Deng Yilin, president of the China Iron and Steel Industry Association (CISA) and also general manager of Chinese steelmaker Wuhan Iron and Steel, has lately argued for the approval of the projects for new steel production bases at Zhanjiang and at Fangcheng Port.
The Zhanjiang steel project in Guangdong Province is being built by leading Chinese steel producer Baosteel, while the Fangcheng Port project in Guangxi Province is established by Wuhan Iron and Steel. These two projects have so far failed to gain state approval due to the outbreak of the international financial crisis and due to concerns about overcapacity in the domestic steel industry.
Mr. Deng suggested the state should grant official approval for the projects stating that they constitute key items for adjustment and revitalization in China's steel industry and that they benefit the optimization of the structure of the domestic steel industry, eliminating backward capacity as well as stimulating domestic demand.