China’s Anshan Steel to invest in US steel mill

BEIJING, May 17 (BestGrowthStock) – China’s Anshan Iron and Steel
Group (0347.HK: ), also known as Angang, confirmed on Monday it
would invest in a steel mill in the United States.

The state-owned firm will gain a stake in a $175 million
rebar facility now under construction in Amory, Mississippi after
signing investment, technology and sales agreements with the
Steel Development Company (SDCO) in New York on May 13.

“This is our first mill in the United States, although we
already have a trading company there,” a senior planning official
with the company said.

The official, who did not want to disclose his name, did not
give any further details on the size of the investment.

The deal will need the approval of the Ministry of Commerce,
which said Angang was likely to receive its backing.

“We haven’t received the application but we support Chinese
enterprises investing overseas,” said Yao Jian, spokesperson with
the Ministry of Commerce, at a press briefing on Monday.

Jia Yinsong, head of the raw materials department at the
Ministry of Industry and Information Technology, last week urged
Chinese steel mills to make overseas acquisitions in order to
circumvent trade barriers.

Chinese steel product exports fell almost 60 percent in 2009
as a result of the global financial crisis, and the China Iron
and Steel Association has complained that the recovery this year
is being hobbled by growing protectionism in Europe and the
United States.

In April, the United States imposed 30-99 percent
anti-dumping duties on Chinese steel pipe imports, one of 29
trade disputes involving Chinese steel makers since 2007,
according to World Trade Organisation figures.

Angang, based in northeast China’s Liaoning province, has
already completed a merger with Benxi Iron and Steel Group to
form the Anben Steel Group, China’s fourth biggest
producer with 29.3 million tonnes of output in 2009.

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(Reporting by Ruby Lian, Wang Lan and David Stanway, Editing
by Jonathan Hopfner)

China’s Anshan Steel to invest in US steel mill