Flat Products bags China plant order

Flat Products Equipments has received a $ 40 million order from the Union Group to set up a steel mill complex at Xiangsu province in China.

The company said it received a letter of credit for $13.1 million to execute the order in next 6-8 months.

The order would be executed for Wspi Pacific Ship Metal Galvanising to set up cold rolling mill in the first phase. The company is expecting 70 per cent of its export sales to come from China in the next 2-3 years.

The company last year had bagged a $35 million order from Unisteel China, and 90 per cent of the payment was expected in the current financial year.

"The steel industry is cyclical and setting up of plants does not happen continuously forever in one country, so we will start looking at other opportunities once the steel plant demand in China is over," said Dinesh Tripathi, head of finance and company secretary, Flat Products.

The company would look for sub-contractor jobs for global giants like Hitachi of Japan, SMS and Demag of US and Germany, Danieli of Italy, VAI of Austria and Stain Hurtey of France in the near future.

It manufactures cold rolling mills and other downstream processing mills and related facilities like galvanising lines, tension lines, skin pass mills, mill automation equipments etc. for ferrous and non-ferrous industries.

FPE has also designing facilities and technolgy tie-up with some overseas mill and processing lines manufacturers like T.Sendizimir Inc., Achenbach Buschutten GmbH, Bliss Salem Inc., Redex, Milley Engineering Company and Comstock-2 Inc.