September 08, 2008

WISCO to expand steel capacity to 50 million tonnes by 2010

Interfax China reported that Wuhan Iron and Steel Group Company Ltd China's fourth largest steel mill by capacity will expand its annual crude steel production capacity to as much as 50 million tonnes by 2010.

The report quoted Mr He Kangyong director of WISCO's overseas business development department as saying that "By 2010, WISCO is likely to have lifted its total crude steel production capacity to between 40 million and 50 million tonnes. This capacity will include a 10 million tonne steelworks project in Fangchenggang Guangxi and expanded attributable capacities held by Kunming Steel and Liuzhou Steel."

He said by the same time, WISCO's major production and operations base in Qingshan district, in Hubei Province's Wuhan City aims to attain an annual crude steel production capacity of 18 million tonnes. The base is targeted to produce 14.5 million tonnes of crude steel this year.

Mr He Kangyong said at present, WISCO's most competitive steel products on the domestic market include cold rolled silicon sheet, automobile plate and structure steel. Referring to WISCO's overseas development strategy, He said the company would focus on iron ore resource investment and steel product exports in the coming years.

He added that "WISCO is under great pressure from soaring raw material prices and freight rates and we are seeking investment opportunities in overseas iron ore mines."