China Gengsheng Minerals signs contract with Jiangsu Sha Steel Group

China Gengsheng Minerals, Inc., a materials technology company in China, announced that it has signed a refractory material supply contract with Jiangsu Sha Steel Group Co., Ltd.’s (Sha Steel) Zhangjiagang-based subsidiary. Total value of the contract is $1.2 million.

Pursuant to the contract, Gengsheng will ship refractory materials for reheat furnaces used in Sha Steel’s hot rolling mill in Zhangjiagang, Jiangsu Province. Sha Steel is China’s largest non-state-owned steel producer by output. Founded in 1975 and headquartered in Zhangjiagang, Sha Steel has a total annual capacity of 24 million tons of rolled steel products, according to its website.

Said Mr. Shunqing Zhang, Gengsheng’s chairman and CEO, “Inventories declined in late 2008, but we now are seeing Chinese steel mills quickly re-stocking their products, especially hot rolled steels for infrastructure materials designed for railroads and highways. We are hopeful that the Chinese stimulus package will yield more opportunities like this for us to supply to large steel mills that benefit from this Chinese government policy.”