- Hua-An Group is one of the largest independent coke producer in Shandong Province commanding 9.6% market share (Total revenue of coke production in Shandong province as at end-2005 was RMB 13.8 billion)
- Metallurgical coke industry in Shandong Province accounts for 6.1% of China’s total metallurgical coke revenue of RMB226.6 billion.
- The metallurgical coke market is forecasted to grow at a CAGR of 9.1% for 2006 to 2011 ( Source: Frost and Sullivan).
- Shandong Province is strategically located within the north, northeast and east China’s iron and steel production catchment area with close proximity to major coal reserves regions of north and east China.
- China has grown to be the largest steel market in the world and is undergoing an unprecendented expansion in steel making capacity.
- Hua-An Group has all the critical success factor as follow:
- Large manufacturing capacity to enjoy economies of scales;.
- Good relationship with transporters, established coal suppliers and steel producers;
- Close proximity to resources, customers and
- Experienced workers; and
- Priority in product quality and environmental
- The prices of coal, coke and steel are positively correlated. Metallurgical coke producers are in a better position to pass down rising production costs to customers as coke supply contracts are short term and priced based on spot prices.
- Enjoy the first mover advantage being the first Red-Chip Company listed on the Main Board of Bursa Malaysia.
- Opportunity for Malaysian investors to ride on Hua-An Group as proxy to tap into China, one of the fastest growing economies in the world.