The signing ceremony of EPC Project with Kunmig Iron and Steel Co. (KISCO) was signed on Feb 5, 2004 at Kunming Taili Hotel. The executive president Li Huimin, vice president Gao Yinlin, deputy secretary of communist party Gung Guisheng from SINOSTEEL MECC and President Wang Changyong, chief engineer Zhong Yongzhi, assistant to president and project leader Xun Xiaoyue from KISCO attended the ceremony. The contract value amounts to RMB398.43 millionRMB, covering design, equipment supply and civil construction. SINOSTEEL MECC is the general contractor and Sinosteel Design Institute takes care of plant design. It is the largest EPC project SINOSTEEL MECC has ever undertaken and also it is first time for SINOSTEEL MECC cooperating with its fellow partner. SINOSTEEL MECC will work closely with Sinosteel Design Institute to make the project success and build Sinosteel trademark. It is a part of expansion project of Honghe Iron and Steel Co., Ltd. Kunming Iron and Steel Co., Limited is the major shareholder of Honghe Steel. After expansion, its annual capacity will reach to 1 million ton. The project covers raw material mixing yard, two 90m² sinter plants, two 450m³ blast furnace workshops, two 40 ton convert furnaces and auxiliary facilities. Located in Honghe County in Yunnan Province, the project is phased in two stages, obtaining 50×104 ton steel products in phase I and 100×104 ton in phase II. The construction period will last for two years. SINOSTEEL MECC undertakes projects including raw material mixing yard, two 90m² sinter workshops and two 450m³ blast furnaces, which are also phased into two stages. Phase I will be completed by Nov. 18, 2004 and Phase II in 12 months afterwards.