CITIC Pacific Special Steel Plans to Buy a Steel Plant in Southeast Asia
[tintuc]
CITIC Special Steel, part of the CITIC Group, is the world’s biggest maker of special steel. Its revenue has been over 100 billion yuan for two years in a row. Steel comes in three types: regular steel, high-quality steel, and special steel. Special steel, the main business of CITIC Special Steel, is the top type. It performs the best, costs the most, and is used in industries like energy, cars, and machinery.
The company’s main factories are in Jiangsu, Hubei, and other places in China. It has no plants outside China yet. Now, CITIC Special Steel is planning its first overseas factory in Southeast Asia, focusing on buying and upgrading an existing plant.
CITIC Special Steel will join other Chinese steel companies expanding into Southeast Asia. Before this, top steel firms like Delong Steel and Qingshan Group built factories in Indonesia.
Wang Haiyong explained that, based on the company’s research, building overseas costs more—about 1.6 to 2 times higher than in China—and buying is cheaper. New projects also take longer and have more risks, so CITIC Special Steel sees buying as a better choice.
Chinese steel companies have bought plants overseas before. Hebei Iron and Steel Group and Jingye Group grew internationally by purchasing foreign steel plants. In 2016, Hebei Iron and Steel bought the Smederevo steel plant in Serbia. In 2020, Jingye Group bought British Steel. Wang Haiyong said CITIC Special Steel is now checking possible targets in Southeast Asia, doing early reviews and feasibility studies, and aiming to complete deals this year.
CITIC Special Steel, part of the CITIC Group, is the world’s biggest maker of special steel. Its revenue has been over 100 billion yuan for two years in a row. Steel comes in three types: regular steel, high-quality steel, and special steel. Special steel, the main business of CITIC Special Steel, is the top type. It performs the best, costs the most, and is used in industries like energy, cars, and machinery.
The company’s main factories are in Jiangsu, Hubei, and other places in China. It has no plants outside China yet. Now, CITIC Special Steel is planning its first overseas factory in Southeast Asia, focusing on buying and upgrading an existing plant.
CITIC Special Steel will join other Chinese steel companies expanding into Southeast Asia. Before this, top steel firms like Delong Steel and Qingshan Group built factories in Indonesia.
Wang Haiyong explained that, based on the company’s research, building overseas costs more—about 1.6 to 2 times higher than in China—and buying is cheaper. New projects also take longer and have more risks, so CITIC Special Steel sees buying as a better choice.
Chinese steel companies have bought plants overseas before. Hebei Iron and Steel Group and Jingye Group grew internationally by purchasing foreign steel plants. In 2016, Hebei Iron and Steel bought the Smederevo steel plant in Serbia. In 2020, Jingye Group bought British Steel. Wang Haiyong said CITIC Special Steel is now checking possible targets in Southeast Asia, doing early reviews and feasibility studies, and aiming to complete deals this year.
[/tintuc]
