Source: The EconomicTimes
China's Tsingshan Holding Group has started work on construction of a cold-rolling line, which be one of the largest stainless steel projects in India when completed, the company said. The products from the new integrated stainless steel mill in Gujarat will be marketed across the country and the rest of Asia to meet growing demand, Metal Bulletin said in a report.
Tsingshan has formed a joint-venture company - Cromo Steels Private Ltd Co (CSPL) to construct a 150-billion-rupee ($2.3-billion) integrated plant. The identity of the jv partner was not announced. The plant would consist of hot-rolling and cold-rolling lines as well as smelting facilities in Gujarat, the report added.
The facility will reportedly have crude stainless steel capacity of 2 million tonnes per year while the CRC line will have capacity of 600,000 tonne per year, the report added quoting an industry analyst in China. Construction of the project is likely to be completed within five to six years, Tsingshan said according to Metal Bulletin.
The plant will sell mainly 304-series hot-rolled flat products as well as cold-rolled products to markets in East and South East Asia which are also the main markets for Tsingshan's Indonesian steel operations.
India's growing economy is expected to spur steel demand with stainless steel industry also expected to boost. , chairman Xiang Guangda said at the ground-breaking ceremony, the Metal Bulletin report added.
Higher nickel prices suspensions and closures of Chinese operations on environmental grounds and strong demand from Asia, Europe and North America have been the drivers of the stainless steel market over the past five months, the report added.
Tsingshan Holding Group was set up in 1992 and is mainly engaged in foreign investment, manufacturing, sales, warehousing and import& export, according to its website. The Group mainly produces stainless steel ingots, steel bars, plates, wires and seamless tubes, which are widely applied in petroleum, chemical engineering, machinery, electric power, automobile, shipbuilding, aerospace, food, pharmacy, decoration and other fields.