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[ferro-alloys.com]On August 14, Liugang shares announced that they are planning to increase the capital by cash according to the legal procedures for Guangxi Liuzhou Iron and Steel Group Co., Ltd. After the implementation of the capital increase, Liugang shares will become the controlling shareholder of Guangxi Iron and Steel, and Guangxi Iron and Steel will be included in the consolidated statement.

Introduction of Fangchenggang base

According to statistics, the total investment of the Fangchenggang iron and steel project is expected to exceed 36 billion yuan, it will produce the annual capacity of 8.5 million tons of iron and 9.2 million of crude steel. By the end of June this year, the fist phase of Fangchenggang iron and steel base has been put into operation, the steel products are mainly for automotive, construction and home appliances industries, the target markets include Guangdong, Guangxi, Hainan and southwest area of the country, and overseas market in Southeast of Asian.

Guangxi iron and steel group is the investor of Fangchenggang iron and steel base, aiming to set up a ten million tons iron and steel project, it first set up by WISCO Group and Guangxi SASAC in 2005. The continuation of Fangchenggang base start formally after Liugang group taking over the Guangxi Liuzhou Iron and Steel Group Co., Ltd.

The latest development of Fangchenggang iron and steel base

On August 13, the operation ceremony of automatic sampling system of Fangchenggang base project (phase 1) inspection engineering of Liugang group was held in A1 sampling building. A1 sampling building is close to the south coast of Anti-steel, which is the cruel supporting facilities of transporting the import crude fuel of 0.2 million tons between the dock and raw material yard. It marks an important step in automation, intelligence and risk control of inspection system equipment of Liugang Group and create favourable condition for the smooth opening of Anti-steel cosat.

Source: Liugang Stock

• [Editor:wenxin]