August 29, 2008

Pingxiang Steel earmarks CNY 6.25 billion for expansion

It is reported that Pingxiang Steel is pumping CNY 6.25 billion into its subsidiary, Jiujiang Steel Works, in the next two years. The outlay includes a 1.2 million tonnes per year wire rod mill scheduled to be commissioned by the end of this year. Pingxiang also plans to start the construction work of a 1.6 million tonnes per year plate mill by July, with production possibly starting in October next year.

The Jiangxi province mill is also constructing another two wharves in the Yangtze riverside city of Jiujiang, giving a total of five wharves with an overall throughput of 13 million tonnes per year. By 2010, Jiujiang will be able to produce 4 million tonnes per year of crude steel, generating sales revenue of CNY 14 billion while its parent company will have a steelmaking capacity of 8 million tonnes per year, with sales revenue of CNY 30 billion. Pingxiang produced 4.14 million tonnes of crude steel last year. Its main products are rebar, high speed wire rod and small section.