Dongbu Steel to Build 1.2MT Rebar Plant, Eyes Wire Rod Making

Dongbu Steel’s president Han Kwang Hee said on Friday the firm plans to build electric furnace steel based concrete reinforcing steel bar plant in Asan bay plant in South Korea for around 400 billion won. He said to a reporter of Japan Metal Bulletin the plant with 1.2 million tonnes of annual output capacity. He said the firm also studies another expansion plan including wire rod making line concluding in 2010.

The firm plans to expand the raw steel output to annual 8 million tonnes with additional investment for rebar and wire rod from current 3 million tonnes of capacity. Mr. Han said the firm also tries to secure adjacent land of Asan bay plant to expand the output to 10 million tonnes level.

The firm launched 1000 horsepower shredder machine at Asan bay plant in October and operates at 500 tonnes per month of processing to use lower grade ferrous scrap. The firm tries to make high grade sheet steel with 45-65% of ferrous scrap, 25-35% of pig iron and hot briquette iron and 20-30% of new substitute materials.

South Korea’s rebar demand is around 12 million tonnes annually, which grew at annual 5%. Mr. Han said the demand is slow after worldwide recession but the demand could keep expanding for condominium construction.

The firm built electric furnace steel based sheet steel plant with annual 3 million tonnes of output capacity. The firm plans 600,000 tonnes of hot rolled coil production in 2009, of which 300,000 tonnes is for the own cold rolling process. The firm plans to make 2.5 million tonnes of hot coil production in 2010 and 3 million tonnes in 2011.