On September 6, Liaoning Province-based Chinese steel producer Lingyuan Iron and Steel Corporation (Lingyuan Steel) announced that, considering the unprofitability of its medium-width cold rolled strip products, it has decided to halt production of these products.
The medium-width cold rolled strip production facility of Lingyuan Steel which is to be eliminated includes a pickling line, a rolling mill, a heavy coil unit and an annealing furnace. Lingyuan Steel plans to sell some of the equipment. According to Lingyuan Steel, the current market value of the production facility in question is RMB 58.74 million ($9.2 million). The facility achieved a total operating income of RMB 243 million ($38 million) in 2010.