Stock News: Delong to increase production for steel for heavy demand!

Delong Holdings Ltd may extend gains after the company said it will accelerate plans to increase production capacity for steel to meet burgeoning demand from China. Delong will boost its output capacity to 2.40 mln tonnes by end-2006 from 1.60 mln tonnes currently. It had originally planned to expand capacity early next year but it advanced the timetable as it is already operating at full capacity. "Our order books are fully booked for this year. There's no more capacity for this year," Delong investor relations manager Poh Kiat said at a conference sponsored by CIMB-GK Research on Friday. "We plan to increase capacity to 7 mln tonnes (annually) in two years," he added. Poh said Delong is also on the lookout for acquisitions and is eyeing two plants in China. A deal may be concluded next year, he said.