In 2012, several key iron and steel projects have started construction or production operations in China's Xinjiang Uyghur Autonomous Region, as reported by Chinese media.
The Kashi iron and steel project in Xinjiang, in which Shandong Iron and Steel Co. is investing a total of RMB 7.3 billion ($1.15 billion), involves the construction of a 1,000 m³ blast furnace, converter and rolled steel production facilities. The project expects to have an annual production of 3 million mt and to achieve annual sales revenues of RMB 10 billion ($1.58 billion) after completion. Construction of the first phase of the project with a designed annual production capacity of 500,000 mt of rebar and 500,000 mt of wire rod began in May, with production due to start in October this year.
Meanwhile, Bayi Steel's Nanjiang Iron and Steel project, being built with an investment of about RMB 10 billion ($1.58 billion), will produce 3.066 million mt of crude steel, 1.7 million mt of rebar and 600,000 mt of wire rod per year after completion. The project expects to achieve an annual production capacity of 1.5 million mt by the end of this year and an annual production capacity of 3 million mt in 2013.
Phase One of the Karamay pipe project of Shanxi Province-based Baoji Petroleum Steel Pipe Co. started official production in June this year with an annual output capacity of 40,000 mt of steel pipes for the petroleum industry, with its annual capacity to increase to 60,000 mt by the end of September this year. The overall project in which Baoji Petroleum Steel Pipe is investing RMB 340 million ($57.8 million), will have an annual output capacity of 120,000 mt upon completion.