As part of this arrangement, Erasteel will participate in the capital increase of HeYe and will hold 10% of its outstanding shares for about 13 million.

HeYe is a joint venture whose holding company is Advance TechnoIogy and Materials Co Ltd, a high-tech advanced materials industry leader in China. The second biggest shareholder is Sumitomo Corporation. HeYe is a specialized tools steel plant and the leader unit of the high-speed tool-steel specialty group under the Chinese Special Steel Association.

Advanced Technology & Materials Co Ltd (AT&M) is focused on R&D and manufacture of new metallic materials and products. AT&M was established by China Iron & Steel Research Institute Group (CISRI), a large state-owned scientific research institute, in December 1998.