Companies

Ansteel may postpone US plant investment

(Agencies)
Updated: 2010-08-20 12:03

Angang Steel Co (Angang) said Thursday that its parent, Anshan Iron and Steel Group (Ansteel), may postpone plans to invest in a US steel plant because of objections from US lawmakers, Reuters reported.

Chen Ming, vice chairman of Angang, said its parent was currently engaged in talks with the US-based Steel Development, but had not yet invested in the project, so it would not incur any losses, according to the report.

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Ansteel, China's fourth-largest steelmaker, said in May that it has signed a memorandum of understanding (MOU) with the United States mill Steel Development Company (SDC) to gain a stake in SDC's deformed steel bar plant, making it the first Chinese company to invest in a US steel mill.

However, the investment plan was then questioned by some US Congress members, who urged an investigation into cooperation plans between the two steel companies.

Ansteel claims that the investment decisions in the US are commercial in nature and are based on market needs.

Angang, the listed unit of Anshan Iron and Steel Group, returned to profits in the first half of this year with net profit of 275.94 percent, year-on-year, to 2.75 billion yuan ($405.04 million).