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On February 28th, China National Metal Products Import & Export Company together with Xinxing Heavy Industry Co. Ltd. under Xinxing Pipes Group set up New India Iron & Steel Company Limited with their Indian partners. On February 27th, the newly established company held a press conference in Grand Ashok. Mr. Ambarees, minister of the Indian Information Industry, and Mr. Peng Gang, commercial councilor of the Chinese Embassy in India, were present there. The ground breaking ceremony was held on February 28th. Mr. Virupakshappa, Indian parliament member, and Mr. Peng Gang, commercial councilor, were present at the ground breaking ceremony. Vice-President Xu Siwei and Chairman Liu Mingzhong of Xinxing Pipes Group attended the event.
Mr. Xu said that this is the Chinese enterprises' first project in Indian steel industry. It is of significance and an important step for the Chinese steel industry to develop in the overseas market. The project is also in line with Minmetals' development strategy. He said "Since Minmetals started its strategic transformation in 2000, Minmetals has endeavored to apply resources overseas and Chinese technology, and produce steel products required in the local market." This is the first Chinese investment in the Indian steel industry and is also the first step to invest in India, the most potential steel market. According to the agreement, the new company will build a complex with an annual production capacity of 6 million tons of pellets and 2.5 million tons of crude steel. The total investment for Phase I of the project is US$72 million dollars with 55 percent of the equities from the Chinese investors and 45 percent from the other three Indian investors. |
