In the first three quarters of 2011, operating revenue of Daye Special Steel (000708.SZ) reached RMB6.86 billion, up 16.92% YoY; while its operating profit achieved RMB479 million, up 3.83% YoY. In the third quarter, it attained operating revenue of RMB2.32 billion, up 15.34% YoY and 2.12% MoM respectively; while operating profit hit RMB125 million, down 6.57% YoY and 27.3% MoM.
Currently, Daye’s technological transformation projects successively complete, and its product quality is further improved. Meanwhile, Daye constantly adjusts its product structure to enlarge the proportion of high-end product, by which, it tries to realize unit price rise of steel.
Projects in Progress of Daye Special Steel
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Project
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Note
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High speed forging of 45MN (35,000 tons)
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Production started in 2011H2, it is expected to reach full production by 2014
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High speed forging of 20MN (30,000 tons)
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Production started in 2010H2, it is expected to reach full production by 2013
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Precision forging of 16MN (30,000 tons)
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Production start in 2012, it is expected to reach full production by 2015
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2.5m and 5m Rolling project
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It is expected to reach full production by 2013
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Source: Daye Special Steel; ResearchInChina