September 08, 2008

Chongqing Steel to invest CNY 1.9 billion in thick steel plate project

Chongqing Iron & Steel Group has announced to invest CNY 1.9 billion to a thick steel plate project recently. The project is designed to produce 1.3 million tonnes steel annually, mainly steel plates with a width of 1,500mm to 1800 mm.

Chongqing Iron & Steel Group said that CNY 1.87 billion will be invested in fixed assets and CNY 30 million will go into floating assets. The investment comes from its own capital and financing from banks. The construction of the project will start in 2007 and finished in 2009 with a constructing period of 22 months. It is located in Changshouyan Industrial Park in the city.

According to the statistics, China sees increasing demand for thick steel plates as shipbuilding, infrastructure construction and equipment manufacturing industries are growing rapidly in recent years. It is estimated that China will consume 86 million tons of medium-and-thick steel plate by 2010.

Chongqing Steel is a major steel manufacturer and medium and thick steel plate supplier in China. 60% of its products are sold in Chongqing and northwestern regions. The new project will integrate its advantages in production, management and customer resources as well as providing sufficient supply of medium-and-thick steel plates to customers in northwestern region.