Anshan Iron and Steel, one of China’s biggest steelmakers, is studying the feasibility of building a $2bn plant in India in what would be the first move into the country by a large Chinese steel producer.

Zhang Xiaogang, president of Anshan, told the Financial Times that involvement in India – probably as part of collaboration with other steel producers – was part of his effort to make Anshan the “most competitive steelmaker in the world” over the next five to 10 years.

He said the proposed plant – which it is hoped would make 2m-3m tonnes of steel a year – was part of an international strategy which also involved looking at the possibility of a new plant in an African country such as Nigeria.

“I feel that by collaborating with other companies we can both become more global and improve in

terms of the efficiency of our operations,” said Mr Zhang in an interview at a steel conference in Paris organised by the World Steel Association, of which he is poised to become the chairman.

Mr Zhang did not want to put a figure on how much the India facility might cost, nor say which other businesses he is talking to about potential collaborations. However, a plant in India of the size Mr Zhang has in mind would cost about $2bn.

Mr Zhang said Anshan – a government-owned corporation that is China’s seventh- biggest steelmaker – was keen to play a part in what seemed likely to be rapid growth of Indian steel output and consumption by around 2020.

“I feel that after China, India is going to be the next big country [for the steel industry].”

Last year, China produced almost 630m tonnes of steel – making the country the biggest steel producing and consuming nation with almost half of total world output.

In contrast India, with a similar population to China, produced 67m tonnes of steel in 2010.

China’s larger output is related to its much bigger manufacturing sector and the intense use of steel in infrastructure and housing.

Mr Zhang said steel output and consumption in India was likely to rise more slowly than in China over the past decade.

But he saw the possibility of Indian annual steel output and demand moving up to 100m-200m tonnes in the next five to 10 years.

Anshan is already involved in plans to establish a series of steel plants in the US in collaboration with Steel Development, a start-up business.