Ningbo Baoxin Stainless Steel Co., Ltd., is a joint venture established by Nisshin Steel and Shanghai Baosteel Group Corporation, China's largest steel manufacturer. The joint venture has grown steadily since it commenced operations in 1998, achieving profitability in 2000. Buoyed by flourishing steel demand in China, Ningbo Baoxin Stainless Steel has maintained outstandingly favorable operations, having cleared away its accumulated losses in 2001 and implemented its first dividend payment.

The joint venture's Phase-Two cold roll plant construction project has been in progress since 2000, and construction will begin in April 2003 to increase overall production capacity to 160,000 tons annually. Moreover, in consideration of the sustained strong earnings, Nisshin Steel has decided to implement an additional Phase-Three Project.

The Phase-Three Project will make Ningbo Baoxin Stainless Steel China's largest stainless steel cold rolling company, and as the beachhead of its stainless steel operations in China, Nisshin Steel will strive to further develop the joint venture's business.

1. Description
(1) Principal Facilities: Cold-rolling mill (1), Grinding line (1), Levelling and                                           sharing line(1)
(2) Production Capacity: 80,000 metric tons a year* of cold-rolled stainless
                                             steel products
(3) Expected Start of Operations: First half of 2004

Total production capacity for cold-rolled stainless steel products will be 240,000 metric tons a year.

2. Company Outline
Corporate Name: Ningbo Baoxin Stainless Steel Co., Ltd.
Established: March 1996
Location: Ningbo, Zhejiang Province, China
Paid-in Capital: US$126 million
Investors: Shanghai Baosteel Group Corporation : 54%
                   Nisshin Steel Co., Ltd.: 20%
                   City of Ningbo: 12%
                   Hanwa Co., Ltd.: 7%
                   Mitsui & Co., Ltd.: 7%