NEW YORK A leading
independent Chinese steel producer, General Steel Holdings
Inc., is expanding its rebar rolling production to meet demand
from the countrys less-developed provinces.
The installation of an
additional line at the companys main manufacturing
facility in Chinas Shaanxi province will increase the
plants rebar capacity to 3.3 million tonnes per year by
late 2013 from 2.1 million tonnes currently. The company
expects the continuous rolling line to reduce rebar production
costs by up to 70 yuan ($11.25) per tonne by eliminating
intermediate and reheating costs.
The large cities on Chinas
eastern coast have already seen massive infrastructure
development, and the focus of Chinese government funding has
shifted to western China, a company spokeswoman told
AMM. "The big cities already have infrastructure, and
real estate is pretty mature," she said. "(But) we still see
high demand for western China. This is still the area that
still needs infrastructure and some housing."
General Steel is listed on the
New York Stock Exchange but does not export steel to the United
States, in part due to strong Chinese demand but also because
of import duties on rebar, which are up for review by the U.S.
International Trade Commission in April.
The Chinese market is still
healthy, the company said, despite long-term prognoses that
Chinese demand will weaken (
amm.com, Feb. 20).
"We believe that our geographic
location in Chinas western region continues to provide us
strong competitive advantages, and we have set sustainable
growth and profitability as our top priority," General Steel
chairman and chief executive officer Henry Yu said in a
statement. "We were glad to see an improving trend for
Chinas steel industry in late 2012, which provides us
with cautious optimism for 2013."