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Koppers forms China Joint
Venture
April 16, 1999, Pittsburgh, Pennsylvania — Koppers
today announced that it has formed a joint venture with Tangshan
Iron and Steel Group Company, LTD. (TISCO) to revitalize and operate
TISCO's coal tar distillation facility in Tangshan, Hebei Province,
China. The joint venture will be known as Koppers China.
The Koppers
investment will provide capital and technical assistance to upgrade
an existing coal tar distillation facility located adjacent
to the TISCO steel works. Additionally, Koppers China will construct
a new liquid pitch marine terminal at the port of Jingtang which
will allow the joint venture to be the first Chinese carbon pitch
producer with liquid export capabilities. The new joint venture
expects to begin carbon pitch exports to world markets by fourth
quarter 2000. Koppers will hold 60% of the joint venture ownership.
Koppers' President and Chief Executive Officer,
Walter W. Turner, said "the formation of Koppers China with
our new partners from TISCO underscores our commitment to the global
carbon materials
market. China's immense coal tar resources and its growing market
for our carbon pitch and chemical products, provide opportunities
in both the immediate and long-term periods. We look forward to
growing a profitable business with our new partners at TISCO."
TISCO
is one of China's ten largest steel producers with 1997 revenues
of approximately $600 million and 50,000 employees. It is registered
as a state owned limited liability company, under the jurisdiction
of the Metallurgical Industry Department of Hebei Province. TISCO
is committed to growth and expanding its business opportunities
on a global basis.
Wang Tianyi, Chairman of the Board, President
of Tangshan Iron and Steel Group Company, LTD. said "The partnership
with Koppers, which brings technology and global marketing capability,
will prove
to be the ideal match for TISCO with its strong supply base and
knowledge of China's markets. We expect a long term successful
business relationship."
Koppers, based in Pittsburgh, Pennsylvania, is a leading integrated
producer of carbon compounds, chemicals, and treated wood products
for use in a variety of markets including the chemical, railroad,
utility, wood preserving, rubber, aluminum, and steel industries.
Koppers operates 21 domestic and 14 Australian and Pacific Rim
facilities and serves European markets through its Tarconord
joint venture in Denmark. On a combined basis, 1998 sales were
approximately
$680 million. The company's stock is held by a large number of
management investors and by majority equity owner Saratoga Partners
of New York City.
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