President of Liaoning-based Angang steel company (Ansteel), Zhang Xiaogang, has declared in an interview that the current period is not the best time for integration in the steel industry. He went on to state that the best time for steel industry integration would be during a period of over-construction, when competition gets fiercer and when less competitive companies are faced with deficits or even bankruptcy.
In addition to its production base in Anshan in Liaoning province, Ansteel has another two bases, in the Bayuquan district of Yingkou city and in the Chaoyang district of Beijing. The former is expected to start production by the end of 2008, with a designed production capacity of 6.5-7.0 million mt.
Mr. Zhang also disclosed that Ansteel is now talking with a steel company in Fujian Province regarding the joint construction of a new cold rolling mill, adding that the results of the talks are expected to be known as early as in two months' time.
Mr. Zhang also remarked on Ansteel's ongoing cooperation with some of the leading companies in the world:
Lacking core technology and management experience in the field of refractory materials, Ansteel has entered into 50:50 cooperation with world leader Vesuvius International, with their two JV mills due to start production in August 2008.
In addition, Ansteel's talks with the world's leading wire company, Belgium-based Bekaert Group, with regard to a joint venture with Ansteel's own wire mill, are nearing their conclusion.
Furthermore, Ansteel's Electric Company is currently negotiating an alliance with General Electric, with the outcome expected to be known within two months.