1. Project Name: 0.8 Million Tons of Flat Cold-rolled Sheet

2. Project Unit: Shandong Taishan Iron & Steel Co., Ltd.

This company is a synthesized combined iron and steel enterprise with the annual production capacity of 1.2 million tons of pig iron, 1.6 million tons of steel bloom and 1.6 million tons of other steel products. It has the total assets of US$0.28 billion, various of technicians accounting for 27% of its total staff and workers, set up a provincial grade technological development center and passed ISO9002. This company owned Taigang Industrial Zone covering a land area of 10 square kilo metres with scientific design, reasonable layout and complete supporting facilities and is fostered by Laiwu city as a key iron and steel base. It is planned to have the production capacity of 5 million tons of iron and steel in 2007.

3.Project Content :

This project will be located in Taigang Industrial Zone and is expected to construct a production line with an annual output of 0.8 million tons of cold-rolled sheet in specifications of 0.25-2.5mm X 450-800mm and 0.25-2.5mmX700-1300mm. The products are common straight carbon steel, fine straight carbon steel and low-alloy high-strength structural steel etc. This project is expected to be finished by two terms and will cover a land area of 39,000 square meters.

4.Total Investment: US$0.135 billion

5. Cooperative Way: Joint venture, cooperation, financing or loan

6. Market Analysis:

This project is the outreached project of this company's 950 hot-rolled mid-wideflat steel, its products are mainly and widely used in agricultural vehicles, home appliances, miscellaneous hardware, cupboard and cabinet, galvanized sheet etc., so to make investment in this project has broad prospects.

7. Economic Benefits:

After this project is completed and put into operation, the estimated annual sales revenue is US$0.3 billion, profit US$45 million and investment pay off period 3 years.