Taking the road less traveled for growth

Hebei Iron &Steel sets up mill in South Africa to circumvent dwindling demand, tough market conditions at home, reports Lyu Chang.

Although dwindling domestic demand and excess capacity have shrunk profit margins for most Chinese steelmakers, it has inspired some to tap overseas markets for sustained, long-term growth.

Hebei Iron &Steel Co, China's second-largest steelmaker by volume, however, believes that the current situation, though difficult, is something that can be overcome. "When the going gets tough, the tough get going," said company officials, adding that the proposed steel plant in South Africa would help the company offset the current problems.