It is reported that Xinxing Ductile Iron Pipes will invest CNY 2.75 billion on the building of 3 million tonnes of steel production capacity in Hejing Industrial Park, Xinjiang province, through its subsidiary, Xinxing Ductile Pipes.

The first phase of the work, which involves the building of 1 million tonne of steel production capacity, will be constructed during the 2011-12 period. The major products to be produced at this base include steel rods, steel bars, pipes, and sheets.

In addition, Xinxing Pipes will inject CNY 500 million into Xinxing jointly with Xinjiang Kingte Iron and Steel. The two parties will provide CNY 2 billion worth of entrusted loans or loans guarantees to Xinxing.

To stabilize the supply of iron ore to all its subsidiaries in Xinjiang, Xinxing Pipes will establish a mining joint venture with registered capital of CNY 10 million with natural person Gao Xincheng.

The mining joint venture will apply for both prospecting rights and exploration rights from the local authorities.

(Sourced from yicai.com)