Yalian Steel Corporation

Yalian Steel Corporation

June 28, 2011 20:07 ET

Yalian Steel Secures RMB 25 Million Line of Credit From China Merchants Bank

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2011) - Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces that it has secured a RMB 25 million (CAD $3.8 million) line of credit from China Merchants Bank.

The line of credit is available for drawdown for a period of 12 months, from June 15, 2011 to June 14, 2012. Each drawdown carries a one-year term and the interest rate will be fixed at the prevailing benchmark rate plus 20%. The loans will be used to fund working capital requirements of Yangzhou Yalian Steel Pipe Co., Ltd. ("Yangzhou Yalian"), a wholly-owned subsidiary in China. The credit facility is collateralized with Yangzhou Yalian's inventory.

About Yalian Steel Corporation

Yalian Steel Corporation is a British Columbia corporation focused on the production of high quality Longitudinally Submerged Arc Welded (LSAW) steel pipe to service Asia's rapidly growing energy transportation infrastructure market. The Company has recently completed construction of its initial manufacturing facility in city of Yangzhou, in the Jiangsu province of China. The first production line has a capacity of up to 200,000 metric tons per year. The Yangzhou Yalian plant utilizes the JCOE (J-ing, C-ing, O-ing, Expanding) process, an advanced method of LSAW pipe production that involves the bending and shaping of X-70 and higher grade steel.

For further company information please access our website: www.yaliansteel.com.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Yalian's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars unless noted otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Yalian Steel Corporation
    Lan Shangguan
    Chief Financial Officer
    (604) 696-6388