China Precision Steel is in the final stages of testing and commissioning its new mill and expects to begin production at the mill in the third quarter of fiscal 2010. The mill is expected to reach its full design capacity of 100,000 tonnes in approximately four years; increasing the Company's total production design capacity by 33%. China Precision Steel expects to incur an additional USD 900,000 in capital expenditure for the completion of the new mill and annealing furnaces.
Dr Wo Hing Li Chairman & CEO of China Precision Steel said "We continue to maintain our solid competitive position as one of the leading manufacturers of high carbon, cold rolled, precision steel products in China. Moreover, we believe that as the global economic environment continues to recover, we are well positioned to meet the increase in demand from our current customers and the new customers we have acquired over the past year as we gradually ramp up the additional capacity from our new mill."
