October 12, 2008

Chongqing to invest CNY 4 billion in capacity expansion

According to Mr Chen Shan general manager of Chongqing Iron & Steel Co Ltd, the company would spend about CNY 4 billion lifting the capacity of its two projects to 4 million tonnes of steel products a year and would injected CNY 1.5 to CNY 2 billion of proprietary funds into the projects in 2008.

The two expansion projects are scheduled to start production in 2009 and 2010 one by one. And the company had about CNY 970 million cash in hand at 2007 end.

Chongqing Iron & Steel Co Ltd targets to produce 2.96 million tonnes of pig iron up by 0.3% YoY, 3.4 million tonnes of steel up by 1.5% YoY and 3.25 million tonnes of steel billet this year up by 4.2% YoY from last year respectively. Mr Song Ying its financial manager explained the growth in output was limited by the current capacity and the company would strive to lift the upper end of its output and improve product mix.