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Vulcan
Steel News October 30, 2014 01:00:17 AM

Austrian voestalpine eyes big expansion in Chinese Ningxia province

Paul Ploumis
ScrapMonster Author
The Austrian steelmaker-voestalpine has announced plans to build special steel plant in Yinchuan in the Chinese Ningxia province
Austrian voestalpine eyes big expansion in Chinese Ningxia province

BEIJING (Scrap Monster): The Austrian steelmaker-voestalpine has announced plans to build special steel plant in Yinchuan in the Chinese Ningxia province. This will be the first of the fifteen steel plants the company plans to build in Chinese mainland by 2020. The construction of the plant is expected to commence during early-2015 and is expected to complete by end-2017.

The Austrian steel major’s special steel unit is reported to have entered into a partnership with Kocel Machinery Co., a subsidiary of Kocel Group. The plant will have a production capacity of around 50,000 to 70,000 tonnes per year. Voestalpine plans to invest around $178 million to the new plant. The plant will produce tool steel and forged products, it added.

The company aims rapid expansion in its Asian operations. Currently, Asian region accounts for 7% of the company’s total revenue. It plans to raise its revenue from €750m during last fiscal to €2 billion by 2020.

The voestalpine Group is a steel-based technology and capital goods group that operates worldwide. The group consists of nearly 500 group companies and has its presence in over 50 countries. In China alone, it has 22 sites and subsidiaries. They are one of the leading partners to the automotive and consumer goods industries in Europe and to the oil and gas industries worldwide. Voestalpine is also the market leader in supply of special rails, tool steel, and special sections.