Posted on 08 Oct 2010
China's Henan Hengxing Science & Technology Co has obtained shareholder and local government approval to advance a project to produce 5,000 tonnes/year of ultra fine steel wire used to cut silicon ingots for solar cell manufacturing. Hengxing plans to use some of its existing tyre cord making facilities to produce semi-finished products for ultra fine wire. The wire maker said it expects to produce 300-600 tonnes year of this type of wire in 2009. As SBB has reported, Hengxing’s tyre cord capacity was doubled to 40,000 t/y in 2009. In addition, the company has 100,000 t/y capacity for PC strand, and 200,000 t/y capacity for galvanized wire and strand. Hengxing plans to use some of its existing tyre cord making facilities to produce semi-finished products for ultra fine wire. The wire maker said it expects to produce 300-600 tonnes year of this type of wire in 2009. As SBB has reported, Hengxing’s tyre cord capacity was doubled to 40,000 t/y in 2009. In addition, the company has 100,000 t/y capacity for PC strand, and 200,000 t/y capacity for galvanized wire and strand.
Costing RMB 261m ($39m), the project is expected to be highly profitable for the Henan province-based company as high-quality wire typically enjoys margins of 40-60 compared with around 23% for its tyre cord product. Steel Business Briefing understands that commercial production of the steel wire will also help China reduce its reliance on imports.
