SteelOrbis Shanghai
On September 3, Chengde Steel chairman Tian Zhiping told more than 50 shareholder representatives that rapid company development, the procurement of advantages in resource supplies, and vanadium-titanium are the three investment areas on which Chengde Steel is focused. He added that the Chengde Steel are expecting to see a sharp jump in their production capacity in 2008.
Company chairman Tian Zhiping pointed out that, according to the latest geological explorations, the reserves of vanadium-titanium magnetite in the Chengde area totaled eight billion mt, and are expected to exceed 10 billion mt. Given the current mining capacity, Mr Tian stated these rich ore resources would supply the company over the coming decades, providing strong support for the future expansion of Chengde Steel's production capacity.
Mr Tian remarked that Chengde Steel's capacity had reached five million mt by the end of 2006 and is expected to see a sharp jump in 2008. In recent years, Chengde Steel's cumulative annual growth rate rose to 30 percent and above and was accompanied by a great improvement in Chengde's profits, Mr Tian added.
Tian disclosed that Chengde's advantage in vanadium-titanium reserves are contributing greatly to its rise in profits. Currently, the worldwide vanadium production capacity is around 100,000 mt, while Chengde Steel holds 16,000 mt of this. Future increases in worldwide vanadium capacity are expected to come mainly from Chengde Steel, with the result that in future Chengde Steel's capacity will account for 50 percent of China's total output and around 20 percent of global production. Chengde Steel is thus expected to be the world's largest production and processing base for vanadium products.
Located in Chengde City in Hebei Province, Chengde Steel is owned by Tangshan Steel. Its major products include rebar (vanadium included), low alloy round bar (vanadium included), strip, high-speed wire rod, vanadium pentoxide (tablet & powder), ferrovanadium, and high grade titanium concentrates.