On March 17, China’s largest galvanized steel wire and steel stranded wire producer Henan-based Hengxing Science & Technology Co., Ltd announced that it will terminate its ultra-fine steel wire project with a planned annual capacity of 15,000 mt, and switch instead to a project for the production of steel stranded wire with an annual production capacity of 30,000 mt. The total investment in the steel stranded wire project is estimated at RMB 367 million ($59 million). Construction work on the project will last for 12 months, while annual after-tax profits are expected to reach RMB 43.838 million ($7 million).
As of December 31, 2012, Hengxing Science & Technology Co. had spent about RMB 150 million ($24 million) on its ultra-fine steel wire project. The money was mainly used to purchase equipment, which will now be upgraded for the production of steel stranded wire. The company plans to invest another RMB 217 million ($35 million) in order to complete the steel stranded wire production project.
The company’s overall annual steel stranded wire output is expected to reach 90,000 mt after the completion of the project, while it will still have an annual production capacity of 5,000 mt of ultra-fine steel wire.