Sichuan Province-based Chinese steel manufacturer Panzhihua Steel Group has announced that its wholly-owned subsidiary Jiangyou Changcheng Special Steel Inc, has been approved for post-quake reconstruction funds totaling RMB 6.68 billion ($97.94 million) from China's National Development and Reform Commission (NDRC). The funds are being issued in the wake of the earthquake which hit Sichuan Province on May 25 this year.
With these funds, the company plans to implement an upgrading project, including reconstruction of a special steel concaster, a high alloy steel rolling mill, a special steel rough roller, and other facilities. In addition, the company will also add new facilities aimed at improving production.
The project in question is scheduled to be completed by the end of June 2011. With all the new facilities put into production, Jiangyou Changcheng Special Steel will have an annual production capacity of 700,000 mt of crude steel, 790,000 mt of finished steel and 10,000 mt of titanium materials. This reconstruction and upgrading work is in line with the country's strategic policy of speeding up the structural adjustment of the steel industry and will support local economic development.