Sinosteel Corporation, a large Chinese enterprise group engaged mainly in development and processing of metallurgical and mineral resources, said that it plans to invest more than US$4 billion over the next eight to ten years to build a steelworks with annual output capacity of 5 million tons in India.
Wang Hongsen, general manager of Sinosteel India Company, said the proposed factory with designed final capacity of 5 million tons will be put into operation before the end of 2008 and it will be Sinosteel's first steel factory in India.
The first phase of the steelworks will form an annual capacity of 1.5 million tons and cost 800 million tons, Wang said, quoted by Beijing Business Today.
It is learned that Sinosteel hopes to secure the agreement on the project with the local government of India before the end of June this year.
Huang Tianwen, president of Sinosteel Corp., said the group and its joint venture partner will also invest at least US$200 million in iron ore and steel projects in India.
For inadequate raw material supply, quite a few Chinese steel makers are eyeing on overseas resources and plan to build works abroad.