Asia Times: Steelmakers look to China for strength


	September 12, 2001	atimes.com

The Koreas

Steelmakers look to China for strength

SEOUL - South Korea's steel producers are rushing to set up plants in China to break away from the slump gripping the domestic industry.

TrefilARBED Korea Co, a joint venture between Korea's Kiswire and TrefilARBED in Luxembourg, is at a final stage of negotiations with Chinese authorities on its plan to set up a steel wire plant capable of producing 20,000 tons of steel wire a year in Qingdao, Shandung Province, industry sources said on Tuesday.

The company, which manufactures steel tire cord at Yangsan, Changwon and Okchon plants, plans to invest US$80 million to set up a steel tire cord plant in Qingdao and it has already signed a lease contract with the city for the projected plant's site.

A Kiswire official said that they are only waiting for approval from the authorities to start building the plant and they plan to launch construction as soon as permission is granted as they intend to turn out wire there by next June.

Union Steel, which already has a plant capable of producing 500,000 tons of cold rolled steel in Jiangsu Province, currently is seeking a site for a plant capable of producing from 200,000 to 300,000 tons of lead alloy steel sheets a year. A Union Steel official said the company has been conducting a feasibility study to expand its investment in China up to 2005.

The company plans to expand investment in its Jiangsu plant and build another plant in an advantageous site in terms of less tax burden. Pohang Iron and Steel plans to invest $100 million by 2003 to expand the production capacities of its three Chinese subsidiaries including one in Dalian. Their production capacities will be increased to around 800,000 tons from 390,000 tons.

(Asia Pulse/Yonhap)