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***SPOTLIGHT: Chinese steel on the Mississippi
May 19, 2010 - 04:30 GMT
KEYWORDS:
Anshan Steel
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China
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steel mill
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US
Anshan Steel's investment in US rebar mills has drawn not entirely unexpected barbs from some of the usual places.
"This is as politically driven an investment as possibly could be,", said Michelle Applebaum of Steel Market Intelligence, who is not known to be a fan of the Chinese steel industry.
The deal to build four rebar mills with John Correnti's Steel Development Co (SDCO) gives China the opportunity to claim it is helping to create steel jobs and develop modern plants in the US, offsetting unease about China's steel exports and currency policy.
It is also in line with recent calls by Chinese officials and experts for the country’s steelmakers to build plants abroad to bypass protectionism.
But it is worth setting aside the mixed reception in the US and looking at the business context for Anshan Steel's entry into the US, which reflects some well-trailed ideas about Chinese investment.
China's forays overseas have focused on capturing long-term raw material supply, particularly...
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Euromoney Institutional Investor PLC.
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