Gandhinagar, 18 January, 2012

The Industrial Extension Bureau, the investment promotion company of the Government of Gujarat, today signed a Memorandum of Understanding (MoU) with China Steel Corporation, a leading Taiwanese steel manufacturer with integrated production capabilities. The MoU was signed in the presence of the Hon’ble Chief Minister of Gujarat Shri Narendra Modi. China Steel Corporation has incorporated a subsidiary company named China Steel Corporation India Pvt. Ltd. to set up an electrical steel plant in approx. 145 acres at Dahej GIDC estate. The company would be investing to the tune of US$ 178 million (approx INR 900 Crore) in the first phase and totaling up to US$ 1.2 billion (INR 6000 Crore) by the second phase.

China Steel Corporation has incorporated a subsidiary company named China Steel Corporation India Pvt. Ltd. to set up an electrical steel plant in approx. 145 acres at Dahej GIDC estate. The company would be investing to the tune of US$ 178 million (approx INR 900 Crore) in the first phase and totaling up to US$ 1.2 billion (INR 6000 Crore) by the second phase.

The China Steel Corporation informed that the work for the first phase will start from June 2012 and the manufacturing process is expected to initiate from the beginning of year 2014 and investment for second phase will be completed by the year 2016.

China Steel Corporation first visited Gujarat on 12 May, 2011 for exploring investment possibilities in here. Later on, multiple visits were made by their technical team to gather information like electricity, gas supply, water availability etc. in GIDC land shown to them.

The dignitaries present at the MoU signing ceremony were Hon’ble Chief Minister of Gujarat, Shri Narendra Modi, His Excellency ONG WEN-CHYI, Ambassador, Taiwan R.O.C., T. R. Jeng, VP Operations of CSC group,Mr. J.D. Lin, Chairman, China Steel Corporation India (P) Ltd (CSCI) and Mr. S K Tzeng, M.D, CSC India Pvt. Ltd. CSC has incorporated a subsidiary company named China Steel Corporation India Pvt. Ltd. to set up an electrical steel plant in Dahej, GIDC estate. The investment has been approved by Investment Commission, Ministry of Economic Affairs, Taiwan, R.O.C.

China Steel Corporation’s products are highly in demand for production of motors, generators, transformers, compressors, voltage regulators and so on. The economy of India is entering a rapid growth stage. Presently, the steel consumption per capita of India is less than 50 kg. In this situation, it is estimated that demand for steel is likely to jump in the near future. With a great increasing usage of motor, transformer, generator and household appliance, the total demand for ES in 2011 which was above 500,000 tons is estimated to be up to 670,000 tons by 2015. A 6% of average growth rate is expected in the coming five years.