Date：2016/06/06

Shanghai STAL Precision Stainless Steel Co. Ltd. announced that the expansion of its precision stainless steel strip operations in Shanghai has been approved by the Government, and the installment of registered capital would be made in June, 2016. Major equipment includes a 1250 mm (49.2 in.) wide Sendzimir Cold Rolling Mill having a minimum thickness of 0.04mm (0.0016 in.), a Bright Anneal line, and associated auxiliary equipment. When complete the additional annual capacity of the expansion would be 36,000MT.

”We continue to build upon our last expansion in 2007. We believe this line will be the most advanced in the world for producing Precision Rolled Strip® stainless steel. The combination of capabilities for 1250mm width and 0.04mm thinness enable STAL to enhance its world-wide competitiveness. After the expansion, we expect STAL’s annual capacity for high quality precision stainless steel strips to increase to 91,000MT. This expansion is intended to allow STAL to meet the growing demands of its customers in the Asian market. We anticipate being in commercial production in the fourth quarter 2017”, said Mr. Yanger Xu, the General Manager of STAL.

Shanghai STAL, a joint venture between Allegheny Ludlum, LLC and Baosteel Group Corporation, has been operational since 2000, and is the first Sino-American joint venture of its kind in China.

Baosteel Group Corporation is the largest and most modernized iron and steel complex in China. The principal operating revenue in 2015 was about RMB 230 billion.

Allegheny Ludlum, LLC is a wholly owned subsidiary of Allegheny Technologies Incorporated, one of the largest and most diversified specialty materials producers in the world with revenues of approximately USD 3.72 billion in 2015.

(C) 2016 STAL