(04/16/2000)

The Panzhihua Iron and Steel Corp in Southwest China's Sichun Province will seize an opportunity accompanying the rapid development of the western region to realize its take-off within five years.

The corporation, one of the country's steel conglomerates, aims for sales of 15 billion yuan (US$1.81 billion) by 2005, compared with 10 billion yuan (US$1.2 billion) last year.

The corporation expects its profits to surge to 1.1 billion yuan (US$132.50 million) by 2005.

To fulfil its ambitious target, the corporation will beef up its technical upgrading and sharpen its products' competitiveness, said the corp's president Hong Jibi.

The corporation plans to invest 3 billion yuan (US$361 million) in building continuous steel casters and other support equipment to engage in sequence casting, which will greatly enhance steel production efficiency, Hong said.

Hot and cold-rolled steel lines will be improved to expand production capacity and compete with imports.

"The corporation will upgrade beam and rail production technologies to meet mounting demand for express railways in the country," Hong said.

A leader in the country's steel sector, the corporation began manufacturing express rails at the beginning of this year.

To attract more talented employees form home and abroad, the corporation will earmark 10 million yuan (US$1.20 million) this year to reward those making significant contributions to technical upgrading.

"The corporation will also make full use of its abundant mineral resources," Hong said.

The corporation has high hopes for its resources development because only 5 per cent of what's available has been used.

The area is home to the country's largest supplies of vanadium and titanium, the two precious metals which can increase the steel strength. Its titanium reserves account for over 35 per cent of the world's total.

The corporation, the country's biggest vanadium and titanium product base, is expected to channel about 3.65 billion yuan (US$439.75 million) into the development of high-grade vanadium and titanium products, Hong said.

The firm will tighten its efforts in the utilization of waste industrial gas, water and residues and environmental protection.

It will invest more than 750 million yuan (US$90.36 million) in 10 great environmental protection and industrial wastes reutilization projects within the next five years.