SHOUGANG CENT (00103) plans to establish a joint venture with Beautiful Realm Capital to jointly explore the global market for industrial artificial silk products.

SHOUGANG CENT (00103) announced that it has recently signed a cooperation intention agreement with Hong Kong Beautiful Realm Europe Acquisition Fund (Phase One) Limited (Beautiful Realm Capital). According to the agreement, both parties are preliminarily planning to jointly establish a joint venture company aimed at achieving complementary advantages and strong alliances in the tire skeleton materials field, working together to explore the global industrial artificial silk product market. It is reported that Beautiful Realm Capital is the controlling shareholder of the German company Cordenka GmbH & Co. KG (Cordenka). Cordenka is a leading global manufacturer of high-performance tire body reinforcement materialsindustrial artificial silk. The group has long been deeply involved in the steel cord industry and, like Cordenka, is a major supplier of tire skeleton materials. Both parties have highly overlapping customer bases and significant business complementarity. After the establishment of the joint venture, the two sides will integrate product lines and customer resources, further enhancing their voice and brand influence in the global tire supply chain. In addition, both parties are highly aligned in terms of sustainable development. The group continuously improves the proportion of ultra-high-strength (ST) and special ultra-high-strength (UT) steel cord products, while a new generation of mega-high-strength (MT) products is gradually being introduced to the market, achieving bulk supply of products with a recycled steel ratio exceeding 70%. Cordenkas industrial artificial silk is made from wood pulp, with a carbon footprint lower than that of traditional petrochemical materials, fully aligning with the low-carbon circular demands of OEMs and tire manufacturers. This collaboration will further promote the collaborative enhancement of both parties in the field of sustainable development.