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UK-based LNM Group, the world's second largest steel producer, has beefed up its efforts to increase its presence in China.

LNM plans to set up a cold-rolled and coated steel plant in thecity of Yingkou, northeast China's Liaoning province, in the next two years, according to a memorandum of understanding recently reached between LNM and the management committee of the Yingkou City Economic and Technological Development Zone.

With a total investment of 100 million US dollars, the plant isexpected to have an annual cold and hot galvanizing capacity of some 400,000 tons.

Lakshmi N. Mittal, LNM global president, said China witnessed the fastest growth in the steel industry in the world last year and the increase trend was expected to continue in the coming 10 years.

As a steel firm seeking globalization of its business, LNM would certainly strive to get a niche of the Chinese steel market,Lakshmi N. Mittal said.

LNM has launched steel plants in 12 countries worldwide. Its steel output is expected to reach 42 million tons and an income topping 15 billion US dollars in 2004.

LNM has opened three marketing agencies in China, which are respectively located in Beijing, Guangzhou, capital of south China's Guangdong province, and Urumqi, capital of northwestern Xinjiang Uygur autonomous region. It sold to China two million tons of iron and steel in 2003.

One of the major port cities in Liaoning province, Yingkou is acity of 42 million and boasts admirable geographical location and developed highway, railway and sea transportation.

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