FABEKS YAPI YATIRIM VE TICARET A.S.

Istanbul based FABEKS Group is basically a trading house dealing in specific commodities through its subsidiaries and associated companies. The Group's business range covers various but selected items in diversified areas of its expertise and affairs. The comprehensive market knowledge Fabeks has acquired and strong relationships it has build up based upon full credibility, confidence and reliability in The Middle-East and China over the past *8 years had prompted and made it possible for Fabeks to establish strategic alliances, make long-term business and exclusive agency agreements, and to set up joint ventures in Turkey and China. The Group's activities are backed up by its own, affiliated and associated industries and sources. Our experience in iron and steel sector goes back to *0 years or more, when we had to deal with acid resisting steels and later on with commercial and special grade steel and steel products. We have commenced the first export business of local Erdemir mill (flat steel producer) and Asil Celik (producer of alloyed and high carbon special steel) to Middle-East, then to China and Japan, and had acted as their exclusive exporters for quite a number of years. We also had production made in long product rolling mills on processing basis, i.e. buying billets and have them rolled into re-bars, de-bars, angles, etc at an agreed processing fee and then sell them abroad, the main markets being Middle-East and China. Our encounter with China had started with the first official delegation from China visiting Turkey about *5 years ago. China Minmetals being our only counterpart at the time had naturally been our trade partner being the sole authority to import steel into China. Since China was a net importer at the time buying heavily from all around the world we had exported direct or as agents over 5 million tons of steel products to China from Western World, Korea, Turkey, Kazakhstan, Romania, Ukraine, Russia, and other producers in CIS and other parts of the globe. In ***3, we have established a joint venture trading company with Minmetals in Turkey. Until ***6, we had operated in China as the exclusive sales agent for USSI (US Steel International) for 8 years selling all types of steel product from US Steel the largest steel producer in US. Between ********1, we had represented USX (US Steel Engineering) in Turkey and coordinated their works in Turkey As far as raw materials are concerned we had sold to China Iron Ore and DRI pellets. At the same time, we exported metallurgical coke from China to the Western countries in considerable quantities. Noticing that the Chinese steel industry is improving its quality and increasing it capacity, we have decided to turn our attention to source steel from China to sell to other countries. Since ***6 we have shipped from China hot rolled coils to Italy, Turkey, Iran and plates to United States. For the past year or two, we have started to import stainless steel coils from China. So far we have sold more than **0, **0 tons of Hot Rolled Steel Coils in API Grades X**0 and X**5 to Turkey and Iran for natural gas pipeline projects.