WRCA forms joint venture with China's Wuhan Iron and Steel

Wire Rope Corporation of America and Wuhan Iron and Steel have formed a joint venture called WISCO WRCA CO. Ltd. The joint venture, which is 51% owned by WRCA and 49% by WISCO, will produce wire rope in China for the Chinese and Asian markets. Wuhan Iron and Steel Corporation is China's third largest steel producer and the 18th largest in the world.

WISCO WRCA will build a production facility in Wuhan, China, west of Shanghai, on the Yangtze River. WISCO, which is close to the new rope mill, will be the primary supplier of rod to the joint venture. The one-million square foot facility will be able to produce 50,000 metric tons of wire rope products when all of the equipment is installed. The product is exclusively for the Chinese and Asian markets, and is not for export into the North American market.

Total investment in the new venture will be approximately $100 million. Construction of the new plant is expected to start in August 2006 and be substantially completed in 2007, with some specialty installations continuing into 2008. The plant is expected to employ more than 400 people.