Anshan Iron and Steel Group Corp (Angang) and the South Korea-based LG International have recently signed a letter of intent to set up steel products processing centres’ in India and Brazil.
The move reflects Angang’s ambition to enter the local automobile and home appliances markets. Angang insiders said the company had focused on the materials sectors and the downstream steel products processing areas when investing overseas and it is also offering value added services for the end users through extending its supply chains.
Currently, China’s steel market faces overcapacity and weakening demand from downstream sectors, which has weighed on the steelmakers. Seeking opportunities in overseas markets is likely to be a good solution for the large domestic steel producers.
Source: China Metals e-mail [email protected]