Steel processing and distribution is vital part in the steel logistics industry. Most steel must be processed before they can be applied to produce the end-products. Novo has expanded to steel processing as part of the Group's strategy of expanding upstream and downstream in the steel supply chain as a means to enhance the Group's margin. Novo Development (Tianjin) Limited has commenced construction in July 2010 to build a Steel Processing Center in Tianjin, and it is expected to be completed within 2011.
The Steel Processing Centre is expected to handle 100,000 tonnes of hot rolled coil and 100,000 tonnes cold rolled coil which will be cut, slitted and packed for distribution for local market. The target customers of The Group are end-users of hot rolled steel coil, cold rolled coils, galvanized steel, tin plate and pre-painted colour coils which may include steel pipe makers, can makers, fabricators, contractors, processors in automobile industries, electric appliances, and packaging industries among others.
