Hunan to boost Valin Steel to world top 500 by '11

Xiaoxiang Morning News reported that one of the targets pointed out in the lately released implementation plan of steel industrial revitalization in Hunan is to push Valin Steel Group into World Top 500 by 2011

According to the plan, Valin Steel Group, the 11 million tonnes per year steelmaker, is picked out as the main force to work into the industrial reconstruction and upgrading in Hunan during 2009 to 2011.

It’s projected in the plan that the province will fight for expanding the crude steel capacity to 30 million tonnes per year by 2011 including 20 million tonnes per year inside the region and 10 million tonnes per year outside, to occupy 5% of China’s capacity, and scaling up the sales revenue to over CNY 200 billion till the end of the plan period.

During the period, Hunan Plans to pour CNY 40 billion into key steel projects referring to auto sheets, oriented silicon steels, 5000mm wide & plates and seamless pipes, to speed up steel industrial developments. Meanwhile, Valin Steel is encouraged to take up the merge & acquisition businesses inside and outside of the province and deepen the cooperation with state owned steelmakers and ArcelorMittal in aspects such as raw material purchasing, products selling, technology innovation, etc.

In addition, Hunan is to sweep out all 300 cubic meters below furnaces, 200,000 tonnes per year below converters and electric furnaces in line with the regulations. It will gear up the clean-out of 5000Kva-below ferroalloy electric furnaces, narrow strip mills and non-continuous section steel, bar mills.

By 2011, the province will write off 4.54 million tonnes per year iron smelting capacity, 4.8 million tonnes per year steelmaking capacity and 300,000 tonne per year ferroalloy capacity.