Sutor Forms Joint Venture with China Railway Materials Wuhan Company Ltd.

Sutor Technology Group Limited

today announced that its Board of Directors has approved a plan to form a joint venture among its indirect wholly owned subsidiary, Jiangsu Cold-Rolled Technology Co., Ltd. ("Cold-Rolled"), China Railway Materials Wuhan Company Limited ("CRM Wuhan"), a subsidiary of China Railway Materials Company Ltd., and Changshu Binjiang Urban Construction Investment & Management Company ("Changshu Binjiang"). Initially the joint venture will primarily be engaged in providing raw materials procurement, logistic and other related services to third parties. The equity interests in the joint venture for Cold-Rolled, CRM Wuhan and Changshu Binjiang are 39%, 51% and 10%, respectively. CRM Wuhan is a state-owned enterprise (SOE) supervised by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). It is reported that China Railway Materials Company, the parent of CRM Wuhan, is one of the Fortune 500 companies. Changshu Binjiang is affiliated with Changshu municipal government. The registered capital for the joint venture is Renminbi (RMB) 100 million (approximately US$16 million), among which, RMB 39 million (approximately US$6.24 million) will be contributed by Cold-Rolled.