Shanghai Krupp Stainless heads for production start-up early 2002

Shanghai Krupp Stainless Co., Ltd. will start-up commercial operations with the beginning of 2002. The company is a Joint Venture between the ThyssenKrupp group company Krupp Thyssen Stainless GmbH, Duisburg, (60 %-shareholder) and the Baosteel group company Shanghai Pudong Iron & Steel (Group) Co., Ltd., Shanghai, (40 %-shareholder).

On 30 November 2000 Shanghai Krupp Stainless will celebrate the topping-out and the arrival of the key equipment. With the commencement of assembling the key equipment for the cold rolling mill the Joint Venture will enter into a decisive phase.

This occasion will be celebrated by the Project Company on November 30, 2000 on the construction site in Pudong in the presence of high ranking representatives of the City of Shanghai, of the Baosteel group and the ThyssenKrupp group, together with future customers, banks representatives, suppliers and construction workers from the site.

The Joint Venture was signed in a large ceremony in Beijing in December 1997 and was established with the constitution of the company in April 1998.

The investment volume for the total project, an integrated stainless steel plant for the production of stainless sheet and strip with the total capacity of 440,000 tonnes per year, amounts to 1.4 billion US$. The financing is supported by the World Bank Group branch International Finance Corporation and by Kreditanstalt für Wiederaufbau.

The completion of the project is scheduled for the end of the year 2006. The first phase with a production capacity of 72,000 tonnes per year of cold rolled stainless sheet and strip shall be completed by the end of the year 2001. The start-up of commercial production is scheduled for the beginning of the year 2002. According to today?s status of implementation this target will be met.

The Chinese market for stainless steel flat products is very attractive. The volume has increased to 1.5 million tonnes per year, with further on strong growth rates. Although the domestic stainless steel flat production has also increased, almost 80 % of the domestic demand is still covered by imports. With this background the planned stainless steel plant has the best perspectives.

Krupp Thyssen Stainless is the leading group company of the business segment stainless in the ThyssenKrupp group. The company coordinates the international activities of the stainless branch. The German based Krupp Thyssen Nirosta GmbH, Krefeld, the Italian Acciai Speciali Terni spa, Terni, the Mexican Mexinox S.A. de C.V., San Luis Potosi, and Krupp VDM GmbH, Werdohl, producer of nickel base alloys at locations in Germany and USA, have generated with their nearly 12.000 employees sales of 4.3 billion Euro with shipments of about 2 million tonnes of stainless steel flat products (thereof 1.5 million tonnes cold rolled sheet and strip) and 0.5 million tonnes other special steel products. With this output Krupp Thyssen Stainless is the largest producer of stainless steel flat products worldwide and looks back as the oldest stainless steel producer worldwide to an experience of 88 years. With the Joint Venture Shanghai Krupp Stainless the ThyssenKrupp group further expands its position as the world?s leading stainless steel producer and intensifies the internationalisation of the business segment stainless into the large consumer regions of the world.

Shanghai Pudong Iron & Steel, founded in 1913, is, with a production capacity of 1.8 million tonnes of crude steel and 2 million tonnes of finished products, the largest manufacturer of alloyed and stainless steel middle and heavy plate and one of the largest steel producers in China. 12,000 employees generate in 10 production locations total sales of 5.5 billion RMB (660 million US$). Beyond the supply of the Chinese market the company also exports to the USA as well as to Canada, Japan, South Korea and South East Asia. Shanghai Pudong Iron & Steel is one of the main subsidiaries of the Baosteel group for steel production. It has accumulated plentiful experience and has taken an expansive market approach in alloyed and stainless steel products. It is also one of the most competitive steel manufacturers in China at present.

The ThyssenKrupp group has sustained a close relationship with China for more than 100 years. Already in 1870 the first representative office was opened in Beijing. For many years there has been a close and friendly relationship between Baosteel and the ThyssenKrupp group in the field of technical assistance.

For further information, please contact :
Mr. Kreuser, Krupp Thyssen Stainless GmbH
Tel. +49 203 52-45 130, fax - 45132