Magang to expand capacity for further profitability

China's Anhui province based steelmaker Maanshan Iron & Steel Co (Magang) announced plans to expand its capacity to ameliorate its profitability. The net profit of the company dropped 19 percent in 2005. The company is planning to add 5 million metric tons more to its thin plate production capacity by the end of next year. The new capacity will provide thin products for automobile and household appliances industries, which have a supply deficit in China. Magang currently produces plates, sections, wire rods and train wheels with 10 million mt annual production capacity. The company has also sped up efforts to merge with Hefei Steel.