. and a letter of intent for stainless steel cold rolling technology transfer.

The advanced technology of the under constructed Shanghai Baosteel-Arcelor Laser Tailor Welded Blanks Co., Ltd. is provided by France-based Arcelor Automobile Company, while the high quality plate is provided Baoshan Iron and Steel Co., Ltd., the company will be located at the Shanghai International Automobile City Spare Parts Assembly Industrial Park at Anting town.

The total investment of the first phase project is RMB 2.43 Yuan, Baoshan Iron and Steel Co., Ltd. holds 75% of the stock with the rest 25% goes to Arcelor, it is estimated that the Company will be put into production at the end of 2004.