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Terra Nostra Subsidiary Adds New Contracts for Stainless Billet Production

03/19/2008 - Terra Nostra Resources signs eight new contracts for the production of over 2100 tonnes of stainless steel billets per month.

Terra Nostra Resources Corp., China, announced the signing of eight new contracts for production of over 2100 tonnes of stainless steel billets per month.
 
Terra Nostra’s CEO, Sun Liu James Po, noted Shandong Quanxin Stainless Steel’s recent completion of several technological and operational improvements as part of its continuous quality enhancement programs. “We now have both the ability to produce additional grades of high-quality stainless steel and to increase overall production,” said Po.
 
The contracts, which were signed with both new and existing customers, are valued at over $7 million per month. They include some 500 tonnes of continuously cast 310S premium-grade stainless steel.
 
“These orders for continuous cast stainless steel billets move us another step closer to our goal of increasing profitability by expanding our mix of higher-margin, higher-value grades,” added Po. “With our continuous casting capability, we have a distinct advantage over other domestic producers and are well positioned to meet the continuing strong demand for high quality grades of stainless steel that has until now generally been met by imports.”
 
Terra Nostra Resources is a leading copper and stainless steel producer in China through its 51% majority interests in two joint venture companies. Shandong Terra Nostra Jinpeng Metallurgical Co., Ltd. has an existing and under-construction total annual production capacity of 170,000 tonnes of electrolytic copper and 20,000 tonnes of low-oxygen copper, together with value-added copper rod and wire capabilities. Shandong Quanxin Stainless Steel Co., Ltd. operates a modern stainless steel production facility with a 230,000 tonnes/year capacity casting mill, and a 150,000 tonnes/year rolling mill. The two joint venture companies, with total assets in excess of US$225 million and over 1000 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. Terra Nostra has entered into an agreement to increase its majority ownership in both joint ventures from 51% to 90%.