Companies

Ansteel says US plant investment 'commercial'

(Agencies)
Updated: 2010-07-06 14:29

Anshan Iron & Steel Group, part of China's fourth-largest steelmaker, said it's making its investment decision in the US based on market needs after a group of US lawmakers opposed the plan. [US lawmakers urge probe of Chinese steel investment]

The "investment decisions in the United States are commercial in nature and are based on market needs,"the company said in an e-mailed statement last night. "We are committed to mutually beneficial relationships with our business partners and with our stakeholders in the community."

Related readings:  Ansteel intends to merge Baogang  Ansteel to bring Pangang under its umbrella  Ansteel plans to build JV in US  Ansteel approved to raise stake in Australian steelmaker

Anshan Steel in May agreed to build a reinforcing bar plant with Steel Development Co, making a first investment by a Chinese company in a US mill. The investment poses a national security risk as Anshan Steel is controlled by the Chinese government, a group of 50 US lawmakers said in a letter to Treasury Secretary Timothy F. Geithner.

The US has slapped duties on some Chinese steel products in the past year, arguing that the Asian nation subsidizes its producers. Chinese steel product exports have doubled in the first four months of the year as the global economy recovers.

Steel Development is a privately owned company led by Chairman John Correnti, a former executive at Nucor Corp, according to its website.