The Hindu Business Line : Jiangyin Steel begins operations in Pune

JIANGYIN Xing Cheng Special Steel Works Co Ltd, jointly set up by Hong Kong CITIC Pacific Ltd and Jiangyin Steel Works, has officially begun operations in India. It has set up a liaison office in Pune.

The company has been in the domestic market, supplying speciality steel, for more than a year now.

Talking to presspersons, Mr Yinhua Zhang, Director of Jiangyin Xing Special Steel Works Co Ltd, said the company has been supplying speciality steel to many automobile companies in the country and the demand is close to 3,000 tonnes a month. Out of the total demand, about 80 per cent went to the auto industry.

Its major customers include Tata Motors, Ashok Leyland and Bharat Forge.

Mr Zhang said the import to the Indian market could increase depending on the industry demand.

Mr Zhang said the current staff strength in India would be three.

The basic idea to begin its operations in Pune is the proximity of the auto and its ancillary units. The Pune office will provide feedback to the Chinese company on the market trends and the analysis.

Recruitment will be limited and preference will be given to candidates fluent in Chinese, he said.

On why the company had chosen Pune, Mr Zhang said the customers had suggested the city, but Chennai had also been on the priority list. Depending on the business from the Indian market, the company may explore the option of opening a second office and Chennai might be preferred.

Mr Zhang said Jiangyin had exported special steel product up to 1.8 lakh tonnes in 2004, accounting for about 57 per cent of its national total export quantity of similar products.

In 2004, 3,51,000 tonnes of bearing steel were produced and sold out by the company.

The company has won the quality approval of SKF in Sweden, FAG in Germany, NSK and Koyo in Japan and Caterpillar Company in the US.

Mr Zhang said, for 2004-05, the output from the company was about two million tonnes with a turnover of $1.2 billion.

The company exports its products to over 29 countries and has a capacity to manufacture 1.7 lakh tonnes of steel a month.

Mr Zhang said, with the Pune operations, the company hopes the Indian market would account for 10-20 per cent of the international business.

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