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Steel giant expands purchasing in China
(Xinhua)
Updated: 2004-07-01 15:58

The Netherlandish steel giant LNM corporation announced Thursday that it would raise its annual procurement in China to US$200 million to US$300 million by 2005 to 2006 from the current US$5 million.

LNM's purchasing plan will cover fireproof materials, ferroalloy, coke, graphite electrode, design of metallurgy project, whole set equipment and project contracting, according LNM CEO Malay Muckherjee.

The second steel company in the world, LNM produced 38 million tons of rolled steel last year and recorded sales totaling US$12 billion. Its output is expected to top 42 million tons this year as a result expansion of its original capacity and taking in other steel and iron plants.

Malay Muckherjee said LNM needed to buy US$10 million of raw materials, metallurgical equipment and fittings from around the world annually, to meet the demand of its capacity expansion and acquisition.

Meanwhile, LNM is stepping up its investment in and trade with China.

LNM has announced to set up a solely-financed cold rolled sheet plant in Yingkou City of Northeast China's Liaoning Province.

Last year, LNM exported some 2 million tons of rolled steel to China.

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