The largest ferronickel production line in China has commenced trial production operations in Fengzhen city in the northern Chinese province of Inner Mongolia. Dongfeng Ship Co., Ltd, based in the eastern Chinese city of Taizhou, is the investor behind the project. The project includes phase 1 construction of a 0.16 million mt annual ferronickel output capacity, and phase 2 construction of 1 million mt special steel annual output capacity. The No.1 submerged arc furnace of phase 1 started trial production recently.
Total investment for the overall project is RMB 7.8 billion, with investment in phase 1 reaching RMB 800 million. Phase 1 includes the construction of four submerged arc furnaces, with construction starting from September 2009. Installation of the No. 2 submerged arc furnace is currently underway and trial production will begin at the end of August this year. Preparation work is underway for the No. 3 and No. 4 furnaces. When phase 1 starts production, the ferronickel output capacity will be 0.16 million mt with a value of approximately RMB 2.46 billion. Phase 2 construction investment will total RMB 7 billion, with construction beginning in May 2011 and the special steel production line expected to start operating in August 2012.