Hunan Valin Steel Co Ltd, in which Arcelor Mittal holds a 29.48 pct stake, said its Hunan Valin Xiangtan Iron & Steel Co Ltd unit is considering a stainless steel project with an estimated investment of 9 bln yuan (approximately USD1.3 bln).
In a statement filed with the Shenzhen Stock Exchange, the company said that the project is expected to have an annual capacity of 700,000 tons.
But the company pointed out that its board has not made any formal decision on the project, and a final decision will not be made this year.
Approval from shareholders and relevant authorities will also be necessary, it said.
Listed Hunan Valin Steel Co Ltd owns 94.52 pct stake of Hunan Valin Xiangtan Iron & Steel Co Ltd.
However, the company added it has signed a letter of intent with the government of Xiangtan county last month for the requisition of land for the planned project.
No further details were provided.
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