Xinxi Steel Completed Relocation 2011 Sales Revenue of 5 Billion Yuan

In mid-March, as the ∮258 seamless steel pipe production line was formally put into production, the main project of the overall relocation project of Hualing Tin Steel was completed and put into operation. In less than two years, a large steel company with an investment of 4 billion yuan, a capacity of 800,000 tons of seamless steel tubes and 700,000 tons of alloy rods, has risen on a large piece of weedy sandy beach.

In May 2008, Valin Steel Group passed a controlling stake of 55% and cooperated with China Resources Group to operate Jiangsu Xigang Group, a national key special steel company, in order to open up the Golden Channel of the Yangtze River and share the advantages of location and steel market in East China. In May 2009, Jiangsu Xigang Group began to relocate from Wuxi City to Jiangsu Taizhou on the north bank of the Yangtze River, formally established Jiangsu Hualing Tin Steel Special Steel Co., Ltd.

It is reported that the total investment of the relocation and transformation project of Hualing Tin Steel is more than 4 billion yuan, focusing on the construction of a steelmaking continuous casting production line, two seamless steel pipe production lines and an alloy bar production line. Among them, the key technology and core equipment of the EAF steelmaking and continuous casting production line was imported from Italy's Danieli Company. The trial production was successfully carried out in November 2010 with an annual steelmaking capacity of 800,000 tons. The key technology of the Φ258PQF continuous pipe rolling mill is The control inspection device was imported from Germany's Simmaker Mills and its designed annual production capacity was 700,000 tons. It was put into production in March 2011. The 850 alloy bar continuous rolling mill and the Φ100 three-roll mill unit were put into operation in October 2010.

∮100 seamless steel pipe production line is the only production line moved from the old tin steel. It was put into operation in October 2010. The designed annual production capacity is 60,000 tons. The product is a high quality seamless steel pipe with a diameter of 60~102mm and a wall thickness of 18mm or less. Alloy bar production line in the same type of production line, the largest range of specifications, put into production after the group diameter up to Φ45-Φ150mm, the annual output can reach 700,000 tons. The two production lines have basically reached production within two months of production.

According to the Hunan Daily, all of the iron ore of Hualing Group comes from outside the province, and the imported mines account for more than 55%. Iron ore from Australia, Brazil, India and other places must first be transported to the Yangtze River estuary by sea-going vessels, then transported to Yueyang via the Jiangnan River twice, and then transported by land to the enterprises. Valin Steel's logistics cost alone is more than 300 yuan per ton higher than that of coastal steel companies.

To this end, while tin steel is building its main steel industry, it has also built supporting terminals along the river's inner harbour and put them into use simultaneously. In addition, the already-launched Yangtze River Terminal project is preparing for commencement of construction. It is expected that nearly 10 million tons of throughput will be formed in 2012. By then, a 100,000-ton freighter can reach Hualing Jingjiang Port, thus realizing the long-cherished wish of Tongling Dahai of Valin Steel Group. Its comprehensive competitiveness will reach a new level.

According to statistics, East China is also the region with the largest steel consumption in the country, and steel consumption accounts for 20% of the country's total, of which steel is the largest in construction, machinery, automobiles, containers, shipbuilding, and household appliances. East China is also a region with large consumption of seamless steel pipes. Larger consumption, local Baosteel, Wuxi Simles and other large-scale seamless steel pipe production companies can not meet the local needs, a large number of high-quality seamless steel pipe also have to rely on foreign steel pipe production enterprises.

Today, the Valin Group has successfully entered the East China region to establish a strategic layout point, as a bridgehead, the radiation of the East China market; at the same time as a transit station of the Group Logistics, distribution center, effectively reduce the logistics costs!

In addition to building the most competitive comprehensive seamless steel pipe service provider in East China, Tin Steel will also build steel pipe bases and logistics bases, extend the industrial chain, extend upstream and downstream of the main industry, and create a complete steel industry chain. “In 2011, tin steel will strive to achieve a sales revenue of 5 billion yuan!” Huafang tin steel chairman Tao Fangguo is full of confidence.

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