News Room - Steel Industry

Posted on 09 Jul 2010

China steel giant calls for fair market environment in U.S.

China's Anshan Iron and Steel Group Corp. called for maintaining a fair market environment in the U.S. on Wednesday after 50 U.S. lawmakers sought to block its investment in a U.S. steel company.

 

In a recent letter to U.S. Treasury Secretary Timothy Geithner, the Congressmen said the joint rebar venture proposed by Anshan Iron and Steel and U.S.'s Steel Development Co. threatens "American jobs" and "national security".

 

In a statement, the steel mill said its investments in the U.S. and other regions were commercial acts based upon market demands and also attempts in international cooperation.

 

The steel bars produced at the 175 million U.S. dollar facility, in which Anshan Iron and Steel has a 14 percent stake, would mainly substitute imports, it said. Rebar is a low-end steel product mainly used in construction.

 

The 300,000-tonne plant in Amory, Mississippi would create jobs and increase tax revenues and would not harm local suppliers, it said.

 

"We chose the U.S. because it has a perfect law system," it said. "We believe the U.S. has given, and will continue to give, all businesses that respect local laws and customs the same market environment."

 

Qi Xiangdong, deputy secretary-general of the China Iron and Steel Association, on Monday urged western countries to maintain the proper attitudes towards global trade and economic globalization.

 

"If the (U.S) government supported blocking the deal, it was a protectionist attitude," Qi said.