Jinan Iron and Steel Co., Ltd. (600022) recently unveiled a public offering scheme in which the company would acquire certain assets from its largest shareholder, Jinan Iron & Steel Group Corporation. In the scheme, a total of 380 mln shares will be issued to the public. After listing, the company's core competency will be leveraged within the 'green economy', one of the company's strengths.

In recent years, raw materials prices and production costs have been rising steadily, while regulations on steel exports have been tightening. In the face of adversity, the company has been making great efforts to transform its growth pattern and optimize its corporate structure. Moreover, the company has raised 'green' investments, going so far as to develop a 'green economic model'.

In 2007, the company invested nearly RMB 4 mln in 52 environmental projects. As a result, it reached a 6% pollution reduction target. On more than 200 days, the air quality in its plant reached the second level within national standards. In addition to the obvious economic benefits, the company has demonstrated its worth as a socially-responsible player. Following the listing, the 'green' economic concept will be further promoted and applied.


Source: Securities Daily

Date: 24 Oct 2008

CN01/FL/JL/NK/MM