ArcelorMittal to invest in Lianyuan's expansion
The new cold mill is scheduled to be brought on stream around 2010, as a downstream facility serviced by the new hot mill.
By PTI |
NEW DELHI: NRI steel baron L N Mittal-run ArcelorMittal and China's Valin Group will fund a new 4.4-MT strip mill and a 2-MT cold rolled steel mill of Lianyuan Steel, a company in which the two jointly hold 88.3 per cent stake through JV company, Valin Steel Tube and Wire.
The new hot mill project is expected to receive approval from the National Development and Reform Commission within the next few months and the mill could be commissioned as early as July 2009, Steel Business Briefing (SBB) reports quoting a Lianyuan Steel official.
The new cold mill is scheduled to be brought on stream around 2010, as a downstream facility serviced by the new hot mill. Output from the two mills would mostly target the automotive sector and the CR mill may produce two lakh tons per annum of NGO silicon steel, it said.
The Valin Group and ArcelorMittal will directly invest in the two mills, SBB said quoting another Lianyuan Steel official. However, the official refused to disclose the investment figure, saying that the Valin Group will share a major portion of the planned outlay, it said.
ArcelorMittal holds a 29.48 per cent stake in Valin Steel Tube & Wire, while the Valin Group holds 30.29 per cent.
Currently, Lianyuan Steel operates a 2.4-MT hot strip mill, a 1.5 MT CR mill, a 300,000-tonne HDG line as well as a 2-MT of long product capacity, SBB added.
The new hot mill project is expected to receive approval from the National Development and Reform Commission within the next few months and the mill could be commissioned as early as July 2009, Steel Business Briefing (SBB) reports quoting a Lianyuan Steel official.
The new cold mill is scheduled to be brought on stream around 2010, as a downstream facility serviced by the new hot mill. Output from the two mills would mostly target the automotive sector and the CR mill may produce two lakh tons per annum of NGO silicon steel, it said.
The Valin Group and ArcelorMittal will directly invest in the two mills, SBB said quoting another Lianyuan Steel official. However, the official refused to disclose the investment figure, saying that the Valin Group will share a major portion of the planned outlay, it said.
ArcelorMittal holds a 29.48 per cent stake in Valin Steel Tube & Wire, while the Valin Group holds 30.29 per cent.
Currently, Lianyuan Steel operates a 2.4-MT hot strip mill, a 1.5 MT CR mill, a 300,000-tonne HDG line as well as a 2-MT of long product capacity, SBB added.
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