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Linggang invests 280mln yuan to newly build 0.5mln-ton wire rod production line

Published: 19 Nov 2009 00:44:12 PST

Nov. 19 MetalBiz--Linggang said in a statement that to further increase its wholly-owned subsidiary, Beipiao Baoguo Iron Mine Co., Ltd.’s exploiting ability and improve mine’s ventilation system, the company agreed that Baoguo Iron Mine builds up a auxiliary shaft and air shaft in Tiedanshan Mining area for the two and a half years. After the project is put into production, the mine’s exploiting ability will rise to 1.8mln tons per year from the previous 1mln tons per ton.

The company plans to raise 149mln yuan by itself, during the great repair of 1# blast furnace, to transform 1# blast furnace’s blower unit and set up a turbine unit to use blast furnace’s overpressure to produce electricity. The great repair will last for two months, and it will be completed before the end of April, 2010.

Additionally, to increase types of products and phase out the obsolete equipment, the company intends to invest 280mln yuan to set up a fully-continuity high-speed wire rod wire rod rolling production line with the yearly production capacity of 500,000 tons. The project is expected to be completed in September, 2010, with an expectation net profit of 48.117mln yuan per year.