Dec 2, 2011 -- Maanshan Iron & Steel Co. (323) completed trials of train wheels that can run at 250 kilometers (155 miles) an hour, paving the way for mass orders of the product, China International Capital Corp. said.
Sales of the product are expected to contribute profit of 0.08 yuan a share next year for Maanshan, China’s biggest producer of train wheels, CICC analysts Luo Wei, based in Shanghai, and Ding Yue said in an e-mailed note dated yesterday. Trials by the Ministry of Railways started early this year and ended in October, they said.
Three calls to the office of Hu Shunliang, investor relations official with Maanshan, were unanswered.
China, the world’s biggest steel producer, wants mills to switch to higher-grade alloys because of overcapacity in general products and rising raw-material costs. Maanshan, the second- largest Hong Kong-traded steelmaker, said this week it plans to set up a 1.2 billion-yuan ($189 million) railway equipment venture that can produce about 200,000 pairs of wheels annually.
Maanshan’s third-quarter profit surged almost fivefold to 14.6 million yuan after output rose and taxes fell.