Wugang of China to open sales office in Los Angeles

Silicon steel firm eyes buyers at U.S. manufacturing plants

By Tom Stundza -- Purchasing, 1/9/2008 10:29:00 AM

Chinese silicon steel producer Wuhan Iron & Steel, which markets as Wugang, has received of Ministry of Commerce approval to establish a trading company in Los Angeles late this quarter. Online news service Steel Business Briefing reports that China's fifth-largest steel producer will open Wugang (US) Trading with an eye toward selling value-added cold-rolled electrical steel products to buyers in the motor vehicles, major appliances and electronics industries.

Wugang currently exports only about 10,000-20,000 metric tons/year of steel to the U.S., representing less than 3% of the company’s total export volume. A Wugang official tells the subscription-only news service that the Los Angeles-based trading firm will help to boost this percentage in 2008, but an exact sales target has not been identified.