Posted on 29 Sep 2022
Xiangtan Iron & Steel Co (Xiangtan Steel), a subsidiary of Hunan Valin Steel Co (Valin Steel) headquartered in Changsha, Central China's Hunan province, has decided to invest Yuan 700 million ($97.8 million) in building an advanced high-speed wire rod production line with an annual output of 600,000 tonnes, as part of efforts to meet the growing demand for special steel in the automotive, machinery manufacturing and energy sectors, according to a company announcement released on September 27.
The approval to build the new wire rod production line was granted at a board meeting held by Valin Steel on September 27, and the construction will be commenced shortly and the production line is scheduled to be commissioned next September, according to the release.
The production line will include advanced spring steel, cold heading steel, bearing steel, steel cord, wire rope/prestressed strand/steel for bridge cable, welding wire and structure steel, all of which will "position in the high-end market with strong competitiveness in product quality, performance and costs," the announcement said.
Xiangtan Steel, also located in Hunan province, hosts a steelmaking capacity of 12 million tonnes/year and mainly produces wide and heavy plates, wire rods and bars, according to the company's official website.
Valin Steel operates production bases in Xiangtan, Loudi and Hengyang in Hunan province, and Yangjiang in South China's Guangdong province. It recorded a net profit of Yuan 3.8 billion during the first half of this year, down 31.5% on year, according to the company's interim report.
Source:Mysteel Global
