Chinese high precision flat steel producer China Gerui Advanced Materials Group Limited has said that demand in China for high precision steel is to continue to grow at a healthy pace due to the continuing improvement of the standard of living in the country and the growth of the Chinese middle class, who are the ultimate end-users of the company's products.
Providing its outlook for the current fiscal year and the fiscal year ahead, the company said, "The Chinese government is continuing to encourage domestic consumption throughout the economy. With our new capacity coming online, we will be able to offer our customers new, higher value-added products, such as chromium and zinc coated products and wide strip products. These products will increase our sales and our profitability as they are higher margin than the products we make now."
By December 2011, the steelmaker plans to double existing production capacity to 500,000 mt per annum, and increase its chromium plating capability to 250,000 tons per annum, covering 50 percent of its total annual steel production capacity.
The company said that for the fiscal year 2010, China Gerui expects revenues of $252 million and net income of $48 million. For the fiscal year 2011, China Gerui said that it expects revenues of between $330 million and $345 million, gross profit of between $115 million and $120 million and net income of between $70 million and $75 million.