August 22, 2008

CITIC Pacific to double special steel output

Hong Kong based conglomerate CITIC Pacific aims to double its production capacity of steel through acquisitions and refined technologies. At the company's annual general meeting yesterday, management of CITIC Pacific said that the company will strive to maintain its leading position as the mainland's largest special steel manufacturer.

To bolster the capacity of its existing special steel projects, CITIC Pacific announced that it has set up a separate company to consolidate the management of the three special steel factories currently under the group.

Mr Larry Yung Chi-kin chairman of CITIC said that "The new organization will oversee the management of our special steel factories in Jiangyin, Huangshi and Shijiazhuang.”

The Beijing-backed company took in HK$2.2 billion in profits from its special steel business last year.

Mr Peter Lee Chunghing deputy MD of CITIC Pacific said that the current combined capacity of the three special steel factories is 7 million tonnes a year. He said that "In the long term, we hope to increase that number to 15 million tonnes a year.

He said that the group will increase its output by utilizing better technologies. However, to further expand the group's market share, Mr Lee said CITIC Pacific might consider acquisitions.