December 03, 2008

China Oriental looking to buy mills with 2 million tonnes capacity

It is reported that China Oriental Group Company, a Chinese steelmaker controlled by ArcelorMittal, seeks to buy domestic steel with 2 million tonnes of capacity as part of a strategy to double production.

Mr Zhu Jun executive director of China Oriental Group Company said that the company is looking for assets in Hebei province in northern China. He said “We believe the ongoing consolidation in the nation's steel industry would offer us chances to expand.”

Mr Zhu said China Oriental in September said it plans to more than double production capacity to over 10 million tonnes by 2010. Capacity will reach 6 million tonnes by the end of this year from 4.3 million tonnes in 2007.

China Oriental Group Company produces billets, strips and H-beams. Billets are semi-processed products that can be made into strip. Strips and H-beams are used in construction.