TEX reported that, in line with the project to strengthen the facilities for production of stainless steel in China, YUSCO has been proceeding the measures to secure raw materials and is scheduled to construct a new plant to produce ferronickel in Ningde area of east south part of Fujian Province.

This project requires to invest USD 95 million. The construction will start from January 2011 and the designed capacity is able to produce 500,000 to 600,000 tonnes in material of ferronickel on an annualized base.

In order to enlarge and to strengthen the measures to ensure raw materials for production of stainless steel in China, Taiyuan Iron & Steel (Group) Co Limited, which is the largest producer of stainless steel in China, is constructing a new plant to produce ferronickel in Myanmar as a joint venture with capital in this country and the plant is scheduled to commence its operation in 2011. The designed capacity is able to produce 28,000 tonnes on Ni content base of ferronickel on an annualized base. The necessary raw material will be fed from nickel deposits (reserves are estimated at 40 million tonnes containing 2.3% to 2.4% on average of Ni) located in the back region of Myanmar.

However, YUSCO so far did not mention the sources to feed nickel ore as raw material for this project to produce ferronickel, while Fujian Liande Co, a subsidiary of YUSCO, will be actually in charge of producing ferronickel.

It was announced by YUSCO that, apart from this ferronickel project, the Board of YUSCO has approved in last week to expand further their production of stainless steel for the next 2 years from 2011 and decided to invest USD 116.7 million in Lianzhong Stainless Steel Corporation, which is an affiliated company of YUSCO.

(Sourced from TEX Report Limited)