Aluminum Copper Lead

HBIS and its subsidiaries sued by Asian Federation for 1.5 million tpy coke quota

HBIS recently issued an announcement stating that the company received a subpoena from the Intermediate People's Court of Shijiazhuang, Hebei on September 27. Due to contract disputes, the company and its subsidiaries were sued by Asian Federation (Hong Kong) International Investment Co., Ltd. ("Asian Federation company").

Asian Federation company believes that Tangshan Desheng, a joint venture company established with HBIS (formerly Tangshan Iron and Steel Co., Ltd.), failed to realize the relevant matters in the memorandum on changing the subject of the coking project filing certificate of Desheng company signed with HBIS, Tangsteel Group and Shanxi Meijin during the settlement and liquidation process, which resulted in the loss of its interests.

The Asian Federation company requests the court to cancel the above-mentioned memorandum signed by the four parties according to law; order Meijin and Tangsteel to return the 1.5 million tons/year coke index of Tangshan Desheng, or compensate Tangshan Desheng for losses of 450 million yuan (USD67.20 million)based on the market price; and judge that HBIS, Tangsteel Group and Shanxi Meijin shall bear joint and several liabilities for the return of coke quota or compensation price.