Smorgon Steel to build LiteSteel^® beam production facility in USA - December 06, 2006

Smorgon Steel will shortly commence development of a production facility for its patented LiteSteel^® beam product in the USA. The plant will be located near Roanoake, in Botetourt County, Virginia on the site of a former steel pipe fabrication facility. The site is well-configured for the manufacture of LSB^®, and is located on a railway line and in close proximity to a major interstate highway. The investment in the US project will be approximately US$30 million.

The company has also entered into a purchase agreement for a purpose-built LSB^® mill with OTO Mills of Italy. OTO Mills is the world's leading tube equipment manufacturer and a subsidiary of Marcegaglia, a European industrial and financial corporation.

The mill will have a capacity of 65,000 tonnes per annum.

Smorgon Steel Managing Director & CEO, Ray Horsburgh, said, "We have previously indicated our plans to produce and distribute the LSB^® in the USA. Extensive research has demonstrated to us that there is a promising market for the product in the USA, and today we are taking two significant steps with the development of a high quality manufacturing site in Virginia and the purchase of an LSB^® mill line from OTO Mills. Work will now commence on the renovation of the property with a view to opening a new manufacturing plant in the second half of 2008."

About LSB^®