Introduction to Handan Zongheng Iron & Steel Group Co., Ltd.

    Handan Zongheng Iron & Steel Group Co., Ltd. is a joint venture which established in

2003. Located at Hucun Industry Zone, West Suburb of Handan City, the corporation is a

integrative steel associated enterprise which combine sintering, ironsmelting,

steelmaking, steel rolling, oxygen generation, electricity generation together, it now

own staff more than 4000 persons, annually produce iron, steel, rolled steel each more

than 2.5 million tons, is large scale iron & steel enterprise group which mainly

supported by Hebei Provincial Government during the 11th Five-Plan, also is a larger hot

rolling middle-width strip steel base in China. It is president member of Non-government

Enterprise Association of Handan City, vice-chairman member of Metallurgy Industry

Association of Hebei Province, vice-chairman member of Metallurgy Industry Federation of

All-China Federation of Industry & Commerce, member of China Iron & Steel Association.

    The corporation largely adopts foreign and domestic mature techniques, its

manufacturing technique is compact, layout is reasonable and physical distribution is

convenient. As to the equipment, relay on China First Heavy Industries, China National

Erzhong Group Co., Haerbin Hadong Electromechanical Equipment Co., Ltd., Sichuan Air

Separation Plant (Group) Co., Ltd. and other excellent equipment manufacturers, based on

domestic equipment, and introduce foreign equipment from USA, Germany, Italy and other

countries.

    The main products are high-quality carbon strip steel and low alley strip steel with

1.5-14mm in thickness, 350-735mm in width, which can directly used for producing ¦µ140£­

219mm large caliber weld pipe with straight sew, lower than ¦µ630mm spiral weld pipe,

guardrail board in expressway, sheet steel form, auto crossbeam, shelf and other steel

structure, also can be as cold rolled steel strip, process to be zinking board, color

board and other high grade product after rolling, or after processing directly use to be

as raw material for thin wall weld pipe, electric cable bridge frame, can-making,

stamping and other industries. In year 2006, Zongheng Iron & Steel Group achieved steel

output 2.45 million tons, sale income RMB 7.5 billion yuan, profit payments and tax

turnover RMB 970 million yuan, handed in tax above than RMB 200 million yuan.

    After established the corporation, it is in lawful operations with good faith, was

granted titles of ¡°AAA Credit Customer¡± by China Construction Bank, ¡°Top 500

Enterprises of China Manufacturing Industry¡±, ¡°Top Hundred Enterprise of Hebei

Province¡±, ¡°Advanced Grass-roots CCP Organization of Hebei Province¡±, ¡°Countrywide

Town & Country Law-abiding Enterprise¡±, ¡°Great Non-governmental Taxpayer of Handan

City¡± and ¡°Punctuality Enterprise which Strictly Abide by Contracts of Handan City¡±

and others. In Oct. 2006, at the China¡¤ Hebei¡¤ International Forum of Iron & Steel

Enterprise Development Strategy which held at Tangshan City, the corporation was

appraised one of Top Ten Influential Non-governmental Iron & Steel Enterprises of Hebei

Province of year 2003-2005.

    With solid strength and good faith, the corporation pay attention to establish

strategic cooperation union. At present, it has established long-term strategic

cooperation relationship with Sinosteel Corporation, China Railway Materials Import &

Export Co., Ltd, China Minmaterials Corporation, Zhejiang Materials Industry Group and

other top enterprises, and has set up Teaching & Scientific Research Practice Base with

University of Science & Technology Beijing and other universities.

    The corporation pay attention to quality control, passed certification of ISO 9001

international quality system, and was awarded honor title of ¡°Quality & Credit

Demonstration Enterprise of Hebei Province¡±.

    The corporation pay attention to modern scientific management, established human

resources management system which centered in human resources increment, information

management system which centered in knowledge share, financial management system which

centered in cost control, marketing management system which centered in basing

production on sales prospects, device management system which centered in examination

and prevention, technique management system which centered in technique introduce and

development, environmental protection management system which centered in clean

production.

    Concentrating enterprise spirit, strengthening excellent team consciousness through

keep perfecting the organizations of party and labour body, the corporation pays much

attention to construction of harmony enterprise, forms well atmosphere of harmonious

order and active enterprise. In recent years, Zongheng Iron & Steel Group not only paid

all kinds of social insurances for all staffs, including endowment insurance,

unemployment insurance, industrial injury insurance and others, but also consciously

build staff welfare house more than 1000 units, solved staff¡¯s fear of disturbance in

the rear at the root.

    At the same time, the corporation actively promotes clean production, maximum lowers

the operation cost. In recent years, according to national environmental protection

requirement, the corporation kept adopts advanced mature technique of iron & steel

industry to integrate working procedure, set up many energy comprehensive utilization

projects, including coal injection with abundant oxygen, hot metal pretreatment, LF

refining, TRT electricity generation, electricity generation by margin coal gas and

others. Besides, Zongheng kept introduce environmental protection devices, made the

environmental protection system of enterprise to domestic advanced level in the same

trade, realized beneficial cycle of benefits of enterprise grow in step with

environmental protection and energy comprehensive utilization.

    Lead by Sun Jimu, board chairman and secretary of the Party committee of Zongheng

Iron & Steel Group, all the Zongheng¡¯s staff swear to make Zonghenb to be a

¡°Scientific style, Environmental Protection Style, Benefit Style¡± national top-ranking

modern non-governmental iron & steel enterprise with best competitive power, best labor

efficiency and best staff satisfaction.