China Gerui Advanced Materials Group Ltd. announced the introduction of a new laminated steel processing line at its existing production facilities in Zhengzhou, China. The new laminated steel processing production line is estimated to be completed, tested and to begin commercial production in the second quarter of 2013. The new laminated production line will utilize the Company's cold-rolled steel as a raw material to produce a specialized steel material that will be primarily marketed to the industries of food and beverage packaging, electrical appliances, and construction and decoration.

These markets are expected to experience continued growth stimulated by rising domestic consumption within the next few years. The new laminated production line is designed to produce up to 30,000 tons per year of laminated steel sheets, although there is room for further capacity expansion pending market demand. Historically, China's domestic food and beverage industry has relied heavily on imported food-grade metal packing materials.

Thus, China's 15(th) five-year plan encourages domestic development and production of toxic-free, environmentally-friendly, food-grade packing materials. China Gerui's growth strategy of replacing imports with precision, high-end cold-rolled steel products is consistent with the government's goals. The laminating process requires a strictly controlled manufacturing process to achieve strong adhesion between the laminating film and the cold-rolled steel sheet.

The Company expects to produce a highly stable, adaptable and top quality product using the latest quality control instruments under a high-level clean room environment. China Gerui has adopted the advanced technology in this new production line, which also includes standards and guidelines that ensure environmentally-friendly production processes.