Shougang to raise production capacity to 30 million tonnes Friday, 01 May 2009 Bloomberg reported that Shougang Corp., China's eighth largest steelmaker plans to increase production capacity to more than 30 million tonnes by 2012 through domestic acquisitions.
Mr Wang Shuanghong a resource director said at a Metal Bulletin conference that the Beijing based company is completing due diligence to buy Changzhi Iron & Steel Group. The company previously said Changzhi has an output capacity of 4 million tonnes.
Mr Wang said Shougang is also planning to buy a rival in Xinjiang province and has a target in Guizhou. The Xinjiang mill, which has a few hundred thousand tons of output capacity, will give Shougang access to coal resources. He didn't say how much production capacity Shougang has currently.
Mr Wang said, without giving details that the company is studying investment opportunities in coal and iron ore resources in Australia, Canada, Mongolia and in China. He said that Shougang is targeting production of 15 million tonnes of iron ore from its mine in Peru from 2012. The company in March said it would spend up to USD 1 billion to expand the mine.
(Sourced from Bloomberg)
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