South Steel Investment and Development Company was incorporated by its initialstockholders, Taavoni Masraf KargaranMojtamae Foulad Ahvaz Co., TaavoniMasraf Karkonan Foulad Azarbaijan Co.and Taavoni karkonan grouhe MeliSanati Foulad Iran Co. in March of 2005 toassist with development of steel industryaiming to accelerate the development ofsteel industry process.

South Steel Investment and DevelopmentCompany, as a holding company andwith ten affiliated companies, aimed to protect resources and promote thebusiness of the shareholders throughparticipation and investment in steelsector.

The company developed its structure andevolved in steel industry sector byforming affiliated companies and definedthe object of each one.

To define the scope of activities of eachcompany, the object and structure of theaffiliated companies are outlinedhereunder.