Yieh United Steel budgets NT$3.58 b. to build cold-rolling plant in China.
Taipei, May 24, 2011 (CENS) -- Seeing the continued growth of China's stainless steel market, Yieh United Steel Corp., the flagship of the E United Group, will invest NT$3.58 billion in establishing a cold-rolling plant in China.
The expansion project has passed the company's board of directors. Yieh United said it will import production equipment for the proposed cold-rolling plant in China, which is designed to have an annual production capacity of 700,000 metric tons of cold-rolled stainless steel.
The company believes China's 12th five-year development plan will offer massive business opportunities in the years to come.
Since 2003, Yieh United has been expanding presence in China and has invested US$790 million to set up the Lianzhong integrated stainless steel mill in Guangzhou of Guangdong Province. The Lianzhong plant has annual production capacities of two million metric tons of crude steel, between 2.5 million and three million metric tons of hot-rolled steel coils, and 700,000 metric tons of cold-rolled stainless steel.
Differing from its stainless-steel peers, Yieh United has resolved to engage in production of cold-rolled steel products in China, instead of focusing on upstream steel products. I.S. Lin, chairman of Yieh United, explained his company has resolved to set up the cold-rolling plant in Guangzhou because there is at least a 10% annual growth for China's cold-rolled steel market.
At present, Yieh United has an annual production capacity of 1.4 million metric tons of cold-rolled stainless steel both in Taiwan and mainland China. After the inauguration of the plant in Guangzhou, the company's annual output of cold-rolled stainless steel will increase by 30% to reach 2.1 million metric tons.
Lin said the cold-rolled stainless steel produced by the new plant in Guangzhou will help his company launch production placement across the Taiwan Strait.
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|Publication:||The Taiwan Economic News|
|Article Type:||Brief article|
|Date:||May 24, 2011|
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