Guangxi Province-based Chinese steelmaker Liuzhou Iron & Steel Co., Ltd. (Liuzhou Steel) has announced that it plans to raise no more than RMB 300 million ($42 million) through a directed share issuance. After deducting relevant issuance expenses, all funds raised will be entirely used in the high-quality technical upgrade and renovation project for 2,800mm medium steel plate. The project in question will have an overall investment of RMB 488 million ($68 million).
The technical upgrade and renovation will last for 18 months, while the main construction content includes the renovation of the heating furnace No. 3 into a step-type heating furnace, the addition of a step-type heating furnace No. 4, the construction of a slab processing line and structural renovation of factory buildings.
The current 2,800 mm steel plate production line was put into operation back in 1974, with product quality not meeting customers’ requirements any more. The renovation of the production line will improve the steel plate quality and expand the customer base, for instance, enabling the company to enter the supply list of leading construction machinery companies, which will bring an additional demand of 100,000 mt to 150,000 mt per year. Moreover, a 3,800 mm medium steel plate production line will be put into operation later, which will increase its market share in wind power, marine vessels, bridges, containers and other areas, bringing demand of 200,000-300,000 mt per year.c