Hunan Valin Iron and Steel Group Co Ltd

Hunan Valin Iron and Steel Group Co Ltd (Valin Group) was established in 1997 through the merger of three large iron and steel groups in Hunan province: Lianyuan Iron and Steel Group, Xiangtan Iron and Steel Group and Hengyang Iron and Steel Group.

As a state-owned enterprise authorized by the State-owned Assets Supervision and Administration Commission, Valin Group possesses four wholly-owned subsidiaries and more than ten directly or indirectly owned subsidiaries. Valin Group has been developing for over ten years with vigor and vitality and has constructed a stable operation system with capital and assets as linkages.

The group adopts a dual layered operation mode which is conducive to the scientific and efficient management of its subsidiaries. The group's core business went public stably and gradually in the capital market.

In terms of its international development strategies, Valin Group established strategic cooperation with Mittal Steel through share transfer in 2005, and strives to continue to participate in the global steel industry and global economy. There are 57,000 employees in Valin, of whom 12,000 are professionals and technicians of various specializations.

Since its establishment, Valin Group, working towards the goal of "getting bigger and stronger", has carried out a series of deep reforms and innovative managements, and strengthened capital operation for its optimum construction and industrial upgrades to realize its sustainable, coordinating and leapfrog development.

The production capacity of steel has increased from 2.5 million tons in 1997 to 9 million tons by the end of 2004, while the output of steel soared to 7.13 million tons from 2.36 million tons, ranking it number eight in China. Valin's sales revenue has increased from 5.5 billion yuan to 26 billion yuan, which makes it the first enterprise group with sales over 10 billion yuan.

The three main economic indicators of Valin Group: total assets, sales revenue and total pre-tax profits have been listed as one of the Top 100 in China for successive years. Adhering to its development plan, Valin Group plans to continually take the capital operation as its impetus for product construction, internationalization and mixture. The group will also promote all-round innovation for systems, mechanisms, management, techniques and corporate culture, as well as all-round construction of digital Valin, potential Valin, financial Valin and centurial Valin.

The group is dedicated to the development of the recycling economy and the further improvements of technical and economic targets, which can accelerate the process of industrialization in the province and contribute to China’s transformation from a country with a large output of steel into a steel power country.