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[March 2009]
Gengsheng Minerals Signs New Supply Contract With Jiangsu Sha Steel Group
China Gengsheng Minerals Inc (Gongyi, China) has signed a refractory material supply contract with Jiangsu Sha Steel Group Co Ltd's Zhangjiagang-based subsidiary. The total value of the contract is US$1.2 million.
Pursuant to the contract, Gengsheng will ship refractory materials for reheat furnaces used in Sha Steel's hot rolling mill in Zhangjiagang, Jiangsu Province. Sha Steel is China's largest non-state-owned steel producer by output. Founded in 1975 and headquartered in Zhangjiagang, Sha Steel has a total annual capacity of 24 million tons of rolled steel products, according to its website.
"I'm pleased with our new supply contract with one of China's biggest steel manufacturers," said Shunqing Zhang, Gengsheng's Chairman and CEO. "Inventories declined in late 2008, but we now are seeing Chinese steel mills quickly re-stocking their products, especially hot rolled steels for infrastructure materials designed for railroads and highways. We are hopeful that the Chinese stimulus package will yield more opportunities like this for us to supply to large steel mills that benefit from this Chinese government policy."
In 2008, Sha Steel ranked 36th among the top 500 Chinese industrial enterprises, 12th among the top 500 Chinese manufacturing enterprises and 2nd in all Chinese non-state-owned enterprises.
ENDS