Baosteel, Shaosteel ink contract on Zhanjiang Project

SteelOrbis Shanghai SteelOrbis learnt that Shanghai based Baoshan Iron and Steel Group (Baosteel) and Guangdong based Shaoguan Iron and Steel Group (Shaosteel) signed a contract with Zhanjiang Municipal Government in Guangzhou on May 22nd, to establish a joint venture for Zhanjiang Steel Project. The total investment for Zhanjiang Steel Project will be RMB 140 billion ($17.5 billion) and the total capacity will reach 20 million tons. The project will be constructed in two phases. The first phase will cost RMB 70 billion ($8.7 billion) and have 10 million tons capacity. The registered capital of the joint venture between Baosteel and Shaosteel is RMB 20 billion ($2.5 billion).