E United Group, one of Taiwan’s two integrated producers of steel products, will invest in a nickel-iron alloy plant in Ningde, Fujian province, China.

To be spread over 130 hectares, the proposed plant is designed to have initial annual output of 30,000 metric tons of pure nickel and 300,000 metric tons of nickel-iron alloy, with ample room for second- and third-stage expansions.

Investments in this plant will exceed US$300 million, or NT$9.15 billion, with the groundbreaking to be on Oct. 31 and the plant to help E United to go up the supply chain, solidifying its lead in the stainless-steel sector in Asia.

E United chairman Y.S. Lin said international nickel prices are highly volatile, hence impacting development of the stainless-steel industry worldwide. The nickel-iron alloy plant will help the group to better secure materials and cut production cost, proving its investment worthiness, said Lin.

An industry insider said E United, the world’s seventh-largest manufacturer of stainless steel, can roll out three million metric tons of stainless steel per year, accounting for over 8% of global output of 35 million metric tons.

An E United executive noted the Ningde nickel-iron alloy plant will source raw materials mainly from the Philippines and Indonesia, where E United is seeking to invest in nickel mines to better control raw material.