Steel & Sumikin Stainless Steel Corp. (NSSC) has canceled
plans to open a stainless cold-rolling mill in Nantong, Jiangsu
province, in a joint venture with Xinan Stainless Steel Co.
"The project has been
completely canceled, not just delayed, due to a change in the
business situation," a senior NSSC executive told AMM
sister publication Steel First.
Production at the
200,000-tonne-per-year plant was slated to start in June 2014,
but Japans largest stainless steel producer said the
partners have decided to abandon the project due to a worsening
outlook for demand conditions amid a glut of stainless steel
supply in China.
which Xinan Stainless was to take a 40-percent stake, NSSC 25
percent and trading house Sumitomo Corp. 35 percentwas
due to cost 1.5 billion yuan ($15.3 million) to construct.
The scrapping of the project will be a big blow to Xixan
Stainless, which had been looking to use it to expand and
diversify its production. The company currently has an annual
capacity of 600,000 tonnes of hot-rolled stainless coils.
A version of this
article was first published in AMM sister publication Steel