BlueScope Steel to increase investments in China

BlueScope Steel to increase investments in China

Australian steel producer BlueScope Steel will invest in two new manufacturing facilities in China, according to a statement released by the company. In line with the company's plan, a new facility to produce a range of BUTLER™ and LYSAGHT® quality branded products for customers in the Chinese construction sector will be built in Guangzhou. A$45 million ($35 million) will be invested in the facility. Moreover, A$16 million ($12.4 million) will be invested in the expansion of the BlueScope Lysaght plant in Langfang. That plant will produce sandwich panels for the Chinese market. The two facilities will be operational by mid 2006. Meanwhile, BlueScope Steel inked an iron ore deal with Australian steel producer BHP Billiton and its Mount Newman joint venture partners. In line with the deal, BlueScope Steel will purchase in excess of 4 million tons of iron ore per year through June 2009.