Kunming Iron & Steel Group Co. Ltd. (KISC) is a national extra-large industrial enterprise and the biggest iron and steel complex production base in Yunnan Province and one of the 520 key e-nterprises in China. At present there are about 30,000 employees. Up to the end of June 2002 the t-otal amount of assets is RMB11.196 billion and the asset and liability rate is 56%. The comprehens-ive steel production capacity is 2.5 million tons per year. KISC is an enterprise group engaged in iron and steel metallurgy, mechanical manufacture, construction and installation, real estate deve-lopment, refractory, building materials, transportation, import and export, project engineering, e-lectronic information technology, environmental protection etc. It ranks the 82nd among the top 500 enterprises in China.

The major products are pig iron, bar, high-speed wire rod, rebar, hot rolling plate, ferroall-oy, coking product, etc. It passed the ISO9002 Standard Quality System Certification in 1997. Four products including rebar and high-speed wire rod have gained the titles of “Golden Cup ” from the Ministry of Metallurgical Industry and “Famous Brand Product of Yunnan Province” respectively. The products sell well both inside and outside of Yunnan province and have been exported to Germany, Japan, Singapore, Thailand, Burma, etc.

In 2001 the output was 2.0977 million tons of steel, 2.134 million tons of iron, 1.578 million tons of steel product, and 4,999 tons of pig iron and 12,321.56 tons of slab and steel products were exported. The total value in foreign currency for exports has achieved USD3.2516 million. A gross production value of RMB2.53386 billion was achieved, and so was a turnover of RMB3.804 billion, a profit and tax value of RMB683 million (the net profit was RMB248 million ). After many years of work, in a scientific attitude and innovative spirit, KISC has found out its way of development, which combines the tapping of potential capacity with innovation and expansion as well as selfaccumulation and rolling development. Ever since the Eighth Five-Year-Plan period, KISC has totally invested RMB5.8 billion for the following project constructions: No. 3 Steelmaking Plant with advanced process and technology (50- ton converters, annually producing 650,000 tons of steel, which is 100% continuously cast); two 50- oven coke batteries (each 6m high ); a high-speed wire rod mill with international advanced technology in the 1990’s (designed capacity is 350,000 tons per year, actual output is 500,000 tons per year); a 2000m3 blast furnace imported from Luxemburg (designed output is 1.32 million tons of pig iron per year); No. 3 Sinter Plant (2.46 million tons of sinter product per year); an ore storage field (processing capacity is 4.9 million tons per year). In the process of pursuing modernization, economization and high efficiency, KISC has achieved significant development. At present, according to the national guideline of adjusting the product structure, eliminating the backward, adapting to the market demand, replacing a portion of imported products with domesticmade ones, KISC is constructing the project of hot and cold rolling strip mills, for which the investment is RMB2.15 billion and Da Hong Shan iron mining with output of 4.00 million tons of iron ore per year, for which the investment is RMB2.0 billion.