China Gerui to complete phase I of expansion plan in autumn this year

Zhengzhou, China-based value-added specialty steel producer China Gerui Advanced Materials Group Limited has released an update on its production capacity expansion plan.
 
The company plans to double its existing production capacity to 500,000 mt per annum and to increase its chromium plating capability to 250,000 mt per annum, covering 50 percent of its total annual steel production capacity.
 
Phase I of the expansion plan is the construction of two new cold rolled wide-strip steel production lines with 150,000 mt of total annual capacity and a chromium plating line capable of processing 200,000 mt of cold rolled steel per annum, all to be completed on various dates through summer and autumn of the current year. The chromium plating line can handle both narrow- and wide-strip cold rolled steel. The company expects total capital expenditures for Phase I of $42 million, of which approximately 65 percent has been spent to date.
 
For Phase II of the project, the company expects to construct a third cold rolled wide-strip steel production line with 100,000 mt of capacity by the end of the third quarter of 2011. The company expects the capital expenditures for Phase II to total $12 million.