Angang obtains approval for 5 million mt steel project

SteelOrbis Shanghai According to the reports from Chinese steelmaker Anshan Iron and Steel Group (Angang), China's National Development & Reform Committee approved its 5 million metric tons per annum capacity steel project at Bayuquan Port, Yingkou, Liaoning Province. The construction is expected to begin by the end of this year, and the project is planned to be commissioned in 2008. The estimated investment budget for this project is RMB 22.6 billion ($2.825 billion); which will be divided as RMB 8 billion ($1 billion) in 2006, RMB 12 billion ($1.5 billion) in 2007, and RMB 2.6 billion ($325 million) in 2008. The investment is expected to pay off in 5.9 years. The project will comprise two blast furnaces with 4.93 million metric tons per annum pig iron production capacity, and a rolling plant with 5 million metric tons per annum steel rolling capacity. The rolling plant will include a 2 million metric tons per annum capacity 5,500 mm wide thick plate rolling line, a 2.96 million metric tons per annum capacity 1,580 mm continuously hot rolling line, and a 960,000 mt capacity 1,450 mm cold rolling line. After the plant goes into operation, Angang will have to import nearly 7.3 million mt iron ore every year. The plant is located in a coastal area close to Yingkou Port and against Liaohe Oil Field in the north. Yingkou Bayuquan Port has routes with over 100 ports in 40 countries. Therefore, it is the best place in northern coast to build a steel plant. With its 5,500 mm wide thick plate rolling mill, the plant will also have the largest plate rolling mill in the world. Currently, the biggest plate rolling mill in China is Baoshan Iron & Steel's (Baosteel) 5,000 mm rolling mill.