Profits soar on investment in steel

CITIC Pacific looked poised to rake in the cash from investments in steel in the first half of the year with profits at one of its subsidiaries expected to soar by 500%, The Standard of Hong Kong reported. Daye Special Steel, 56% owned by CITIC, said profits could jump to US$24.8 million, up from US$4.1 million in the same period in 2005. Daye said the boost in profits was the result of improvements in production technology and a new focus on value-added products. Daye and steelmaker Hubei Xin Yegang contributed 20% to the group's total profit last year. The company started investing in the sector at the end of 2004.