According to a senior company executive of China third largest steelmaker by output Anshan Iron & Steel Group Corp is likely to establish a steel processing plant in India to take advantage of the positive outlook for steel demand there.

The planned move into India is the latest by Ansteel in its steady expansion overseas following investments in steel processing plants in Spain and Italy and a controversial joint venture in the US last year.

Mr Zhang Xiaogang Ansteel president in an interview said the proposed joint venture in the US will likely be delayed as some shareholders have pulled out of the project.

He said the India plant which will receive investment from other leading global steel makers will produce steel plates used in household appliances and automobiles.

He added that "We will partner with other global steel giants. We don't rule out the possibility of attracting steel makers to jointly invest in the plant. He however declined to name specific partners or give a timeline for the project.”

Mr Zhang said Ansteel unlike other domestic peers who have aggressively invested in overseas resources has been more cautious, opting for less risky developed countries despite higher costs. He said "We won't rush because internationalization is a long term process which may take decades."

He added that in Africa for instance, the company has looked at several investment opportunities but held back because of risk management considerations.

Mr Zhang said Ansteel joint venture in US slated to start operation in the third quarter of next year may be postponed as the shareholder mix has changed after the plan encountered opposition from US lawmakers,

He said without giving names that "Some Large shareholders have pulled out due to opposition from representatives and some other problems. New investors are in talks now."

In May 2010, Ansteel said it planned to build five steel plants in the US in collaboration with Steel Development Co as part of a strategy to expand aboard and sell products directly to US consumers.

(Sourced from online.wsj.com)