Datong Iron in move to raise output
SHANXI province's Datong Iron and Steel Works has sealed a US$26 million deal with New Zealand-based Fletcher Challenge to boost steel production.
The New Zealand company yesterday said it would assume management control of the plant at Datong city, and would contribute $25 million of the project's cost.
Fletcher Challenger will have a 58 per cent interest in Xin Da Iron and Steel Co, the holding company for the project.
The remaining 42 per cent will be owned by the government of Datong.
Datong Iron and Steel has three blast furnaces and a bar mill. It produces 230,000 tonnes of pig iron a year.
Following the expansion, it will have the capacity to produce 270,000 tonnes of crude steel a year, which will be cast into billets.