Culture philosophy No.1:

Embedding our determination in our resources; Letting our faith lead us to the future.

Interpretation：

This philosophy is to be understood as determination is the key to a successful business. Determination generates energy and strength. Mental strength is our most powerful resource; a goal can be created by having a faith. Once a goal has been set, our future can be accomplished.

Background：

This philosophy was formed in the 1990s and at the beginning of the new millennium. After working hard and growing for more than 20 years, Shagang had become a nationally well known steel producer, particularly when China’s first mini-mill bar production line was built and operated successfully, consisting of a 75t EAF + CCM + continuous bar mill. It did not take long for another minimill, the first with a 90 t UHP EAF( shaft furnace) + CCM + a high speed wire rod mill, to produce high quality wire rod.

Summarizing Shagang’s development is the enterprise’s firm belief that anything is possible and achievable, as long as we have faith and determination. Once the target is set, we must make it happen without any hesitation. Led by this philosophy, Shagang has consistently focused on its targets, worked hard and in an innovative manner to realize a series of investment projects, including cross-century projects that are major technical revamping achievements. In addition, there was the well-publicized 6.5 million ton production facility project for flat products, which enlarged our production capacity, optimized our product portfolio, strengthened our core competitiveness and widened our international reputation. In October 2000, Shagang Group decided to openly advertise its work culture philosophy at all major company facilities, like: Shagang Guesthouse, the administration building, main roads inside the company’s grounds, the sports gymnasium, conference rooms and other buildings with a self-educational purpose.

Culture philosophy No.2：

Technology is the navigator that will lead us to endless progress.

Interpretation：

This philosophy shall be understood as setting our starting point at a high level, focusing on the leading state of the art technology worldwide, combined with our own innovation, “using both legs” on a fast and sound track to business growth.

Background：

This philosophy was formed from the 1980s to the end of the 20th century, namely the strategy of letting technology lead us to success. Shagang has consistently worked on having a high-level starting point, focuses on trends in the worldwide steel business, introduces state of the art technology, conducts technical innovation, optimizes production processes and its product portfolio, lets technology act as the navigator, leading us to improve our core competitiveness and build a world class steel mill.

In 1987, Shagang successfully constructed the first mini-mill in China, consisting of a 75t EAF+CCM+bar mill, and a high speed wire rod mill fed by a CCM and using a UHP arc furnace. Shagang accomplished this “Cross-Century Project” with the goal, “To build another new Shagang in three years”. While determining how to achieve our strategy of letting technology lead us to success, Shagang became a nationwide, even a worldwide famous steel producer. Led by this philosophy, Shagang implemented its 6.5 million ton project for flat products and installed a 5,800m³blast furnace, plus other facilities, which led to higher productivity, with less energy and fewer emissions. Having achieved this, Shagang was named to the Fortune 500.

Based on the idea of introduced technology, Shagang has performed strongly with the assistance of its domestically developed innovations. More than 80 processes have been invented and patented, including the hot metal charging process. In February 2007, the Jiangsu (Shagang) Iron and Steel Research Institute was founded, which serves as the technology center for the corporation, researching and developing steel material and process technology. It has been integrated with the steel making and rolling facilities to form a joint development and operating system. In 2010, Shagang and Suzhou University jointly founded the Shagang College of Suzhou University, and the Shagang Iron and Steel Research Institute Suzhou University Branch. This has in turn ensured the continuing inflow of qualified technical personnel who are intensifying the impact of technology.