Chile steel producer CAP to propose $550 mln increase

SANTIAGO, July 11 (Reuters) - Chile's biggest steel and iron ore producer, CAP CAP.SN, said on Friday it would propose a $550 million capital increase through a stock issue at an extraordinary meeting on Aug. 4.

The company, which has been expanding its iron ore production and is considering increasing its steel output as prices rise on booming Asian demand, also said it planned to spend about $1.6 billion on expansions. (Reporting by Manuel Farias; Writing by Pav Jordan)