The city of Lvliang in the Chinese province of Shanxi has announced that it plans to restructure its steel industry and establish a steel production base with an annual output capacity of 10 million mt before 2013.
The steel production base in question will be established in two steps. In the first step, Shanxi Zhongyang Iron & Steel and Wenshui Haiwei Iron & Steel, both based in Lvliang city, will merge to form Lvliang Iron & Steel Group. In the second step, Lvliang Iron & Steel Group will carry out restructuring with other steel mills and related industries in the city, consequently forming a steel production base with 10 million mt of annual output capacity.
At present, state-owned Shanxi Zhongyang Iron & Steel can annually produce 3.6 million mt of pig iron, 3.6 million mt of crude steel and 3.6 million mt of finished steel, while privately-owned Wenshui Haiwei Iron & Steel produces just 0.3 million mt of crude steel per year.