Baosteel Zhanjiang Iron and Steel Co., Ltd

Baosteel Zhanjiang Iron and Steel Co., Ltd. was established on May 25, 2011 at Jinhai Hotel in Zhanjiang City, Guangdong Province. Baosteel Zhanjiang Iron and Steel Co., Ltd. was established on March 17, 2008 with the approval of the State Council to carry out preliminary work for the Guangzhou Iron and Steel Environmental Protection Relocation Project. The National Development and Reform Commission also requires Baosteel to merge and restructure Shaogang Group (hereinafter referred to as "Shaogang") and Guangzhou Iron and Steel Group (hereinafter referred to as "Guangzhou Iron and Steel"), and establish a new company controlled by Baosteel. Guangdong Province needs to eliminate 10 million tons of outdated steelmaking capacity in the province in conjunction with the construction of the Zhanjiang Iron and Steel Project. After implementing relevant procedures, the Zhanjiang Iron and Steel Project will be submitted for approval according to the prescribed procedures. At that time, the design and construction scale of the Zhanjiang Iron and Steel Project was an annual output of 10 million tons of steel plant, with a total investment of 69.7 billion yuan. Subsequently, Guangdong Iron and Steel Group, which aimed to integrate Shaogang and Guanggang, was officially listed, while the Zhanjiang Iron and Steel project has not yet received formal approval from the National Development and Reform Commission due to the outbreak of the financial crisis and overall overcapacity in the steel industry. In May 2010, the Guangdong Provincial Development and Reform Commission even proposed a "flexible approach" of relocating and building a 5 million ton high-quality steel base in Zhanjiang through Guanggang Environmental Protection, in order to solve the embarrassment of the Zhanjiang project being unable to be approved as much as possible. Now, the low-key listing of Zhanjiang Iron and Steel Company also further demonstrates Baosteel's determination to continue promoting this project. After the establishment of Baosteel Zhanjiang Iron and Steel Co., Ltd., the main focus was on preparing for the Zhanjiang steel project. Currently, the construction of a raw material terminal is underway. The investment entity of Baosteel Zhanjiang Iron and Steel Co., Ltd. has quietly changed. Previously, Guangdong Iron and Steel Group, which was established through the restructuring of Shaogang and Guangzhou Iron and Steel by Baosteel, was the main investor in the Zhanjiang project. However, the newly listed Zhanjiang Iron and Steel Company is currently wholly owned by Baosteel Group and may also introduce some asset investments from Guangdong Province and Guangzhou City in the future.

At the investment briefing, Zhanjiang signed 30 key projects with large central enterprises, large consortium foreign enterprises, and well-known private enterprises, with a total investment of 56 billion yuan, involving petrochemicals, transportation, finance, biopharmaceuticals, logistics and warehousing, including large central enterprises such as Sinopec, China Railway Construction, and China Chengtong.

In recent years, a number of key industrial projects have successively settled in Zhanjiang, including the largest joint venture project introduced by China to date, the Zhongke Refining and Chemical Integration Project, as well as Baosteel Zhanjiang Steel Project, Chenming Paper Industry, etc., which have brought great opportunities for the economic development of Zhanjiang.