R & D technology

Our research and development activities are generally directed toward five development goals:

• Improving product quality
• Developing new products
• Improving production efficiency
• Reducing production cost
• Enhancing environmental pollution control technology

Our research and development team works together with our production team for these activities. We have entered into a cooperation agreement with Badische Stahl Engineering GmbH (BSE), on 28 October 2010 for their services provided in the three years from 2010 to 2013. BSE will offer technical support services and consulting work with respect to our manufacturing process and technology. BSE also provides training in Germany for our engineers. Our first group of 18 engineers has obtained on-site training in Kehl, Germany. BSE will also assist us in improving the effectiveness of our steel smelting process.