India’s infrastructural ambitions coupled with a positive change in its Industrial Policy leaves massive potential for Chinese companies already adept at building super highways and impeccable infrastructure to invest in. Thats probably why Anshan Iron and Steel, China’s third largest steelmaker by output, is studying the feasibility of a US$2bn steel plant in India in what would be the first move into the country by a large Chinese steel producer. The India plant is expected to produce steel plates used in household appliances and automobiles,
Also known as Ansteel the company plans to enter the Indian market with a consortium of other steel producers also plans to enter the African market soon as part of their global expansion strategy. “I feel that by collaborating with other companies we can both become more global and improve in terms of the efficiency of our operations,” said Mr Zhang in an interview at a steel conference in Paris organised by the World Steel Association, of which he is poised to become the chairman.
India which produces almost one-tenth the steel that China does would benefit from the investment. “Even if the Chinese channel three per cent of their forex stock (about US$100 billion) into a 30-year fixed return investment into India’s infrastructure, that would be a win-win proposition,” Ajit Ranade, chief economist with Aditya Birla Group told the Deccan Chronicle.
Last month Anshan faced investor issues in the States, with some steelmakers alleging that Ansteel benefits from Chinese government subsidies. Mr. Zhang Xiaogang, President of Ansteel now hopes his newly appointed position as the Chairman of the World Steel Association would help his global expansion plans.