China Oriental Group Company, a joint venture between Luxembourg-based steelmaker ArcelorMittal and China-based Hebei Jinxi Iron and Steel Group, has announced that it will build two flat steel plants in China in cooperation with ArcelorMittal. Each of the joint ventures will be owned 50 percent by China Oriental Group and 50 percent by ArcelorMittal.
The first plant will operate a hot strip mill and reach an annual production capacity of 2.5 million mt of HRC by the end of the first development phase. The capacity of the plant, which is planned to commence production within 18 months after establishment of the joint venture, is expected to potentially increase to an annual 3.5 million mt if a second development phase is launched. The output will be supplied to the second plant.
Meanwhile, the second plant will have an annua production capacity of 1.5 million mt of cold rolled grain-oriented and non-grain-oriented electrical sheets at the end of the first development phase to supply the automobile, industrial motors, home appliance and power generation sectors. The capacity of the plant, which is planned to commence production within 26 months after establishment, is expected to potentially increase to an annual 1.8 million mt if a second development phase is launched.