It is reported that Shandong Freda Group has signed a pact with Henan Suixian County to pour CNY 1 billion to build a wholly owned stainless steel industrial park in the latter's region on November 18th 2008, under the name of "Henan Guohua Stainless Steel Company Limited" or "Henan Shuangfeng Stainless Steel Company Limited."

The stainless plant will focus on production, processing and marketing of stainless steel and special steel materials, construction and dressing materials etc, with total invests of CNY 1 billion.

The project will be built in three stages. With costs of CNY 0.4 billion, the first stage includes infrastructure construction, seamless pipe, rolled steel, steel products and construction steel markets construction, and is slated to be completed within 2009, second stage focus on welded pipe, seamless pipe expansion projects construction, with costs of CNY 0.2 billion, and is expected to be finished in 2010, third stage will cost CNY 0.4 billion.

As per report, the project will boast annual production capacity of 20,000 tonnes of hot piercing, 7,000 tonnes of welded pipe, 20,000 tonnes of seamless pipe, 0.2 million tonnes of steelmaking and 30,000 tonnes of hot rolled steel after it completes.