The Group's first state-of-the-art GGBS/GGBFS plant in China, Tanglong Materials Co. Ltd., is a joint venture (JV) between Tangshan Iron & Steel Group (TISCO) and EnGro Corporation Ltd. With an annual capacity of 600,000 metric tons, our Tanglong mill has quickly established itself as one of the leading players not only in Tangshan city, but also in Beijing and Tianjin markets.

As demand exceeded supply in 2005, we saw the need for expansion and initiated a second JV between Tangshan Iron & Steel Group (TISCO) and EnGro Corporation Ltd., adding another 600,000 metric tons to our annual production, bringing it to a total installed capacity of 1.2 million tons of GGBS each year.

Both Tanglong and Tang-Ang are ideally located to tap into the integration of the economies of Beijing, Tianjin and Bohai Bay Rim, which will hold the key to the country's development in the coming decades.

Jinan Luxin Materials Co. Ltd. was formed as a joint venture (JV) between Jinan Iron & Steel Group (JISGCO) and EnGro Corporation Ltd. in July 2003. With an annual GGBS production capacity of 600,000 metric tons, this company constitutes Phase One of our GGBS venture in the beautiful city of Jinan.

To cope with the overwhelming local demand of GGBS, a Phase Two joint venture between Jinan Iron & Steel Group (JISGCO) and EnGro Corporation Ltd. was established in November 2005.

Together, Luxin and Luang are both well positioned to tap into the redevelopment of Jinan city into a modern city and the financial centre of Shandong province. In addition to servicing Jinan market, our plants will also supply GGBS to 5 neighbouring cities of Zibo, Laiwu, Dezhou, Liaocheng, and Tai'an with a total population of over 27 million people.

Formed in October 2005, Jiangsu Huailong Materials Co. Ltd. is located in Huaian city and is a GGBS joint venture (JV) between Jiangsu Huaigang Group Co. Ltd. (HuaiGang) and EnGro Corporation Ltd. Equipped with state-of-the-art technology, this JV presently has installed capacity of 1.2 million MT GGBS per year.

HuaiGang is ranked 3rd largest in China and 15th in the world for the production of specialty steel. It has a capacity to produce 2.3 million tons annually, which it plans to expand to 3 million tons by mid 2007.

Besides Huaian city, which covers an area of about 10,030 sq. km with a population of 5.1 million, this JV will also supply GGBS to neighbouring cities, namely Lianyungang port, Suqian city, Yancheng city, Yangzhou and Taizhou city with a total population of 27 million.

Formed in partnership with a leading Korean company, Aju Industrial Co. Ltd and EnGro Corporation Ltd in September 2002, VCEM Materials Co. Ltd has a 500,000 metric ton annual slag grinding capacity.

Located near Incheon Port, it is well positioned to address the slag powder demand of the Greater Seoul market. The Aju Group's construction materials division is a major supplier of ready mixed concrete, asphalt concrete and centrifugal reinforced concrete.