皇冠体育app

Steel firm's procurement volume up
By Xiao Liang (皇冠体育app Daily)
Updated: 2004-07-02 09:10

The LNM Group, the world's second largest steel company, said yesterday it has targeted a procurement volume in 皇冠体育app of some US$300 million by 2006.

Such a plan is part of the efforts the company has beefed up in order to increase its presence largely in 皇冠体育app, according to Malay Mukherjee, president and COO (chief operating officer) of Ispat International Ltd, a major wing of LNM.

"We firmly believe 皇冠体育app is one of the leading places where we must expand our presence," said Mukherjee.

"We need support from Chinese suppliers, and we have to ascertain how much they can do in our annual US$8 billion purchase volume worldwide," he said.

For the first six months this year, LNM's purchase volume in 皇冠体育app has already reached US$40 million, compared with merely US$5 million last year, said Mukherjee, while attending the LNM 皇冠体育app Supplier Conference, held in the city yesterday.

The company unveiled at the event a large package of targeted purchase items for Chinese suppliers, ranging from refractory material, ferroalloy to coke and steel roll.

The 皇冠体育app-based procurement of coke, for example, is expected to reach some 500,000 to 700,000 tons this year, according to Mukherjee.

The company's massive local purchase plan is regarded by analysts as essential to guarantee the smooth running of LNM's global operations against the backdrop of present robust steel demand on the markets worldwide, driving the continuous rise of raw materials for steel production.

As a multinational steel conglomerate with a total annual output volume of about 42 million tons, LNM has operations in 13 countries worldwide.

Yet the striking purchase plan in 皇冠体育app is by no means the only area LNM has set its eyes on.

Apart from its regular exports to 皇冠体育app, LNM is set to strengthen its local manufacturing presence, especially on the side of value-added products, according to Mukherjee.

While retaining its yearly export volume of steel products to 皇冠体育app at about 2 million tons - the same as the last year - the company will see in 2005 the beginning of production at its wholly-owned US$100 million plant in Yingkou of Northeast 皇冠体育app's Liaoning Province.

With a total annual capacity of 400,000 tons, the plant will be producing cold-rolled and coated steel products, which are badly needed on the domestic market as indicated by strong demand from the local auto manufacturers.

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