Chinese steelmakers invest in production outside of China

A report by the UK-based Financial Times (FT) claims that Chinese steelmaker Jianlong Group is buying production capacity in provinces outside of its Hebei base and abroad in an effort to 'get around Hebei's onerous output restrictions'.

According to the FT, many Chinese steelmakers are searching for new markets as Beijing curbs domestic production and have funded 32Mt of annual capacity in new steel projects in Indonesia and Malaysia.

Chinese producers are investing in plants abroad where they can produce steel without the threat of tariffs, it is claimed.They are also targetting steel-intensive industries in the ASEAN nations as investment opportunities in China dwindle.

Source: Financial Times.