In December 2002, VSC entered into a joint venture agreement with Shougang Holding (Hong Kong) Limited ("Shougang Hong Kong") to set up a PPGI production plant in Beijing to produce high quality prepainted galvanized steel sheet (PPGI) and galvanized steel sheet (GI) with international standard.

VSC holds approximately 20% stake in Florish Limited, a joint venture established by VSC and Shougang Hong Kong, for an investment of approximately US$4 million. Through Florish Limited, VSC has 5% interest in Beijing Shougang Florish which produces PPGI and GI. VSC is authorised the rights to sell and distribute products of PPGI together with Shougang Corporation. The PPGI production plant has already commenced full operation since mid-2003 with an annual production capacity of 170,000 metric tons.