13 Mei 2010
Guangdong Steel Plans 35 Billion Yuan Steel Project

China's Guangdong Steel said it plans to invest 35 billion yuan ($5.13 billion) to develop a high-grade carbon steel project.

Guangdong Steel, a joint venture established almost two years ago, is 80 percent controlled by Baosteel Group, the country's top steel maker, with Guangzhou Iron & Steel and SGIS Songshan Co Ltd owning the remaining 20 percent.

The company plans to build a 5 million tonne per year high-grade carbon steel project in Zhanjiang, Guangdong province over the next three years to meet urgent demand in the region, it said in a statement to the stock exchange late on Monday.

Guangzhou Iron & Steel was the morning's biggest gainer after it resumed trading on Tuesday following a one-day halt, with its shares rising by its 10 percent daily limit.

Beijing has been reluctant to approve more steel projects since last year due to the global financial downturn and domestic overcapacity worries.

However, Baosteel has said it aims to expand the project to 10 million tpy as part of its efforts to develop more high-end steel products. ($1=6.826 Yuan).

(Source: SEAISI Website)

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