Friday, March 07, 2008

Wuhan Steel eyes overseas expansion

Wuhan Iron & Steel Group<600005>, China's fifth-biggest steel maker, is seeking global expansion to buy iron ore assets and build plants in Australia, India and Vietnam, said President Deng Qilin yesterday in a interview.

"We have contacted many foreign companies, and we hope to invest outside of the country," Deng said. "Building a plant, if any, must be close to the resources."

Deng disclosed that the company will soon get state approval to build a 10-million-ton steel plant in Fangcheng Port in southern Guangxi Zhuang Autonomous Region, which will pave the way for its acquisition of Liuzhou Iron & Steel Group.

Wuhan Steel was expected to produce 22 million tons of crude steel this year, compared with 16 million tons last year, according to Deng.

Starting operation in 1955, Wuhan Steel is the founding of new China investment by the State in the first large steel building joint ventures. It has become an important production base plate, with extraction from mines, coking, sintering, smelting, steel rolling, and process equipment.

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