SIGNED THE CONTRACT ON TAKEOVER THE OWNERSHIP STAKE AND FURTHER BUSINESS COOPERATION WITH THE NEW OWNER OF ZELEZARA SMEDEREVO – CHINESE COMPANY HBIS GROUP

Of the day June 28th 2016 it was signed a contract on continuation of business cooperation in the processing of work rolls for the needs of CRM, with the new owner of the Serbian steel manufacturer Zelezara Smederevo a Chinese company HBIS GROUP Serbia Iron & Steel Ltd. Belgrade, which is also the new owner of Serbian steelworks became the 50% owner of our JV company SRSC LLC.

Business Cooperation Agreement was signed on behalf of the HBIS GROUP company Mr.Wei Zhenmin CFO / Executive Director of Finance and Accounting and on behalf of the JV company SRSC general manager Boban Rajkovich.

After years of difficult situations and uncertainties that befell the Serbian steel works Zelezara Smederevo and hence its subsidiary SRSC LLC, the selling of Zelezara Smederevo to the new Chinese owner of which is included SRSC LLC and now formalization of the continuation of previous successful business cooperation, it was secured a more certain and carefree future for both companies especially for SRSC LLC which is founded with priority goal to serve the needs of CRM Zelezara Smederevo LLC (then U.S.Steel Serbia LLC).

Accordingly, the management and all employees of SRSC LLC are committed to this goal and will invest all its resources in order to fully meet all the requirements of the management of HBIS GROUP Serbia Iron & Steel LLC Belgrade, about the quality of the processed CRM work rolls and thus significantly contribute to increasing the quality respectively added value of the final cold-rolled steel mill products.