BEIJING – China’s Anshan Iron and Steel Group (0347.HK: quote), also known as Angang, confirmed on Monday it would invest in a steel mill in the United States. The state company will have a stake in a $ 175,000,000 reinforcement facility now under construction in Amory, Mississippi after the signing of investment, technology and marketing agreements with the Steel Development Company (SDCO) in New York on May 13
“This is our first mill in the United States, although we have a commercial there,” a senior official with the planning of the company said.
The official, who does not want to disclose his name, gives no further details about the size of the investment.
The deal will require the approval of the Ministry of Commerce, said that Angang was probably her aid.
“We have received the application, but we support Chinese companies investing abroad,” said Yao Jian, spokesman of the Ministry of Commerce, at a press conference on Monday.
Jia Yinsong, Head of the resources of the Ministry of Industry and Information Technology, last week urged the Chinese steel mills to overseas acquisitions to do in order to circumvent trade barriers.
Chinese steel exports fell almost 60 percent in 2009 as a result of the global financial crisis, and the China Iron and Steel Association complained that the recovery of this year, hampered by rising protectionism in Europe and the USA.
In April, the United States imposed 30-99 percent anti-dumping duties on Chinese steel pipe imports, one of the 1929 trade dispute with Chinese steel producers since 2007, according to figures from the World Trade Organization.
Angang, located in northeast China’s Liaoning Province has been a merger with Benxi Iron and Steel Group for Anben Steel Group, the fourth largest Chinese producer with 29.3 million tonnes of production in 2009 form.
source:reuters
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