Business Review Special Steel
8 CITIC Pacific Summary Financial Report 2009 Key operational highlights • 6.4 million tonnes of special steel produced in 2009 • Achieved profitability in a very challenging market environment • Organic growth through expansion of existing facilities • Continued focus on rationalising product mix to meet the challenges of a changing market
CITIC Pacific Summary Financial Report 2009 9 10 Business Review Pr C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 2009 R e v i e w o f 2 0 0 9 S p e c i a l S t e e l in steel recovery
ofit contribution China,
products was Assets Capital Cash L i a b i l i t i e s Assets Profit TurnoverH K $ m i l l i o n
p a r t i c u l a r l y in
a
very
the inflow
c o n t r i b u t i o n
e x p e n d i t u r e was
sector,
c h a l l e n g i n g
especially from
in
as
the
a operations
result first
year
weak. 25%
21% half
of
for
the Special steel when The
Special steel all
g o v e r n m e n t ’ s steel
second
demand
producers
half
for
saw
HK$ millio policies year than remained pickup 420 388 1H
as 18,146 38,710 19,079 originally 05 7,6111,370 1,415
n a beginning
2009 of
whole,
very increasing 539 794 2H 831 (9)% (64)% 8,381 3,847 1,7 25% 14,572 3,0 19% 32,500 167 (12)% 1,617
weak a n t i c i p a t e d .
06 overall
in
1,123 1,119 July. for
domestic
demand
most
Exports 2 7 8 (16)%22,758 07
However, 0 8 Change2008
of (222) 1,839
demand.
the for
from
steel year, 08
overseas
our
Taking was with 524 891
three
better
some
markets 09
the
steel
mills for the year were 6% of total sales compared with CITIC Pacific Special Steel’s profit contribution in 2009 16% in 2008. Demand for higher quality special steel was HK$1,415 million, a decrease of 12% compared declined as well. Although prices of special steel with 2008. However, all three of our steel plants products rose in the second half of 2009, they were still generated operating profits, and total profit well below the average of 2008. contribution in the second half of 2009 increased 70% compared with the first half. 2009 monthly profit
HK$ million Production and Sales 250 In 2009, total production of special steel was 6.4 million 200 tonnes. The amount sold was about the same, and both
150 production and sales were approximately 2% higher compared with 2008. Demand for special steel products 100 picked up quarter by quarter during the year. This was
50 reflected in the utilisation rates of our steel mills, which were around 75% in the early part of 2009 and close to 0 full capacity at year-end. JanFeb MarApr MayJun JulAug SepOct Nov Dec
CITIC Pacific Summary Financial Report 2009 11 12 Business Review Annual produc C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Monthly pr Our S p e c i a l S t e e l based production products tonnes beginning 09 08 07 06 05 ’000 tonne ’000 tonne 300 350 400 450 500 550 600 650 700
Pr Pr steel 2008 oduc oduc
on
at s s Ma
mills
awaiting tion orders tion the
rJ of
ratio oduc
the end
operate un
tion andsales
and
of year.
tion andsalesv of
delivery
100% Sale Sale
2009, Se therefore pD
s s on
for 3,710
3,770
the 20%
to ec
2009.
customers principle
2009 achieved
lower vo
lume olume Inventory Ma rJ
than
of
5,790
a was 5,950
un
production sales-to-
at 6,310 6,330 6,390 6,430
of the 6,510 220,000 6,530 Se
finished pD
ec
In primary whom a p p r o x i m a t e l y Of o n l y S r t e a g t i i s s t t i c e s r a e r d e f e r n o t m e t r h e p r C i h i s n e a s S p e c i a l S t e e l E n t e r p r i s e s A s s o c i a t i o n , a n d i n c l u d e K e y p r o d u c t s Products o f C I T I C P a c i f i c S p e c i a l S t e e l CITIC Customers volume products of command 26% determined
before in Seamless Carbon Alloy Alloy Gear Product Bearing
2009,
the the the
of
steel structural spring Pacific’s
market previous
total
we
products
the structural
steel
contracts market about
steel
with
have
better
total
t e 36% steel production
either
u e 6% tubes
and special
t e 23% steel
higher
73% 3,500
year
accounting long-term
t e 22% steel
steel are
prices
are our
when
2009 of
delivered, and
customers
steel produced. technology generally
costs. sales
in
than
M a r k e t S a l e s
are firm
s h a r e 0 20 9 0 20 8 C h a n g e
2009,
products r e l a t i o n s h i p s . 42% 45%
were for
for
similar orders
94% thus
negotiated
volume in high
to
1,221 1,589 content
China,
315 487 948 893
customers of they are
products are
v a l u e - a d d e d (’000
total 380 (17)% 1,265 (3)% 1,741 (9)% 4 9% 447 6 23% 769 6 3% 863
sold
only.
placed
Annual reflect which
tonnes) –
sales at
which to
Pricing
the –
with
is or were changes
sales in
our end
can 2009.
is
Products are manufactured and delivered according to 44% of our products were sold directly to component customers’ requirements. Typically, delivery periods manufacturers. Many buyers of our products are range from one to three months after the order is producers affiliated with or contracted to placed with the majority being less than two months. manufacturers in the auto, machinery manufacturing,
oil and petrochemical industries. Our end users include Our products are sold to these industries Toyota, General Motors, Honda, Volkswagen, Volvo, Percentage Percentage Caterpillar and SKF. 2009 Sales of total change Industry (’000 tonne) sales from 2008 Demand for special steel products from overseas Auto components 2,799 44% 5% customers was very weak in 2009 and, as a result, Machinery 1,401 22% 0% exports of our special steel products were 6% of total manufacturing sales compared with 16% in 2008. Metal works 721 11% (13)% Power generation 464 7% 12% Domestic vs. export sales Oil and petrochemical 343 5% (10)% Railway 177 3% 13% 05 93% 7% Shipbuilding 138 2% 38% 06 88% 12% Others 389 6% 0% Total 6,432 100% 2% 07 83% 17%
Auto component manufacturers remain an important 08 84% 16% customer segment for our special steel products. Benefiting from the Chinese government’s stimulus 09 94% 6% plan, auto sales increased significantly in 2009, which in turn pushed up demand for special steel. This was Domestic Export reflected in our 5% sales increase in the auto component sector. However, the majority of the increased vehicles sold were small capacity passenger vehicles, which do not use a lot of special steel. Other large capacity vehicles, such as buses and commercial vehicles, use much more special steel but sales increases for these were relatively small.
CITIC Pacific Summary Financial Report 2009 13 14 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 O u r p r o d u c t s a r e e x p o r t e d t o t h e s e r e g i o n s Monthly expo S p e c i a l S t e e l ’000 tonne Asia country
TotalEurope Americas Middle Region/ 100 120 Korea Thailand OthersIndonesia 20 40 60 80 0 2008
East
Ma
rJ &
t e s 4 6 (41)% 16% 64 others rt un v olume (’000 Se pD Amount of
t o n p n o e r ) t ex fr o m 402 ec 9 7% (46)% 72% 290 116 7 % (89)% 4% (83)% 8% 17 31 92 38 44 2009
Pe r c e n t a g e P e r c e n t a g e Ma rJ 100%
t o t a a l n ch g e 29% 23% 11% 9% un
Se pD (59)% (47)% (56)%(38)% (38)%
2008 ec
Pr Pricing Pricing factors: prices to inventory December, general rise RMB/tonne 3,000 4,000 5,000 6,000 7,000 8,000 9,000
ice ofmajorproduc lower
Carbon stru Alloy springsteel Bearing st in 2008
the remained
of
demand pickup
demand, Ma
special held cost rJ
prices eel ct
of ural steel
by un in
low and
raw steel
demand rose end partially
Se in
the materials.
pD
users. products
gradually the ts
cost
for as first ec
Seamless st Alloy stru Gear st From
a of
products
2009 result half
raw is
supported
mainly
eel the
Ma of
ct materials.
rJ of
ural steel eel tube
2009 end
as excess
driven un
well
of
mainly by s
April
Product Se the as
pD by
the
to due
two
ec
Raw Materials Iron Ore Major raw materials used Country Percentage of total Main supplier Australia 35% BHP, Hamersley, Percentage Percentage Fortescue 2009 of total raw of production Type (’000 tonnes) material cost cost China 19% Small mines in Northeast China and Iron ore 9,200 29% 26% Hebei province Coke 2,640 20% 18% Brazil 18% Vale Scrap steel 1,680 19% 17% India 12% Noble, Mineral Alloy 240 13% 11% Enterprises Coal 2,200 10% 8% Others 16% Asia Energy Total 15,960 91% 80% Of the total 9.2 million tonnes of iron ore purchased in Price of major raw materials 2009, approximately 35% was sourced through supply contracts. The rest was purchased on the spot market. RMB/tonne 4,000 With increased steel production beginning in May, 3,500 the market spot price of iron ore rebounded from the 2,500 trough in April. 2,000 When CITIC Pacific’s iron ore mine in Australia is in 1,500 full production, it will be able to supply sufficient 1,000 concentrate to meet the steel mills’ requirement for 500 pellet making. 0 2008 MarJun SepDec 2009 MarJun SepDec
Iron ore Coke Scrap steel
CITIC Pacific Summary Financial Report 2009 15 16 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Over T h e E n v i rThe o nAlloy m e n t In S c r a p S t e e l Currently,C o k i n g C o a l emissions d o m e s t i c a l l y silicon, capacity molybdenum important They businesses tonnes social completed Focusing• included For from sourced Making• Treating• S p e c i a l S t e e l
2009,
raw at sulphur overall continuous process, treatment residuals.
2009, main
the our include
the r e s p o n s i b i l i t y .
manganese of materials
82%
from
a p p r o a c h i n g
years, own
the
57% source. alloys
annual
we and for cleanness
but and the coal.
such pollutants
on of following: with the
have other the
coking of and
of save
best we are
and
the
began used the
waste
the coking
production as An to long-term
only
vanadium.
have also
three
scrap
and
energy, compact suppliers fumes control consistent use
example Our
coke
through in coal
three
operation
water, 18% discharged
part
special
high of increased plant
i n i t i a t i v e s coking steel
plants our
resources and
the which from
of million d e v e l o p m e n t
carbon production c a p a b i l i t y ,
in
gas of a steel
in
used our
usage dust, steel
highly emission
China.
coal
this Tongling
and
in overseas.
and
are our
commitment
from
in mills
September tonnes
was
production
and is content
and plants
the
of
this
not
other efforts efficient, the
high
which the sourced
used
recycling balance process. of ensuring
area
only with
use of
per
pollutants with
production waste
quality chromium, our to
came
of
have
was
annum. 900,000
2009.
reduce
are to
a low
was
total
and
One H e a l t h a n d S a f e t y With L o o k i n g t o t h e F u t u r e economies, mills steel Chinese workers. innovation and m a n u f a c t u r i n g our important, management Each r e s p o n s i b i l i t i e s the regarding must enforced. ensure r e g u l a t i o n s are Management In c o m p r e h e n s i v e e f f e c t i v e n e s s safety p e r f o r m a n c e . Sulfur
Noise Waste
Sewage and Major Industrial
addition,
actively production
products.
industrial dust
of
is
plant the industry be
p o l l u a t s a u n r t e Me s dioxide is
r e s i c d o u v a e l r Re e d
to the they
C ow l a i t n e g r Co
one
studied, economy,
We
gradual u e Cloth fumes create
Training health
top enforces
we
and
involved the
regarding
have
we pay of
(SO of
principles also
in strictly m a n u f a c t u r i n g ,
priorities
the
equipment
at lines. company
the
remain senior a emergency
2
a 2010.
and Treated)
and
a recovery safe
each
great
promotes programmes
most
clear employment p a r t i c u l a r l y
systems
in
Operating
factorieslarge S o u n d - p r o o f treatment small and rules safety observe
and
health
managers
Continued level safety
optimistic
deal
for and u n d e r s t a n d i n g important
electric
frequently
noise
quantity filter healthy and
and of the
are
response
of
with
with water operating
of
a and
not
awareness.
the
and
culture
station
the
procedures de-dusting
and management
will attention
generating
production provided
in i n s t r u c t i o n s
de-dusting are
close wet
of coverage
in
clearly safety
world’s
sectors
recycling; treated follow growth management
e n v i r o n m e n t about
recycled
measures drive modern
promoting provided
reviews d e s u l p h u r i s i n g
before
system. to in
systems.
of at
r e s i d e n t i a l defined which
demand to sound
to
in
the
used equipment; major
such
the the
of
are
lines.
sewage d i s c h a r g i n g technology
all and
its
the special
of of to
The
plants. rules
for staff.
strictly employees health
as
their our
all
for
manuals
and Equally
all
areas
auto
for
device staff
and
our They steel
on
and
to
Overseas markets are expected to recover gradually, million tonnes by the end of 2011. The two special steel and exports from our special steel mills are projected plate production lines being constructed will be to increase significantly. completed in the first half of 2010 and 2011 respectively. As a result, our product range will be Over-supply in certain categories of special steel at further expanded. Products will include shipbuilding the lower end of the product spectrum means that plate steel, engineering mechanism steel, petroleum improving product quality and moving the product mix pipeline steel and pressure vessel steel. The products upwards are essential for us to remain competitive. from these lines will also be used in industries that Looking at 2010, we will continue to develop markets require special steel with characteristics such as for products where we expect increasing demand. resistance to high temperature, corrosion, high strength For example, we are co-operating with Bekaert, a world and hardness. leading company in drawn steel wire products and The market for medium plates has been growing rapidly applications, to develop further the market for steel in China in recent years, with strong demand for high cord thread, which is mainly used in the auto and quality, high value-added plates. This market currently machinery industries. 2009 saw sales of this product relies on imports, in particular pipeline steel, ship plate reaching 100,000 tonnes. Another example is round and those used in marine engineering and machinery bloom steel used in wind power generation. We are the manufacturing. Products from the new lines will be able only producer in China capable of producing large to meet future demand for similar products in China. diameter (800mm) casting round tube billet. With China’s increasing need for wind power, sales of this In Xin Yegang, two new lines with a total annual product reached 230,000 tonnes in 2009, a rise of over production capacity of 630,000 tonnes of medium wall 56% from 2008. seamless steel tubes were completed in the second half of 2009. Products from the two lines are widely used in As the largest special steel producer in China, CITIC the machinery manufacturing, energy, petrochemical, Pacific benefits from economies of scale combined with coal and military industries. In the past year, the our leadership position in the types of steel produced. European Union and the United States imposed Our Jiangyin Xingcheng Special Steel currently has an anti-dumping duties on all Chinese steel tube annual production capacity of three million tonnes. manufacturers. As a result, sales of our seamless steel Another three million tonnes will be added allowing the tubes were affected to some extent. plant to increase its steel producing capacity to six
CITIC Pacific Summary Financial Report 2009 17 18 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 CITIC C I T I C PF a c i a f i c c S t p e s c i a l S a t e n e l d S t a t i s t i c s m a n u f a c t u r e r capacity P r o d u c t s u s e d i n a p a s s e n g e r v e h i c l e the million Our Steel, ideally t e mN p o eC n o r - n e n q d e u c t e s i n t o c e n e h r l e o d d & GearE n gG i e n asteel e r b g o e x a , r s t e e r i n g g e a r , A l l oCrankshaft y s t r u c t u r a l s t e e l steel products spring heavy i n d u s t r i e s , m a n u f a c t u r i n g , energy, S p e c i a l S t e e l
end
three
in
Pacific Xin
plates.
steel,
located
tonnes eastern,
railways of
of
m a n u f a c t u r e d
Yegang operating
2011,
including seven
Special seamless
These
in
per to
central oil,
China total and
cover million Steel
annum.
p e t r o c h e m i c a l s ,
are
Steel plants,
auto shipping.
capacity steel
with
and and widely the
A l l oCamshaft y s t r u c t u r a l s t e e l are
tonnes
is c o m p o n e n t s ,
tubes
main
the Jiangyin S h i j i a z h u a n g an northern bearing
will used annual
largest
at
markets
and
increase
the
t r a n s p o r t a t i o n , in
steel, Xingcheng
China.
special
production
various special end
machinery
Steel,
for gear
of to
The
special
wide
2009.
nine steel
steel, are
Special major
and
By
Special W h a t i s S p e c i a l S t e e l ? benefits, a n t i - f a t i g u e steel wire Special seamless steel; These such completion lines, additional to steel
produce
steel.
includes as
tubes.
our and
bars
steel Steel’s gears,
such steel product
another
In
630,000 are
big
of p r o p e r t i e s .
refers 2009, B eD a r i v r e i b e a r n i n g g s t e e l
bar
bearings as
products two tubes sold
section
heat
steel,
range
2%
a p p r o x i m a t e l y to new
tonnes to
and
steel
resistance m a n u f a c t u r e r s were
medium
and plate,
C a t e g o r i s e d special
were will
spring
capacity that
forgings springs.
be
bar strip
steel has further
flat and and
steel;
85%
steel,
added
was
steel;
With by
plate thick and a n t i - c o r r o s i o n
to
of
expanded. 5% shape,
t eN m p oWheel e n r - e q d uhub e sT n t o c e r h s e i e l o d n b & a r , s t a b iS l i p sS r e u i s r p n e n b g s a i r o n s s t p r e i e n g l A l l oU y n i v s e t r s e a e l l j o i n t make added
tube bright
CITIC the
3%
wall production or
were
extra
were
steel products
special seamless
in Pacific
bars.
2009
An
wire and
and
Industries and major products used Industry Product Practical example Auto components Gear steel, bearing steel, Transmission gears, bearings, crankshaft, carbon structural steel connection rod Machinery manufacturing Alloy structural steel, Oil cylinder pipes for engineering mechanisms, carbon structural steel hydraulic props support for coal mining machinery Power generation Alloy steel High pressure boiler tubes Oil and petrochemical Seamless steel tubes Drill collars, casing couplings Railway Spring steel, carbon structural steel Locomotive springs, wheel, axle Shipbuilding Anchor chain steel Anchor chains
Special Steel Production Process furnace, an ‘RH’ or vacuum degassing furnace, and a continuous casting and rolling process, steel billets are Our three special steel plants employ two different produced and shaped to various specifications technological approaches: long and short processes. according to customers’ specific requirements. The The long process uses iron ore and coke as raw management teams at the plants are focused on cost materials, while the short process uses scrap steel, pig efficiency and product quality, and will therefore iron or molten iron. During the next phase of both the choose whichever one of the processes that has the long and short processes, alloys are added to the lowest raw material input costs. molten steel produced. Through a ladle-refining
Blasting furnace Converter* LF Ladle Continuous Iron ore refining casting furnace machine Coke
Alloy Products Continuous Scrap steel rolling mill Vacuum / RH Electric arc degassing furnace furnace
* Xin Yegang does not use a converter
CITIC Pacific Summary Financial Report 2009 19 20 Business Review C I T I C P a c i f i c S u m m a r y F i n a n c i a l R e p o r t 2 0 0 9 Owned w w w .J i j a n y g y x i n c X . i c n g o c h m e n g S p e c i a l S t e e l Xingcheng in steel production of in Completed for such Jiangyin and only tube machinery products S p e c i a l S t e e l springs In the two production part 3,500mm half completion these e n g i n e e r i n g and in c h a r a c t e r i s t i c s corrosion, to of Jiangyin million situated
the
p a r t n e r s h i p 2009, 2009, industries Jiangyin two
high-end
c o n s t r u c t i o n
Citroën. of
special pressure of
plant m a n u f a c t u r i n g as billet
eastern two
2010 years, the
tonnes. Toyota, by and
Jiangyin this
Xingcheng next Xingcheng
are
wide
lines
in high CITIC
with
two
m a n u f a c t u r i n g .
Special
Xingcheng capacity in
plate capacity
h i g h - p r e s s u r i s e d in and
plant
that
China mechanism auto
used total
vessel
to part
2007,
with the
such
lines line will Honda, a strength
Pacific the the
of Xingcheng diameter lines, require
components has
first annual in
of
Steel
capable Sumitomo include
the scheduled
this
steel.
Yangtze as
Special 4,300mm
is Special of in
of the China
a
now
half
resistance
Special
the which three three since
iron General
production
line
is making
and steel, special
The steel
located
country.
of of
The
being and
s h i p b u i l d i n g
of
and Steel Steel
produces
Special
November River million
million
hardness.
2011. 800mm tubes. have
products
producing
wide
for Metals Steel
petroleum
production
sold plant’s is Motors,
steel
steel of
to is is c o n s t r u c t e d , a completion
and in
a
bearings,
Main leader also
line s t r a t e g i c a l l y With
line
high
to will
Steel tonnes
tonnes. total Jiangsu
making for Kokura
with
special
other customers has
In
will
that the Volkswagen scheduled reach 1993,
steel
products an use t e m p e r a t u r e , casting
the
annual completed pipeline in
a capacity
also first at annual
was 50,000 The
special
high-grade
Province in gears,
of
next
part
steel
plate, in Jiangyin six the
with
Japan.
and be
the
built
rolling
round steel
end of
from one
steel
for
used
the
first
tonne Xin w w w .X i n x Y e i g a n n g S y t e e e l ( g X i n a Y e n g a n g g ) . c o m September materials production expanded the ordered Many company users. interest. gear seamless p e t r o c h e m i c a l , sectors. currently Yegang’s the Two tonnes annual tonnes. medium Wire Alloy
Spring steel& Gear
Bearing Type
tempered
Yegang capacity end
new
steel, (steel steel, for of tube
of
wharf, steel
seamless product have
steel
vehicles Products
A
of by Jiangyin
Xin and
steel under
steel
and annual steel in n o n - q u e n c h e d t e c h n o l o g i c a l cord
to spring 2011.
steel
CITIC 2004. capacity
became
which Yegang’s
of
been
a c c o m m o d a t e providing thick
finished
t h r e k a a d e ) r Be t
tubes tube Daye
power
planning,
steel
production Pacific.
X i n g c h e n g ’ s from steel, At
c o n s t r u c t e d , wall CITIC
production
the a
of Special that
member products
tubes
and products.
the
Toyota,
two carbon seamless efficient
end t r a n s f o r m a t i o n Pacific
are
which
new machinery
American China million Duty Dongfeng A r v i n M e r i t o r , GM, V o l k s w a g e n , KOYO SKF, C e r t i f i c a t i o n
the capacity Steel,
of
to used
products
structural
2009,
of Russini, lines
indirectly three FAG, raising include
lines 115,000DWT Truck
transport
The
will steel Ministry and
CITIC
Honda, an in
tonnes,
DELPHI,
Petroleum
are
increase Auto, NSK
the wharf
it totalling to Group, A-share million
m a n u f a c t u r i n g tubes, NHK,
had ZF, Xin
Peugeot, Pacific
bearing
one
are programme of
of
auto,
steel Hyundai,
holds
China Eaton,
of
Railways
Yegang’s big
including FAW,
has an
SNR certified SAIC
million
its which tonnes
ships listed
Xin
Institute
630,000
annual and in section
been
Bearings, Heavy
raw
a
Volvo
steel, Group,
58%
are
by by
is
primarily used in the machinery manufacturing, energy, Jiangyin Xingcheng’s products petrochemical, coal and military industries.
Xin Yegang is located in the city of Huangshi next to the 7% 23% Yangtze River, with three 5,000 tonne wharfs. In the 12% future, CITIC Pacific’s mini-cape sized ships will transport iron ore from various sources to ports on 16% the Yangtze River, where it will be transshipped to 11% Xin Yegang and unloaded at its wharves. As a result, 8% trans-shipment costs should be reduced. 23% Type of product Certification Bearing steel SKF, FAG Gear steel Bearing steel Forgings FOMAS Group Alloy spring steel Alloy structural steel Seamless steel tubes EU Carbon structural steel Wire Others (gas cylinder & pressure vessel), structural steel tube Xin Yegang’s products Gear steel Caterpillar worldwide supplier and bronze supplier certificate 1% 19%
15% Shijiazhuang Steel Mill (Shigang) 19% www.csggs.com 17% Located in the city of Shijiazhuang in Hebei Province, Shigang (www.csggs.com) benefits not only from the 18% 11% efficient transportation networks around Beijing and Tianjin, but also from abundant coal resources in neighbouring Shanxi Province. Established in 1957, Gear steel Bearing steel Shigang is a manufacturer of special steel with an Alloy spring steel Alloy structural steel annual production capacity of over two million tonnes. Carbon structural steel Seamless steel tubes Others
Its main products include bearing steel, gear steel and Shigang’s products alloy structural steel, which are supplied mainly to the auto components and machinery manufacturing sectors. 6% Type of product Certification 30% 20% Alloy structural steel Sinotruck, Dongfeng Auto, Shandong Wendeng Hengrun, YTO Group 14% Carbon structure steel, gear steel First Automobile Works, non-quenched & tempered steel, Shanxi Fast Gear 26% Bearing steel Wafangdian Bearing 4%
Gear steel Bearing steel Alloy spring steel Alloy structural steel Carbon structural steel Others
CITIC Pacific Summary Financial Report 2009 21