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Increased Production of TISCO Expected to Increase Market Demand for BEIC
TAIYUAN, China, Feb 16, 2007 /Xinhua-PRNewswire-FirstCall via COMTEX/ -- Beicang Iron & Steel Inc. (OTC Bulletin Board: BEIC) (''BEIC'' or the ''Company'') announced today that following an announcement from Taiyuan Iron & Steel (Group) Company Ltd. (''TISCO'')( http://www.tisco.com.cn ) concerning the increase in the total output volume of stainless steel products again from 1 million tons to 3 million tons after the increase in its production by 1.5 million tons annually, the Company believes that this increase will result in a significant increase in its own revenues. BEIC is a China-based iron and steel raw materials supplier that supplies ferrochromium alloy, among other products, to TISCO. TISCO, the largest stainless steel producer in mainland China, currently ranking 8th worldwide, produced 6.26 million tons of steel in 2006, generating US$6.6 billion in sales revenue and US$859 million in pre-tax profits. TISCO has previously announced that in September 2006, it began increasing its production of stainless steel by 1.5 million tons annually, which will increase its output of stainless steel from 1 million tons to 3 million tons. As a result, annual sales revenue is expected to reach US$ 10.1 billion.
TISCO's increased output is expected to bring a strong market demand for the raw material. TISCO is one of the largest clients of Pinglu County Changhong Ferroalloy Co., Ltd (''PL''), which annually has provided most of its 400,000 tons of ferrochromium alloy products to TISCO. BEIC, through its wholly owned subsidiaries, provides exclusive management, consulting and other general business operation services to PL in return for a service fee which is equal to 95% of PL revenue, less operational cost and fees.
Mr. Hou Beicang, Chairman of the Board of Directors and CEO of BEIC, stated, ''Currently, the Chinese iron and steel industry is facing a shortage of raw material supply. This situation will worsen as a result of TISCO's, proposed significant increase in its production capacity. Demand of ferrochromium alloy is expected to increase to 600,000 tons annually; whereas BEIC's current annual production capacity of ferrochromium alloy is only 40,000 tons. We intend to enlarge PL's production capacity to take advantage of this opportunity presented by TISCO's proposed increased production.'' If PL is able to increase its production capacity to meet this demand by TISCO, the results should prove beneficial to BEIC's financial performance in 2007.
BEIC is a Nevada corporation that is a public reporting company in the US. It is focused on providing elementary refined raw materials to iron and steel enterprises. The main products of the Company include pelletized ore and ferrochromium alloy products, which are essential for iron-making and stainless steel production. The Company produces pelletized ore and ferrochromium alloy through its two subsidiaries in Shanxi province, P.R. China, Fanshi County Xinyu Iron Resource Co. Ltd. (''FS'') and Pinglu County Changhong Ferroalloy Co. Ltd. (''PL''). These two companies are currently operated by Bestlink Management Consulting Co., Ltd (''Bestlink''), a wholly owned subsidiary of Beicang. PL and FS have been capable of annual production capacity of 400,000 tons of pelletized ore and 40,000 tons of ferrochromium alloy, respectively. For more information about BEIC, please visit http://www.bcironsteel.com .
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-------------------- Trading is a blast!! Posts: 4921 | From: Rhode Island | Registered: May 2005
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posted
not sure, but they sure are not filling anything on the bid. only way to pick up shares here is at the ask or above thats what i had to do.
Posts: 4071 | Registered: Dec 2005
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Man, why oh why did I not buy this at 0.039???
Awesome guys, good luck. I'll be kicking myself in the arse.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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quote:Originally posted by Fuzzy1018: seems like it, not filling even at ask .095/.10
would not fill me at .09 while the ask was there.
Someone got 50k more filled at .09 2 min. after my order was in..
I agree matto.
thats the same thing thats happened to me both time i tried to add. I did manage to at .07 but above the ask lolz
Posts: 4071 | Registered: Dec 2005
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