June 28 -- Xinxing Ductile Iron Pipes (000778) said it will invest 2.75 billion yuan on the building of three million tons of steel production capacity in Hejing Industrial Park, Xinjiang province, through its subsidiary, Xinxing Ductile Pipes (Xinjiang), reports yicai.com, citing a company filing.

The first phase of the work, which involves the building of one million tons of steel production capacity, will be constructed during the 2011-12 period. The major products to be produced at this base includes steel rods, steel bars, pipes, and sheets.

In addition, Xinxing Pipes will inject 500 million yuan into Xinxing (Xinjiang), jointly with Xinjiang Kingte Iron and Steel. The two parties will provide two billion yuan worth of entrusted loans or loans guarantees to Xinxing (Xinjiang).

To stabilize the supply of iron ore to all its subsidiaries in Xinjiang, Xinxing Pipes will establish a mining joint venture with registered capital of 10 million yuan, with natural person Gao Xincheng.

The mining joint venture will apply for both prospecting rights and exploration rights from the local authorities.

Source:CapitalVue