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The proposed expansion, which would require an investment of $500 million, is being evaluated by the company, ho are mindful of China’s oversubscribed stainless industry, the company source told Steel First on Monday July 21.
The country’s stainless capacity is about 27 million tonnes, with some industry bodies predicting a rise to 40 million tonnes as new capacity comes online.
Fujian Fuxin Special Steel is Formosa’s gateway to the steel industry, as well as the largest steel project in China’s Fujian Province.
The facility has a designed stainless capacity of 1.44 million tonnes, with the first phase of the project – 720,000 tpy of stainless hot rolling capacity – starting production earlier this year. The company has not yet provided a timetable for the second phase, which is also hot rolling.
Half of the products produced by Fuxin are 300-series stainless steel, while 400-series stainless products account for 20%, according to information on the company’s website.
Taiwan’s Formosa Plastics Group is mulling construction of a 400,000 tpy stainless cold rolling plant at its Fujian Fuxin facility in south-east China, according to a company spokesman.